28/03/2020
- Mainland China’s coronavirus outbreak exposed a huge digital divide, with some students from poorer regions lacking resources for online learning
- Access to the internet is not considered a daily necessity at China’s policy level, unlike in European countries such as Norway and Iceland
Chinese children attend a computer class in Beijing to learn how to properly use the internet. Those in poorer parts of the country lack sufficient access to the internet, as the switch to online teaching during the coronavirus outbreak in China showed. Photo: AFP
The coronavirus outbreak in mainland China highlighted the huge digital divide that exists between richer and poorer regions.
When schools shut and online learning was made compulsory, many students living in remote areas found they didn’t have sufficient internet access.
There were 1.6 billion mobile phone subscribers in China in 2019, with many people having more than one subscription, and optical fibre and 4G covered 98 per cent of the population, according to official data.
These figures fail to show the large regional disparity between the country’s rich and poor provinces, says Jack Chan Wing-kit, associate professor of the school of government at Sun Yat-sen University in Guangzhou province.
“In poor areas, a family [often] has to share one mobile phone among all members,” says Chan, who has done extensive research on China’s social problems.
It is easier for service providers to offer blanket coverage in densely populated cities where most people live in high-rise buildings, Chan explains.
“In rural areas, people live in bungalows that are widely spread out. It is not economically efficient for phone service providers like China Mobile to install transmission stations there, which explain their spotty coverage,” he says.
While the universal social security net in China covers people including the old and disabled, access to the internet is not considered a daily necessity at the policy level. That’s unlike European countries such as Norway and Iceland, who see the internet as a basic human right and ensure their entire populations have proper access to it.
Though some wealthier coastal cities within the Pearl River Delta recently conducted local surveys to identify less-well-off households and handed out tablet computers, inland provinces in central and western China cannot afford these measures, Chan says.
The Chinese government does not encourage [the setting up of] charities – Erwin Huang, founder of WebOrganic and EdFuture
Philanthropic efforts could help address this problem, as shown by Hong Kong’s experience in tackling the digital divide.
About 900,000 kindergarten, primary and secondary students in the city have been affected by school suspensions that are likely to last until at least April 20.
While families of disadvantaged students have received support from the government through Comprehensive Social Security Assistance and other welfare schemes, many children still lack digital resources as their parents don’t see it as a priority, says Erwin Huang, founder of both WebOrganic, a charity promoting computer access to such youngsters, and education alliance EdFuture.
That has left it up to charities to make sure all students have enough resources at home for online learning, Huang says. For instance, this month EdFuture worked with local mobile service provider SmarTone to give out free phone data SIM cards lasting two months to 10,000 students.
“It’s for those who live in subdivided flats and those who have to go to McDonald’s for Wi-fi access,” says Huang, who is also associate professor of engineering at the Hong Kong University of Science and Technology.
Many students in China’s poorer regions have been left at a disadvantage by the shift to online learning. Photo: Getty Images
The Hong Kong Jockey Club also recently launched a HK$42 million (US$5.4 million) scheme to provide free mobile internet data to 100,000 underprivileged primary- and secondary-school students to help with online learning while schools are closed.
Huang says while such charities help fill gaps in the provision of digital resources in Hong Kong, a similar philanthropic culture is lacking in China.
“The Chinese government does not encourage [the setting up of] charities,” he says.
Huang initiated several digital resources projects in China after the Sichuan earthquake in 2008, but says frequent media reports of scandals involving charities such as China’s Red Cross have made it harder for NGOs to operate in the country, with the government preferring to provide social services through its own departments.
Source: SCMP
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12/03/2020
- In response to the 2008 global financial crisis, China pumped a 4 trillion yuan (US$575 billion) into its economy but it led to a mountain of local government debt
- Various early indicators suggest China’s economy will slow in the first quarter of 2020, with some suggestions it will suffer a first contraction since 1976
President Xi Jinping said China must accelerate construction of “new infrastructures such as 5G networks and data centres” on top of speeding up “key projects and major infrastructure construction” in response to the economic impact caused by the coronavirus outbreak. Photo: Xinhua
China should not try to bolster its coronavirus-hit economy by again resorting to a massive debt-fuelled fiscal and monetary stimulus programme, according to a group of government advisers.
Various early indicators suggest China’s economy will slow in the first quarter of 2020, with some even suggesting it will suffer a first contraction since the end of the Cultural Revolution in 1976.
This raises the question if China will miss its key 2020 growth target, with voices on both sides of the debate discussing what stimulus policies are needed to offset the deep impact of the coronavirus.
China is already leaning towards some additional stimulus, with Premier Li Keqiang ordering the central bank pump additional money into the banking system, while President Xi Jinping has announced the need for more spending on “new infrastructure”.
Are there other ways out for China except stimulus policies?Liu Shijin
“Are there other ways out for China except stimulus policies?” rhetorically asked Liu Shijin, who previously worked closely with Vice-Premier Liu He, the top economic aide to Xi, at the Development Research Centre, the think tank attached to the State Council.
“If it really works, why can’t Japan and the United States reach a 5 per cent growth rate?”
It is believed China will need to achieve an average 5.6 per cent growth in 2020 to achieve its goal of doubling the size of its economy from 2010, which is a key goal for
of creating a “comprehensively well-off” society.
China’s economy grew by
6.1 per cent in 2019, and while it was the slowest in 29 years, the US economy only grew 2.3 per cent, with Japan’s estimated to grow by 0.9 per cent.
What is gross domestic product (GDP)?
Liu Shijin, who is now a deputy head of the China Development Research Foundation and a policy adviser to the People’s Bank of China, argued that a growth rate averaging 5 per cent over the next decade is sufficient for China to meet its development goals.
Growth in 2020, though, may well be below 5 per cent given that the impact of the coronavirus is “unprecedented” and larger than both severe acute respiratory syndrome (Sars) in 2003 and the 2008 global financial crisis.
Xi said earlier this month that China must accelerate construction of “new infrastructures such as
5G networks and data centres” on top of speeding up “key projects and major infrastructure construction already included in state plans” like additional high-speed railway lines in response to the economic impact caused by the coronavirus outbreak.
But as this will mainly rely on corporate and private investment, Liu Shijin feels it will be too small to engineer a major rebound in the growth rate.
When encountering challenges, we should first push forward new reform measures to unleash growth potential. Now is the right timeLiu Shijin
“It’s a different thing compared to real [government-led] economic stabilisation,” Liu Shijin told a web seminar hosted by Peking University’s National School of Development on Wednesday.
“When encountering challenges, we should first push forward new reform measures to unleash growth potential. Now is the right time.”
Instead, to support longer-term growth, China should put its efforts into the development of its “city clusters”, which could lead to higher spending on housing construction, urban infrastructure and manufacturing, added Liu Shijin, which would increase the growth rate by up to an additional percentage point over the next decade.
China has so far refrained from the massive stimulus programme it adopted in 2008 in response to the global financial crisis, which included a 4 trillion yuan (US$575 billion) plan that pumped cheap money into government-backed projects but also created a mountain of local government debt.
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Zhang Bin, a senior researcher at the Chinese Academy of Social Sciences, said infrastructure construction will remain an important part of any plan to support growth.
“If the funding [for the 4 trillion yuan stimulus] had come solely from treasury bonds or local government bonds [rather than risky lending], there wouldn’t be so much shadow banking, unmanageable credit expansion, high leverage, implicit liabilities or financial risks,” he said.
“If the balance sheets of corporations, households and local governments can’t be repaired, it might lead to insufficient demand and a decline into a vicious [downward] cycle.”
Zhang, like Liu Shijin, is a key member of the China Finance 40 Forum, a group of state economists who advocate more structural reforms to support the Chinese economy. In particular, Zhang has set sights on reforms that would boost consumption, which accounted for 58 per cent of Chinese growth last year.
“The biggest weak link of the Chinese economy is that 200 to 300 million
migrant workers can’t [legally] settle in big cities,” he said. “Only if they are able to settle in the city that China can be called a real well-off society. It will also boost the economy, lift demand for manufactured goods and unleashed consumption potential.”
Currently, most large Chinese cities only provide social services including health care and schooling to residents who have a legal permit, or hukou. Most migrant workers who come to the big cities for jobs are blocked from obtaining a hukou, meaning they have to travel back to their rural hometowns to have access to basic social services, so often do not settle in their adopted city.
In response to this idea, Xu Yuan, a professor at Peking University, called for the government to build 10 million affordable housing units annually to accommodate new urban citizens, which would address short-term economic pain and serve the nation’s long-term development.
China will release its annual growth target as well as other key goals, including the fiscal deficit ratio and local bond quota, at the National People’s Congress, although the annual parliamentary convention, previously scheduled for March 5, has been postponed, with a new date yet to be announced.
Source: SCMP
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