Topic 19 - Inequality, Opportunities and Risk

Question 1

What was the trend in inequality during the reform period?

Answer 1

Inequality decreased dramatically between 1978 and 1985. After 1985 inequality increased rapidly.

Question 2

What did the Asian Development Bank find about China in 2007?

Answer 2

They found that China had the joint highest inequality in Asia

Question 3

What forms of inequality were there in China during the reform period?

Answer 3

1) Income inequality - Wage inequality & Educational inequality
2) Urban-rural inequality
3) Regional inequality

Question 4

Why did urban-rural inequality exist?

Answer 4

• Migrant workers were mostly unskilled
• Labour supply of rural workers was greater than the urban Hukou workers so they got paid less than the urban workers
• The Hukou system gave urban workers an advantage
• Education was less accessible and affordable for the rural community

Question 5

Why did regional equality exist?

Answer 5

There was inland-coastal inequality because of decentralisation and the locations of treaty ports