The government should employ market mechanisms, not administrative measures, to better allocate labour resources, says an article in Beijing News.
May 26, 2005 (Press Release) --
BEIJING, May 26 -- The government should employ market mechanisms, not administrative measures, to better allocate labour resources, says an article in Beijing News. An excerpt follows:
Experts on Beijing's urban development have predicted that the influx of migrants will keep on rising until 2008, and after that will likely come a decline in the number of people coming to live in the capital.
It is thought the end of the 2008 Olympic Games will reduce employment in some Olympic-related industries.
The prediction is good news for people concerned about Beijing's over-sized population. Moreover, we are pleased to see that the role of the market is more important than the government's intervention in rationalizing labour resources.
The economic development imbalance in China has resulted in many people leaving the relatively underdeveloped rural areas and central and western China to go to the more affluent cities in the east. The migration pattern is the result of market mechanisms.
However, if big cities think they can no longer handle excessive population inflows, they often resort to administrative measures, which nearly always fail.
Beijing adopted a set of regulations which was abolished in March after 10 years of existence. The rules discriminated against workers and business people without a permanent registered residence. The regulations brought a lot of trouble to migrants living in the capital city but failed to stop them coming to Beijing.
If the government tries harder to revitalize the economy in poor areas, local residents will not leave those areas for big cities that are often hostile to outsiders.
To ease the transient population pressure in some big cities, rigid administrative measures designed to restrict people moving around the country will not work. If the economy is doing well everywhere, then that is the best solution; people will go to where the jobs are, not just to the main cities.
Experts on Beijing's urban development have predicted that the influx of migrants will keep on rising until 2008, and after that will likely come a decline in the number of people coming to live in the capital.
It is thought the end of the 2008 Olympic Games will reduce employment in some Olympic-related industries.
The prediction is good news for people concerned about Beijing's over-sized population. Moreover, we are pleased to see that the role of the market is more important than the government's intervention in rationalizing labour resources.
The economic development imbalance in China has resulted in many people leaving the relatively underdeveloped rural areas and central and western China to go to the more affluent cities in the east. The migration pattern is the result of market mechanisms.
However, if big cities think they can no longer handle excessive population inflows, they often resort to administrative measures, which nearly always fail.
Beijing adopted a set of regulations which was abolished in March after 10 years of existence. The rules discriminated against workers and business people without a permanent registered residence. The regulations brought a lot of trouble to migrants living in the capital city but failed to stop them coming to Beijing.
If the government tries harder to revitalize the economy in poor areas, local residents will not leave those areas for big cities that are often hostile to outsiders.
To ease the transient population pressure in some big cities, rigid administrative measures designed to restrict people moving around the country will not work. If the economy is doing well everywhere, then that is the best solution; people will go to where the jobs are, not just to the main cities.
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