Topic > Reasons Behind the Widening Rural-Urban Gap in China

Urbanization brings with it a disparity between rural and urban living standards. However, in China this gap started to become quite severe and became a cause for concern (Naughton 113). China's Gini coefficient currently stands at 0.415, which demonstrates the growing inequality in the country ("FAMILY DISTRIBUTION"). The rural-urban divide began with the different ways the Chinese government handled rural and urban areas. Urban areas were completely under the control of the central government and because they were seen as the building blocks of the country they received numerous government subsidies. Workers in urban areas received pensions, health care, had job security, cheaper consumer goods thanks to subsidies, and often had access to commercial housing. On the other hand, people in rural areas did not receive these benefits, and due to the hukou system, they were also unable to move to urban areas to get better-paying jobs. The government suppressed farmers' wages to extract more money from agriculture in order to further invest in urban areas. Furthermore, rural citizens' land was owned in a much more collective form, which did not allow individuals to use it as collateral, discouraged investment in land, and allowed corrupt government officials to benefit monetarily from the sale of land. This legacy of unequal treatment of rural citizens has led to the onset of the urban-rural divide that has been growing even further in recent years. Today, the gap continues to widen due to the lack of educational opportunities in rural areas, the lack of adequate monetary help for healthcare and safety of the elderly, and due to market forces. … middle of paper … Division in China.” Stanford Center for International Development (SCID). Stanford U and Web. December 4, 2011. .Naughton, Barry. The Chinese economy. London: MIT P, 2006. Print. “Security system for old age”. China.org.cn. China.org.cn, ndWeb. December 4, 2011. .Shen, Ce and John B Williamson. “China's new rural pension system: can it be improved?” Boston College. Boston Administrators Coll., nd Web. December 4, 2011. .Yupeng, He. “The dynamics of rural transformation in China: observed facts and emerging trends”. REMISP. RIMISP and Web. 4 December. 2011. .