Political Order and Poverty Eradication

Abstract

Introducing the concept of viability, this study clarifies that the key to solving the poverty problem is to provide external assistance to nonviable residents. The study then proposes a simple model and explains that 1) although private market mechanisms are efficient for economic growth, public market mechanisms mobilizing societal resources are necessary and effective for poverty eradication; and 2) strong state capacity, competent leadership, and high social trust and support will benefit poverty eradication. The concept of viability and the model was further applied to compare the war on poverty in the US and the poverty alleviation plan in China in the following aspects: background and top design, public versus private market mechanism, leadership, social trust, and achievement. In addition, a cross-country investigation was conducted to obtain preliminary empirical evidence. The findings in this study support the concept and the model, which inspired us to provide some discussions.