Shanghai

Some thoughts on social Polarisation. This came out of a group presentation given in my Urban Economics class.

When China opened its economy, Shanghai was named one of the important zones for investment in 1990. Foreign Direct Investment single-handedly reorganized Shanghai’s economy making it grow from a large industrial centre in China to a world city in 2010. However, this rapid growth left many people behind. The economy transitioned from industrial manufacturing that was largely supported by State owned enterprises to a high-level service economy reliant on foreign investment. State owned enterprises could not compete with the foreign firms and eventually laid off 90% of its employees between 1992 and 2005. Due to social constraints and central government policies, many people do not have the opportunity to attend post-secondary institutions to allow them to enter the high-level sectors that are taking over Shanghai’s economy.

Social polarization exists in all countries developed and developing but is quite pronounced in China and Shanghai. It increased China’s GDP 6.5 times to 40 billion US Dollars annually between 1980 and 2000.

Pudong region 1990 (top),  2010 (bottom)

Hosting the World Expo in 2010 the theme was “Better City – Better Life” – showing off this beautiful skyline of innovative “icon” towers. The theme of the expo is very superficial showing this over developed city, when the reality of the city and China as a whole is growing too fast, fewer and fewer people are benefiting from the rapid development that has happened with foreign investment. This may be a harsh judgment but based on what I’ve learned about China, while researching this topic, is that it’s plowing ahead full-steam in the world economy to reach “developed” status that it is leaving behind more and more of its population as wealth increases. Hundreds of rural people move to the cities looking for work and higher qualities of life, but central government policies don’t allow them to enroll their children in schools, or have access to healthcare in the region, or even buy a house. Shantytowns are scattered all over the city right next to these massive skyscrapers in Pudong, where the World Expo was focused. China is one big oxymoron claiming it is a market economy with Chinese characteristics… I think they can’t want to be free market but can’t figure out what to do with more than half of their population who is suffering. The central government can only sweep problems under the rug or fudge statistics for so long until the rest of world finally wakes up and forces China to do something for their urban and rural poor. It is quite shocking.

 

Shantytown next to new-build residential high-rises, Shanghai

Images:

http://twistedsifter.com/2011/01/picture-of-the-day-shanghai-1990-vs-2010/

http://depositphotos.com/7468773/stock-photo-Chinese-slum-area-district.html