Why China's Urbanization Isn't Creating a Middle Class - 0 views
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Monique Abud on 12 Jul 12Author : Nate Berg Feb 29, 2012 Why China's Urbanization Isn't Creating a Middle Class Nate Berg Feb 29, 2012 11 Comments Why China's Urbanization Isn't Creating a Middle Class Reuters Share Print Share on emailEmail The rapid rate of development in China manifests itself most clearly in its cities. With some populations rising into the tens of millions, China's cities are the economic powerhouses of the country, and are helping to create a whole new era of financial prosperity. For some observers, this translates into 1.3 billion people who now have the money to afford the sort of commercial goods many of the country's factories had previously been producing for the affluent populations of other countries. China is seeing its own affluence rise, and some surmise that this will translate into a Western-style nation of relatively well-off consumers; that, as this report from the McKinsey Global Institute suggests, China's middle class is emerging to help propel the country's economic success even higher. The only problem is that this middle class doesn't actually exist. And unless decades-old rules change, it won't. In a recent paper published in the journal Eurasian Geography and Economics, geographer and University of Washington professor Kam Wing Chan argues that all of the country's urban growth and prosperity is not actually filtering down to the majority of the rising urban population. The reason is that the majority of the urban population is prevented from fully participating in the booming urban economy because of a Mao-era rule that draws a harsh line between those from urban areas and those from rural ones [...]