Food stamps considered for urban poor

The government is looking at distributing food stamps to millions of urban poor who are not paid their monthly living allowance, because many authorities do not have the money.

The proposal, similar to a scheme used in the United States, was made by Xu Xiaoqing and Chen Xiwen, two leading economists at the State Council's Development and Research Centre, a top think-tank, the News Weekly reported yesterday.

At the end of September, 19.6 million urban residents living in poverty in China qualified for the minimum living allowance, which varies from 150 yuan (HK$142) a month in cities in the interior to more than 300 yuan in rich cities in the east. However, many governments are too poor or too corrupt to pay it, meaning millions have to live off the little money they make from odd jobs, or borrowing from friends and relatives.

Under the proposal, these people would get coupons to exchange for food.

The economists argue this is a better way to help the poor, since local governments cannot afford to pay the allowances.

They also point to figures that show the number of urban poor is rising. Data from the State Statistical Bureau shows that the proportion of workers laid off from state firms who found new jobs fell from 50 per cent in 1998 to 42 per cent, 35 per cent and 30.6 per cent over the next three years respectively.