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Standard of living in China


In past times, the Chinese economy was characterized by widespread poverty, extreme income inequalities, and endemic insecurity of livelihood. Since then, the most concrete evidence of improved living standards has been that average national life expectancy has more than doubled, rising from around thirty-two years in 1949 to sixty-nine years in 1985. In addition, the percentage of the Chinese population estimated to be living in absolute poverty fell from between 200-270 million in 1978 to 100 million in 1985.

In 1987 the standard of living in China was much lower than in the industrialized countries, but nearly all Chinese people had adequate food, clothing, and housing. In addition, there was a positive trend toward rapid improvements in living conditions in the 1980s as a result of the economic reforms, though improvements in the standard of living beyond the basic level came slowly.

Until the end of the 1970s, the fruits of economic growth were largely negated by population increases, which prevented significant advances in the per capita availability of food, clothing, and housing beyond levels achieved in the 1950s.

The second major change in the standard of living came about as a result of the rapid expansion of productivity and commerce generated by the reform measures of the 1980s. After thirty years of austerity and marginal sufficiency, Chinese consumers suddenly were able to buy more than enough to eat from a growing variety of food items. Stylish clothing, modern furniture, and a wide array of electrical appliances also became part of the normal expectations of ordinary Chinese families.

Following the economic reforms introduced by the government in the late 1970s, consumption and individual incomes rose significantly, with the real per capita consumption of peasants rising at an annual rate of 6.7% from 1975 to 1986, while for urbanites over the same period, the corresponding figure was 5.5%. The improvements in the standard of living were demonstrated by a boom in rural and urban housing, together with a considerable increase in the ownership of televisions and other appliances.


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