China admits first rise in poverty since 1978 (unregulated capitalism?)

[papau]

http://www.guardian.co.uk/china/story/0,7369,1264917,00.html

China admits first rise in poverty since 1978

Jonathan Watts in Beijing
Tuesday July 20, 2004
The Guardian

China's fading socialist credentials almost disappeared yesterday when the government admitted that the number of farmers living in poverty surged by 800,000 last year despite a 9% economic growth rate that enriched the urban middle class and corrupt party officials.

The first rise in poverty since the start of market-orientated reforms in 1978 will embarrass and alarm the communist leadership, which sees the growing gap between urban rich and rural poor as the greatest threat to the stability of the world's most populous country.