Download Rural Surplus Labor's Basic Opportunity Depends on Private Sector

Rural Surplus Labor's Basic Opportunity Depends on Private Sector
Development in Economy
ZHAO Guangming
School of Kexin, Hebei university of engineering, Handan, P.R.china, 056038
[email protected]
Abstract China’s agricultural labor force serious is surplus, has become a mutual recognition. How
digests these massive surplus labor forces supplies? Only then creates the new essential factor demand.
Speaking of china, must have the massive labor forces essential factor demand, lies in positively
promotes the privately operated economical big development. This article proposed develops the
measure vigorously which the privately operated economical shift surplus labor force mentality and
needs to adopt.
Key words
Agricultural surplus labor force Privately operated economy Privately operated
enterprise; Labor Surplus; China; Agricultural labor
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1 Introduction
With the acceleration of urbanization, rural and agricultural productivity to improve, China in the next
five to ten years in the cycle, the transfer of non-agricultural industries and to cities and towns in each of
5 to 20 million rural surplus labor. In other words, 10% of the cycle, the total size of the surplus
agricultural labor force will reach 150 to 200 million people. The surplus agricultural labor force if they
can not obtain suitable employment opportunities outside, staying in agriculture, the law of diminishing
marginal utility due to a surplus of labor factor is the declining marginal utility or even negative. thus
difficult for the peasants to increase income. Now people in order to arrive at a consensus : The rich
farmers, we must first reduce the number of peasants.
However, in order to reduce farmers not to transfer them to be on the large and medium-sized cities or
small towns. It is just a matter of transfer and solve the fundamental problems. If the city surplus
agricultural labor factor is the lack of effective demand, or that If labor can not be fully jobs and more
stable source of income, will return to the rural areas and re surplus. Therefore, the first and foremost
prerequisite is to have a lot of labor demand to absorb the supply of labor. Rural labor forces, including
elements of the two channels demand, industry, the city's second and tertiary industries. Formed the
foundation of state-owned enterprises in these industries. foreign-funded enterprises and private
enterprises (including individual businesses and private enterprises) there is the restructuring of
township enterprises. These different types of enterprises constitute absorb labor carrier.
2
The Effective Demand of Surplus Agricultural Labor Force from Private
Enterprises
2.1 Establishment of a unified labor market is the objective requirements of the situation
The Chinese government, making overall plans for urban and rural economic and social development,
and the first time formed a system of equal employment of urban and rural laborers. Establishing a
unified, open, competitive and orderly market will become a factor in the economic development of
practical requirements. Therefore, the surplus agricultural labor force, the employment problem should
be at the forefront of national unity, to analyze and explore the cities and villages. At present, urban and
rural residence is gradually loosening barriers, discriminatory employment policy is the place to be
clean-up. Another obvious trend is that with the passage of time. choose the one hand, the urban labor
force is constantly lower job conditions Rural migrant workers are a variety of other ways to improve
their competitiveness on the job. And the integration of urban and rural labor forces to the positions in
the competition is intensifying. It can be predicted that a unified urban and rural laborers in the labor
market to achieve competitive career.
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Generally speaking, however, the current employment situation is still very grim. Enterprises and laying
off workers and the reform of government institutions; country's industrial structure adjustment and
upgrading, etc., are the reasons for the market cities where power supply. The prominent the
contradiction between supply and demand. It is estimated that the "Ninth Five-Year Plan" period, China
has an annual increase of 6.46 million urban labor supply. "10th Five-Year Plan" period about 686
million people, to 2005, a total of about 240 million urban labor supply. hidden and open unemployment
will reach 19.3 million people. These cities will have the surplus agricultural labor force to produce
tremendous pressure.
2.2 The foundation for the development of small cities and towns is to support the private
economy as an industry
The development of small towns is an effective way of the transfer of rural surplus labor. But small
towns to absorb labor factor is not the job itself, which is the external forms. its inherent business is a
more powerful system of support industries, The existence of small towns in order to maintain and
promote its development, if there is no industry in the towns it is only a shell. Wenzhou, Zhejiang
Province, has attracted attention to the development of small cities and towns, the small towns will not
exist from the beginning, It suggests that each family's private family enterprises. These enterprises to
gradually transition from cottage-style stock, to the formation of a modern enterprise; From the
transition to self-employed. Employment in the private sector to absorb surplus labor, a powerful
impetus to the process of economic development. not only solve the problem of employment of the local
workforce, but also to provide employment opportunities for a large number of laborers from outside.
Meanwhile, for those workers who made a contribution to the development of the private economy in
Wenzhou, a mutually reinforcing relationship. When the development of the private economy to a
certain size, and form industrial clusters, a factor in the professional division of labor, enterprises and
the market to the increasing demand for more and more people to concentrate in small cities and towns,
have begun to develop tertiary industry, thus continuously improve the function of small towns,
continues to expand the scale In addition, the government's policy to guide the construction and
improvement of public facilities and eventually build a sound functions. a certain scale of small towns.
Therefore, in my view, does not depend on the transfer of surplus labor from urbanization construction,
but rather to meet the needs of the development of private enterprises, a fairly industries, certain
economic prosperity and labor factor to achieve full employment. have formed small towns and
prosperity possible. Otherwise, even towns built up the business if no industry support, as well as a city
without the city, difficult to create the demand for labor factor.
Therefore, in accordance with the market mechanism is the primary premise of the requests, in line with
the local industrial development policy, for the development of the private economy, the creation of soil,
absorb employment or business enterprises sprouted and emerged. The emergence of industrial clusters
formed, it will have a great demand for labor factor. create conditions for surplus agricultural labor
force.
2.3 Private economy in the rural workforce will play a major role
China's privately-run enterprises tend to be small, low technology content, is a labor-intensive features.
This feature is perfect for a large number of surplus rural labor force in China do not have a high quality,
lower prices elements job requirements. Meanwhile, the private enterprises generally will not exist for
workers in urban and rural areas, the residence and other aspects of discrimination. I pay more attention
to the actual quality of workers and skills for the employment of rural labor, which is a good condition.
Since the 1990s, the rapid development of the private economy, maintained an annual growth of more
than 20%. accommodate a large number of the working population. Since 1994, the average annual
increase in the private economy 8.2 million jobs, and the expansion was worse.
From abroad, mainly from small and medium-sized enterprises to create jobs. The United States more
than two-thirds of the new job opportunities that are provided by SMEs. EU employment in total
employment in the SME 66.5%; From a domestic perspective, run enterprises to absorb more
employment and re-employment, compared with the large and medium-sized state-owned enterprises.
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Private investment in SMEs to accommodate the labor force (employment capacity) and the labor-output
units (employment elasticity) has obvious advantages. the same amount of investment, establishment of
large corporations, small and medium-sized enterprises provide jobs five times over. From China, the
civilian-run more economically developed areas, there is no more problem, and the state economy and
more local. The number of laid-off and unemployed more.
3 Private Economic Development and the Transfer of Rural Surplus Labor
Obstacles
3.1 The existing urban and rural areas "duality" of economic and social structural constraints
The division was formed over a long period of the binary social structure in urban and rural areas,
hundreds of millions of farmers have long been excluded from the process of urbanization. Although
large-scale farmers to move into cities to avoid the city may be the impact But rural paid a heavy price.
Because of the traditional separation of urban and rural employment policies, such as the restrictions on
the household registration system. rural labor into cities and urban areas, the public is unable to obtain
equal treatment and equal opportunities to compete. In terms of employment, equal pay for equal pay,
and so there are many children of unequal treatment. This surplus rural labor to non-agricultural
employment opportunities and access to the towns of the many obstacles. On the other hand, the market
economy is an economy of free competition advocacy. Due to long-term structural constraints of the
rural-urban divide society and the development of rural areas, the barrier between the urban and rural
areas. to some extent limits the towns and the development of the entire national economy. At present, a
dual economic structure of China's economic and social development, the negative impact is becoming
more and more obvious. The rural market weak, backward infrastructure and public service facilities,
industrial products in the exploration of rural markets had been curbed. Rural development of the
tertiary industry has lagged behind. Entrepreneurial desires are not satisfied, All of rural surplus labor
into their own ability to greatly weakened.
3.2 The financial sector is the bottleneck in the development of the private economy
The main functions of the financial system is to mobilize resources and the allocation of funds. In fact,
the functions and the mobilization of funds affiliated with the function of allocating funds, the allocation
of funds, high economic efficiency. The surplus on the economy, the funds could be mobilized more.
Moreover, the allocation of funds, funds of the high rate of return, the savings would wish, in the
proportion of the remainder will be used to accumulate as many, so that the efficiency of resource
mobilization high. Depend on the efficiency of capital allocation in the economy, the most competitive
industries and enterprises will be able to obtain the best financial services. China's current
labor-intensive industry's most competitive enterprises, mainly small and medium-sized enterprises,
which are mainly private enterprises. ensure the financing needs of China's current financial system
should become the main direction. Provide effective financial services for small and medium-sized
enterprises, most of China's financial system is the lack of a piece. This pattern is not changed, it will be
very difficult to meet the financial needs of SMEs. Obstacles to the development of small and
medium-sized enterprises, transfer of rural labor force will not be smooth. Bank loans to the
self-employed and private businesses, in 1999 only 68.5 billion yuan of loans. 6.389 trillion yuan less
than 1% of total loans outstanding. In fact, Chinese banks have more than two trillion of stock funds
have not been used. If this could become part of the funds invested by private enterprises with registered
capital of 50,000 yuan per person, 40 million of capital required for employment can be solved. If
self-employed 5,000 yuan per capita capital, the capital of employment can be solved 10 times. Capital
is not a constraint shows that employment conditions, the question is how to put their savings into
investment in the financial system. Family transferred to the hands of entrepreneurs from the capital,
otherwise the elements of the private economy by funding constraints, not expand, impact of the
economic development and reduction of employment opportunities.
3.3 market access and policy restrictions of Private economic
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China's accession to the WTO, the WTO rules is the most important principle of non-discrimination and
national treatment. China's private economy has enjoyed its non-national treatment. Industry to restrict
the development of China's private economy has become an important constraint. Many have been
opened to foreign investment in the area of investment policy did not allow access to the private
economy. In the private economy, such as taxation and foreign policy are still unequal competitive
position. Some of the private economic investment approval procedures and construction sites is not
only strict restrictions on the area of land owned investment even in strict foreign investment, and
greatly restrict the private economic investment enthusiasm. From the revenue side, some tax policy is
not conducive to the development of the private economy, such as income tax double. Private
enterprises not only pay 33% of the corporate income tax, personal income tax return must pay 20% of
the tax adjustment. This double taxation tax policy is not conducive to the expansion of investment by
private enterprises. Corporate income tax reduction and exemption for 99 years to make a profit from
the tax threshold of the private enterprises are run from 2000. This will inevitably affect private
enterprises to invest in the initiative. Compared with the state-owned enterprises, the system is still
relatively easy to be discriminated against. These unfair treatment and policy, competition in the market
will inevitably lead to greater inequalities, so that the private economy has been limited to a relatively
small amount of space for the fierce market competition, which is bound to affect their development.
thereby negatively affecting the employment role to play. With new situation, the development of the
private economy, create employment opportunities, and domestic private investment needed to open up
the economy. SMEs provide a broad space for development.
3.4 Low quality of culture is the its own barriers to agricultural labor’s transfer
In 2001, every hundred rural workforce accounts for 7.69% of the illiterate or read very little. The
primary function of the 31.14%, accounting for 48.88% of the junior high school level, the high school
level accounted for 9.65%. Few rural labor force and access to vocational training. Due to the progress
of science and technology, the improvement of professional skills, many of the non-agricultural sector
employment of a higher quality requirements. Laborers in their qualities and skills shortage would once
have been eliminated and this is the glaring weakness of rural surplus labor. This greatly limits of the
free flow of labor and employment.
4
Actively Promote the Development of the Private Economy, the Transfer of
Surplus Agricultural Labor Force
4.1 Establish a unified labor market elements for urban and rural areas
Since the beginning of reform and opening up, although the market mechanism in the allocation of labor
resources in a more and more important role. but has yet to form a unified labor market. there are still a
considerable extent, the urban population of urban employment opportunities monopoly. China has long
maintained by the urban and rural labor market segmentation, to a certain extent, not only farmers lost
development opportunities, and the city's industrial and service sectors will be difficult to improve labor
efficiency. Therefore, in order to increase urban and rural labor employment system reform, urban
development in the labor market. Employers and workers in the implementation of two-way choice.
Meanwhile, we should further build up and improve the labor market intermediary organizations to
provide employment information. for the surplus rural labor in a free choice of occupation, the freedom
to choose their place of residence and free movement of the environment. And it is necessary for the
establishment of an open-style management of the household registration system, as the center,
gradually reform the urban employment and social security. medical, housing and other institutional
barriers.
4.2 To create an environment of fair competition for private economic development
As proposed by the 16th Party Congress, to protect the legitimate property, the property rights of the
private economy clear; market access for non-economic policies, and ensure that regardless of the form
of ownership. have a unified market access policy; from the legal system and safeguarding the legitimate
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rights and interests of the private economy. contrary to the Constitution and all existing laws and
regulations, amended or repealed. Local government-run enterprises to prevent the "three arbitrary"; In
policy formulation and implementation. for non-economic development was introduced to the local
economic development plans; implementation of preferential tax policies to encourage and guide the
private economy. land policy, export policies; for the private sector to abolish all discriminatory
regulations and unreasonable. strengthen the management and guidance for the private sector.
Meanwhile, actively encourage and guide the private economy to participate in market competition, to
absorb surplus rural laborers. In the collection of taxes, the abolition of the unfair treatment of private
enterprises. especially on the opening of new private enterprises to provide certain tax concessions to
reduce start up procedures, reducing its entry threshold.
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4.3 To improve the financing environment breakthrough financing bottleneck of Private
economic development
At present the biggest obstacle to the development of the private economy from the financial sector, to
improve the financing environment for private enterprises. for the development of the private economy
by providing good financial services, breaking a bottleneck restricting the development of the private
economic sector funds. The quality of private enterprises have a strong awareness of the credit,
incompleteness and other financing channels open society is the direct reason for the formation of the
bottleneck. Private financing to break the bottleneck for the development of private enterprises and
create a favorable financial environment. First, we should actively develop credit rating agencies, and
strengthen the entire community credit basis, the creation of a credibility.people the environment.
Thereby enhancing the creditworthiness of private enterprises. Second, do financial services for private
enterprises to continuously improve financing system. And the agricultural banks and rural credit
cooperatives in particular, the financial system, rural development banks combined. provide small loans
to farmers at the same time actively exploring for business loans for farmers and investors in various
financial services. satisfy the desire of the broad masses of peasants venture to create favorable
conditions for the development of the private economy in rural areas. Private enterprises in urban and
rural areas have the opportunity to flourish, thereby promoting economic growth and absorb
employment.
4.4 Strengthen vocational training and improve the quality of rural labor and employment
Low quality of rural laborers is one of the main reasons that hinder full employment. With the
continuous growth and development of the private economy, the quality of employment are increasingly
high requirements. The average level of high-skilled labor, on the one hand, the large amount of excess
labor. the other is a shortage of skilled workers, and professional and technical personnel. Therefore,
improving the quality of rural labor, universal education and vocational skills training. to promote the
employment of rural surplus labor is an important way.
5 Conclusion
In a summary, only the opportunity to fully develop enterprises could provide sufficient employment
opportunities for the labor force. Only the increased demand can increase the price of the labor factor,
and increase farm income, expanding domestic demand and promoting economic development. and the
constant relocation of surplus labor from agriculture.
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