Urban Poverty in China - 1798 Words

Over the past two decades, China has experienced rapid economic growth, which has also brought about a rise in social and economic inequality. A nation that once operated under the principle of egalitarianism, China now struggles with a level of inequality that has surpassed most of its East Asia neighbours. In the 1980’s, poverty was a problem restricted mainly to rural areas, but recently it has forayed into urban areas as well. Since the mid-1990’s, urban poverty has grown at a very fast pace under the influence of globalization (Fulong, Webster, and Yuting 5). The economic restructuring of China is a huge contributor to this phenomenon. The Chinese government officially recognized urban poverty as a problem in 2001 through a report†¦show more content†¦The earliest of these attempts was by expanding higher education, which succeeded in matriculation, but did not provide sufficient stimulus towards consumption as families opted to save for higher education. The attempt to commercialize the housing market also ended up in a similar scenario, as families opted to increase their savings in order to afford the higher prices charged for apartments (Riskin and Qin 25). The urban poverty problem arises from the disparity between lack of income growth and massive growth in social wealth (Fulong, Webster, and Yuting 37). In order to remedy this problem, the government should not develop policies targeting only the poor; instead, it should ensure that there exists a resource framework that is not only adequate for rich and middle class needs, but one that is accessible to everyone. A strategic readjustment that ensures commensurate growth in both social and economic wealth would be highly beneficial to the people (Wanlong and Wong 26). The growth of incomes for residents should be strengthened and should also be accompanied by reforms in state-owned corporations. One of the ways to remedy the consumption problem is through a rise in income levels and implementation of reforms in monopolized state-owned industries to bring about income redistribution. Income redistribution is a government role that can be attained through proper fiscal policies like tax reforms to ensure a balanced and fairShow MoreRelatedEssay on Poverty and Income Inequality in China1348 Words   |  6 PagesAnother Inquiry on the Economic Welfare and Poverty in China The trade-off between economic growth and redistribution has become one of the major notes concerning the emerging economies of post-Cold War world. Adding to this struggle the urge to integrate into the international system while keeping the balances right at home has been another macro-level concern. 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