The Communist Party instigated a command economy when it came to power in 1949. In 1958, the Chinese government officially promulgated the family register system to control the movement of people between urban and rural areas. Individuals were broadly categorised as a "rural" or "urban" worker.[9] A worker seeking to move from the country to urban areas to take up non-agricultural work would have to apply through the relevant bureaucracies. The number of workers allowed to make such moves was tightly controlled. Migrant workers would require six passes to work in provinces other than their own.[10] People who worked outside their authorized domain or geographical area would not qualify for grain rations, employer-provided housing, or health care.[11] There were controls over education, employment, marriage and so on.[9]
Rationale
With its large rural population of poor farm workers, hukou limited mass migration from the land to the cities to ensure some structural stability. The hukou system was an instrument of the command economy. By regulating labour, it ensured an adequate supply of low cost workers to the plethora of state owned businesses.[12] Like the internal passports of the Soviet Union, the hukou system allowed the state to provide preferential treatment to industrial workers and intelligentsia who would be more likely to protest and even revolt during periods of unrest.[citation needed]
For some time, the Chinese Ministry of Public Security continued to justify the hukou system on public order grounds, and also provided demographic data for government central planning.[13]
The Hukou system has been justified by some scholars as increasing the stability of China by better monitoring of "targeted persons", people who are politically dubious by the Party's standards. This is still a significant function as of 2006.[14] Prior to the Chinese economic reform that began in the late 1970s, the system succeeded in limiting population growth in the cities.[15]
Enforcement
From around 1953 to 1976, police periodically rounded up those who were without valid residence permits, placed them in detention centres, and expelled them from cities.[16]
Administration regulations issued in 1982 known as "custody and repatriation" authorized police to detain people, and "repatriate" them to their permanent residency location.[citation needed]
Although an individual is technically required to live in the area designated on his/her permit, in practice the system has largely broken down[citation needed]. After the Chinese economic reforms, it became possible for some[who?] to unofficially migrate and get a job without a valid permit[citation needed]. Economic reforms also created pressures to encourage migration from the interior to the coast[citation needed]. It also provided incentives for officials not to enforce regulations on migration.
Technology has made it easier to enforce the Hukou system as now the police force has a national database of official Hukou registrations. This was made possible by computerisation in the 1990s, as well as greater co-operation between the different regional police authorities.[14]
During the Great Leap Forward's famine
During the mass famine of the Great Leap Forward from 1958 to 1962, having an urban versus a rural hukou could mean the difference between life and death.[17] During this period, nearly all of the approximately 600 million rural hukou residents were collectivized into village communal farms, where their agricultural output - after state taxes - would be their only source of food. With institutionalized exaggeration of output figures by local Communist leaders and massive declines in production, state taxes during those years confiscated nearly all food in many rural communes, leading to mass starvation and the deaths of more than 30 million Chinese.[18]
The 100 million urban hukou residents, however, were fed by fixed food rations established by the central government, which declined to an average of 1500 calories per day at times but still allowed survival for almost all during the famine. An estimated 95% or higher of all deaths occurred among rural hukou holders. With the suppression of news internally, many city residents were not aware that mass deaths were occurring in the countryside at all, which was essential to preventing organized opposition to Mao's policies.[19]
Many of the starving peasants tried to flee to the cities to beg for food, but tight security at entry points and through regular inspections of resident documents on the streets led to the deportation and subsequent death of most. In fact, it was only when rural family members of higher military officers, who were often isolated from the countryside in cities or bases, began dying from starvation that higher Communist officials began seriously worrying about the stability of the state, and eventually forced Mao to end the program. This was the most extreme demonstration of how much impact a different hukou could have in China, but significant interference in all aspects of life only began declining in the 1980s and 1990s.
Effect on rural workers
The hukou system is closely associated with social issues regarding migration in China and excludes migrant workers, also known as farm workers or peasant workers, from city-wide social welfares in urban areas.[20] From around 1953 to 1976, the restriction of a citizen's rights by his domicile caused rural citizens to be separated into an underclass. Urban citizens enjoyed a range of social, economic and cultural benefits that China's rural citizens did not receive.[12] The ruling party did however make some concessions to rural workers to make life in rural areas more tolerable.[21]
From 1978 to 2001, while China changed from state socialism to market socialism, export-processing zones were created in city suburbs and migrants, most of them female,[22] worked there under conditions far below the contemporary standard of western countries.[10][21] There were restrictions upon the mobility of migrant workers that forced them to live precarious lives in company dormitories or shanty towns where they were exposed to abusive treatment.[23]
The impact of the hukou system upon migrant laborers became onerous in the 1980s after hundreds of millions were ejected from state corporations and cooperatives.[10] Since the 1980s, an estimated 200 million Chinese live outside their officially registered areas and under far less eligibility to education and government services, living therefore in a condition similar in many ways to that of illegal immigrants.[12] The millions of peasants who have left their land remain trapped at the margins of the urban society. They are often blamed for rising crime and unemployment and under pressure from their citizens, the city governments have imposed discriminatory rules.[9] For example, the children of farm workers (Chinese: 农民工; pinyin: nóngmín gōng) are not allowed to enroll in the city schools, and even now must live with their grandparents or other relatives in order to attend school in their hometowns. They are commonly referred to as the home-staying children. There are around 130 million such home-staying children, living without their parents, as reported by Chinese researchers.[24]