ChinaTalk 'Invisible China': How the Urban-Rural Divide Threatens China’s Rise
Apr 9, 2021
Scott Rozelle, a Stanford professor and co-director of the Stanford Center on China's Economy and Institutions, dives deep into the urban-rural divide in China. He discusses the alarming educational disparities and their impact on economic growth, comparing China's situation to Mexico's historical challenges. Rozelle emphasizes the need for better local government funding in rural education and health, critiques the current poverty alleviation strategies, and highlights the importance of investing in human capital to secure a stable future for China.
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China's Human Capital Crisis
- China has the lowest human capital in the middle-income world, posing a challenge to its high-income aspirations.
- This could lead to a Mexico-like scenario: rapid growth followed by stagnation, social unrest, and emigration.
Mexico's Economic Downfall
- In Mexico, rapid growth and rising wages led factories to relocate, causing massive job losses.
- This resulted in informal employment and a surge in organized crime, mirroring potential risks for China.
Rural Education Barriers
- Most rural Chinese mothers aspire for their children to attend college, but their parenting styles often hinder this goal.
- Poor-quality schools, limited high school spots, and a challenging exam system contribute to high dropout rates.
