1/5
I've long argued that the two most important steps Beijing can take to rebalance demand in China are to eliminate the hukou system and to provide cheap, low-income housing to the poor. To the extent that, as part of the next 5-year plan, revamping...
scmp.com/news/china/pol…
I've long argued that the two most important steps Beijing can take to rebalance demand in China are to eliminate the hukou system and to provide cheap, low-income housing to the poor. To the extent that, as part of the next 5-year plan, revamping...
scmp.com/news/china/pol…
2/5
the hukou system is serious, it is very good news.
It won’t be easy, however. Eliminating the hukou system is only meaningful to the extent that it involves a massive income transfer from local governments to migrant workers. The thing to remember is that for many...
the hukou system is serious, it is very good news.
It won’t be easy, however. Eliminating the hukou system is only meaningful to the extent that it involves a massive income transfer from local governments to migrant workers. The thing to remember is that for many...
3/5
decades, municipalities benefitted enormously from the huge contributions migrant workers made to their economies versus the very little they returned to migrant workers. This huge "subsidy" provided by migrant workers allowed them to spend enormously on infrastructure...
decades, municipalities benefitted enormously from the huge contributions migrant workers made to their economies versus the very little they returned to migrant workers. This huge "subsidy" provided by migrant workers allowed them to spend enormously on infrastructure...
4/5
and urban conveniences.
But real reform means returning a substantial share of these contributions to migrant workers in the form of social services and legal protection. The subsidy, in other words, must disappear. There is no way to do this without in the medium term...
and urban conveniences.
But real reform means returning a substantial share of these contributions to migrant workers in the form of social services and legal protection. The subsidy, in other words, must disappear. There is no way to do this without in the medium term...
5/5
either cutting back sharply on existing services to residents or putting huge budget pressures on these municipalities. In the long term the economic benefits of rebalancing should pay for the medium-term costs, but for several years, the cost will be substantial.
either cutting back sharply on existing services to residents or putting huge budget pressures on these municipalities. In the long term the economic benefits of rebalancing should pay for the medium-term costs, but for several years, the cost will be substantial.
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