Archive for ‘urban development’

04/02/2013

* China to help migrant workers in urbanization

China Daily: “Chinese authorities on Thursday underlined the need to help rural migrant workers become urban residents, calling it an important task for the country’s urbanization, according to its first policy document for 2013.

To promote urbanization, especially concerning migrant workers, China will put forward reforms of its household registration system, loosening requirements for obtaining residency permits in small and medium-sized cities and small townships, the document said.

The country also vowed more efforts in providing professional training for migrant workers, ensuring their social security and protecting their rights and interests, according to the document.

Migrant workers should enjoy equal rights and benefits in payments, education of their children, public health, housing and cultural services, the document said. It added that authorities will work to extend basic public services to all permanent residents in cities.

The central government also urged more serious attention be given to the left-behind population, namely children, women and old people in rural areas after their family members go to work in cities.

Local authorities at all levels as well as the public should guarantee the rights and safety of the left-behind population with support, help and care, said the document.

The first policy document, issued by the central committee of the Communist Party of China and the State Council every year, is dubbed the No 1 central document. This is the 10th consecutive year in which the document has focused on rural issues.

Chinese official data showed that the country’s migrant worker population amounted to 253 million by the end of 2011, among which 159 million were working away from their homes.”

via China to help migrant workers in urbanization |Economy |chinadaily.com.cn.

See also: https://chindia-alert.org/2012/12/17/testing-time-for-chinas-migrants-as-they-demand-access-to-education/

20/01/2013

* China’s workforce peak demographics

Well reasoned analysis that goes behind and beyond headline figures – as expected from the EIU.

EIU: “China’s working age population is set to peak in 2013, according to the Economist Intelligence Unit‘s latest demographic projections. However the impact of this milestone on the country’s economy will be different from the experience of other, predominantly rich countries that have already undergone the process. While ageing, the country’s urban workforce will continue to grow. It will also become much better educated.

China Ageing Population

In the developed world, ageing is most commonly associated with shrinking workforces relative to the rest of the population, giving rise to pension cuts, postponed retirement and higher taxes on the young. As an economy still in transition, China need not fret about such issues. For a start, China’s state pension system is far from generous and its coverage low. Rather, the country’s biggest fear is that of worsening labour shortages—a phenomenon that was first reported in the mid–2000s and was subsequently the subject of much attention in the national media. There are two good reasons why these fears are overblown.

Rural fuel

First, China is still in the midst of a massive urbanisation drive. When the working-age populations of Germany and Japan, the world’s largest ageing economies, began to shrink in 1999 and 1995 respectively, the process of massive rural-to-urban migration had already matured. The proportion of the population residing in urban areas, or the urbanisation rate, had more or less stabilised at 73% and 65% respectively.

In contrast, China’s urbanisation rate will only reach 55% this year and is likely to continue rising by around one percentage point (or 13m people) every year, according to our projections. China will only reach Japan’s level of urbanisation by 2022 and Germany’s by 2030. Thus, even though China’s working-age population will shrink overall, the urban working-age population will only peak in 2029 after reaching 695m—135m higher than it was in 2012.

The flip side of this trend is a shrinking rural population. However, China’s rural population has been diminishing for three decades without much adverse impact on agricultural output. That is because its countryside is overpopulated: there are too many farmers working too little land. Indeed, China has even managed to boost agricultural output over the years by investing in machinery and technology.

It is difficult to pinpoint exactly how many more workers the agricultural sector can afford to lose before a large impact on farm output is felt. However, most economists agree that another 100m or so is achievable. Coupled with the fact that the primary sector only accounts for 10% of GDP, it becomes clear that, when it comes to maintaining economic growth, the urban workforce is really the only one that matters.

From factories to classrooms

Second, China’s labour shortages have largely been misdiagnosed. Much ink has been spilt attributing the lack of young workers for unfilled factory vacancies to demographic factors. Yet the number of Chinese aged 16–24 increased from 196m to 210m between 2000 and 2010. The rise in urban areas is even greater. Where, then, did all the young workers go? The answer is simple: they went to school.

The proportion of junior secondary school graduates continuing on to senior secondary school surged from 51% to 88% between 2000 and 2010. At the same time, the proportion of Chinese aged 16–19 that were either employed or seeking employment (the labour participation rate) fell from 57% to 34%. The relationship is clear: rising enrolment rates at schools have played a major role in postponing entry to the workforce.

The surge in school enrolment implies that the supply of young workers entering the job market will not only remain stable as China passes its demographic turning point, but might even grow. Enrolment rates cannot rise forever, and all the would–be teenage workers that were absorbed by the schooling system over the past decade will enter the workforce sooner or later.

As China’s youth becomes better educated, the coming decade will witness the emergence of a two-tiered workforce. One tier will consist of graduates looking for office jobs. The other will remain the country’s “traditional” source of labour: relatively low–skilled rural migrants seeking work in factories and construction yards. The latter group will, however, have aged substantially, creating new challenges for managers and HR departments across the country.

China’s workforce challenge is thus twofold: policymakers need to ensure that there are enough white-collar jobs for graduates, while employers of low-skilled workers will need to come to grips with hiring and managing an older workforce. Failure to do so will have serious consequences. An educated class disillusioned by high unemployment is something China can ill afford at a time of rising social tensions. At the same time, an inability to replace young workers with older ones could spell the end of the golden age of China’s mighty manufacturing sector.

Yet, if the demographic transition is managed successfully, there will be just cause to celebrate. The Chinese economic miracle has pulled more than 200m people out of poverty over the past 30 years. In the last ten, it has allowed 60m children who would otherwise never have finished secondary school to do so. The next task will be to ensure that their studies have not been in vain.”

via Peak demographics.

10/12/2012

* China wealth gap continues to widen, survey finds

This is the kind of disparity that is most worrying to the Party. Unless it gets the support of the majority, including the poor, its mandate is suspect.

SCMP: “The chasm between China’s rich and poor has widened to alarming levels, according to survey results released by the Survey and Research Centre for China Household Finance.

china-economy-property_mrr328_23611263.jpg

The survey, released on Sunday, reported a rise in China’s Gini coefficient, a key yardstick of income or wealth inequality, to 0.61 in 2010, the latest year for which there is data on China.

That number is significantly higher than the global average of 0.44 and 50 per cent above the “risk level” for social unrest, the Beijing Times reported.

The figure was 0.56 for urban households and 0.60 for rural households.

Measured on a scale of 0 to 1, a Gini coefficient of 0 represents perfect equality in which everyone has the same income, and 1 represents maximal inequality in which just one person holds all the wealth.

Since China first published data on the Gini-coefficient in 2000, the official figure has stayed level at 0.412. In 2005, the World Bank data put the figure at 0.425, the last year it published a Gini index for the country.

Li Shi, executive dean of Beijing Normal University’s China Institute of Income Distribution, who compiled his own Gini survey in 2007, told Bloomberg News in September that a poll of 20,000 households gave an index of 0.48.

“A high Gini coefficient is a common phenomenon in the process of rapid economic development. It is the natural result of the market allocating resources efficiently,” said Gan Li, the director of the research centre, at a briefing in Beijing.

“Relying on market forces alone can’t narrow the gap so China must change the structure of income distribution and rely on massive fiscal transfers to narrow the yawning disparity.””

via China wealth gap continues to widen, survey finds | South China Morning Post.

10/12/2012

* Defiant villager leaves developers stumped over gravesite

Having seen the success of ‘nail house’ resisters in gaining better compensation, we now have ‘nail graves’. Wonder what will come next.

SCMP: “A villager refusing to concede to a property developer’s demands to move a family gravesite off a piece of land left construction workers no choice but to dig around the grave, leaving behind a bizarre sight that has since spread on social media.

china-society-property-nail_grave_wh426_32901317.jpg

The solitary grave, which now sits on a mound of earth 10 metres off the ground in the middle of a construction site in Taiyuan, Shanxi province, has been given the term “nail grave” by netizens.

The term is a play on “nail house”, which was coined by developers for homes belonging to people – “stubborn as nails” – who refused to move even after being offered compensation.

Media reports speculate that developers had offered to pay about one million yuan (US$160,400) to move the grave and headstone.

The construction site, which once served as a public graveyard for local villagers, is giving way to a residential complex expected to be completed in April.

Since construction started in 2009, most villagers had already moved their family’s graves after compensation agreements with the developer.

In the face of China’s rapid economic development, Chinese property developers have been meeting much greater public resistance to what many see as forced land-grabs. Most are compensated with amounts less than their property’s net worth.

“Nail graves are an inevitable product of our country’s progress…the souls of the dead can not rest in peace,” wrote one blogger on Sina Weibo, China’s main microblogging site.

Although China has long encouraged cremation due to an alleged shortage of land for burials, ancestors are traditionally held in deep respect and many in the countryside continue to construct tombs in accordance with culture.

A similar incident occurred last month when authorities from the city of Zhoukou, Henan province, were forced to stop a campaign to clear graves for farmland after the demolition of more than two million tombs sparked an outcry across the country.”

via Defiant villager leaves developers stumped over gravesite | South China Morning Post.

06/12/2012

* How Cities Can Save China

We sincerely hope that the author is right and that the Chinese authorities both agree with him and decide to implement his suggestions – soon!

NY Times: “CHINA is experiencing its most severe economic downturn in decades, and revitalizing its economic model is critical to future prosperity — not only in China, but around the world.

Central to that effort is the transformation of China’s cities. By adopting a new approach to urbanization, its leaders can assure more balanced investment, address a major source of debt, achieve a consumption windfall and clean up the country’s environment. Otherwise, China’s economic and environmental problems will worsen, with vast implications for the rest of the world.

China’s success has been built on two pillars: investment and exports. But after decades of growth, this model is delivering diminishing returns. There is little doubt that China must change to a new model, one that relies on consumption to generate growth, while addressing debt and broadening the use of sustainable energy and environmental practices.

Cities, home to hundreds of millions of Chinese consumers, lie at the core of this problem — and offer a potential solution.

A flawed system of municipal finance is driving debt, corruption and dissent, while unsustainable urban planning has yielded polluted cities that are destroying China’s ecosystem. Yet China’s future requires continued urbanization, which, absent a new approach, will only make the problem worse.

Cities can, however, be part of the solution: better urban policies can put China on a healthier path forward, economically and environmentally.

For one thing, municipal financial reform is essential because debt is crushing Chinese cities, leaving mayors with no means of financing the central government’s policy mandates. Mayors have developed creative ways to raise revenues, including appropriating farmers’ land and seizing land on the outskirts of cities to sell to developers. But these practices contribute to urban sprawl and often feed corruption.

Among other changes, China’s cities need transparent budgets and the devolution of more tax authority to cities.

More innovative urban planning and design are also needed. To achieve the country’s goals of raising living standards for a broader share of the population, cities must be better designed to yield energy efficiency and environmental sustainability.

China’s potential is stifled by traffic and pollution. Gazing out my hotel window in Beijing on a recent trip, I saw air that was hazy and polluted — a stark contrast to the sparkling view of Lake Michigan I enjoy from my kitchen window at home in Chicago.

This isn’t just China’s problem. Experts found that dirty air from China contributed up to 20 percent of the ground-level pollution on the American West Coast in 2010. And that is when just one-tenth of Chinese own cars. Imagine what China’s air quality will become when this number triples, as some experts predict it will within the next several years.

Take another example: construction. Within city centers are countless “superblocks” — half-kilometer-square developments interspersed with huge boulevards that create monster traffic jams and skyrocketing pollution.

In response, an approach that featured smaller blocks and mixed-use neighborhoods and accessible public transportation would alleviate these unintended consequences. Such “livable cities” would balance economic development with energy efficiency, improve air quality and reduce congestion.

Getting China’s urbanization right will matter to us all. Fortunately, many in China understand this, and cooperation with the United States government, corporate world and nonprofit sector, including my own research and advocacy institute, is bringing them the tools they need to prioritize design issues in their cities and adapt infrastructure plans now. These tools include instruction in sustainable practices for government leaders, public education in environmental issues and specialized training for the country’s urban planners.

China must adopt this new approach quickly, before vast infrastructure investment makes the current model irreversible. By 2025, China is projected to have a staggering 200 cities with populations over one million. America has just nine.

Global prosperity depends on China’s continuing to be an engine of growth. We all need China to reinvent its economic model. Working together on urbanization creates progress toward joint solutions to the challenges the world faces from overwhelming pressure on natural ecosystems, resources and commodities.

We need Chinese cities to succeed, and we can help ensure that they do so.”

via How Cities Can Save China – NYTimes.com.

24/11/2012

* Chinese company plans to build world’s tallest skyscraper – in just THREE MONTHS

Given the prediction that China’s urban population will continue to expand as more rural workers migrate to cities seeking jobs and a better life, this kind of ‘system building’ may be the answer.

Daily Mail: “A construction company yesterday revealed plans to build the world’s tallest skyscraper – in just three months.

Massive: An artist's impression of the planned 220-storey Sky City building planned for Changsha, south-east China. The mammoth building is planned to be built in only three months

Sky City in Changsha, south-east China, will be a 220-storey structure standing at an incredible 2,749ft (838m).

It will house 17,400 people and also boast hotels, hospitals, schools and office space with occupants using 104 high-speed lifts to get around.

Massive: An artist’s impression of the planned 220-storey Sky City building planned for Changsha, south-east China. The mammoth building is planned to be built in only three months

The half-mile high superstructure will be 32ft taller than the Burj Khalifa in Dubai – the current tallest building – and is expected to cost almost half as much.

It will dwarf the Shard in London, standing more than 530m above the western Europe’s tallest building and, when completed, will mean nine of the 10 tallest skyscrapers in the world are in Asia.

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But the most impressive thing about Sky City is that its designers, Chinese-based Broad Group, plan to start and finish it in just 90 days.

This astonishing pace, which will see five storeys go up a day, is down to the revolutionary method of prefabricated building where blocks are built off site and slotted together to save time.

Despite concerns about its structural rigidity, Broad Group says the half-mile high building will be able to withstand a magnitude 9.0 earthquake.

The idea isn’t pie in the sky thinking either, with Broad making headlines last year when they built a 30-storey building in 15 days.”

via Chinese company plans to build world’s tallest skyscraper – in just THREE MONTHS | Mail Online.

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