China And Household Registration System Essay

1698 Words Dec 8th, 2016 7 Pages
There are many different systems in each country around the world, some of which were created to benefit the economy as a whole while some others were created to benefit some specific classes or individuals. Hukou system in China or household registration system in the country was created to prevent exodus from the rural areas to the urban areas just for the sake of better living standard, and job opportunities. The system was created in 1958 after the victory of Chairman Mao revolution since China decided to follow the Stalinist growth strategy. It focused on rapid development in the manufacturing industry, and conversion of agricultural surplus to feed the labor (Chan, 2010).
Some might question whether or not the system has an impact on the country’s economic growth; in fact it has been the backbone of Chinese main exporting source to feed off foreign demand (Chan, 2010). This is also complementary with the fact that China has a huge unskilled population; along with the price of labor is very cheap compare to other giant economy like the United States. However, before diving into the impact of system on the economy, it is essential to learn about the detail of the hukou system. Hukou system used to define people based on their occupations; there are many people who hold the agricultural status these days, but that does not mean that they only work in the agricultural sectors, but in other fields as well. It divided the population generally into two categories such as:…

Related Documents