How to Advance the Reform of the Household Registration System: Put People's Livelihood First and Focus on Implementation

How to Further Advance the Reform of the Household Registration System

Put People's Livelihood First and Focus on Implementation (Expert View)

——An interview with Zhang Chewei, Director of the Institute of Population and Labor Economics, Chinese Academy of Social Sciences

Reporter: Gu Zhongyang

Implementing a residence permit system with low thresholds and high value, taking a big step toward equalization of basic public services

Reporter: Recently, the Measures for the Administration of Residence Permits was released for public comment. Public opinion generally holds that the Measures have taken another big step toward the goal of fully implementing the residence permit system proposed by household registration reform. How do you evaluate this?

Zhang Chewei: Under the new measures for the administration of residence permits, if a citizen leaves the place of permanent household registration and lives in another city at or above the districted-city level for more than half a year, and meets one of the conditions of stable employment, stable residence, or continuous schooling, he or she may apply for a residence permit and enjoy multiple basic public services equally with the local registered population, including free compulsory education and basic public employment services.

These application conditions are much more relaxed than those currently implemented in some cities, and holders can enjoy more public service rights equal to those of the registered population. Since household registration system reform cannot be completed in one step, using a residence permit system with low thresholds and high value as a transitional arrangement means China has taken another very big step toward equalization of basic public services, and it is of milestone significance for further advancing China's household registration system reform.

Reporter: Where are the main difficulties in advancing residence permit system reform? To make good policies land better, which supporting reforms still need to be advanced as priorities?

Zhang Chewei: Residence permit system reform is relatively easier to advance in small and medium-sized cities, but in large cities it will face relatively greater pressure. For example, providing a series of equal public services to residence permit holders will naturally create certain pressure on local finances, especially the pressure of investment in compulsory education in large cities. But the scope of public services enjoyed by residence permit holders is gradually expanding, and local governments should be able to achieve this through effort.

Of course, to make reform measures land better, a series of supporting reforms also need to be advanced. In the next step, it is especially necessary to deepen reform of the fiscal supporting system, accelerate the establishment of a fiscal distribution mechanism in which fiscal authority and expenditure responsibility match, and gradually establish a mechanism linking fiscal transfer payments with the citizenization of the rural migrant population.

To deepen household registration reform, further supporting system reforms should be introduced and improved

Reporter: To deeply advance household registration system reform, in which areas is more effort still needed?

Zhang Chewei: This year's new round of household registration system reform has begun a journey of breaking the ice. The top-level design is very correct, and the road map is relatively clear. The key lies in implementation. It can be imagined that some difficulties will be encountered in the implementation process, and there is an urgent need to further introduce and improve corresponding supporting reform measures. At the same time, in the process of advancement, gradual progress and differentiated handling are needed.

To protect the rights and interests of farmers who move to cities, at the current stage, withdrawal from land contractual management rights, homestead use rights, and the right to distribute collective income must not be used as a condition for farmers to settle in cities. However, the current Rural Land Contracting Law stipulates that if the entire household of a contractor moves into a districted city and converts to a non-agricultural household registration, the contracted cultivated land and grassland shall be returned to the contracting party. Such a law needs to be revised as soon as possible. As for whether farmers who settle in cities may withdraw from the “three rights” for compensation, the next step should also be clarified on the basis of pilot projects in accordance with the spirit of the Third Plenary Session of the 18th Central Committee of the Party.

Promoting coordinated development of large, medium, and small cities and small towns is an important way to ease the pressure of settling in large cities. The key is how small and medium-sized cities can enhance their attractiveness. Corresponding institutional mechanisms should be established and improved to guide the incremental portion of public resources such as transportation to tilt preferentially toward small and medium-sized cities, and to guide high-quality resources such as education and medical care in large cities to transfer and spread to small and medium-sized cities by setting up branch institutions and other means, so as to improve the allocation of public resources in small and medium-sized cities. Encourage and guide industrial projects to be laid out in small and medium-sized cities with strong resource and environmental carrying capacity and great development potential.

Deepen reform of the performance assessment system and guide local governments to prioritize people's livelihood in household registration reform

Reporter: To further advance household registration system reform, how should implementation be ensured?

Zhang Chewei: Reform cannot be accomplished overnight, but we also must not retreat when facing difficulties. To advance household registration system reform, the government needs to further change its concepts and prioritize people's livelihood in implementation.

Local governments should overcome fear of difficulties. Relative to the enormous contribution migrant workers make to local economic and social development, the cost of citizenizing migrant workers is generally not high, and some costs are invested in stages, while some are borne by enterprises and individuals. In the long run, only when a place cherishes and treats the migrant population well can it better enhance its competitiveness. It must not overemphasize the economic interests of one corner, but should take the overall situation into account, administer according to law, and implement all policies and measures without compromise.

At the same time, reform of the cadre performance assessment system should be further deepened, an assessment system centered on people's livelihood indicators should be introduced, and the incentive mechanism of judging heroes by GDP should be substantively reversed, so as to guide and motivate local governments to prioritize people's livelihood and carry out household registration system reform well and solidly.