ECON 455 Lecture 5 Rural-Urban Divide

ECON 455 Lecture 5 Rural-Urban Divide - 1 1 Econ455:...

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Unformatted text preview: 1 1 Econ455: Economic Development in China Lecture 5: January 24 Rural-Urban Divide Sandra Poncet Lorch Hall, room 207 Email: sponcet@umich.edu Office Hours: Mondays 16:30-18:30 & Wednesdays 10:30-12 __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ 2 2 Lecture Outline I-A dualistic system A-Origins of the dualistic system B-The urban economic system C-The rural economic system II-Evolution of the Urban-Rural divide A-Policy measures and institutions responsible for the urban-rural income gap B-Consequences of urban-rural divide Conclusion: How to bridge Chinas rural-urban gulf __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ 3 3 Introduction Urban bias is virtually universal in the process of economic development Urban groups are politically powerful Industry is the catalyst sector for rapid growth: Lewis model Difference between urban and rural society is especially pronounced in China: 2 different forms of citizenships, organizational structures and property-rights regimes Rural dwellers has fewer privileges Differences maintained by strict controls on mobility Some policy instruments are unique to China Urban-Rural Gap will take many years to disappear Source of grievances and potential threat to sustainability __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ 4 4 Introduction High but stable during the centrally planned regime Since the reforms, the level of disparity has exhibited marked cyclical changes: the declines in initial years were followed by a period of increases....
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ECON 455 Lecture 5 Rural-Urban Divide - 1 1 Econ455:...

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