Economy

Hukou fraud exposes home truths about registration system

(Xinhua)
Updated: 2010-09-01 17:48

Fraud migrants

Gu Yikang, an expert on rural issues at Zhejiang University, says the demand for rural hukou indicates the possible slowing of the pace of urbanization to the detriment of the wider economy.

Less than 46 percent of China's population lives in cities compared with more than 90 percent on average in the developed world.

Gu says the level of urbanization is an important benchmark for an economy transforming from poverty to middle income, as a growing urban population means more construction and more jobs.

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The government needs to raise urban living standards, says Gu. "We must strive to increase the incomes of the city residents, cut unemployment, improve basic infrastructure and construct more affordable homes."

However, Tong Ruihui, of the provincial agriculture department, says hukou fraud is the root cause of emigration from cities.

The hukou system segregated the rural and the urban populations, initially in geographical terms, but more fundamentally, in social, economic and political terms, he says.

It is high time for China to cut the link between allocation of land and hukou, Tong says. "Only by stripping social security from household registration can we ensure migration is in accordance with market rules and maintain a healthy economic development."