China's Urbanization
China's Urbanization
With a population of 1.3 billion, China faces unprecedented urbanization challenges. The Chinese government, at various levels, strives to accelerate the urbanization process through city expansion and lowering the threshold for farmers to move into cities. Although urbanization is an inevitable consequence of modern economic development, this process has shown signs of "overheating." Hidden drawbacks, such as intensive pressures on employment and social security, and bubbles in the real estate industry, suggest that the government needs to put the brakes on this trend by carefully scrutinizing and taking steps to control the process.
Urbanization is a historic transformation process by which the means of production and people's lifestyles evolve from the country to the city. This process is often characterized as farmers' migration to cities and the continuing development of cities, however, is in fact far more complex. Urbanization is not simply a process in which farmers move to cities. Rather, it is a complex process that not only requires co-development with industries and the entire economic system but also needs to be compatible with the conditions of employment, security, education, public transportation, medical insurance, environmental protection and infrastructure.
Overview of Chinese Urbanization
Of the 1.3 billion people in China, 900 million live in rural areas. The current urbanization rate (percent of the population that lives in urban areas) is 38 percent, well below that of other developed countries and regions (see the table below). However, the rate of urbanization has embarked on a fast track. As shown in the table, average urbanization during the 24 years since China's adoption of reforms and open-door policies in 1978 has more than doubled compared with the previous 30 years.
Percent of Population That is Urbanized
Region 1950 1970 1978 1990 2000 2002
World 30 37 44 47
African 15 23 32 37
Asian 17 23 32 38
With a population of 1.3 billion, China faces unprecedented urbanization challenges. The Chinese government, at various levels, strives to accelerate the urbanization process through city expansion and lowering the threshold for farmers to move into cities. Although urbanization is an inevitable consequence of modern economic development, this process has shown signs of "overheating." Hidden drawbacks, such as intensive pressures on employment and social security, and bubbles in the real estate industry, suggest that the government needs to put the brakes on this trend by carefully scrutinizing and taking steps to control the process.
Urbanization is a historic transformation process by which the means of production and people's lifestyles evolve from the country to the city. This process is often characterized as farmers' migration to cities and the continuing development of cities, however, is in fact far more complex. Urbanization is not simply a process in which farmers move to cities. Rather, it is a complex process that not only requires co-development with industries and the entire economic system but also needs to be compatible with the conditions of employment, security, education, public transportation, medical insurance, environmental protection and infrastructure.
Overview of Chinese Urbanization
Of the 1.3 billion people in China, 900 million live in rural areas. The current urbanization rate (percent of the population that lives in urban areas) is 38 percent, well below that of other developed countries and regions (see the table below). However, the rate of urbanization has embarked on a fast track. As shown in the table, average urbanization during the 24 years since China's adoption of reforms and open-door policies in 1978 has more than doubled compared with the previous 30 years.
Percent of Population That is Urbanized
Region 1950 1970 1978 1990 2000 2002
World 30 37 44 47
African 15 23 32 37
Asian 17 23 32 38