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Capital Predictions for 2005

The Beijing Academy of Social Sciences (BASS) published a 43-article paper on Sunday that included predictions of 3 percent commodity price increases in the capital this year.

"Shortages in coal, electricity and oil will result in price rises in public service sectors," wrote An Qun, a researcher from the Beijing Municipal Commission of Development and Reform.

Prices of the three increased by 72 yuan (US$9) per ton, 0.036 yuan (0.4 US cents) per kilowatt-hour and 0.44 yuan (5.3 US cents) per liter respectively last year.

"Predicted price jumps in public services will push the overall price level higher this year," the paper said, and prices of agricultural products will continue to rise.

Construction of venues for the 2008 Olympics throughout the year will also push up prices of building materials.

"High prices of oil on the global market will also influence domestic prices," wrote An.

But there is some good news for consumers, as prices of motor vehicles and electrical household appliances are set to continue to fall.

The paper said the population of the city would hit 16 million before 2008, which is in excess of the 14 million that it deems reasonable.

A
s for migrant laborers, it said over half of them believe Beijing is a tolerant city, according to a survey conducted by the BASS among those engaged in commerce and service sectors.

But Li Weidong, an academy researcher, conceded that 26 percent said Beijingers looked down upon them and nine percent said the city was full of prejudice and inequity. Eight percent said it was cold and without empathy.

However, Li added that, "Although migrant workers were on low salaries, had unfavorable living conditions and were facing heavy burdens from dependents, most recognized the value of being in the city and felt satisfied with their lives there."

By contrast, another article in the paper pointed out that migrant workers were excluded by the social security system.

"Salaries of migrant workers, especially those who used to be farmers, are much lower than permanent residents," wrote Xiang Dexing, a researcher from the Beijing Federation of Trade Unions.

According to Xiang, the average salary of a migrant worker is 800 yuan (US$97) per month, only 38 percent of a permanent resident's.

An investigation into 2,600 permanent residents found that 48 percent regarded farmer-turned-laborers as having the lowest social status.

There are a total of 4 million migrant workers in Beijing without permanent residency.

The BASS has compiled and edited the paper at the beginning of every year since 1993, with contributions from research bodies, government departments and non-governmental organizations.

(China Daily February 1, 2005)

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