The Micro-Oriented State, Development, and Poverty
The patterns of economic growth and poverty reduction in Guizhou and Yunnan can be partially explained by their distinct policies on the similar features of their rural economies: road building, migration, tourism, and coal mining. Although these four factors proved to be important in both provinces, it is the variations of each of them that explain the different patterns of economic growth and poverty reduction. Thus, the policy choices of these provincial governments, not just cultural, geographical, and economic factors, created these puzzling patterns. This chapter analyzes these areas synthetically to derive and explore the overall models that the leaders of the two provinces adopted to change and improve their economies. It discusses the developmental state model adopted by the Yunnan provincial government and the micro-oriented state model followed by Guizhou leaders. The models of poverty reduction vary in the nature of the relationship between the state and market, primary goals (e.g., growth or poverty reduction), tactical approaches, scale of the activity, and mechanism through which the poor are expected to benefit.
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