China urbanization addresses rural issues

Rural issues may be getting priority as they traditionally do in this year's "Number One Document". But for the first time, policy makers are recognizing that problems in the countryside cannot be solved without helping farmers expand into cities. And that means offering more help in housing, employment and social welfare. DENG WEI reports on what needs to be done to balance growth in urban and rural areas.

It's time for change. The central government is sending a clear sign that rural problems cannot be resolved by simply focusing on the rural side itself. The first document of this year turns to the advancement of urbanization as a new direction.

Tang Min, Deputy Secretary-General of China Development Research Foundation, said, "Urbanization will create jobs for farmers. Secondly, it will create a big market for rural areas, as farming products can be sold in towns and cities."

More jobs and bigger markets mean increasing incomes for farmers. This will in turn ignite rural consumption and eventually promote overall economic growth.

According to the Chinese Academy of Social Sciences, when the urbanization rate is increased by one percent, around 10 million people will move to towns and cities and the growth rate of overall consumption will be driven up by 1.6 percentage points.

However, Tang Min is also warning of risks during the process of urbanization. Farmers who have moved into cities and towns may not get enough compensation. While increasing living costs may also add burdens on them. To solve these problems, Tang Min says priority should be given to granting urban and rural people equal social security benefits.

Tang said, "The most fundamental changes have to abolish the current 'Hukou' system. Under the system, urban residents can enjoy all social security benefits, as they have permanent residence permits. But for rural migrants, even if they live in the cities, they are not entitled to all those benefits."

Tang Min is suggesting developing a special social security system catering to rural migrants' needs.

He's also calling for an increased supply of affordable housing in towns and cities to help farmers' resettlement. And to help them increase incomes, the government should also provide more training for farmers.