As the glittering skyline in Shanghai seemingly attests, China has
quickly transformed itself from a place of stark poverty into a modern,
urban, technologically savvy economic powerhouse. But as Scott Rozelle
and Natalie Hell show in Invisible China, the truth is much more
complicated and might be a serious cause for concern.
China's growth has relied heavily on unskilled labor. Most of the
workers who have fueled the country's rise come from rural villages and
have never been to high school. While this national growth strategy has
been effective for three decades, the unskilled wage rate is finally
rising, inducing companies inside China to automate at an unprecedented
rate and triggering an exodus of companies seeking cheaper labor in
other countries. Ten years ago, almost every product for sale in an
American Walmart was made in China. Today, that is no longer the case.
With the changing demand for labor, China seems to have no good back-up
plan. For all of its investment in physical infrastructure, for decades
China failed to invest enough in its people. Recent progress may come
too late. Drawing on extensive surveys on the ground in China, Rozelle
and Hell reveal that while China may be the second-largest economy in
the world, its labor force has one of the lowest levels of education of
any comparable country. Over half of China's population--as well as a
vast majority of its children--are from rural areas. Their low levels of
basic education may leave many unable to find work in the formal
workplace as China's economy changes and manufacturing jobs move
elsewhere.
In Invisible China, Rozelle and Hell speak not only to an urgent
humanitarian concern but also a potential economic crisis that could
upend economies and foreign relations around the globe. If too many are
left structurally unemployable, the implications both inside and outside
of China could be serious. Understanding the situation in China today is
essential if we are to avoid a potential crisis of international
proportions. This book is an urgent and timely call to action that
should be read by economists, policymakers, the business community, and
general readers alike.
