Two systems in one country: the origin,functions, and mechanisms of the rural-urban dual system in China

ABSTRACT

This paper takes an interdisciplinary perspective to focus on the role played by the rural-urban dual system in China’s urbanization and migration. We explain its establishment in China in the 1950s and its genealogy in the industrialization strategy adopted in the USSR in the late 1920s and early 1930s. In the reform era, the system has been refashioned to suit a new set of demands of the state industrialization strategy to cater for the global economy. We analyze the mechanisms of the dual system, and how it has helped generate low-cost migrant labor for urban employers and siphon off revenues for urban governments by expropriating rural land. We also argue that there are fundamental differences between the dual system and the common “dualism,” based on the Lewis dual-sector model, as observed in many developing countries. The plight of children of migrants is used to illustrate the main points made in the paper. Our research challenges the prevailing perspectives in Chinese geography and urban studies, many of which are based on market-driven neoclassical economics or global neoliberalism, often ignoring China’s historical and institutional contexts.