Gap between urban and rural areas in Zhejiang

The gap between urban and rural residents' consumption levels in Zhejiang Province was obvious in 2004

--------------------------------------------------------------------------------

March 02, 2005 16 :35

2005-03-02 15:36 Polygen Database

In 2004, the per capita living consumption expenditure of rural residents in the province was 4,659 yuan, equivalent to 43.8% of the per capita consumption expenditure of urban residents of 10,636 yuan, and the gap between urban and rural residents' consumption expenditures was 2.283:1 (with rural residents as 1, the same below), which was wider than that in 2003 by 1.7 percentage points from 2003. Since rural residents' consumption expenditure includes expenditure on the purchase and construction of housing, while urban residents' consumption expenditure does not, if compared on the same basis, the gap between urban and rural residents' consumption in 2004 was 2.679:1.

The gap between urban and rural residents' consumption levels is obvious, mainly due to the large gap between the incomes of urban and rural residents, and the per capita net income of rural residents in 2004 was 6,096 yuan, equivalent to the disposable income of urban residents of 14,546 yuan, which was 41.7 percent of the per capita disposable income of urban residents. In 2004, the per capita net income of rural residents was 6,096 yuan, equivalent to only 41.9% of the per capita disposable income of urban residents of 14,546 yuan. Increasing the income of farmers can raise the level of consumption, which is of great significance in bridging the consumption gap between urban and rural markets, expanding domestic demand and promoting economic growth.

In 2004, the gap between urban and rural consumption in Zhejiang Province widened

(2005-02-13 07:32:38)

Metropolis Express Newspaper, the latest information from the Zhejiang Provincial Urban Survey Team, the average per capita consumption expenditure in rural areas of Zhejiang Province in 2004 was 4,659 yuan, which was only 43.8% of the average per capita consumption expenditure of urban residents.

In 2004, the per capita consumption expenditure of urban residents in Zhejiang Province was 10,636 yuan, and the gap between urban and rural residents' consumption expenditure in Zhejiang Province reached 2.283:1 (with rural residents as 1, the same below), expanding by 1.7 percentage points compared with 2003.

The more serious situation is that in the statistics, rural residents' consumption expenditure includes the expenditure on purchasing and building houses, while urban residents' consumption expenditure does not. Therefore, if compared according to the same caliber, the consumption gap between urban and rural residents in 2004 was 2.679:1.

The relevant experts of Zhejiang Provincial Urban Survey Team analyzed that the obvious gap between the consumption level of urban and rural residents was mainly due to the big income gap between urban and rural residents, and the per capita net income of rural residents in 2004 was 6,096 yuan, which was only equivalent to the per capita disposable income of urban residents, which was 14,546 yuan or 41.9%. Increasing the income of farmers is important for bridging the consumption gap between urban and rural markets, expanding domestic demand and promoting economic growth.

The relevant departments of Zhejiang Urban Survey Team also specially investigated the marginal consumption tendency of Zhejiang residents, that is, the share of each unit of income newly increased by the residents for increasing consumption expenditure, which is an important indicator reflecting the residents' willingness to consume. According to the urban household survey data calculation, in 2004 the province's urban residents marginal propensity to consume 0.525, that is, residents of every additional 100 yuan of disposable income, there are 52.5 yuan for consumption.

Analysis of the marginal propensity to consume of households with different levels of income shows that the higher the level of income, the lower the marginal propensity to consume, i.e., the lower the desire to consume. 20% of low-income households have a marginal propensity to consume of 0.760, 60% of middle-income households have a marginal propensity to consume of 0.561, and 20% of high-income households have a marginal propensity to consume of 0.523. At a lower level of income , residents spend more of their increased income on consumption in order to improve their lives. Therefore, relevant experts said that raising the income of low- and middle-income families is very important for expanding domestic demand.

I. Analysis of the current situation of the urban-rural gap

Since the reform and opening up, Zhejiang has achieved rapid social and economic development, especially in rural areas, the level of economic development and farmers' income level

level in the country in the forefront. Even so, there is still a clear gap between urban and rural areas, and there is a tendency to further expand

. Zhejiang's urban-rural gap is mainly reflected in the following aspects:

(a) income gap. The main indicators reflecting the urban-rural income gap are the per capita disposable income of urban residents and the per capita net income of rural residents

. However, these two indicators are calculated at current prices in current statistics and are nominal incomes, which are not very comparable.

There is therefore a need to calculate the real income of urban and rural residents at constant prices. According to statistics, in 2003, the average disposable income of urban residents in Zhejiang

was 13,180 yuan, and the average net income of rural residents was 5,431 yuan. If calculated according to the constant prices in 1985, the actual per capita income of urban and rural

residents was 3,262 yuan and 1,641 yuan respectively, and the actual per capita disposable income of urban residents was higher than the actual per capita net income of rural residents

The real per capita disposable income of urban residents is 1621 yuan higher than that of rural residents, and the ratio of the real per capita income of urban and rural residents is 1.99, while the ratio was

1.65 in 1985.From the point of view of the average growth rate, the disparity between urban and rural areas is also very obvious.In the 18-year period of 1986-2003, the average annual growth rate of the per capita disposable income of urban

residents of Zhejiang was 7.3%. The average annual growth rate was 7.3%, while the average annual growth rate of per capita net income of rural residents was 6.3%,

the difference between the two is 1 percentage point. It must be pointed out that the results of the above analysis are not a comprehensive and definite

income gap between urban and rural residents. If we take into account some of the in-kind income and subsidies enjoyed by urban residents, as well as the overestimation of rural residents' income

factors (according to experts' estimates, about 30-40% of farmers' per capita net income needs to be used for productive inputs), the income

gap between urban and rural residents should be even larger.

(ii) living standards gap. First, the gap in the level of consumption. According to the 1985 constant price calculation, in 2003, Zhejiang

The real consumption level per capita of urban residents is 2893 yuan, the real consumption level per capita of rural residents is 1409 yuan, the real consumption level per capita of rural residents

Rural residents

Actual consumption level per capita is only the real consumption level per capita of the urban residents of the 48.7%. 1985, the urban and rural residents of the real consumption of water

Pean In 1985, the ratio of real consumption level of urban and rural residents was 1.82, but in 2003, the ratio of real consumption level of urban and rural residents increased to 2.05, and the gap between urban and rural residents' consumption has been widening gradually

. Secondly, the gap in ownership of consumer durables. The ownership of consumer durables is a material reflection of the living standard of the residents

In 2003, among the major consumer durables owned by urban households in Zhejiang, the ownership of washing machines, refrigerators, color TVs,

cameras, air-conditioners, and mobile telephones were 92.69 units, 98.6 units, 159.39 units, 50.70 units,

105.23 units, and 130 units, respectively. p>105.23 units and 130.64 units, while the average number of the above consumer durables per 100 rural households during the same period was

43.11 units, 53.11 units, 109.67 units, 7.93 frames, 20.37 units and 73.48 units, respectively. The major consumer durables owned by urban and rural residents

are not only in large quantitative differences, but also in large differences in brand and quality. Again, Engel coefficient differences

. Engel's coefficient is a general indicator reflecting the level of living standard. 2003, the Engel's coefficient of urban and rural residents in Zhejiang

was 36.6% and 38.2% respectively. Judging from the Engel coefficient alone, the living standard of both urban and rural residents in Zhejiang has entered the stage of "affluence", but the Engel coefficient of urban residents is still significantly lower than that of rural residents, which indicates that the life of urban residents is more affluent than that of rural residents.

(

This is a general indicator reflecting the level of living.

(3) Gap in public **** product supply and social security. The urban-rural gap is not limited to measurable aspects such as income and consumption

, but there is also a big gap between urban and rural residents in terms of public **** products and social security such as old age pension, medical care and health care, housing, education, etc.

The gap between urban and rural residents is not limited to measurable aspects such as income and consumption.

At present, various kinds of social

security, such as old-age insurance, medical insurance and unemployment insurance, as well as housing subsidies and price subsidies, which are enjoyed by urban residents, are not available to the vast majority of rural residents. Compared with towns and cities, public **** products and social security in rural areas not only have fewer programs

, but even those that do exist, such as the minimum subsistence guarantee, education and health care, generally have a lower level of supply than in towns and cities

.

(iv) Property gap. There are no accurate statistics on the property situation of urban and rural residents, but we can make a rough analysis from the following two

aspects. First, from the perspective of the balance of savings deposits of urban and rural residents, in 2002, the balance of savings deposits of urban residents in Zhejiang

was 395.643 billion yuan, and the balance of savings deposits of rural residents was 127.730 billion yuan. Although urban and rural residents each accounted for

about 50% of the total population, the savings deposit balance of rural residents was only 32.3% of that of urban residents; secondly, in terms of property income,

in 2002, the per capita property income of urban residents was 202 yuan, and the per capita property income of rural residents was 192 yuan.

The reasons for the urban-rural gap

(a) urbanization is lagging behind, and a large number of people stay in the countryside is the direct cause of the urban-rural gap. 2003, Zhejiang

GDP per capita has reached about 2400 U.S. dollars, and the structure of the three industries has also been adjusted to 7.7:52.6:39.7, but the level of urbanization is only

about 43%, even according to the fifth industrial structure. 43%, even according to the fifth population census, will flow into the city and live for more than half a year of the population statistics for the city

town population, the urbanization level is only 53%, the urbanization process is greatly lagging behind the level of economic development. The lagging urbanization process

has caused a large number of people to stay in the countryside, which has not only distorted the structure of labor resource distribution in the development of the national economy, distorted the supply and demand relationship of labor between sectors and between urban and rural areas, and resulted in a serious surplus of labor in the rural sector, which has suppressed the income level of the rural

village inhabitants, but also aggravated the demographic resources of the countryside. contradictions, restricting the growth of rural residents' incomes. Therefore, the excess of rural

people is the direct cause of the relative poverty of farmers and the urban-rural gap.

(ii) the urban bias in resource allocation is the main cause of the urban-rural gap. In China, for a long time, the allocation of all kinds of factor resources

resources and public ****products, are to ensure that the urban demand as a priority goal, the relevant needs of the rural areas are usually difficult to meet,

resource allocation of urban bias is very obvious.

First of all, from the viewpoint of financial elements: Firstly, there is an imbalance between urban and rural economic contribution and capital utilization.

In 2003, the value-added created by the rural sector of Zhejiang (including agriculture and township enterprises) accounted for 56.2% of the province's GDP, but the loans obtained by them only accounted for 14.3% of the total loans

of the whole society, and the rest of 85.7% of the loans from the financial institutions The remaining 85.7 percent of financial institutions' loans are invested in the urban sector, while the value added created by the urban sector

accounts for only 43.8 percent of the province's GDP. Secondly, a large amount of rural capital flows to the city. In a market economy, the flow of funds is a normal

normal phenomenon. But the current massive flow of rural funds to the city, not entirely the result of the market, but all kinds of financial institutions in the

rural sector and the urban sector is not the same, the rural residents and township enterprises set a higher threshold for loans, through this

differentiation method, financial institutions every year in the form of more deposits and fewer credits or even only deposits and no credits, a large number of rural funds to the city!

City use. By the end of 2002, Zhejiang's rural sector had received a loan balance of 125.827 billion yuan, while the deposit balance of rural residents

alone was 127.730 billion yuan during the same period.

Secondly, from the point of view of the land element: with the continuous advancement of industrialization and urbanization, a large amount of rural land resources in the form of public welfare

and non-public welfare have been compulsorily expropriated for the purpose of industrial and urban construction. At the same time, in order to reduce the cost of industrialization and urbanization, or to obtain more revenue from land concessions, the government expropriated the land of farmers and gave them seriously low compensation. According to statistics

accounts, since 1998, Zhejiang's various types of land expropriation to the village of compensation for an average of 12,164 yuan per mu, resettlement compensation for each person

2,377 yuan, after the village collective retention, the actual distribution to the hands of the farmers of the land compensation for an average of only 7,958 yuan per mu, resettlement compensation

fees an average of only 2078 yuan per person, green compensation fee The average compensation for seedlings is 198 yuan per mu. Land is not only an important means of production for farmers,

it also serves a social security function. This seriously low compensation rate, to a large extent, causes difficulties in the future life of the farmers whose land has been expropriated,

while at the same time providing a large amount of cheap land resources for the city.

(3) The dual social and economic system is the root cause of the urban-rural gap. The market system could have gradually eliminated the gap between

urban and rural areas. However, in the past two decades, with the continuous promotion of the market-oriented process, the degree of marketization of Zhejiang's economy has ranked among the forefront of the country

, the rapid development of rural non-agricultural industries, the transfer of rural residents to the city, but have not been able to narrow the gap between urban and rural

distances. The root cause of this result lies in the dual socio-economic system of "one country, two policies, urban-rural division". After the founding of New China, the government divided the country into two distinct parts, rural and urban, with separate management and distribution of funds and resources, and it also controlled the flow of funds and resources between the two sectors. The implementation of economic reforms, decentralization

and marketization have reduced the power of the government and increased the importance of market forces in society as a whole. However, the institutional framework of the long-established

dual structure still exists, and it makes sense that the gap between urban and rural residents is difficult to narrow. The dual socio-economic system, consisting of the household registration system, social security system, employment system, financial and tax system, education system, medical and health system, investment system and so on, has formed an urban-biased urban-rural trading system, and a series of relationships between urban and rural areas, such as factor flows, resource distribution and political rights arrangements, have been distorted. Although the rural non-agricultural industry has developed, the urban

city-biased urban-rural transaction system affects the allocation of resources by the market, so that urban residents have more resources at their disposal, and their

incomes naturally grow faster than those of rural residents; some rural residents have entered the city, but the lower cultural quality of the rural population does

make them not have the same competitive power as the urban residents. competitive ability. The reason for their low literacy level is the reality of the

rural education system. This urban-rural gap caused by the dual socio-economic system is a systemic gap, and as long as this

dual system continues, it will be difficult to narrow the urban-rural gap.

Third, the integration of urban and rural development, narrowing the gap between urban and rural areas

To narrow the gap between urban and rural areas, it is necessary to gradually break down the systemic basis of the gap - the dual socio-economic system. This requires that in the process of formulating and implementing socio-economic development strategies and policies, the development requirements of both urban and rural areas be considered in an integrated manner, that the unequal relationship between urban and rural areas caused by the dual system be rectified step by step, and that the fair

competitive opportunities and capabilities denied and weakened by the dual socio-economic system be given back to the rural population, so as to realize the integrated development of urban and rural areas. According to this way of thinking, in the next period of time

, Zhejiang should mainly focus on the following five aspects of work:

(a) to enhance the level of urbanization, reduce the rural population. Excessive rural population is an

important factor restricting the socio-economic development of rural areas, and the excessive rural population is in turn caused by the dualistic system that hinders the urbanization process. Today, we should take the reform of the household registration system as a breakthrough, completely abolish all restrictions on rural residents moving to the cities, and give rural residents equal opportunities to make a living in the cities, so as to speed up the pace of urbanization. A household registration system that takes the basic form of registration at the place of residence as the basic form of registration, takes legal fixed

residence or a stable source of livelihood as the condition for the approval of household registration, and takes legalization, documentation, and information-based management as the main means of managing the system, which is compatible with the market

economic system, has been established, granting rural residents the right to freedom of movement. At the same time, the social security system,

education system and employment system should also be reformed in a complementary manner, so that rural migrants can be integrated into the urban society, and the right of rural migrants to

permanent urban residence can be truly realized. In addition to removing restrictions, the government should also provide the necessary help and

support for rural residents to move to the cities. At present, Zhejiang has implemented the "Ten Million Rural Laborers

Quality Training Project" aimed at helping agricultural laborers move to secondary and tertiary industries, and in the future this project can be taken deeper in the light of the needs of urbanization, with counselling and training focusing on employability skills and the ability to adapt to

city life. The project can be deepened in the future in the light of the needs of urbanization, with counseling and training focusing on employment skills and the ability to adapt to life in the city, so as to improve the employability and adaptability of process farmers.

(2) Accelerating the restructuring of the agricultural and rural economy and increasing farmers' incomes. Adjusting and optimizing the structure of agriculture and the rural economy

is an important way to increase farmers' income and narrow the income gap between urban and rural areas. First, we should continue to promote the structural adjustment of agriculture.

To develop high-quality

, high-efficiency, ecological, safe agriculture as the core, to cultivate competitive advantage-type industries and brand-name products, and to promote the structure of the agricultural industry from "

production plus marketing" in the order of resource-led to "trade, industry and agriculture" in the order of market-led change. The company is also working on the transformation of the agricultural industry structure from a resource-driven "production plus marketing" to a market-driven "trade, industry and agriculture". Efforts to improve agricultural labor productivity

, scientific and technological contribution rate and land output rate, improve the comprehensive economic efficiency of Zhejiang agriculture. Secondly, we should innovate the agricultural management system and accelerate the

development of agricultural industrialization. Through the promotion of agricultural industrialization, more value-added income from agricultural products to stay in the countryside, leaving farmers

. To this end, we must actively guide and promote the organization of agricultural industrialization from the "company + farmers" in the primary form, to the "industry

Industry associations + leading enterprises + professional cooperatives + professional households" in the senior form of change. Three to guide township enterprises to promote structural adjustment

integration. Township enterprises as the pillar industry of Zhejiang rural economy and agricultural industrialization leader, in rural socio-economic development

play an important role. But in recent years, with the formation of the buyer's market and the gradual maturity of the township enterprises inherent production technology backwardness,

the low level of management, research and development capabilities and other weaknesses are increasingly exposed, affecting the rapid development of township enterprises. Therefore, township enterprises

should carry out structural adjustment according to local conditions, vigorously develop the production of new, special and excellent products and deep-processing products of agricultural products, and further

improve the business vitality and economic efficiency of enterprises.

(3) Reform the rural financial system to provide financial support for rural economic development. Accelerating the reform of the rural financial system, the construction of

financial institutions and services that provide direct financial support for agriculture and rural areas has become an

important aspect of the current integrated urban and rural development. First, the reform of rural credit unions. It is necessary to adopt a shareholding system, widely absorb the participation of rural collective economic organizations, township

enterprises, rural professional cooperative organizations, large agricultural professional households, etc., to transform rural credit unions into rural cooperative financial organizations

and to adopt a policy of tax exemptions or low tax rates, and, under the condition of ensuring that rural credit unions obtain a level of profitability not lower than that of general commercial banks

. Encourage rural credit unions to give loans to farmers at rates lower than those of commercial banks. The second is to reform the Agricultural Development Bank.

To change the single function of the Agricultural Development Bank only to undertake the grain and cotton purchase capital loans, the effective use of the WTO's "yellow box" policy

policy, the full embodiment of the state's special support for disadvantaged industries and basic industries, the Agricultural Development Bank will be converted into an agricultural industrialization

Service policy bank to safeguard the capital needs of agricultural development, and utilize the network of the reformed rural credit unions to develop commissioned

trust business. Third, the state should establish a policy-based agricultural insurance company. It is necessary to effectively change the situation in which agricultural insurance goes unchallenged and insure

risky agricultural projects to protect the interests of investors and producers.

(4) Adjust the resource allocation relationship and build a rural public *** financial system. The goal should be to establish a public *** financial system, and to accelerate

reform of the financial and tax system. The direction of reform is the supply of rural public **** products from relying on the farmers themselves, to the government

provide the main policy objective of transition, so that the majority of farmers enjoy the most basic national treatment. In terms of financial expenditures, one should increase

investment in rural infrastructure, ecological construction, agricultural research and extension, and distribution facilities for agricultural products, and make great

efforts to build farmland water conservancy facilities, and to improve the rural environment and transportation conditions, with a view to expanding the market and facilitating the circulation of production

. Second, we must increase investment in rural education, health and culture and other public **** business. In modern society, education is the most important factor in determining how high one can

climb the social ladder. And the most striking personal difference between rural and urban residents

is that the education level of the former is much lower than that of the latter. For this reason, it is necessary to reform the current mechanism for guaranteeing funding for compulsory education in rural areas, and the funding for compulsory education for rural residents

and urban residents should be borne equally by the government finances of counties and counties and above, so as to gradually form a unified system of supplying education in both urban and rural areas.

These measures should be taken in order to ensure that rural and urban residents are able to enjoy the benefits of compulsory education. Third, we should reform the method of subsidies, increase the direct financial subsidies to agriculture and farming farmers, and increase farmers' income

income. In terms of fiscal revenue, should further deepen the reform of rural taxes and fees, zhejiang can be in 2004 to suspend the cultivation of grain and oil farmers of agricultural

industry tax on the basis of the full abolition of agricultural tax, agricultural special production tax and other agriculture-related taxes. And according to the requirements of the market economy, to promote the reform of the tax

system, change the existing tax on land for the agricultural products into the commodity market commodity tax, the production of agricultural producers

income income tax, and gradually build a unified tax system in urban and rural areas.

(The author: Li Jiong is the director and professor of the economics teaching and research department of the Party School of the Zhejiang Provincial Party Committee; Li Tao is a lecturer of the economics teaching and research department)

The gap between urban and rural areas in Zhejiang has been narrowed "for the first time," which has greater symbolic significance

www.zjol.com.cn January 27, 2005 Zhejiang Online news site

The Zhejiang Provincial Bureau of Statistics released the "2004 Zhejiang Economic Operation", revealing that the ratio of disposable income per capita of urban residents and net income per capita of rural residents in Zhejiang Province has narrowed to 2.39:1 from 2.43:1 in 2003, said Wang Jie, deputy director of the Zhejiang Provincial Bureau of Statistics and chief statistician, adding that this is the first time the gap between urban and rural residents has been narrowed in the eight years since 1997. The gap has narrowed for the first time. (Xinhua News Agency, January 22)

"Urban and rural residents for the first time in eight years to narrow the income gap," the change is both gratifying, but also people have mixed feelings.

This change is both gratifying and a source of mixed feelings, as the Jiangxi Provincial Bureau of Statistics released data the day before that the gap between urban and rural incomes in Jiangxi in 2004 was narrowed for the first time since 1997, from 2.8:1 in 2003 to 2.6:1. In the context of the growing gap between the incomes of urban and rural residents in our country, the two messages have a value and connotation that deserve special attention.

Five years ago, Li Changping, the former party secretary of Qipan Township in Jianli County, Hubei Province, who was famous for his "I tell the truth to the Premier", once told people with tears in his eyes that "farmers are really suffering, the countryside is really poor, and agriculture is really dangerous". Relevant statistics show that from 1997 to 2003, China's average annual growth rate of farmers' income is 4%, only half of the growth rate of urban residents' income. Last year, a survey by the Chinese Academy of Social Sciences also showed that China is the world's largest urban-rural income gap in the country. 5 years ago, Li Changping's painful speech is still ringing in our ears, and now we finally see the urban-rural income gap for the first time to narrow the news, how can we not be happy and emotional.

Analyzing Zhejiang and Jiangxi, "the first time in 8 years" reason, no doubt with the central government to unprecedented efforts to focus on solving the "three rural" problem. Since last year, the central "No. 1 document" since the introduction, from the central to local have introduced a series of heavy agricultural support policies, there are 22 provinces announced a full exemption from agricultural tax, at the same time, agricultural by-products have seen a sharp rise in prices. On the one hand, to reduce the burden on farmers, on the other hand, to promote farmers to increase income, urban and rural residents for the first time to narrow the income gap, is through this "reduce" a "plus" and realize its significance should be highly evaluated.

However, we can not be blindly optimistic. Although the urban-rural income gap between Zhejiang and Jiangxi have begun to narrow, but the magnitude of the narrowing is not large. We should all the more see that the two provinces are using eight years, only difficult to take this small step. And nationwide, although farmers' income growth has accelerated, the trend of widening income gap between urban and rural residents has not been fundamentally reversed. According to the January 22 "New Beijing News" reported that the rural areas of the current Beijing region in terms of income and other aspects of the city lagged behind 8 years, not only the urban-rural income gap is large, urban and rural residents enjoy the *** with the same services there is also a gap.

To truly, comprehensively and sustainably realize the narrowing of the income gap between urban and rural areas, it is only now that a beginning has been made. More importantly, we should not only narrow the income gap between urban and rural areas, but also substantially improve the current situation in rural areas in terms of education, services, spiritual consumption, health care, social security and other social welfare, and narrow the huge gap between the city and the countryside in these areas, so as to realize the harmonious ****same development of urban and rural areas.

I hope these are useful to you ~~~~~~~~