1. Social Issues Facing Rural China Will and Harry

2. Overview Mass unrest Migrant and unemployed workers Loss of faith in the system Regional imbalances and the wealth gap Hukou system: discrimination against rural workers Problems associated with one child policy Rural population still occupies 55%of total A path to democracy and freedom? Income inequality

3. Chinas wealth and population distribution

4. Social Net The growing wealth gap can be seen as a by- product of China’s economic and social development policies. Redundancy rate around 25% in 1999 Lack of pension system Lack of benefits for those who are retired Economic growth has outrun social growth Dependancy ratio is 5.5

5. Rural-Urban Divide The urban per capita net income stood at 17,175 Yuan ($2,525) in 2009, in contrast to 5,153 Yuan in the countryside. Digital divide Culture divide Land confiscation Pollution In 2004, 2000 laid off people barricaded a street

6. Crime Separate social issue of crime in rural China. Many of those arrested for petty thefts are migrant workers. Migrant workers are blamed for many crimes. Some hold them responsible for the rising crime rate. Many also blame the general get-rich-quick mentality. The rising rate of lawlessness in rural areas is particularly alarming. Cases when innocent people have been killed in their homes during pitched battles between rival villages while the police stood by and did nothing. The lawlessness in the countryside—and to some degree in China in general—has been blamed on breakdown of Maoist discipline and the rise of cutthroat capitalist competition and links between police and criminal gangs. There is often no rule of law and power is in the hands of local leaders and clan chiefs, corrupt police or Communist Party officials and gangsters. Youth crime had increased on average by 13 percent each year since 2000. Majority of those crimes were committed by children from the countryside. 70 percent of all juvenile crimes in Beijing were committed by rural migrants.

7. Income The urban-labour market for low-skilled workers consists of rural migrant works. Creates difficult conditions and becomes difficult for job seekers. 2002, the average monthly wage of migrant workers was 100 USD = 58% of the average wage of urban workers. Decline in wages, rural migrant workers accept longer working hours. Hourly wage therefore even lower compared to monthly wage. Hourly wage rates for migrant workers are a quarter of those for urban workers. The last three years, the wage level of rural migrant workers has increased due to a shortage of unskilled labour.

8. Job Insecurity Common for migrant workers not to receive their wage when due, due to lack of protection of rights. Only a small proportion have written contracts. 2004, 79% of workers had not signed labour contracts 10% of rural migrant workers receive their wage 7 months late Why rural-migrants quit their jobs: 41% low income, 15% job instability and 8% bad working conditions. Poor working and living conditions: 44% of workers live in housing without basic sanitary facilities.

9. Hukou System Communist system A household registration to control the movement of workers within rural and urban areas Gained control over education, healthcare, employment and marriage Created a restraint for rural dwellers and unrest (discrimination in urban labour market) Large population of poor farm workers restrained from mass migration to cities for a higher income. Migrants had to pay various fees, as a way of curbing rural migrants into urban areas.

10. Public services Even in cities, majority of rural migrant workers are excluded from public services. Eg. Public schools not fully open for children of migrant workers. 67% of migrant children pay higher school fees than local children. 1 doctor for 5000 people (rural areas) whereas in urban areas in china there are 3 doctors per 2000 people. The supply of rural public service is in serious shortage, and can hardly meet the practical needs of rural residents, rural development and agricultural production. (Lack of investment)