After a spate of growth for the past 30 years, China had immense internal migration from the agricultural states to the towns. It is estimated that nearly 250 million farmers had come to industrial towns in hope of a better living.
China is a country that is predominantly dependent on exports. This January, its exports sunk by 17.5% compared to last year. With the current economic downturn, there have been reports that the unemployment may be at 10%! This means that the newly working age group of youngsters and middle age group people will now be out of jobs, with no income. What's important is that this can be wide civil unrests and violence in China. The mob may take to robbery, stealing and other forms to earn their living.
It is also estimated that the agricultural villages get nearly 30% of their remittances from the people in the towns. Even this now shall vanish.
China will have to deal with the issue given the seriousness of the crises. Its economic stimulus plan of $586 million that plans to provide 650000 new jobs in the next two years may have to be further increased.
One good sign of the present situation is the rise of entrepreneurism in the country, not only in China but also in France. This situation calls for 'out of the box' thinking that shall be provided by the laws created.
No comments:
Post a Comment