The Rising Urban Poverty and Political Resentment in a Transitional China: The Experience of Shanghai

Fei Yan

doi:10.5539/jpl.v1n1p15

Abstract

Despite China’s economic achievements in the last two decades, the market reforms have also brought about a widening income gap, reduction in social welfare, and rising unemployment. These factors are responsible for the emergence of a large number of urban poor, primarily composed of laid-off workers, unemployment persons, retired labours and urban migrants. As a marginal group, they suffer from economic inadequacy as well as violation of civil rights. Consequently, the urban poor raise a heightened anger with the negative result of the accelerated institutional transition and government’s inability to respond to social problems. Thus conceived, this paper will attempt to (1) analyze the changing mechanisms for the new urban poverty stratum in China; (2) examine the effect of urban poverty on political protest and social upheavals; (3) examine the current policies and its deficits.

Highlights

Despite China’s economic achievements in the last two decades, the market reforms have brought about a widening income gap, reduction in social welfare, and rising unemployment
The reforms have brought about a widening income gap, reduction in social welfare, and rising unemployment (Hussain, 2003; Li & Piachaud, 2004; Yan, 2006)
These factors are responsible for the emergence of a large number of urban poor

Summary

The Emergence of Urban Poverty

Market reform over the last two decades has witnessed unprecedented economic growth in China. China’s GDP has maintained double-digit growth for four consecutive years since 2002, including 10.7 percent growth in 2006, the fastest in a decade (National Bureau of Statistics China, 2006). Despite this achievement, the reforms have brought about a widening income gap, reduction in social welfare, and rising unemployment (Hussain, 2003; Li & Piachaud, 2004; Yan, 2006). The reforms have brought about a widening income gap, reduction in social welfare, and rising unemployment (Hussain, 2003; Li & Piachaud, 2004; Yan, 2006) These factors are responsible for the emergence of a large number of urban poor. The unemployment rate of Shanghai is 4.4 per cent in 2005 (Shanghai Statistical Bureau, 2006), which is higher than the international level of 3.0 per cent (UNDP, 2004) and national level of 4.2 per cent (National Bureau of Statistics China, 2006) (see figure 2)

Poverty and Poverty Line

The Changing Mechanisms for Urban Poverty in Shanghai

The Current Policies and Its Deficits

Findings

Policy Directions for the Solution