Poverty in the People's Republic of China

from Wikipedia, the free encyclopedia

Due to the climatic conditions, there have been famine in China for thousands of years . They were caused by droughts and floods . The fight of the Chinese against these natural disasters occupies a large place in the history of China . It was an essential task of the emperor to use the possibilities of the central authority to alleviate local famines. This task consumed a significant amount of the Chinese government's capacity. Based on inner peace and productive agriculture, however, the population doubled between 1760 and 1860 from 200 million to 400 million people. From the beginning of the 19th century, agriculture was less and less able to feed the ever-growing population with the limited and scarce cultivation areas for grain. China became the “land of famine” and the central power of the emperor fell apart. For the 100 years of the second half of the 19th and first half of the 20th centuries, the number of starvation deaths is estimated at 100 million. The number is very uncertain because of the non-existent population statistics. Perhaps the greatest but also the last famine in China occurred during the Great Leap Forward in the years 1959 to 1961. Since Deng Xiaoping's policy of opening up, there have been no more famines, the gap between rich and super-rich Chinese on the one hand and many Chinese people who are still very poor, however, are far apart again. The lack of slums in China does not mean the absence of great poverty among broad sections of the population.

Poverty before the founding of the People's Republic (1949)

From 1911 to 1949 there was no longer any central power, only warring parties and warlords . There was no more state support for the population against environmental disasters, but destruction and plundering by various armies with simultaneous further population growth and little arable land. It was not only a time of war, but also a time of rampant famine.

Thomas Heberer describes the misery of that time using the following example from Sichuan in the 1930s.

“In the 1930s, a cholera epidemic broke out in Sichuan, the most populous province. A French doctor who was then active in the provincial capital presented a proposal to the military governor of Sichuan to contain the epidemic. However, he rejected the aid plan and replied to the doctor's astonished question about the reasons: “Do you know that Sichuan is the most fertile area in the entire empire? Not an inch is wasted, the farmers have two harvests a year and plant their rice fields up to the top of the hills; when the water falls, they plant their vegetables in the river bed to try the possibility of another harvest. However, even in good harvest years, the rice, the grain, the vegetables are not enough to feed the people, who multiply in enormous proportions every year. The population is too dense, the famine inevitable; I will not take the measures you were so kind to explain to me for the sole reason that they would save 100,000 or 200,000 lives ... If cholera spreads it will create the inevitable gaps in the overpopulated province and thereby giving the survivors the opportunity to eat and live. "This example illustrates the dilemma of the population explosion: disasters and wars, epidemics and famine, droughts and floods were considered to be the" natural cleansing "of the population."

China, with more than 20 percent of the world's population but only 7 percent of the world's arable land, was no longer able to feed the population with the resources it had at the time.

Heberer describes the situation of the people in those days with a quote from two American journalists from the 1940s.

“They live in such indescribable poverty that an American reader, if this everyday poverty were put on paper, would not believe the printed lines. In China, half of all people die before they turn 30. Hunger, humiliation and violence characterize the entire continent. Corpses on the streets are commonplace. In Shanghai, the morning picking up of child laborers' bodies in front of factory gates has become routine.

Beating, whipping, torture and humiliation of rural residents by officials and gendarmes is part of the government authority in Asian countries. These people live on what they can wrest from the depleted soil. If they have the weather against them, nothing can save them from starvation. "

The last major famine before the founding of the People's Republic of China was in Henan in 1943, with an estimated 5 million deaths. Minor famines followed from 1946 to 1948.

There was a decade of marked improvement after the founding of the People's Republic of China, but from 1959 to 1961 there was famine during the Great Leap Forward ( Great Chinese Famine ) Campaign . The famine was one of the worst, but it was also the last famine in China. In 1981 food ran out again, but famine could be avoided. In China today, despite continued droughts, hunger is no longer an acute problem.

Poverty in Mao's Time (1949–1976)

China was one of the poorest countries in the world in the 1950s. In the ranking of the Center for International Comparisons at the University of Pennsylvania, China was ranked as the poorest country. The following table shows the list of the poorest countries.

Chinese Gross National Product (per capita)
compared to the other poorest countries,
1952 and 1957
Figures in US dollars for 1996
1952 1957
Poorest country China
468
China
568
Second poorest
country
Ethiopia
730
Malawi
587
Third poorest
country
India
840
Ethiopia
750
Fourth poorest
country
Pakistan
921
Ghana
783
Fifth poorest
country
Uganda
989
India
876


Until 50 years ago, there were always areas in China where hunger prevailed. The following table shows people affected by famine in the 1950s and 1960s. Even before the famine of 1959 to 1961, 20 to 40 million people were affected by hunger every year. The attempt to end poverty in China within a short period of time through the Great Leap Forward Campaign ended in a nationwide famine. 20 to 40 million people died of starvation.


Millions of people affected by famine
1954 1956 1957 1958 1959 1960 1961 1963
24.4 20.1 41.3 19.8 97.7 129.8 218.1 70.8


The table below shows the average amount of calories the Chinese had daily available.

Available
calories per person
(in kcal)
1957 1958 1959 1960 1961 1962 1963 1964
2167 2169 1820 1535 1651 1761 1863 2020

Since the founding of the People's Republic of China, the population has increased more than two and a half times, which has made feeding the population a constant problem despite all the improvements. Until the 1950s, the population could still be fed with the agricultural areas in the plain. Since the 1960s, more wasteland and slopes have been developed, arable land has been irrigated, slopes have been terraced. More and more mountain meadows were turned into arable land, with the constant risk of soil erosion . Chinese scientists point to the new opportunities offered by industrial support for agriculture, but the situation remains tense.

First, the supply of grain to the population in the first four decades of the existence of the People's Republic of China is presented. It can be seen that per capita production increased only slightly from the 1950s to the 1970s. This meant that while there were no major famines in the 1970s, there was still widespread hunger. 1979 was a good harvest year, 1978 was a bad one. You can see that the crop yields across China vary considerably.


Grain supply in China from 1953 to 1988
in kilograms per person
1953 1957 1961 1962 1970 1978
191 203 153 165 187 195


1979 1980 1985 1986 1987 1988 2005
259 214 254 256 251 249 356


1957 was a good harvest year, with a per capita harvest of 203 kg. The year 1961 was the worst year of the famine from 1959 to 1961 with 153 kg per inhabitant. Interestingly, although the famine was essentially over, the 1962 crop only increased to 165 kg per inhabitant. Despite the general poverty, the state managed to guarantee basic supplies for the population with the help of the people's communes. From the late 1980s, production increased to 250 kg of grain per capita. Crop failures can be coped with without causing general shortages. The worst droughts and floods in recent Chinese history occurred in the 1990s, and there was also a major drought in 2010 without any major impact on the diet of the population.

Poverty after the time of Mao (from 1977)

Extreme poverty development

When the People's Republic of China was founded, China was considered the land of famine. This has changed since the People's Republic of China was founded. The last great famine was in 1959/60 with the "Great Leap Forward". Nevertheless, China is still a country where a large part of the population lives in poverty. However, in the People's Republic of China, over 600 million fewer people were living in extreme poverty in 2005 than in 1981.

Peanut buyers in Wuhan

The success in the fight against poverty began with the economic reforms in 1978 and between 1981 and 2001 the proportion of the population living below the subsistence level fell from 53 percent to 8 percent. There has been no famine in China since the early 1980s, despite its high population rate and climatically critical areas .

However, the success of this fight against poverty has not been uniform. The first half of this success was already achieved in the first half of the 1980s. The further decline in poverty was no longer continuous; there were setbacks, especially in 1989 and 2000.

As a result of the reforms after Mao's death, especially the abolition of collectivization in agriculture, the proportion of the population in extreme poverty was reduced to a third between 1981 and 1987. However, general prosperity remained low. The liberalization of the labor market and the ensuing insecurity among the population with a simultaneous significant increase in food prices led to uprisings in Chinese cities in 1989, against which the military was deployed. Between 1987 and 2001 it was possible to halve the proportion of the population living below the subsistence level, with some setbacks. The following table shows the development of the proportion of the population who lived below the subsistence level.

Chinese below the subsistence level
year 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001
Population in percent 52.8 30.4 17.6 16.8 23.4 22.2 20.0 14.7 9.3 7.6 8.0

The World Bank defines the subsistence level in China as an income equivalent to an annual income of 850 yuan for rural residents and 1200 yuan for urban residents at 2001 prices. For 2007 this results in an annual income of around 95 euros for the rural population and 135 euros for the urban population. This is less than the often used limit of a dollar a day income.

The rise in poverty in 1989 is striking. At that time, almost a quarter of the Chinese were living below the subsistence level. This, along with the democratic deficits, was a major reason for the unrest in Beijing, which ended with the Tian'anmen massacre . As the table shows, this new poverty generated by price releases could only be reduced slowly. In 1994, at 17.0% of the population, more people were living below the subsistence level than in 1987.

Number of poor in China

Fields in Yunnan

According to the UN Human Rights Report, in 2007 34.9% of Chinese people lived on an income (at purchasing power parity with Europe) of less than US $ 2 a day and 9.9% of Chinese people lived on an income of less than one US dollar per day. 300 million Chinese from rural areas have no access to clean drinking water.

Income gap between urban and rural populations

There is very different information about the income gap between rural and urban populations. The ratio is officially 1: 2.5, but unofficially a ratio of 1: 5 is also estimated. In any case, the worst poverty in China is among the rural population. According to official figures, the average income of rural residents in the first half of 2008 was 2,528 yuan, which is the equivalent of about 40 euros a month. In the following, the situation of the rural population is presented in more detail.

Situation of farmers in the 1990s

While the Chinese in the city have seen an improvement in the economic situation since the mid-1990s, the upswing has largely bypassed the rural population. If you factor in the additional costs to the population as a result of "liberalization," such as medical care, then the rural Chinese earned no more in 2000 than they did 10 or 15 years ago. While the provinces on the coast with the urban centers developed dynamically, the rural inland provinces remained in poverty. They had to finance the restructuring of the economy in the cities by means of low purchase prices for their products. From the late 1980s to the late 1990s, the buy-in prices for the food were lowered by the state. The massive job losses in the old industries during the economic restructuring in the 1990s could only be politically coped with through cheap food.

Developments since the turn of the millennium

Water buffalo message sticking to the wall as fuel (Yunnan)

After the successes in the development of the industry, the situation of the peasants in Chinese politics has again been given a higher priority since the turn of the millennium, and with the inauguration of Hu Jintao as president in 2003 it moved into the center of Chinese domestic politics. Made possible by the economic growth of the coastal regions, there are already significant improvements for the rural population.

Local taxes cut

With the tax reform of 2000, many of the farmers' taxes, which had previously been set locally and often arbitrarily, were abolished, and the agricultural tax was the only tax added, at the local level only a surcharge of up to 20% of the agricultural tax was allowed for local ones Tasks are raised. This was officially presented to the farmers with the catchphrase “one total and one addition”. This tax reform gave the rural population legal security for the first time with regard to their tax burden.

Introduction of restricted freedom of movement

In 2005, farmers in 11 of China's 23 provinces, over 200 million people, were allowed to leave their villages and move to selected cities. Up to this point, like any rural citizen, they were not allowed to settle in a city without a permit. A gradual expansion of this freedom of movement is currently in the political discussion. The farmers can now also sell their products freely and no longer have to give them to the state at prices set by the state. This development was made possible by the expansion of China's infrastructure. For example, thanks to the new highways, fruits from the poor southern provinces can now reach the rich coastal cities within two days and can be marketed accordingly. However, to this day the state is the buyer of the majority of the agricultural products.

Abolition of the agricultural tax

Up until 2006, there was a different tax system between urban and rural areas. While in the city income tax was payable according to income, in the country a tax was levied depending on the area cultivated on a farm. This agricultural tax was abolished in 2006 and replaced by the same income tax as in the cities. Since the income of most farmers is only a fraction of the income of the townspeople, the income of the farmers is usually below the minimum income for taxation, so most farmers no longer pay any income tax at all. In addition, there are now direct government subsidies to farmers, for example for fertilizers, and subsidies to the communities.

Rural residents come to the cities as migrant workers

Rice fields in Yunnan

In China, to this day, rural residents are not allowed to settle in a city without a residence permit. In recent years, however, more and more temporary residence permits have been issued for workers from the rural population. While there were around 40 million such so-called migrant workers in 1994, their number has increased to between 100 and 200 million today, estimates vary widely.

The migrant workers mostly still earn poorly, but the average wages of the migrant workers have increased significantly in recent years, from 2005 to 2007 the low wages rose by 30 percent and in 2011 stood at 5,600 yuan (equivalent to 560 euros) a year. Remittances from migrant workers to their families have become an important source of funding for the rural population. In 2007 a total of 62 billion euros were sent from the cities to family members in the countryside. For the first time, many farmers have the opportunity to earn money to educate their children. At the beginning of 2008, the new employment contract law came into force. This new labor law makes an employment contract mandatory for all 800 million employees in China, including all migrant workers, which must comply with the legally prescribed minimum standards, i.e. fixed wages, regular working hours, health and pension insurance. However, the law is still often violated today and many migrant workers are still, but now illegally, forced to work without any contract coverage.

Income distribution 2012

Quantiles of the
population
Earnings in
renminbi
Earnings in
US dollars
05% 01,000 yen 0170
10% 02,000 yen 0340
25% 04,500 yen 0765
50% 09,000 yen $ 1530
75% 15,900 yen $ 2703
90% 25,800 yen $ 4386
95% 34,300 yen $ 5831

According to a study by Peking University , the richest 5 percent of the Chinese population earned 34 times the poorest 5 percent in 2012. The richest 10 percent of the population thus earn 18 times more than the poorest 10 percent; in Germany the same ratio is 6.9 for comparison.


Main problem for farmers

Rice fields in Longsheng

Despite all the improvements in detail, the main problem facing Chinese farmers has only just begun to be solved. There are too many farmers in China for the land available, and so most farmers have too little land to farm. In central China, an average person has only 10 ares (1,000 square meters) of land available. The rural population of China is about 800 million people, but only 100 million people are needed to cultivate the land, even using simple means. As long as industry is not built in central China, the farmers will remain poor. To build up industry, however, the appropriate infrastructure needs to be built, especially for transport and energy supply, which has been pursued with vigor in recent years. 48% of all state investments in 2007 were used to build infrastructure in rural areas. The development of infrastructure in Central China has been summarized since 2005 as part of the “Rise of Central China” development plan. Successes are already visible. Supported by the transport links to the flourishing coastal cities, the rural population generated more than half of their still low income outside of agriculture in 2011.

Discrimination against the rural population

Farm work in Hubei

The Chinese population registration system (Hukou) has been in the political discussion for years. In this reporting system, a person is assigned the official attribute “city dweller” or “rural dweller”. According to the provisions of the registration system, a “rural resident” can only settle in a city if he or she is granted a residence permit for the city. If he gets this residence permit, he still remains a “country resident” in terms of his civil status, and he will remain so even if he has lived and worked in a city for years. Many state benefits, especially in social policy, such as medical care, social assistance or the permission to have the family come, only apply to the “city dwellers”, not to the “rural residents”. This means that the "rural residents" living in the cities, like their relatives living in the countryside, are excluded from these benefits or freedom of movement and are second class citizens. In emergencies, the state does not help, but the “rural residents” are dependent on solidarity with “relatives” from their home region, which usually works well.

For years, the group around party chairman and president Hu Jintao has been fighting for a change in these regulations and in principle it is clear that the approximately 500 million people who have either already come to the cities in recent years or will stand up in the next few years Settling permanently in the cities, not simply being treated as “rural people”, as “temporary guest workers” and as second-class citizens.

The situation is already tense today. For example, the city of Shenzhen is estimated to have a population of more than 10 million people. Of these, only 1.5 million people are considered residents of Shenzhen. Three million people have a permanent right of residence, while over 5 million people are considered rural migrant workers with temporary residence permits and residence permits that are repeatedly extended at short notice. Many of these “migrant workers” have been living in Shenzhen for years, they have no future in the countryside and do not want to return, but want to bring their families to join them in order to build a livelihood in the city.

There were some changes in the population registration system in 2005, but there is continued resistance from the wealthy coastal cities to major changes. They argue that they are unable to cope with the influx of people following an easing of the restrictions. Fixed plans for ending the restrictions have therefore not yet been implemented. Attempts are currently being made to gradually change the provisions of the population register on a local basis. For example, for the Chongqing district with 32 million inhabitants, there is a plan until 2020 to relax the restrictions on moving within the district.

In general, the government is pushing to create ways that citizens who live in a city for long periods and have a steady income can be granted city-dwelling status, and some disadvantages associated with rural-dwelling status are alleged to be gradually lifted. The new employment contract law that came into force at the beginning of 2008 is a step in this direction.

Development programs

The areas of China for the
development programs:
red : areas for the "Great Western Development"
purple : areas for the "Revitalize Northeast" program
yellow : areas for the "Rise of Central China" plan
orange : Economically developed areas on the coast (without development program )

Development programs are intended to develop the poor regions of China economically and to reduce poverty in these regions. These programs are grouped under the following headings:

  • Great Western Development Plan: This program was created to develop the areas in western China economically. It started in 1999. According to an interim report in 2005, over 100 billion US dollars were invested in the area's infrastructure between 2000 and 2004.
  • Revitalize Northeast China Plan: Northeast China was an economic focal point in earlier decades, but has lost a lot of its productivity as part of the restructuring of the economy. This program is intended to strengthen the region again. The region consists of the three provinces Heilongjiang, Jilin and Liaoning. The program started in 2004.
  • Rise of Central China Plan: This plan, begun in 2005, brings together programs for economic development in central China. Central China consists of the six provinces of Shanxi, Henan, Anhui, Hubei, Hunan, and Jiangxi.
  • Construction of new socialist villages : In 2006 the central government laid down guidelines for the "construction of the new socialist villages" by means of a "Document No. 1". The focus is on building better living space, expanding infrastructure and creating jobs outside of agriculture.

The human rights plan for the years 2009 to 2011

In April 2009, the Chinese government launched the Human Rights Action Plan. After two years, the government took stock. At a conference in Beijing, Wang Chen, head of the press office at the Chinese State Council, spoke about the results from the government's perspective:

“In the past two years, China's gross domestic product has grown by an average of 9.77 percent annually. In 2010, the actual income of the population at the city and county level grew by 11.3 percent per person, while the net income of farmers increased by 14.9 percent. 22.7 million people in cities and districts have found a new job. Over 90 percent of the urban and rural population now has health insurance. And all school-age children can complete nine years of compulsory schooling. "

According to Wang Chen, the Chinese government is currently working on a follow-up program for the period between 2012 and 2015.

Current poverty using the example of Hong Kong

The city of Hong Kong with its seven million inhabitants is one of the most modern and richest metropolises in the world. The port city owed its rise to the steady influx of refugees from China and its close proximity to the People's Republic, for which it formed an important link to the world market. The now de-industrialized financial and service metropolis of Hong Kong has a minimum hourly wage of HKD 37.5. Hong Kong has the highest percentage of billionaires in the world. The standard tax rate is fifteen percent, but there are no taxes on capital or equity gains. In January, the city was named the freest economy in the world for the sixteenth consecutive year by the Conservative American Heritage Foundation and the Wall Street Journal.

In recent years, inequality in the distribution of wealth in Hong Kong has continued to increase. The Gini coefficient of income distribution (where 0 means total equality and 100 means total inequality) showed the most unequal income distribution of all highly developed countries in the world at 43.4 in 2007. (USA: 40.8 Switzerland: 33.7 Germany: 28.3). Despite high levels of wealth, 18 percent of the population live below the poverty line. 44.7% of the population live in public housing ; singles can earn up to HKD 11,540 a month, married couples up to HKD 17,600. This sometimes leads to employees rejecting a raise because they would then have to look for a much more expensive apartment on the open market. Although there are no slums, around 100,000 people live in inhumane shelters, 10,000 of them in cages with an area of ​​one and a half square meters.

Individual evidence

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