Reverse Migration in China and the Simplest/Hardest of Questions

Sam (our Board chairman) sent me this article today in the WSJ about the massive reverse migration that is occurring now as factories are closing and migrants are returning to the rural areas ('China Fears Restive Migrants as Jobs Disappear in Cities').  I encourage you to take the time to read it as it not only highlights a slow reversal of one of the largest human migrations in history, but it also is a foreboding message about brewing social unrest in China.  Quite simply, what do you do with millions of unemployed and unskilled migrant workers who return to their farms, farms which were more or less already gainfully employing those who hadn't left?   Where can you gainfully employ them, and what value can they bring to China's current economy?

For some reason, the article also made me think of a conversation that some of the SVG team members had over lunch one day last week.  Leo was giving us an update on his 19 year old cousin in Jiangsu who was paralyzed by a tragic factory accident last year.  Thankfully due to good family guanxi, his cousin will receive workers comp payments for the remainder of his life.  His is a fortunate case, unlike countless others who are not as fortunate.  Yet he now whiles away all his time watching television and not thinking about the future.  Aside from dealing with the emotional trauma of the accident, we thought about what it would mean for Leo's cousin to be gainfully employed since he probably has at least a high education and besides his injury, is otherwise very sound of mind.  Someone suggested that he could learn a trade, perhaps in fixing computers or other appliances.

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Somehow these two things are related in my mind.  I'm no economic development expert but I can't help but feel that one of the most fundamental questions in poverty alleviation is: how do you gainfully/fairly employ large masses of unskilled labor on a sustainable basis in today's market driven world?  Social enterprises are now popping up everywhere which seek to answer this question, whether it's through selling handicrafts, baked goods, greeting cards, clothing and other items in both a regional and a global marketplace.  Yet the size of the demand for these goods has always been a question in my mind.  I just ordered my Christmas cards from Evergreen, based in Shanxi province in China.  But I mean, how many greeting cards does the average person buy in a year?  Is it enough, to not just survive but thrive?

It seems to me that in China we need a model for a sustainable business that lies somewhere in between a low-margin commodity business (which could guarantee volume) and a high-specialization business (which could guarantee margin).  What is a good that everyday Chinese cannot do without and are willing to pay a little extra for quality?  Not greeting cards, not baked goods sold out of a fixed storefront.  We tossed around some ideas today at the office, a few of which we hope to do some initial research on.  If there was a platform that would merge healthy margins with volume, with the right people to run it (which is always key), it could be used with returning migrants, women leaving prostitution and countless other groups of unemployed migrants across China.  Can it be done?  Is this thinking naive?  Experts, friends and opinionated persons, I would be interested in hearing your thoughts!

--Grace

Comments

[GT]

Hi SVG, content and ideas look good. A few comments/suggestions:
1) some blog posts use Chinglish (guanxi). Perhaps need to explain Chinese term or just use English.
2) rss feed
3) "about" link doesn't work
4) perhaps something else on the banner at the top? Say a photo or perhaps SVGs mission statement?
5) current projects highlighted - not just pictures but perhaps a few of the people you're currently working with
6) link to svg website displayed prominently (or perhaps clicking on the SVG logo can be a hotlink to the SVG website - rather than just at bottom)
7) contact e-mail
8) link from svg website to blog that works rather than just a list of the website url

[HH]

I just read an article in Time magazine similar to the wsj article (except this one has a neat picture of a smashed up office).

http://www.time.com/time/world/article/0,8599,1862717,00.html