During the period of accelerated so-cial transformation,except for those factors such as geographical environment,natural disaster and per-sonal reasons, the key factor for poverty in the western ethnic region of China is structural. Moreo-ver,this kind of structural poverty normally is inte-grated with other factors,such as natural disasters, culture, etc. This makes the poverty issue in the western ethnic region more prominent than in other areas. Structural poverty creates not only a butterfly effect on poverty, but also creates serious social harm. The biggest harm is that it is difficult for the group that is poor to integrate into society, and to find relief from their poverty. On the other hand, structural poverty increases misunderstanding and distrust between the social classes and groups. Firstly, the poverty during the period of social transformation is mainly reflected in the gap be-tween the east and west, the gap between urban and rural areas,the gap between industries,and the gap among the different groups. During the period of transformation,the gap between the western and eastern areas became bigger and bigger, and the western area became a symbol of poverty. Second-ly,with regard to the gap between urban and rural areas, the gap became even larger. Thirdly, the negative social psychological problem caused by poverty led to social breakdown. Because the west-ern ethnic minority region is in a poor and back-ward situation,the minority people’s sense of pride has been gradually replaced with a sense of inferi-ority. People feel that their development is restrict-ed, and they have become a marginalized social group. The economic gaps between the western ethnic minority region and the eastern region, as well as the internal gaps within the western ethnic minority region, have caused misunderstandings a-mong the different regions and within the same eth-nic group. The entire society’s anxiety level with re-gard to the wealth is increasing. The rich do not feel safe with their wealth,and the poor look upon the rich as the enemy. A kind of structural division among the different social groups in the society has appeared. The last thing is that poverty not only causes social breakdown, but also creates malnutri-tion among the poor, especially among the children in the western ethnic minority region. The state also has noticed this negative social result,and has star-ted to provide free nutritious lunches in primary and middle schools for the children from poor fami-lies. This is a one way to remedy the system. Structural poverty is not only due to the less-developped economy, but is also due to the social system’s unfair allocation of wealth,even when the economy is highly developed. As a result, some people cannot enjoy the fruits of economic develop-ment. Since structural poverty is caused by the sys-tem,its management should doubtlessly begin from within the system. Under the precondition that pov-erty alleviation system must be combined with the welfare system,we should strive for the economic de-velopment of society so as to accelerate the economic development of the western region; ensure and en-hance the “hematopoietic function” of the region,of the ethnic groups,of the community and of the family from the angle of the system. And in this way to con-struct a modern state governance system and realize the modernization of governance. Firstly,one should promote the development vi-tality of the western ethnic minority region. The west-ern ethnic minority region must insist on taking the market as its guide, pay attention to industrial adjust-ment,cultivate and construct an industrial base with regional characteristics,and realize sustainable devel-opment for increasing the industrial competitiveness, and input capital support for poverty alleviation. The enhancement of the cooperation between the eastern and western parts of China can promote the industrial structure of the eastern part,while extending the in-dustrial chain of the western minority region,thus,re-alizing a win-win result. Secondly,based on the overall planning of ur-ban and rural areas, one should promote the steps needed for the construction of urban and rural inte-gration. Overall planning urban and rural develop-ment means for the urban area to play a leading role for the rural area,while the rural area plays a role to promote the urban area. In this way, urban-rural integration can be realized. Under the new situation,if one wants to accelerate urban -rural integration in the western ethnic area,and promote the social development of the region, one should pay attention to the following aspects: 1 ) make a perfect overall plan for urban-rural development , and make an effort to form a new development framework for urban - rural integration; 2 ) make an effort to accelerate urban development,and fully utilize the urban areas’ leading role for the poor ru-ral areas in the western ethnic minority region;3 ) accelerate the development speed of the poor rural areas in the western ethnic minority region,and en-hance the supportive role of the rural area to the urban area;4 ) promote the efficient flow of key el-ements between the urban and rural areas, realize the industrialization and urbanization of the rural area; 5 ) create a positive social cultural atmos-phere,and gradually promote the development ca-pability of the poor population in the rural area. Thirdly, based on the construction of the people’s livelihood, and optimizing social re-sources,one should improve the social welfare sys-tem in the ethnic region. The construction of the people’s livelihood is related to the people’s most basic,most long-term and most vital benefits. The social welfare system is the primary and fundamen-tal arrangement for the harmonious development of modern society, and it is a safety net for the people’s livelihood. Accelerating and perfecting the social welfare system in the western ethnic minority region plays an important role for social develop-ment and,ethnic unity,as well as for the social sta-bility in the western region. Finally, the poverty alleviation system should be improved. A good poverty alleviation system is necessary while supporting the poor. At present, governments on various levels of the state are pro-actively implementing poverty alleviation plans, making policies and systems related to poverty alle-viation and social welfare. These poverty alleviation plans and policies must depend on a good poverty alleviation system. While the state constructs mod-ern governance system,it must break the influence of the planned economic system,and forms a pover-ty alleviation system which links the nation,socie-ty,and individual together so as to increase the ef-ficiency and quality of the poverty alleviation.