Foreign Policy
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Scott Rozelle
Karen Eggleston
Jean C. Oi
Xueguang Zhou
Ang Sun
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Full text available at YaleGlobal.

Children of China's Future – Part II

 
Aging population and poverty require stronger investment in China’s rural youth
Karen Eggleston, Jean Oi, Scott Rozelle, Ang Sun, Xueguang Zhou
YaleGlobal, 14 March 2012
Poor education mortgaging the future? Students in a Gansu province school, where many are anemic (top); another class room in Loess Plateau. (Top Photo: Adam Gorlick)

DINGXI PREFECTURE: Wang Hongli, 8 years old, lives in a remote rural village on the Loess Plateau in one of China’s poorest and most agricultural provinces, Gansu. His prospects for living the good life are as bleak as the landscape. He is not on track to become part of China’s emerging middle class, the free-spending, computer-savvy, person-of-the-world often featured in the western media.

Hongli is a pseudonym. His parents work in a faraway industrial zone, coming home for only three weeks at Chinese New Year. His grandmother takes care of him and his siblings on the weekends, and during the week he lives in a dorm, three to a bed with 36 other students in an unheated room 4 by 4 meters.

Hongli suffers from iron-deficient anemia, but neither his family nor his teacher knows he is sick. Even if his anemia is discovered and treated by the researchers who have documented 30 percent anemia among children in poor rural areas, it likely will recur after he finishes the study, with furnished dietary supplements. Despite educational pamphlets, he’ll likely revert to a diet of staple grains and bits of pickled vegetables.

Unsurprisingly, Hongli’s grades are not good. In China’s competitive school system, he has only a slight chance of attending high school, much less college. In China’s future high-wage economy, all Hongli can hope for is a menial job in the provincial capital, Lanzhou, or as a temporary migrant elsewhere. Without urban permanent residency, hukou, he will have limited access to urban social services. He may suffer chronic unemployment, or resort to the gray economy or crime. He also may never marry – one of the millions of “forced bachelors” created by China’s large gender imbalance.

In China’s future high-wage economy, 
all the rural poor can hope for is menial jobs in a provincial capital.

Hongli is not alone. In fact, he’s one of 50 million school-age youth in China’s vast poor rural hinterlands. Recent studies by Stanford and Chinese collaborators show that 39 percent of fourth-grade students in Shaanxi Province are anemic, with similarly high rates elsewhere in the northwest; up to 40 percent of rural children in the poor southwest regions, e.g., Guizhou, are infected with intestinal worms. Millions of poor rural students throughout China are nearsighted, but do not wear glasses.

Because China’s urbanites have fewer children, poor rural kids like Hongli represent almost a third of China’s school-aged children, a large share of the future labor force. These young people must be healthy, educated and productive if China is to have any chance of increasing labor productivity to offset the shrinking size of its aging workforce.

Many observers presume that China’s growth will continue unabated, drawing upon a vast reservoir of rural labor to staff manufacturing plants for the world. In fact, to a considerable extent, China’s rural areas have already been emptied out, leaving many villages with only the old and the very young. The growth of wages for unskilled workers exceeds GDP growth.

Better pay should be good news for poverty alleviation. However, rising wages push up the opportunity cost of staying in school – especially since high school fees, even at rural public schools, are among the highest in the world.

It’s myopic to allow rural students to drop out of junior high and high school – mitigating the current labor shortage, but mortgaging their futures. Recent studies demonstrate that eliminating high school tuition – or reducing the financial burden on poor households – improves junior high achievement and significantly increases continuation on to high school. Yet unlike many other developing countries, China does not use incentives to keep children in school, such as conditional cash transfers. The public health and educational bureaucracies also do not proactively cooperate to remedy nutritional and medical problems – including mental health – that school-based interventions could address cost effectively.

Less than half of youth in China’s poor rural areas go to academic high school; less than 10 percent head to college.

The educational system, based on rote memory and drill, doesn’t teach children how to learn. The vocational education system is ineffective. Instead, China’s schools tend to focus resources on elite students. Tracking starts early, and test scores are often the sole criterion for success. A recent comparative study documents that China’s digital divide, with lower access to computers in poor rural areas, is among the widest in the world.

China’s government is increasing expenditures for school facilities and raising teacher salaries. However, these steps are far from adequate. During South Korea’s high growth, almost all Korean students finished high school. Today, less than half of youth in China’s poor rural areas go to academic high school, and the percent going to college remains in the single digits.

Greater investment in public health and education for the young people in China’s poor rural areas is urgent. If the government waits 10 years, it may be too late to avert risks for China’s stability and sustained economic growth.

Surely China could easily address this problem? A third of Chinese were illiterate in the early 1960s; now, fewer than 5 percent are. By 2010, about 120 million Chinese had completed a college degree. Chinese also enjoy a relatively long life expectancy compared to India and many other developing countries, and basic health insurance coverage is almost universal.

But the pace of change and citizens’ expectations are higher as well. Most Chinese assume that basic nutritional problems and intestinal worms were eradicated in the Mao era. China’s mortality halved in the 1950s; fertility halved in the 1970s. As a result, China will get old before it gets rich. Population aging, rapid urbanization and a large gender imbalance represent intertwined demographic challenges to social and economic governance. The policy options are complicated, the constraints significant, the risks of missteps real and ever-present.

China’s prosperity depends on youth mastering skills to thrive in a technology-driven world.

Timely policy response is complicated by competition for resources – pensions, long-term care, medical care for the elderly and more – as well as significant governance challenges arising from a countryside drained of young people. The well-intentioned programs for what government regards a “harmonious society” create large unfunded mandates for local authorities. Attempts to relocate rural residents to new, denser communities provoke anger at being uprooted and skepticism that local authorities simply want to expropriate land for development.

Millions of migrant workers – like Wang Hongli’s parents – return to their rural homes during economic downturns. Urbanization weakens this capacity to absorb future economic fluctuations. Government efforts at “social management” – strengthening regulatory control of informal social groups and strategies for diffusing social tensions – expand the bureaucratic state, a central target of popular discontent.

Premier Wen Jiabao’s announcement of a 7.5 percent growth target – the lowest in two decades – has been expected. Future economic growth will moderate partly because of demographics, but mostly because productivity gains slow as an economy runs out of surplus rural labor and converges on the technological frontier. Costly upgrading of industrial structure will squeeze the government’s ability to deliver on its promise of a better future for all, stoking social tensions.

China’s stability and prosperity, and that of the region and the globe, depends on how well today’s youth master the knowledge and skills that enable them to thrive in the technology-driven globalized world of the mid-21st century. Resilient public and private sector leaders of the future must be able to think creatively. Therefore, China’s government should respond to population aging by acting now to invest more in the health and education of youth, especially the rural poor.

 

 
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Abstract: 

This talk draws on case study evidence from Princeton University’s Innovations for Successful Societies to reflect on some current theories about building accountable government.  The focus is on settings where geography, insecurity, and limited resources render conventional management strategies unworkable.

Speaker Bio:

Jennifer Widner is professor of politics and international affairs and director of the Mamdouha S.Bobst Center for Peace & Justice at Princeton University. She runs a research program on institution building and institutional reform called Innovations for Successful Societies, a joint initiative of the Bobst Center and  the Woodrow Wilson School. Before joining the Princeton faculty in 2004-5, she taught at Harvard and the University of Michigan.  Her current research focuses on the political economy of institutional reform, government accountability, and service delivery.  She also remains interested in constitution writing, constitutional design, and fair dealing—topics of earlier research. She is author of Building the Rule of Law (W. W. Norton), a study of courts and law in Africa, and she has published articles on a variety of topics in Democratization, Comparative Politics, Comparative Political Studies, Journal of Development Studies, The William & Mary Law Review, Daedalus, the American Journal of International Law, and other publications.  She is completing work on a book about making government work in challenging settings, drawing on experiences in Africa, Asia, and parts of Latin America. 

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Jennifer Widner Professor of Politics and International Affairs, Woodrow Wilson School Speaker Princeton University
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 Abstract:

Systemic corruption undermines state capacity, imperils socio-economic development, and diminishes democracy. In his Nairobi speech as a U.S. senator in August 2006, Barack Obama described the struggle to reduce corruption as "the fight of our time". An international conference in Lagos, Nigeria, in September 2011 was devoted to Richard Joseph's influential 1987 book, Democracy and Prebendal Politics in Nigeria: The Rise and Fall of the Second Republic.Transforming prebendalist systems must be at the center of strategies to strengthen democracy and achieve poverty-reducing economic growth in Africa and other regions.

 Speaker Bio: 

Richard Joseph is John Evans Professor of International History and Politics at Northwestern University and Non resident Senior Fellow in Global Economy and Development at the Brookings Institution. As a Fellow of The Carter Center, he participated in democracy and peace initiatives in Ghana, Zambia, Ethiopia, Liberiaand Sudan. He has written extensively on issues of democracy, governance and political economy. His books include Radical Nationalism in Cameroun (1977), Democracy and Prebendal Politics in Nigeria (1987) and edited books, Gaullist Africa: Cameroon under Ahmadu Ahidjo (1978), State, Conflict and Democracy in Africa (1999), and (with Alexandra Gillies), Smart Aid for African Development (2009). He served as Principal Investigator of the Research Alliance to Combat HIV/AIDS (REACH), a collaborative program in Nigeria, 2006–2011. His current writing and policy projects concern growth, democracy and security. To address these issues, he is designing a collaborative project, AfricaPlus (http://africaplus.wordpress.com/), whose first focus country is Nigeria.

Here is the link to Richard Joseph remarks and the PowerPoint for the talk.

http://africaplus.wordpress.com/author/africaplus/

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Richard Joseph John Evans Professor of International History and Politics Speaker Northwestern University
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Karl Eikenberry, the 2012 Payne Distinguished Lecturer at the Freeman Spogli Institute, has received the George F. Kennan Award for Distinguished Public Service from the National Committee on American Foreign Policy (NCAFP).

The award honors Americans who served the country in an exemplary fashion and have made seminal contributions to defining, illuminating, and promoting the country’s national interest.

Eikenberry was the U.S. ambassador to Afghanistan from May 2009 until July 2011.  He served in the Army for 35 years, retiring in April 2009 as a lieutenant general. He was the commander of the American-led coalition forces in Afghanistan from 2005 to 2007 and has also served as deputy chairman of the NATO Military Committee in Brussels.

In a statement issued by the NCAFP, the organization praised Eikenberry for his accomplishments.

“We are particularly impressed by his widely respected and exemplary leadership in conceptualizing, designing, and articulating American military and foreign policy strategy and tactics involving and harmonizing both hard and soft power,” the statement said.

Other recipients of the Kennan Award include former Secretary of State Cyrus Vance, CIA Director David Petraeus, and New York City Police Commissioner Raymond Kelly.

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The cloud offers game-changing opportunities for start-ups to large enterprises, if entrepreneurs and enterprise leaders know how best to harness its power. A panel of cloud computing experts shared their wealth of experience to a full house at the special event on Innovation in the Cloud: How Cloud Computing is Changing the Landscape of Entrepreneurship and Innovation, organized by the Stanford Program on Regions of Innovation and Entrepreneurship (SPRIE) in partnership with China America Innovation Network (CHAIN).

In this featured panel discussion at the Stanford Graduate School of Business for Stanford's Entrepreneurship Week 2012, the panel shared insights on cloud computing technology changes, enterprise transformation, business model innovation, investor strategies, and market opportunities, with more than 200 Stanford students, faculty, entrepreneurs and Valley professionals.

The panel was composed of serial entrepreneur Jim Dai, CEO of CalmSea, IT expert Sam Ghods, vice president of technology at Box.com, marketing expert Ken Oestreich, senior director of cloud and virtualization marketing at EMC, and investor Cindy Padnos, founder and managing director of Illuminate Ventures. Robert Scoble, startup liaison officer at Rackspace and a technical evangelist, moderated the discussion.

The panelists acknowledged that users had grown to accept everything could be virtual, and cloud is radically changing the face of enterprise strategy, processes, and outcomes. Cloud computing can dramatically decrease timelines and investment costs which encourages flexible growth and experimentation by rapid iteration. This shift, together with cloud computing’s cost effectiveness, strongly favors the way start-ups work.

For entrepreneurs, one piece of good news is that cloud allows smaller firms to compete with big players in new ways. This trend has also prompted the rise of micro VCs, with typical investments of $100,000 to $500,000. While SMEs continue to embrace cloud-based services, how large enterprises adapt and evolve the cloud market will remain interesting.


Stanford Entrepreneurship Week 2012 takes place February 27 through March 7. This collection of over 30 events is hosted by the Stanford Entrepreneurship Network (SEN), a federation of programs, student groups and organizations supporting entrepreneurship in the Stanford community.

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Will Fitzpatrick is the General Counsel of Omidyar Network.  He will be sharing his perspectives on the role of philanthropy in social change, and the role that attorneys can play in philanthropy.  Established by the founder of eBay, Pierre Omidyar and his wife Pam, Omidyar Network is a philanthropic investment firm dedicated to harnessing the power of markets to create opportunity for people to improve their lives around the world.  They invest in and help scale innovative organizations to catalyze economic, social, and political change, focusing on the themes of access to capital and media, markets and transparency.  This talk is intended to broaden student understanding of the attorney's role in international philanthropy, and in particular the way that attorneys working at internationally-focused philanthropic organizations have to navigate international and domestic law to achieve positive social change.

Please RSVP to the link below:

http://www.stanford.edu/dept/law/forms/fitzgerald.fb

Lunch will be provided

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Will Fitzpatrick General Counsel Speaker Omidyar Network
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Over the last hundred years, the cigarette has become a pillar of consumer life in China and many parts of the world. In 2010, the Chinese tobacco industry produced over two trillion cigarettes, generating over U.S. $90 billion in taxes and profits. Over 300 million Chinese citizens now use cigarettes every day, and tobacco kills 90 times more people each year than HIV/AIDS in China.

How has the cigarette become so integrated into the fabric of everyday life across the People’s Republic of China?

The importance of answering this question is unmistakable, but very little historical research and writing has examined China’s cigarette industry from the mid-20th century to the present. To get to the heart of this question, historians, health policy specialists, sociologists, anthropologists, business scholars, and other experts will meet Mar. 26 and 27 at the new Stanford Center at Peking University for a conference organized by the Asia Health Policy Program. They will examine connections intricately woven over the past 60 years between marketing and cigarette gifting, production and consumer demand, government policy and economic profit, and many other dimensions of China’s cigarette culture.

Stanford Center at Peking University

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More than two decades have passed since the first case of HIV infection was detected in Cambodia in 1991. Cambodia is among the countries with the highest HIV prevalence in Asia and has been experiencing the most serious HIV/AIDS epidemic in the region. The epidemic is spread primarily through heterosexual transmission and revolves largely around the sex trade.

Since the beginning of the epidemic, the Royal Government of Cambodia has made a strong political commitment to the need for prevention of HIV transmission and care for people living with HIV/AIDS. It has received some technical and financial support from national and international agencies. Several prevention and intervention programs have been successfully implemented, and the WHO/UNAIDS recognized that the Cambodia’s HIV/AIDS epidemic appeared to have stabilized in 2002.

The estimated HIV prevalence in the general adult population declined to 0.5% in 2009, down from 1.2% in 2001. Among women visiting antenatal care clinics, the prevalence also declined from 2.1% in 1999 to 1.1% in 2006. There was also a gradual increase in the percentage of HIV-infected pregnant women who received antiretroviral therapy to reduce the risk of mother-to-child transmission, from 1.2% in 2003 to 11.2% in 2007, and finally to 32.3% in 2009.

Despite the decline of HIV prevalence in the general population, the prevalence remains high among high-risk groups such as commercial sex workers, men who have sex with men, and injection drug users. Furthermore, the so-called prevention-successful-country is also seeing the growing need for HIV/AIDS treatment and care.

This seminar will highlight the past and current features of Cambodia’s HIV/AIDS epidemic, lessons learned from prevention and care policies, and future challenges that Cambodia may face in the battles against HIV/AIDS.  

Dr. Siyan Yi joins the Walter H. Shorenstein Asia-Pacific Research Center during the 2011–12 academic year from the National Center of Global Health and Medicine and the University of Tokyo, Japan, where he jointly served as a research fellow and lecturer. He has also served as an adjunct faculty member at Cambodia’s School of Public Health, the National Institute of Public Health, and the School of International Studies at the Royal University of Phnom Penh.

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Siyan Yi 2011-12 Developing Asia Health Policy Fellow Speaker Stanford University
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