Social Quality in Mainland China: A Reflection on Social Change and Development in the Process of Economic Reconstruction Ka Lin and Karen K. Gabe Department of Sociology, Nanjing University

Social Quality 2 1. Introduction 1.1 Contextualizing this Study For the past two decades China has been experiencing: Continuous growth of the national economy A widening income gap across social groups Continuous stability of the social order 1.2 Mainland China’s Complex Picture Institutional change due to reconstruction of the economic system Former commanding economy replaced by a socialist market system Reduction of employees in publicly-owned firms: In 1978, 99% of the total urban labor force in 1978 to 37% in 2001 But, socialist political regime with no serious challenge

Social Quality 3 Urbanization Percentage of city residents: 29% in 1999; 43% in million “migrant workers” during the 1990s Standard of Living Urban deposable income: ¥1,510 in 1990; ¥11,759 in 2006 Farmers’ per capita income from ¥686 in 1990; ¥3,587 in Using four dimensions to test social quality: socio- economic security, social cohesion, social inclusion, social empowerment

Social Quality 4 2. Socio-economic security 2.1 Rate of poverty People under the state-defined poverty line: 250 million 1978; 26 million in 2004 Extremely low standard of living for some in remote rural areas While absolute poverty situation improved, relative poverty worsened 2.2 Income Security “Enterprise welfare” replaced by state-managed social insurance system Social insurance costs increase: in 1995 ¥ billion; in 2004 ¥ billion

Social Quality 5 By the end of 2004:  164 million in the old-age pension program  106 million in unemployment insurance  124 million in the basic medical insurance program Social security funding (including poverty relief) in 2003: urban laborers ¥1,765/person; for rural laborers, ¥14/ person 2.3 Health care For urban residents New system of social pooling and personal accounts replaced free medicare system for urban employees (1998) Catastrophic illness plan created for medical costs User charges and medical costs increased dramatically: Average doctor visit: in 1999, ¥10.9; in 2003, ¥108.2

Social Quality 6 For rural population In 2006, 10-20% medical care resources designated to rural areas In 2002, a new cooperative system of medical care services: covers 396 million of possible 495 million For Migrant workers – 2005 survey of 29,425: 37.79% purchased medicine from pharmacy w/o doctor 20.45% saw private practitioner 32.01% saw hospital doctor 2.4 Housing In 1993, per capita living space: urban 7.5 sq m; rural 20.7 sq m while in 2004, urban 24.5 sq m; rural 27.2 sq m Public housing system transferred to commercial housing 1999, 30% urban tenets owned; in 2004, ownership increased to 80%

Social Quality 7 State developed affordable housing and public-rental housing. By end of 2004 public-rental housing for minimum- income families established in 35 large and medium- sized cities Summary Socio-economic security conditions are complex Market-oriented growth has improved the standard of living; Enhanced the quality of life; Reduced the number of people living in absolute poverty. Increased the unemployment rate; Increased medical care costs; Increased housing costs This requires the state to establish special policies to help the needy, such as agricultural tax waivers for farmers

Social Quality 8 3 Social Cohesion 3.1 Social trust The cultural notions of “Familistic utilitarianism” (Lau) and “familist groupism” (Lin) result in high trust for one’s personal social network but in low trust for strangers. A 2001 survey of 4,236 urban and 1,115 rural respondents asked: “Who are the most helpful persons in one’s life?” 52% selected “Family Members” / 24.9% for “Oneself” / 10.3% for “Friends” / 5.6% for “Workplace” / 3.9% for “Public Agents” / 2.1% for “Other” A survey sampling of 101,058 asked: “If you were to encounter an illegal situation (such as a violent one), do you think other people would help you?” 25% said: “Yes” / 67% said: “Perhaps” / The rest said: “No”

Social Quality 9 A 2006 survey of 2,000 (both urban and rural) regarding social connections found: 62.9% were “Satisfied” / 35.2% were “Fine” / 1.9% were “Dissatisfied” A 2005 survey of 3,785 regarding types of interpersonal networks found: “Relatives’’ (15 persons per respondent) / “Friends” (14 persons) / “Classmates” (9 persons) / “Workmates” (7 persons) 3.2 Social Network plays prominent role in living conditions/contributes to maintaining social cohesion In 2005 labor statistics regarding job-seeking methods: 45.1% were: helped by friends and relatives 17.1% were registered with employment agencies A 2006 survey reported 53% were helped by friends and relatives

Social Quality Commitment to the political regime and state’s development strategy A 2006 survey regarding standard of living 29.4% were “satisfied” / 58.0% were “basically satisfied” / 12.6% were “dissatisfied” / 44.6% were “happy” / 48.8% were “basically happy / ”6.6% were “unhappy” A 2003 survey of 1,866 in 7 cities 86.9% said government could accelerate rate of economic growth 79% were optimistic about China’s rising international status A 2006 survey of 2,000 (Sichuan Province) 70.1% were confident in the future / 22.6% had no clear idea / 7.3% had no confidence

Social Quality 11 4 Social Inclusion/Exclusion 4.1 Exclusion form the labor market Major groups: the laid-off and unemployed workers Between 1998 and 2004: 28 million laid off workers By end of 2004: 8.2 million registered urban unemployed and 12 million laid-off workers Government guaranteed a basic livelihood and offered employment services and vocational training In 2005: 5.1 million laid-off workers had been reemployed 4.2 Exclusion from the social protection system Major groups: migrant workers and/or workers in the informal sector A survey of 29,425 migrant workers reported: 54% had contracts (short-term: 78% less than 1 year; 7.91% for 1-2 years; 10% for more than 2 yr) Workers with short term or no contract are excluded from social insurance programs supported by employers and employees

Social Quality 12 Migrant workers face many difficulties in housing, health care, and access to public education for their children A survey of 29,425 migrant workers reported: 55% would remain in cities 28.55% would remain in cities temporarily 4.3 Exclusion from the welfare services system Major groups: elderly and disabled Degree of inclusion for vulnerable groups is high, although growth of institutional care is limited; family and friends encourage informal care and community work Collective protection system decreased social exclusion Five-guarantee system in rural areas for orphans and elderly in cities: community organizations respond to local needs “Signing the Contract” campaign in rural areas: 13 million by the end of 2005 Informal and collective protection have been undermined. “One-child policy” decreased family size and undermined kinship relations There is a need for institutional care that is functional

Social Quality 13 5 Social Empowerment 5.1 Access to information and education Internet: in 2005, more than 100 million Overall coverage rates: radio 94.1%; TV 95.3% 98.6% school-age children in primary school; 92% in middle school 5.2 Political Participation “Familist groupism” reduces people’s intention to participate in public affairs A survey of 4,128 regarding conversation in daily life reported: 62.43% “surrounding persons and events” 55.35% “information about daily life activities” 41.75% “news of social affairs” 21.02% “anecdotes and fantastic stories 18.44% “political and international news”

Social Quality 14 A survey of NGO political activities found: 54.9% “not” involved 26.5% “rarely” involved 12.3% “sometimes” involved 4.8% “often” involved 1.5% “very often” involved 5.3 The forms of social empowerment in Mainland China differ from those in western democracies A survey of how disputes were handled found: 69.9% looked to community organizations to mediate 9.5% looked to police and judicial agents 10.2% looked to governmental agents 10.4% looked to “other” The change is underway these developments have increased awareness of need to be involved in public affairs

Social Quality 15 6 Discussion and Evaluation 6.1 How to evaluate social quality of a society that has a two-side effect of development Market-oriented economy improved the standard of living, but had a negative impact on social integration and social cohesion 6.2 The analysts should keep their eyes on the meaning of social transition when making an assessment of social quality in a society like the Mainland China 6.3 Focus of studies Using social integration, cohesion and social empowerment makes possible evaluation of European and Chinese societies together from a new perspective

Social Quality 16 Thank you for your kind attention!