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Migration in China: Achievements, Challenges and Perspective

Migration in China: Achievements, Challenges and Perspective. Migration and the Wealth of Nations. In past 30 years, domestic migration contributed to …. Rapid economic growth. In past 30 years, domestic migration contributed to …. Rapid urbanization.

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Migration in China: Achievements, Challenges and Perspective

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  1. Migration in China:Achievements, Challenges and Perspective Migration and the Wealth of Nations

  2. In past 30 years, domestic migration contributed to … • Rapid economic growth

  3. In past 30 years, domestic migration contributed to … • Rapid urbanization

  4. In past 30 years, domestic migration contributed to … • Increase of farmers’ income Farmers’ yearly net income (RMB per capita) • 135.80 2007 4140.00

  5. Labor Competitiveness Investment Land What is the right thing we did? • Deregulation- allow market play its role to organize all elements (investment, labor, land …) together in most efficient way

  6. Challenges we are facing • Hukou • Population administrative system • Status • Welfare (education, healthcare, housing, land …) • Mobile population • Migrants difficult to obtain Hukou in target city, but remain Hukou in source area

  7. Challenges we are facing • Half migration • Farmer worker = half worker + half farmer • Migrants difficult to be integrated into local society • Half urbanization • Urbanization of population and land, but not urbanization of people • Urbanization can not result in land saving

  8. Challenges we are facing • Over expanded mega cities • Resources inappropriately allocated by governments • Distorted market – underestimated labor cost • Enlarged gap between rich and poor, urban and rural • Unwilling migrants • Farmers who loose their land but are not appropriately compensated

  9. Further reform • Limit government power • Reduce government expenditure • Especially government investment in mega cities • Degulation • Cancel Hukou regulation, at least separate social security policies from Hukou • Establish united nationwide social security system • Respect market, respect farmers’ will • Free trade brings efficiency

  10. Thank you! Zhao Xu Unirule Institute of Economics zhaoxu@unirule.org.cn www.unirule.org.cn

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