Upcoming substantial reform of the hukou (household registration) system, the most remarkable symbol of China’s dual social structure, is of extraordinary significance for the healthy development of the economic society, social integration and promotion of social quality.

Former hukou system hinders urbanization
The dual urban and rural hukou system established in the era of the planned economy doesn’t only serve the aim of population management. Different functions of economic society have been gradually added to it. The most important thing for the system is that welfare guarantees are enshrined in the hukou system. Under the system, Chinese society is divided into urban and rural hukou holders. Those with urban hukou can enjoy different welfare guarantees provided by the country, while those with rural hukou are not included in welfare coverage.

After the implementation of reform and opening-up, the government carried out several rounds of major reforms to the social security system. Rural populations have benefited from the reforms, but there is still a huge welfare gap between them and urban residents on account of the hukou system. Many new systems are still tied to the hukou system.

The essence of the dual urban and rural hukou system lies in the fact that all nationals are differently treated. The system institutionally excludes rural residents. Meanwhile, urban residents’ opportunities for accessing public services are increased through a series of institutional arrangements.

The former hukou system severely hindered the improvement of social quality. It intensified urban-rural division, restricted social mobilization and deviated from fairness and justice.

Optimal allocation of resources 　　
Reform of the hukou system will eliminate negative social consequences mentioned above and push forward the healthy development of society.

First, the reform will be conducive to promoting the development of urban and rural integration and optimizing the allocation of public resources. Since reform and opening-up, the urban-rural gap has been growing with modern cities rapidly developing and vast rural areas increasingly withering, which is mainly attributed to the urban-rural dual hukou system.

The urban-rural division restricts the rational allocation of social resources, making preponderant resources concentrated in cities. Meanwhile, rural areas are short of public resources and people living in cities without urban hukou are limited in many aspects even though they access superior public resources. The reform just emphasizes the equalization of basic public services including education, medical care, pension and housing security.

Next, the reform will be conducive to enhancing social mobility, optimizing population distribution structure and pushing forward the process of urbanization. For the past three decades, China's urbanization process has accelerated, but a series of new problems brought about by the hukou system have hindered its development. The most prominent one is that migrant workers living and working in cities cannot enjoy the same public services as urban residents.

The large-scale rural labor force is driving the rapid development of China's urbanization. The bottleneck problem of restricting migrant workers' social mobility would hinder the process of urbanization if it couldn't be fundamentally resolved. The new hukou system will further adjust the policy of household relocation, practice uniform household registration of urban and rural residents and put forward a series of policies such as orderly advancing the citizenization of transferred rural population.

Finally, the reform will be conducive to reducing social exclusion and promoting social integration. The hukou system has brought about great inconvenience to both rural and urban residents. It has accumulated huge social dissatisfaction and risks. The new hukou system will be people-oriented, respecting residents' willingness and safeguarding their rights under law. Urban and rural residents may choose proper ways of settling in cities and towns in accordance with their own conditions, abilities and willingness.

Differentiation policy for settling down will be implemented in the reform. This is determined by economic and social development levels of different cities and their capabilities of providing basic public services.
　　

Bridging the social divide
The quality of a society can be judged by social integration and inclusion. It determines to which extent people may acquire support from the system and social relations. Equal rights and values of individuals are therefore closely linked with social integration.

Reform of the hukou system is of profound significance in promoting social integration and eliminating social exclusion. The new hukou system will no longer be associated with differentiation, discrimination, exclusion or identity. It will only serve the aim of registering and managing population. All nationals will be fairly treated and enjoy equal rights and interests.

A high-quality society inevitably treats fairness and justice as the primary value of its social system. The reform of the hukou system embodies the pursuit of fairness and justice. It will greatly contribute to bridging the social divide, resolving potential social risks and improving social quality.

Reform of the hukou system still has a long way to go, but we have taken the first step.

The author is a professor from the School of Sociology and Political Science at Shanghai University.


The Chinese link: http://sscp.cssn.cn/xkpd/shx_20166/201409/t20140912_1324830.html

Translated by Yu Hui

Revised by Tom Fearon