Urban Poverty in China
By Caitlin O’Connell
As China is becoming a more developed nation, the economy is shifting from one primarily based on agriculture to one based on industry. While this move from a centralized to a market economy has led to major economic growth in the past two decades, it has also significantly widened the gap between the rich and the poor in the country. Although approximately half of China’s population leads rural lives, millions are leaving the rural areas for the cities in hopes of finding better jobs. Urban life is an “improvement” for the Chinese migrants; however, many still live in poverty.
This pattern of mass migration from the country to the city began in the 1990’s and continues today, adding to the growing number of urban poor. The enormous number of migrants, compounded with general unemployment, further limits the opportunities available to those who come to the cities looking for work. The move towards a market economy has led to lay-offs and fewer available jobs. Other reasons for urban poverty include the decline in agriculture and increased land confiscated for urban development. Globalization also plays a part in the problem. In order to compete in the international market, China has lowered the labor costs of products made in the country.
A fault with the Chinese social security system further exacerbates the urban poverty. This system, called the Minimum Living Standard Scheme (MLSS), attempts to reach out to the disadvantaged groups in cities, specifically the unemployed and those who depend on the government for financial support: retired workers and citizens whose income does meet their living standards. The lack of funds that the MLSS has to offer makes it unequipped to combat the poverty in cities. Another limitation of the system, particularly detrimental to the migrants, is that the MLSS can only provide aid to those registered in urban households (a policy that is strictly upheld). The migrants are often overlooked because they are not registered in the cities they moved to. Therefore, they are not eligible to receive the assistance, however little, the system has to offer.
Poverty in urban areas is particularly devastating for the children, who are not receiving the education or health care they need. Most migrant families cannot afford either for their children. As the economy is shifting from an agricultural one to an industrial one, health care is shifting from being part of the welfare system to being under the control of private insurance companies. The privatization of health care, along with the introduction of user fees and private services, makes it inaccessible to the poor migrants. Children often do not have access to medical treatment or basic immunizations. Their well-being is further jeopardized because their parents cannot afford to send them to school. There has been legislation to help in this area, such as the 1986 Law of Compulsory Education, which states that all children six years and older have a right to nine years of education with free tuition. Unfortunately, in both education and health care areas, there is a break between the actual legislating of these policies and their implementation. There is a dire need for programs designed to directly target children’s health and education concerns.
The poverty rampant amongst the urban classes is so widespread that it is no longer just an economic problem but a social one as well. As more and more migrant families sink into poverty, they become caught in a devastating cycle. The lack of health care and education not only harms today’s youth, but also future generations. If the children are not taken care of or educated, fewer opportunities will be available to them and future generations. Unless the problems in these areas are addressed, the generations to come will also be tied into this poverty.
The mass migration continues and the number of impoverished migrants rises, creating a desperate need for social reform, especially in the area of child poverty. As China’s economy grows exponentially, the government should appropriate more funds to help the poor in urban areas.
