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The dynamics and characteristics of urban poverty in China : a case study of Beijing
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Type
Thesis
Author
Qian, Zhihong
Supervisor
Wong, Tai-Chee
Abstract
After more than two decades of reforms, China not only has seen a general rise in its aggregate wealth but also has experienced widening income disparities, rising unemployment rates and incidence of urban poverty. This thesis investigates specifically the urban poverty issue in China in the period of transition from an ideologically egalitarian, centrally planned economy to a more market-regulated economy.
The Western views on causes of poverty differ, ranging from the individualist theories that see poverty linked to the poor's personal choice and attitudes to structuralist theories which suggest social and political structures and circumstances are the main cause of poverty. The views on poverty in China are heavily influenced by the Marxist ideology, which accepted that poverty in pre-reform period in urban China could be due to individuals' faults - an identical view shared with the Western individualist theorists. This research attempts to have a more comprehensive view and to construct a new theory to explain the complexity of urban poverty in the Chinese transition economy. After a comparative study of urban poverty between the transitional China and some selected Third World countries, this research moves on to address the pressing poverty issue in China. Attention is given to an analysis of the dynamics of change in the Chinese system of production and characteristics of urban poverty using Beijing as a case study. Economic restructuring, widening income gap, rural-urban migration and continuing dualism have been identified as the main macro contributing factors to urban poverty. Reforms of employment, wage and welfare systems have also been identified to worsen the living conditions of the urban low-income groups. The transition from the centrally planned system to market system has contributed significantly to the expansion of urban poverty in Beijing. Through micro surveys, this research has mapped the demographic, economic, social, spatial characteristics of the urban poor and has identified different poverty groups embracing the dependent aged, retirees, unemployed and laid-off workers, employed workers and the rural migrant poor. It is demonstrated that individual or family's deficiencies to some extent play an indispensable role in the contribution to urban poverty.
In the face of both adverse effects arising from the domestic reforms and globalisation's polarisation effects, this study predicts urban poverty trends, analyses the possible negative impacts of the rising urban poverty, worsening unemployment and widening income gaps, and re-examines the existing policy measures. It has been found that the Chinese government has managed the unemployment and layoff situations reasonably well through subsistence warranty system and re-employment project.
Two major policy implications can be drawn from this research. The first is the equity versus efficiency issue, which calls for an increasing concern in welfare-oriented advanced capitalist nations, which share the rising aged population problem with China. The Chinese reforms have created large numbers of newly rich and abject poverty in two contrasted scenarios. Striking a balance is necessary. Second, there is a need for more formalisation of the lower circuit as a source of job supply in Chinese metropolitan centres in light of the inevitable consequence of an expanding informalisation of services when urban poverty groups enlarge due to potentially massive rural-urban migration. It is hoped that with high GNP growth rates that China has been able to produce in the last two decades, more productive service sectors can be promoted to absorb the urban poor.
The Western views on causes of poverty differ, ranging from the individualist theories that see poverty linked to the poor's personal choice and attitudes to structuralist theories which suggest social and political structures and circumstances are the main cause of poverty. The views on poverty in China are heavily influenced by the Marxist ideology, which accepted that poverty in pre-reform period in urban China could be due to individuals' faults - an identical view shared with the Western individualist theorists. This research attempts to have a more comprehensive view and to construct a new theory to explain the complexity of urban poverty in the Chinese transition economy. After a comparative study of urban poverty between the transitional China and some selected Third World countries, this research moves on to address the pressing poverty issue in China. Attention is given to an analysis of the dynamics of change in the Chinese system of production and characteristics of urban poverty using Beijing as a case study. Economic restructuring, widening income gap, rural-urban migration and continuing dualism have been identified as the main macro contributing factors to urban poverty. Reforms of employment, wage and welfare systems have also been identified to worsen the living conditions of the urban low-income groups. The transition from the centrally planned system to market system has contributed significantly to the expansion of urban poverty in Beijing. Through micro surveys, this research has mapped the demographic, economic, social, spatial characteristics of the urban poor and has identified different poverty groups embracing the dependent aged, retirees, unemployed and laid-off workers, employed workers and the rural migrant poor. It is demonstrated that individual or family's deficiencies to some extent play an indispensable role in the contribution to urban poverty.
In the face of both adverse effects arising from the domestic reforms and globalisation's polarisation effects, this study predicts urban poverty trends, analyses the possible negative impacts of the rising urban poverty, worsening unemployment and widening income gaps, and re-examines the existing policy measures. It has been found that the Chinese government has managed the unemployment and layoff situations reasonably well through subsistence warranty system and re-employment project.
Two major policy implications can be drawn from this research. The first is the equity versus efficiency issue, which calls for an increasing concern in welfare-oriented advanced capitalist nations, which share the rising aged population problem with China. The Chinese reforms have created large numbers of newly rich and abject poverty in two contrasted scenarios. Striking a balance is necessary. Second, there is a need for more formalisation of the lower circuit as a source of job supply in Chinese metropolitan centres in light of the inevitable consequence of an expanding informalisation of services when urban poverty groups enlarge due to potentially massive rural-urban migration. It is hoped that with high GNP growth rates that China has been able to produce in the last two decades, more productive service sectors can be promoted to absorb the urban poor.
Date Issued
2003
Call Number
HV4150.B45 Qia
Date Submitted
2003