Shanghai’s migrant millions

James Irwin, Shanghai-based Canadian journalist

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Building up the modern city: migrants are ready to take on all kinds of heavy work in order to stay in Shanghai.






‘China is one of the few places where there is a deliberate government policy that addresses urbanization’






City planning has had its day. The age of culture is beginning.

Oriol Bohigas Guardiola, Spanish architect (1925-)









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Shanghai’s train station serves as a dormitory for many migrant workers.









People like each other so much that when they escape from the city they still look for crowds, in other words they reconstruct the city in the countryside.

Charles Baudelaire
(1821-1867)





Shanghaiphoto








Factfile

Population
The Shanghai agglomeration is the most densely-populated part of China. Some 13.6 million people live there, in an area of 6,340 sq km. This includes the city itself (375 sq km), seven industrial satellite cities and some small outlying towns. There were just over five million people in 1950, so the population has more than doubled in less than 50 years. It is expected to top 18 million by 2015, according to the latest UN projections (see World Urbanization Prospects, New York, 1998).
Political situation
The self-governing municipality of Shanghai answers directly to the central government. China’s current president, Jiang Zemin, as well as his prime minister, Zhu Rongji, were both once mayors of the city. The present mayor, Xu Kuangdi, studied in England and then taught engineering at Shanghai University.
Economic data
Shanghai is China’s biggest port. It has a long trading and industrial history and was the port of entry during the Empire, from 1842, when the Treaty of Nanking was signed. More recently, the opening-up of the city launched in the 1970s with the approval of the central government has boosted its development. The main features of this are heavy industry (metallurgical and steel plants, petrochemicals, building ships and planes) and textile, electronic and computer industries. In 1990, the government announced it was setting up a special new economic zone called Pudong which would be China’s new financial centre.
The economy of the Shanghai area grew by an annual 14% between 1992 and 1996, while direct foreign investment reached $10 billion a year. In 1997, this investment rate fell by half, pulling the growth rate down to 12.7%. It fell further last year, to about 9%, according to official estimates. Fallout from the Asian financial crisis and recent industrial restructuring has increased unemployment, which is officially 8% but is unofficially estimated to be double that. Annual per capita income remains way ahead of the rest of China however at $3,000, compared with only $860 for the country as a whole.
New sectors have recently been earmarked as priority areas, including telecommunications, new technologies and the pharmaceutical and biotechnology industries.

As it learns to manage the massive influx of ‘temporary residents’ that provide muscle for its explosive economic growth, China’s city of opportunity is treading a delicate balance between control and grassroots involvement

Among the well-dressed university students mingling just outside the gates of Shanghai’s prestigious Fudan University, three men stand out. Dressed in surplus army uniforms, they perch on the curb behind small cardboard signs stuck in pavement cracks. The crude signs advertising their labour for odd jobs or construction work can be hastily snatched up and hidden should the police make a sudden appearance.
The men, migrants in their 20s and 30s from the nearby city of Suzhou, never know when they might have to make a quick get-away. Unemployed for the past month and flat broke, they haven’t paid the temporary residence permit fee, which makes them subject to possible eviction from Shanghai.
“We don’t have much money for anything, including the 15 RMB
1 (US$1.75) for the monthly permits, so it’s better if we stay clear of the police,” says the eldest of the three.

A steady stream of manpower
Temporary residents, the so-called “floating” population, are everywhere in China’s richest city. On bicycle and afoot they stream through the city, ringing bells and shouting out offers to sharpen knives, sell fruit and vegetables from their carts or haul away old junk and garbage. Like the three men from Suzhou, they are ready to do almost anything, provided it will keep them in China’s city of opportunity.
Such is the allure of Shanghai that an estimated 3.3 million of its 13.6 million population are migrants. Thanks to a thriving economy propelled not only by economic reform but also an ambitious national policy to transform Shanghai into a major Asian financial centre, the city has turned into a huge construction site. Migrants have filled the need for sheer manpower. But for the most populous city in the world’s most populous country, the massive migrant population brings new problems, from huge strains on infrastructure to an exacerbation of a widening social chasm between the haves and the have-nots.
China is going through “urbanization of a scale never seen before in its history,” says Wu Weiping, a native of Shanghai who teaches Urban Studies and Planning at the Virginia Commonwealth University in the United States. Already some 30 per cent of the country’s 1.3 billion people live in the cities. That proportion is likely to reach 50 per cent in the not-too-distant future, according to Wu.
In a word, the challenge is of truly epic proportions. But so far Shanghai does at least seem to be averting many of the worst problems of urban swell common in other developing countries. Then again, not every city in the world has at its disposal the tool that has been a key to Shanghai’s qualified success: a set of controls perhaps only possible under a system of authoritarian government.
“China is one of the few places where there is a deliberate government policy that addresses urbanization,” says Wu. One solution has been to encourage the growth of small and medium-sized cities around the country to take some of the demographic pressure off the largest city. The other pillar of the urbanization policy is to control migrant populations once they have reached a city. It is in this latter area that Shanghai has shown its skill.
Migrants started making their mark on cities soon after they were first allowed to move there in 1978, the beginning of China’s economic reform programme. Control on mobility was effected through the hukou, or place-of-origin system. One had to remain in one’s place of origin unless granted permission to move. Apart from being illegal, migration without official approval made life quite literally unlivable: without the appropriate hukou card one was denied access to essentials such as ration tickets for rice, meat and cotton cloth.
But the former constraints on migration were arbitrary, imposed from the top down, and were certainly not compatible with the market economy that was to develop after the Cultural Revolution. As the economy exploded, jobs opened up for unskilled labourers, particularly in coastal areas where most of the foreign and domestic investment has poured in. In response, the authorities have encouraged migration to bring in cheap labour. Meanwhile, higher crop yields and rising population on a dwindling arable land mass have left the countryside with at least 100 million surplus labourers.
The hukou card system is still in place, but cities like Shanghai today also issue temporary permits to accommodate migrants. The temporary permit system gives the government the best of both worlds: flexibility and a relatively strong level of control.
Migrants must first get permission from their local government back home to work away from their area of origin. Upon arrival, the fortunate stay with family or friends from back home, while others sleep rough as the authorities provide no accommodation for transients.
Should they want to stay more than three days, migrants are required to get a three-month residence registration, which can then be extended for a two-year permit issued by an enterprise or local police station. Permits are granted only upon proof of legal accommodation in the city and of employment. On top of this, migrants need to apply for an urban employment permit, renewable yearly for a fee equivalent to $8.40. Unlike blue- or white-collar employees, street vendors and small retailers apply for business licences instead of employment permits. Only after they have managed to make it through all these bureaucratic check points are migrants legally allowed to remain in the city.
The temporary permit system means that in times of economic downturn—such as that which has left the three Suzhou men jobless for about three-quarters of the past year—the authorities have some leverage to force migrants to go back to their homes. An estimated one in four of Shanghai’s floating population doesn’t bother to register with the authorities.
Ignoring the law seems to be much easier than it was, certainly in the pre-economic reform era. So much of the economy is now private that one is not necessarily forced into contact with the state. At the same time, the success of economic liberalization means that food and other basic goods are so abundant that ration coupons are no longer needed—again, reducing reliance on state organs. Also, the numbers of migrants are so huge that it is impossible for the police and other authorities to keep tabs on them all.
It is possible for migrants to achieve long-term residency, but the hurdles are substantial and ensure that most will never make the grade. For example, to make the leap, migrants must purchase an apartment or house, which requires considerable cash; get corporate sponsorship, which is usually granted only to the well educated; or marry a local, which requires overcoming the considerable prejudice of the snobbish Shanghainese who shower disdain upon the floating population.
But while the state keeps close watch on migrants, it also intervenes to make sure they have at least the basics of survival. That help is motivated not only by a sense of charity or social duty: the last thing the state wants is for social problems to fester and explode into mass movements potentially challenging the political order.
Life for migrants, while in many ways difficult, is nevertheless not impossible. For example, on the city’s northeastern outskirts at the long-abandoned Jiangwan airport, sits a temporary residents’ camp sanctioned by the municpal government three years ago. The community is anything but fancy, and life here pales in comparison with that of the middle classes and especially the small, but visible class of new rich who have made it to the top through a mixture of contacts, savvy and privileged position. Nevertheless Jiangwan is relatively clean and orderly—a far cry from squatters’ communities found in the worst slums of other developing countries.
The site, home to 500 families, includes a rudimentary health dispensary, a few workshops, tiny factories, small stores, a clutch of hairdressers, ramshackle places to eat, market gardens and a host of other small businesses. Young children proudly lead the way to a school which, while rudimentary, does have a television, a stereo and wall maps of the world, and is probably no different from thousands of other elementary schools in poorer parts of the country. The teachers, mainly in their early 20s, come from the same provinces as the migrants and thus share a common dialect. The children themselves seem cheerful and outgoing, and are all properly shod and healthy looking—apparently enjoying the same sort of parental attention that China’s one-child family planning policy has inadvertently ensured for today’s youth.
The majority of the adults, who come from nearby provinces such as Jiangsu as well as poorer, hinterland provinces including Henan, Anhui, Szechuan, leave the camp to work each day in nearby Shanghai and its environs. To do so they must pass through the gates of the compound under the occasionally watchful eye of the gatekeepers, most of whom are laid off workers from state enterprises and all of whom are bona fide Shanghai residents.

Second-class citizens
Like other such camps, Jiangwan is under the jurisdiction of the local district committee, which is responsible for ensuring the residents are registered, taxes and temporary residency permits are paid, and security is maintained.
Each family pays approximately $70 to the private landlords who built and own the rows of houses where it and its neighbours live. In a country where the state has traditionally provided housing for nominal amounts of money, these rents are very expensive. Likewise, the half-yearly tuition of about $50 is fairly onerous. Yet migrants don’t seem to complain much, perhaps because overall life in the city is better or more promising than that back at home.
Apart from the temporary permit system, there are a number of factors which help the municipality manage the floating population issue, not the least of which is the city’s policy of grassroots management. In a pyramid-shaped organizational structure with the city at the apex, the district just below, the street next and the neighbourhood forming the wide base, the city has found a way of keeping local involvement high.
Through this last level of government, the neighbourhood committee, the authorities oversee day-to-day contact with the transient population. Once known for being composed of busybodies who interfered at every opportunity in people’s lives—denouncing and ensuring punishment of everything from extramarital affairs to even mild forms of political or even social dissent—the committees have been professionalized in recent years. Where once they were usually composed of retired people, now they are manned by paid staff, usually displaced state employees who have been specially trained, notes Wu. Instead of being seen largely as an instrument of interference in people’s private lives, the committees nowadays concern themselves with practical, everyday affairs.
Wu believes this approach is miles from central planning-type diktat, a remarkably efficient form of maintaining control while answering genuine needs for social service. As the population under any one resident committee rarely exceeds 2,000 people, the organization is characterized by a strong sense of familiarity.
Another tool for managing migrants is urging employers to provide housing for their staff. Wu estimates that 36 per cent of migrants in Shanghai live at or close to their place of work and that nearly half of all rural labour migrants live in housing provided by urban enterprises. Two-thirds of those listing construction as their occupation live at construction sites.
But while migrants may fare better here than in other parts of the developing world, there is little doubt that they in effect do not enjoy the same status as Shanghainese. Migrants are second-class citizens, grudgingly accepted for their labour but mistrusted because of the stresses they add to the city’s infrastructure. Other residents of Shanghai are often subsidized for the cost of their children’s education by their employers or the government. The same goes for medical services. Not so the temporary residents, who must pay the full cost should medical treatment be necessary. And their children, many of whom are born in Shanghai, are destined to be forever locked on the outside looking in. Migrant children are unlikely to mingle with their Shanghainese peers. A Shanghainese parent would be distraught if his child married a migrant—which is not all that likely anyway as the two worlds are, for all the physical proximity, culturally leagues apart, difference of dialect being just one of the many factors. Besides, there is a big price to pay: when a Shanghainese man marries a migrant woman, their child inherits her place of orgin.
Part of the disdain comes from the sheer lack of sophistication of the migrants in terms of dialect and demeanour, and their misplaced expectations. For example, male economic migrants typically buy a suit before hitting the big city in hopes of landing a desk job. They often end up wearing the suits—the labels still stitched to the sleeves—not in fancy office blocks, but on construction sites. Another cause for animosity is that problems such as rising crime are attributed to migrants.
One does not have to look very far for signs of contempt or discrimination. Outside a high school in downtown Shanghai—gleaming with new buildings and proud of its new sports stadiums, expressways and a metro system, all built by migrants—a policeman on a motorcycle is checking the papers of a migrant worker who has been selling brightly coloured shoelaces to the students. Not even deigning to get off his bike, the policeman speaks sharply to the middle-aged woman.
Distraught and crying she pleads her case to the uniformed figure of authority who snaps closed his notepad and speeds off down the street.
Still weeping, the woman gathers her meagre goods and begins walking away, watched by a small crowd of Shanghai residents. Where she’ll go is anyone’s guess.


1. The Chinese currency is called Renminbi (RMB).

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