Several studies have focused on the emerging number of middle class around the world and their role in the economic world. It is predicted by researchers that China’s middle class will grow exponentially for the next two to three decades and will eventually outnumber America’s middle class (Kharas & Gertz, 2010). It said that the bulk of the middle class is slowly but steadily shifting from the west to the east.
Middle class in a society are very important because they are considered as one of the biggest consumers in a society. “The focus on the middle class and policies for promoting it is rooted in the belief that the middle class is an important prerequisite for stronger, more sustainable economic growth and development” (Key Indicators for Asia and the Pacific 2010, 2010). Because of this, most businesses target them. The middle class is defined can be defined based on the income or the type of job these people have. The set income bracket in one place to another varies because this depends on the cost of living in the specific area and their purchasing power. Others define middle class as those professionals who are either middle managers in business companies, business owners or government workers. Those belong to the middle class are perceived to have 1/3 of their monthly income on discretionary spending. (Wang, 2012) Although the term middle class has been used for several decades, there has been no single acceptable definition for it.
Middle class originally started in the west (America) however; Chinese middle class came to the picture in late 1990s when China applied reforms and opening-up policies. This has been brought about by the fast and stable economic growth in the area. China’s rapid increase in the number of its middle class has been closely monitored by several researchers most especially economist and sociologists. They have noted various changes in social and economic aspects of the lives of these people.
Among others, there have been drastic changes on the living arrangements of the middle class for the past two decades. In the book “In Search of Paradise: Middle-Class Living in a Chinese Metropolis” by Li Zhang, she explains these changes especially in the City of Kunming, the capital of Yunan Province. In her book, she says that there have been several factors which contributed the changes in the concept of home ownership. People seem to be congesting in the urban area leaving behind their possessions and way of life in the rural areas. One factor that causes the transfer of residents to the emergent urban areas is because of their educational qualifications. There has been an increase in the number of professionals and obviously, there are no companies in the rural areas that could cater them. The tendency is for these young professionals to stay in the metropolitan area where they can look for work. Although, the income brackets of these people are way higher compared to those in the rural areas, the cost of living is higher compared to the cost of living in the rural areas (Zhang, 2010).
China’s new middle class are now capable of creating and cultivating a unique world which they can share to people within their level. The sense of privacy now becomes a sense of sharing the distinct cultures they create within their class or group which cultivates their inner self rather than wishing to be left alone to make one’s own self. People are connected by their lifestyle practices and the place where they live rather than the different culture they have. (Zhang, 2010)
The emerging middle class uses their material possessions as a measure of their self-worth. These people are capable of having several sources of income. The materials possessions include the number of businesses or houses they have, the number and types of cars they have and the social organizations they belong to like golf clubs. The more material possessions they have, they believe that they have more self-worth compared to those who have less possessions. Self-worth is also measured by the associations they have. If they are associated with a renowned person in the society, they are considered as more valuable. (Zhang, 2010)
Although, the middle class have no specific ideologies they live with, no organizational and political security and symbolic capital, they use their wealth as basis of their identity. This makes them capable of having a strong voice making them effective activists and organizers of civic protests. In terms of consumption, because of the fast rising number of the middle class, their consumption is also fast increasing. Almost all kinds of businesses target the middle class as their markets. This makes them the target of most advertisements. Furthermore, their individual consumption has become one of the determining factors of their social status so they have given this a great importance (Zhang, 2010).
One of the main factors attributed to the emergence of China’s new middle class is the changes in the policies of the Chinese government specifically its open-up policy. This had given new businesses to rise in the country, which in turn have given numerous white-collar occupations for the educated population. With the fast economic growth of the country, it only follows that there is also an increase in the per capita income of the residents. As a result of the embracing of the market economy, residents of rural areas which are highly dependent on agriculture are lulled to come to the urban areas, resulting to in-migration most of the time, bringing their families with them when transferring to the urban areas.
The emergence of China’s new middle class has given the country social, economic and cultural changes. Although, the government is doing measures to keep its rich culture intact, it can’t go away with the inevitable change that has to happen. These changes has not only made the country known for its rich culture but also for the rapid economic growth it has shown the world which is turn making the country one of the most important country in terms of business opportunities.
Works Cited
Key Indicators for Asia and the Pacific 2010. “The Rise of Asia’s Middle Class”. adb.org. adb. Web. 2012 Feb. 15
Chunling, Li (2009). “ Profile of Middle Class in Mainland China”. sociology.cass.cn. sociology. Web. 2012 Feb 15.
Friedmann, John (2011). In Search of Paradise: Middle-Class Living in a Chinese Metropolis – By Li Zhang. Marginalization in Urban China: Comparative Perspectives – Edited by Fulong Wu and Chris Webster. Onlinelibrary.wiley.com. wiley online library. Web. 2012 Feb. 15
Kharas, Homi & Gertz, Geoffrey (2010). The New Global Middle Class: A Cross-Over from West to East. Brookings.edu. Wolfensohn center for Development. Web. 2012 Feb 15
Wang, Helen H. (2012). The Definition of the Chinese Middle Class. Helenwang.net. HelenHWang. Web. 2012 Feb. 15.
Zhang, Li (2010). In Search of Paradise: Middle-Class Living in a Chinese Metropolis . Ithaca : Cornell University Press
