Challenges Facing the People’s Republic of China
Edited by Juhzon Zhuang, Paul Vandenberg and Yiping Huang
Chapter 14: Managing urbanization
Rapid urbanization in the People’s Republic of China (PRC) is likely to remain a driving force of sustained economic growth over the next two decades, as it has been for the past three. Migration from rural areas to cities should generate huge productivity gains, and agglomeration effects will stimulate industrial and services sector development. Urbanization will also spur rural development through a variety of channels. The PRC’s urbanization level is still low compared with international benchmarks, and it has been constrained by the segmentation of factor markets across rural and urban sectors. In addition, migration to cities has brought many new challenges to the government, both local and central. These include addressing rising income inequality, conserving farmland, financing for city government, and public service provision. Urbanization is one of the strategic goals of the Twelfth Five-Year Plan, 2011–2015.
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