Question

China was a majority agrarian country a generation ago. Only 1 in 5 Chinese lived in urban areas in 1980, whereas today about 60% of them live in urban areas. Upward mobility has been the hallmark of this process in the country, with nearly 400 million of Chinese people joining the rank of the middle class during this time period. Use an economic theory to describe this exceptional economic transformation, making sure to outline the process in a detailed fashion.

Answer 1

Answer - Theory of Urbanisation or the rural -urban shift...

Internal migration in China is one of the most extensive in the world according to international labor organisation. In 2015, migrant workforce is of total 277.5 million approximate of 36% , an 3.4% of rise in the count of people who left hometown from 2010 . Altogther it is estimated that that Chinese cities will have to see an influx of another 243 million by 2025,wherein 40% would be migrant population in cities

Coming on INCOME RISE - as per 2005 study reports show that for self employed category : 52% of migrants were there however locals were only 12% . Moreover ,in public sector 12% only migrant population was in public sector in comparison to the total local workforce of 68% . However all these raised the income of people who migrated bringing them up from low to middle income groups

It's It's economical outlook - this is more of a problem as owing to HUKOU system the migrated cannot change there household address as a result migrant tend to be kept away from the urban(social)welfare plans and schemes like of healthcare ,jobs,even education children from rural were considered to be inferior etc

So to solve it economist believe to implement "public policies reducing cost of education" evn for healthcare it is believed to be done so.... Further more owning to FOXCONN SUICIDES redistribution of income and guarantee benefit to rural migrants population as they actually provided big chunks of income source to government so different policy's were introduced as for healthcare of migrants ,then as labor policy 2002 :WORK SAFETY LAW ,in 2004 high risk industries had to cover injury insurance for migrant workers etc .Above all ,HUKOU reform also changed and people of rural household also had equal access to social welfare scheme