China's capitalist reforms are said to have moved 800 million out of extreme poverty - new data suggests the opposite.

China's capitalist reforms in the 1980s and 1990s are often credited with reducing extreme poverty in the country. However, a new study challenges this narrative, suggesting that extreme poverty actually increased during the market reforms of the 1990s. The study argues that the World Bank's calculations, which use purchasing power parity, do not accurately reflect people's purchasing power for essential goods and services. The researchers find that China's rate of extreme poverty was one of the lowest in the developing world during the socialist period, but increased dramatically during the market reforms. The study highlights the importance of social policies and public ownership in reducing extreme poverty, rather than relying solely on economic growth. [Extracted from the article]