Causes Of Rural Urban Divide Of China - 1525 Words

Causes of Rural-Urban Divide: Hukou China’s rural–urban gaps are much larger than those found in most other developing countries. This rural-urban divide can be traced back to before the first economic reform. Beginning in the 1950s, China separated urban and rural residents through a strictly enforced household registration system (hukou) and focused mainly on the development of urban cities. Hukou refers to permanent residency status and can be extremely hard to get in major cities since it is tie to benefit levels, which differ across provinces and between urban residents and rural residents. An urban hukou provides a relatively comprehensive system of health care and retirement pensions in that particular city, while a rural hukou a much lower standard of welfares. Furthermore, data shows hukou also significantly affects people’s labor-market return and wages through its influence on their return to education. Individuals’ human capital was largely det ermined by the place (rural versus urban) where they were born and received their education, which highlights the role of China s rural–urban divide in shaping people s labor-market return. From 1980 to 2010, China relied on a uniquely successful investment- and export-led development model for its 30-year miracle of double digit GDP growth. However, to make rapid industrialization possible, China directed most of its investments to the cities, financed massive urban infrastructure and development projects. In result ofShow MoreRelatedEssay on Reasons Behind China’s Enlarging Rural-Urban Divide1019 Words   |  5 PagesUrbanization brings with it a disparity between rural and urban living standards. Nonetheless, in China this gap has started to become quite severe and has become a cause for concern (Naughton 113). Chinas Gini coefficient is currently at .415, which displays the increasing disparity in the country (DISTRIBUTION OF FAMILY). 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