urbannazation in China

Urbanization in China
The Problems Associated With Urbanization

Table of Contents
Abstract page 3
Introduction page 3
Purpose page 3
Findings page 3-5
Finding 1 page 3-4
Finding 2 page 4-5
Finding 3 page 5
Conclusion page 5-6
Recommendations page 6-7
References page 7

Abstract
This report identifies the problems related to the fast growing urban population in China and the reason for that growth.The reasons are the the differences between the income and the quality of life of rural and urban areas. The increase in cities’ population has two significant challenges. They are the inflation in Chinese economy due to the increase in the demand for basic needs and the lack of health care access of migrant workers when infectious diseases could be brought to the cities by the workers. The report also provides three solutions which are to develop the countryside, encourage labor export and raise health standards for workers.
Introduction
The trend of urbanization and industrialization has spread out around the world, from developed countries to developing countries, in recent years. It is understandable because the urbanization can bring many advantages for the countries’ economic development. Therefore, urbanization in China seems to be inevitable. In the last ten years, China has seen a large amount of migrants from rural areas to the cities. In 2011, the first time of history, China had an urban population higher than the rural population. However, the significant growth in urban population has caused problems which need to be comprehensively addressed to avoid serious consequences.
Purpose
The purpose of the report is to investigate the problems associated with the urbanization in China and recommend to the government possible solutions to minimise or avoid any consequences.

Findings
1. Reasons for the growth of the urban population
Over the last three decades, China has had the large migration from rural to urban areas. In 1980, Chinese urban population was 191 million. In 2011, as Figure 1 shows, the number was over 690 million, which was about 51.27 per cent of the China’s population (NBC 2011). There is a large gap between the income of urban and rural area and people in urban areas can earn an average income 3.22 times more than a rural woker. Further, the gap will expand in the future due to the increase of the economy. Therefore, the people from rural are moving to urban mainly are workers looking for jobs, better work conditions or to improve their living standards. In addition, they have to leave their hometown because of the development of industries and the need for technology and land for building infrastucture, especially factories, dams and hydropower plants (Takashi 2007).
Figure 1: Urban population growth in China
Source: World Bank 2010
2. Causes of economic decline
At first, the Chinese government persuaded citizens to move to urban areas in order to increase the national economy. To prepare for this, the government funded a 40 million Yuan budget, nearly US$6.4 trillion. However, China already has have an enormous debt, amounting to 220 per cent of GDP which is about US$4,2 trillion in 2013, and they seem to not be able to control it comprehensively (Gao 2013). The consequences are lack of investment in other parts of the economy, such as medical systems, education and wide access to food. The infrastructure is one of the most serious concerns. Due to the increase in people moving from countryside to cities, the need for housing has also increased. Therefore, the government has to print money, which leads to galloping inflation (Gao 2013).

Figure 2: China’s inflation rate from 2009 to 2011
Source: National Bureau of Statistics of China
3. Health problems related to migration and urbanization
People from rural areas can carry infectious diseases due to lack of health care access in their communities, nutrition and lifestyle. Furthermore, there are difficulties in ensuring that health care is delivered to every migrant worker (Johnson 2012). Therefore, it can have short-term and long-term health concerns. Moreover, people who move from countryside to cities usually have undesirable jobs, such as workers in factories which contain a lot of poison chemicals. Migrant workers also do not have enough food, housing and health insurant due to low income, so they easily are affected by illness. According to Peng’s report, 55 per cent of migrant workers do not have health insurance, 66 per cent of them do not go to doctors when they are sick because of low income and the lackof health insurance (Peng et al. 2012).
Conclusion
Because of the development of the industry and the higher income in cities, Chinese people from countryside started to migrant to urban areas. Although the benefits the urbanization can bring to the Chinese economic, the urbanization has been a concern for the Chinese government due to its rapid increase. Further, the urbanization is likely to out of the Chinese government’s control. As a result, inflation was caused by the rapid increase in the demand for housing and food. Health problems related to migrant workers is another concern. Infectious diseases and the lack of health access are the warning for the government.
Recommendations
Chinese government should develop rural areas
Instead of funding the budget for planning urbanization, Chinese government should invest in infrastructure and improve the quality of life in the rural areas. For example, building hospitals, schools, industrial parks in the rural areas in order to keep people staying in their hometown but they still can earn enough money for living. In addition, Chinese government should consider carefully about urbanization plans in the rural to limit the disadvantages affecting the people, such as having an effective land use through industrial complex.
Chinese government should increase the labor export.
Labor export should be encouraged in order to create a flow of international currencies. It also helps to slow down the inflation to a suitable rate, about 2 per cent through making Chinese own currency becomes higher. Moreover, labor export helps to decrease the pressure of over population in cities and this is a chance to have the investment from other countries.
Chinese government should set health standards for migrant workers
Migrant workers should be checked for health problems before working in the cities and they need to be treated and immunized for common diseases. Health insurance is also to be provided for the workers by their factories as a policy. For example, based on the workers’ salaries, they can get free medicines and treatment or they just need to pay a little amount. The factories also should have an annual health check-up for the workers.
References
Gao, Z 2013, ‘Urbanization May Offer False Economic Hope for China’, Epoch Times, 6 April, viewed 28 July 2013, .
Johnson, J 2012, ‘Disease, health disparities acompany rapid urbanization in China, study shows’, Emory News Center, viewed 28 July 2013, .
Kitazume, T 2007, ‘Chinese suffering from poverty, uneven development, experts say’, Japanese Times News, 8 October, viewed 28 July 2013, .
National Bureau of Statistic of China 2011, ‘China’s Total Population and Structural Changes in 2011’, viewed 28 July 2013, .
Peng, G et al. 2012, ‘Urbanization and Health in China’, Lancet, vol. 3479, pp. 843-852.

References: Gao, Z 2013, ‘Urbanization May Offer False Economic Hope for China’, Epoch Times, 6 April, viewed 28 July 2013, . Johnson, J 2012, ‘Disease, health disparities acompany rapid urbanization in China, study shows’, Emory News Center, viewed 28 July 2013, . Kitazume, T 2007, ‘Chinese suffering from poverty, uneven development, experts say’, Japanese Times News, 8 October, viewed 28 July 2013, . National Bureau of Statistic of China 2011, ‘China’s Total Population and Structural Changes in 2011’, viewed 28 July 2013, . Peng, G et al. 2012, ‘Urbanization and Health in China’, Lancet, vol. 3479, pp. 843-852.