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Wed, April 19, 2006 : Last updated 23:46 pm (Thai local time)



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Home > Business > Cash cows and the rural poor





STREET WISE
Cash cows and the rural poor

Like any country that sees its economy expand suddenly and rapidly, China experiencing grave trouble in the form of widening disparities in urban and rural incomes.

"The income gap between rural and urban areas will continue [to grow] this year," says Ma Xiaohe, a researcher at the National Development and Reform Commission, the nation's top planning body.

Agence France-Presse reported that the Chinese Academy of Social Sciences, the top state-run think-tank, predicted annual per-capita income in rural areas would increase about 5 per cent to 3,500 yuan (Bt16,600).

No forecast has been made public for this year's expected increase in urban incomes, but usually it is several percentage points higher than in the countryside.

Last year, rural incomes expanded 6.2 per cent and urban incomes 9.6 per cent.

A recent survey from the Research Office under the State Council - China's cabinet - revealed that nearly 30 per cent of migrant workers made less than 500 yuan a month.

The dire forecast of the widening income gap between city and countryside comes despite government pledges to do more to improve the lot of the farmers.

In this year's budget, the central government has allocated US$42 billion (Bt1.59 trillion) to boost spending on the impoverished countryside, a rise of 14.2 per cent over last year.

Beijing's economy grew 10.2 per cent in the first quarter, which raises further questions about whether this will only exacerbate the income-disparity problem.

A similar phenomenon can be seen in Thailand. No matter how much the economy grows - now or in the past - the rural poor never stop complaining about their disadvantages.

As in China, the rural poor come to Bangkok to do the dirty work that nobody else in the capital wants to do, like collecting garbage and sweeping the streets.

Earning Bt4,000 to Bt6,000 a month is not very much, but it's good enough for those who can't find anything better at home.

Those who control lots of land may find themselves luckier. The owners could net millions in profit from the sale of land that has been handed down through the generations.

Amid all of this, some rural poor are now hoping to cash in some easy money, this time by placing their bets on raising cattle. One Khon Kaen villager says a top-quality steer can fetch Bt200,000 nowadays.

Those who cannot afford adult cattle could start with raising a calf. If there's no money for the initial investment, they could take out a loan, hoping the investment would pay off once the calf is fully grown.

achara_d@nationgroup.com








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