92.The Chinese government has recognized the need to ensure that the poor benefit more directly from poverty reduction interventions and acknowledged the limitations of its current strategy in this regard.It has been understandably averse to directing targeted transfers to the poor，largely through a fear of creating dependency.However，it currently lacks appropriate alternative mechanisms for ensuring that poverty reduction activities reach those whom they are primarily intended to benefit.Since many of the remaining absolute poor are located in areas of extreme poverty，economic growth alone，no matter how pro-poor，is unlikely to resolve their problems.Moreover，with market transition giving rise to new forms of risk，vulnerability and poverty，and widening socio-economic differentials，conventional methods of geographical targeting are no longer adequate to eliminate poverty.