Transcript China

New Politburo Standing Committee


Xi Jinping, General Secretary of CCP
 PRINCELING
Li Keqiang, Premier of State Council


Zhang Dejiang, Head, NPC



PRINCELING
Liu Yunshan, Head, CCP Propaganda


PRINCELING
Yu Zhengsheng, Head, CPPCC


YOUTH LEAGUE
YOUTH LEAGUE
Wang Qishan, Head, CCP Disc. Insp.
 PRINCELING
Zhang Gaoli, Exec V. Premier

JIANG ZEMIN’S PROTEGE
China's Impact on Global Poverty, 19871998


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World Bank's PPP$1/day consumption poverty line
Change in global number of poor (%) = - 0.6
Excluding China = + 9.3
Acknowledgements
3

Data source
 Rural
Education Action Project
 Stanford
University
 Prof. Scott Rozelle
Comparative Context
4

Hourly wages, 1990s (US$/hour)
 US
$24
 Japan
$22
 Korea
$14
 Brazil
$4
 Mexico $3
 China
$1
Headline: “China is Eating Mexico’s Lunch”
Note: job competition among low-wage platforms
Comparative Context: Korea
5

Hourly wages, 1990s (US$/hour)
 US
$24
 Japan
$22
 Korea
$14
 Brazil
$4
 Mexico $3
 China
$1
 1970/80s ~$1
Korea transformation from low-wage, labor-intensive
jobs to higher-wage, higher-productivity, higher-tech
jobs
Comparative Context: Korea
6

Korea’s high school graduation rates by 1980s
 Urban
 Close
to 100%
 Rural
 Close
to 100%
Comparative Context: Mexico
7

Hourly wages, 1990s (US$/hour)
 US
$24
 Japan
$22
 Korea
$14
 Brazil
$4
 Mexico $3-4  1970s ~$1
 China
$1
Mexico low-wage, labor-intensive jobs
But where is the transformation?
Comparative Context: Mexico
8

Mexico’s high school graduation rates by 1980s
 Urban
 ~80%
 Rural
 ~40%
Comparative Context
9

Inequality, Gini coefficients
 Korea
32

gap

 Brazil
54
 Mexico 52
Comparative Context: China
10

Hourly wages, 1990s (US$/hour)
 US
$24
 Japan
$22
 Korea
$14
 Brazil
$4
 Mexico $3
 China
$1 
China  Can China make the transformation from lowwage, labor-intensive jobs to higher-wage, higherproductivity, higher-tech jobs?
China’s Population:
Urban, Rural, and Poor Rural

≈ 35% of school-aged
children in poor rural
areas
(> 50 million children,
ages 6 to 15)
Source: Scott Rozelle, REAP, Stanford
cities
other
rural
Annual Real Hourly
Wage (1978 dollars)
Starts rising 1998
4000
2000
≈ 30 ¢ / hour in
1978
≈
$2.00 /
hour
in
2010
Unskilled
wage
0
1978 1983 1988 1993 1998 2003
Year
Park and Cai, 2008;
Rozelle (REAP) 2012
Comparative Context: China
13

China’s high school graduation rates by 1980s
 Urban
 Close
to ~85%
 Rural
 Close

to ~40%
China’s profile is more similar
to Mexico’s than Korea’s
Comparative Context: China
14

China’s middle school completion rates
 Poor
rural areas (35% of school-aged children)
 ~60%
Comparative Context: China
15

Inequality, Gini coefficients
 Korea
32

gap

 Brazil
54
 Mexico 52
 China
50
Development policy areas
16


Education
Other policy areas
 Health
 Rural
infrastructure
Development policy areas
17
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Health
 As
of 2000, ~80% of people in rural China
 Without
health insurance of any kind
 2003
new Rural Cooperative Medical Scheme
 As of 2007, implemented in 86% of counties
 Has
not significantly reduced out-of-pockets expenditure
 Has not significantly increased use of formal medical services
Development policy areas
18

Rural infrastructure
 Roads
 Drinking
water
 Poorest
rural areas now receiving more inter-governmental
fiscal transfers from above

Brandt
Development policy areas: Infrastructure
Intergovernmental fiscal transfers to support rural tax/fee reform
(equalizing)
农村税费改革转移支付
700
600
500
400
300
200
100
0
661
523
245
305
80
2001年
2002年
2003年
2004年
2005年
Comparative Context
20

Developmental challenges facing rural China
 Infrastructure
 Health
 Education
Questions for Discussion
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Analyze Figure 3.1a. Do respondents perceive much inequality close to
home?
Analyze Figure 3.2a. What are the 2 most important reasons
respondents give for why people are poor? 2 least important reasons?
Analyze Figure 3.2b. What are the 2 most important reasons
respondents give for why people are rich? 2 least important reasons?
What do Whyte’s findings suggest about the world view/ideology of
survey respondents?
Do you agree with the majority of respondents in this survey?
Attitudes toward inequality
Attitudes toward inequality