"China’s poverty reduction story is primarily a growth story. China’s rapid and sustained economic growth has been accompanied by a broad-based economic transformation. Reforms began in the agricultural sector, where poor people could benefit directly from improvements in productivity associated with the introduction of market incentives. The development of low-skilled, labor-intensive industries provided a source of employment for workers released from agriculture. Urbanization helped migrants take advantage of the new opportunities in the cities, and migrant transfers boosted incomes of their relatives remaining in the villages. Public investment in infrastructure improved living conditions in rural areas but also connected them with urban and export markets. Reforms in all these areas were incremental, which may have helped businesses and the population adjust to the rapid pace of change. Government policies targeted specifically to poverty reduction have also played an important role in improving the lives of poor people in rural areas, particularly after the poverty headcount dropped below 10 percent of the rural population, and contributed to the eradication of extreme poverty by 2020. China’s success in poverty reduction was supported by effective governance. Like its East Asian peers, China has been endowed with a capable and effective government, able to credibly commit to the target of poverty reduction, facilitate interagency coordination within and across various levels of government in implementing policies, and mobilize nongovernment stakeholders to cooperate in achieving policy objectives."