China needs to spend £5 trillion in 20 years as 200 million flock to cities
By Tom Phillips, Shanghai, Daily Telegraph, 15 Aug 2012
China will need to shell out some £5 trillion over the coming 20 years as another 200 million rural people flock to its cities, a new government report has claimed.
The 'Blue Book of Cities in China', released on Tuesday by the Chinese Academy of Social Science's Institute for Urban and Environmental Studies, outlined the huge challenges facing the world's most populous nation as mass migration continues at breakneck speed.
Combined with the estimated 200-300 million migrant workers who have already taken up partial residence in the cities, authorities needed to devise ways of successfully "urbanising" up to 500 million people, the report said.
Shan Jingjing, a researcher from the Institute for Urban and Environmental Studies or IUE, told the Daily Telegraph ongoing urbanisation was a welcome and "natural development" but that authorities had to prepare for its side effects.
Between £4 and £5 trillion would be needed to fund housing, social welfare and infrastructure projects to support new arrivals to China's already teaming cities, Shan added.
"The rural population currently working in the cities has not turned into an urban population yet. They don't have the same social insurance, housing, education, public service and citizen rights as urban residents." When China's Communist Party took power following the 1949 revolution nearly 90 per cent of the country's population lived in rural areas and by 1982 only around 25pc of Chinese lived in cities.
But three decades of unprecedented economic growth saw that number rocket to over 50 per cent last year for the first time in Chinese history. Around 690 million Chinese people now live in cities compared to 656 million in rural areas.
Some expect the urban population to swell to 75 per cent within the next 20 years, as rural people pile into cities and towns in search of better jobs and living conditions.