Types of ZSR

Social welfare and services

How ZSR can be implemented:

  • Ensure that migrant workers and their dependents can access the same social welfare and public services provision as locals, including mitigating any documentary barriers to access.
  • Work with local providers, particularly those in the third sector, to ensure decent-quality education and healthcare services are available for migrant workers in cases where government provision is inaccessible or overburdened.
  • Encourage and facilitate informal social protection and support initiatives to enable migrants to gain information, report abuse and claim basic rights. 
  • Facilitate migrant access to local financial systems (for example, bank accounts, post offices and financial intermediaries) to support safe and effective remittance sending.

Overview of the problem:

welfare and services provision as those who already live in the area. This is an issue most obviously for transnational migrants (including undocumented migrants), who may not have citizenship rights in the country where the SEZ is based. However, it can also be a significant problem for internal migrants, who may lack the requisite local documents or be prevented from accessing services by discrimination from local institutions, by language or cultural differences, by high cost barriers or simply by lack of information. Migrants and their dependents may thus face exclusion from essential services, including healthcare and education as well as state- and employment-based welfare schemes.  

 

Migrants who lack access to state- and employer provided social services and welfare may turn to alternative informal, grassroots or NGO provision. These may be of lower quality or may face difficulties in maintaining a decent level of service in the face of hostility from local governments, communities and/or employers. This hostility is sometimes based on the assumption that provision of such services will encourage migrants to settle long-term in the area, to the perceived detriment of locals. In the case of employer opposition, firms and managers may fear that migrant-serving NGOs will facilitate labour unionisation or activism.

 

Many migrants are also concerned with the welfare of their families at home, and remittances are the means by which these families are supported, homes are built, basic needs are met, children are schooled and investments are made in their areas of origin. However, migrants may find it difficult to gain access to financial services in their destination, making it challenging to transfer remittances to their families safely.

Examples:

During Covid-19 lockdown, migrant workers from the Adani SEZ in Mundra faced forcible return to the SEZ if they were caught leaving (Yusuf, 2020; Times of India, 2020). Factories needed the migrants to stay in the area to work; however, locals in surrounding villages, where there is a long history of anti-migrant sentiment, refused to share vaccination supplies with migrants. Since unvaccinated workers were not permitted on the assembly line, this meant that migrants were unable to report to work. A local NGO catering to migrants filled this gap in migrant service provision by opening a temporary vaccination centre outside one village, where nearly 300,000 vaccinations of migrants and their family members were carried out.

The case of China:

From 1958, China’s household registration (hukou) system assigned every citizen an “agricultural” or “non-agricultural” status and a residential location. This, alongside other aspects of Communist social control, prevented most spontaneous migration and limited provision of state welfare and resources to urbanites, with rural-dwellers expected to be self-sufficient, providing public goods like healthcare and education through local collective organisations (Chan, 2009)

After the mid-1980s, hukou implementation was relaxed and, with the introduction of the market economy, basic goods were re-commodified, making large-scale movement possible. However, while many labourers, released from collective farming, migrated to work in SEZs and the growing urban private sector, few were eligible for hukou transfer, a right reserved for elite groups. They thus had no formal residency rights and no access to most state goods and services in their migration destinations. For example, until 1993 migrant children were barred from registering in state schools outside the place of their hukou registration, and from 1993 extremely high fees were charged to non-locals. Urban healthcare was similarly inaccessible to those not locally registered, and even housing (traditionally allocated by the state in the Mao-era) was difficult to access (Goodburn, 2009). Migrants were dependent on their employers for job contracts, which allowed them to apply for temporary residence permits, and for accommodation, in factory dormitories. Dependents were expected to be left with relatives in the countryside, and workers who fell ill or were injured were obliged to return home for treatment if they could not pay out-of-pocket for urban services. This prevention of access to state goods and services served to ensure that rural migrants did not settle long-term in China’s cities, and helped to maintain the low cost of China’s industrialisation by excluding migrants from welfare reforms. It was not until the end of the 1990s that employment-based social insurance programmes were made available to migrant workers (Xu, Guan & Yao 2011).

Since the mid-late 2000s, when China’s central government abolished all school fees nationwide, began to merge urban and rural healthcare schemes and exhorted urban governments to provide services to migrants as well as locals, individual megacities have turned to alternative means of restricting scarce resources to locals and preventing lower-skilled “less desirable” migrants from settling. A main method has been by erecting documentary barriers to accessing social welfare and state services. In Shenzhen, for example, non-locals required six official documents, including residence permit, proofs of employment, local residence and social insurance payment, family planning certificate and school transfer letter, in order to enrol their children in school (Goodburn, 2015). Urban healthcare poses similar barriers. China’s rural medical insurance reimburses residents for care in their home county only, and until recently, migrants were not entitled to join urban residents’ schemes (Yip et al., 2012). They are still not entitled to be reimbursed at the same rates as urban workers. Some cities, like Shenzhen, have set up migrant-specific schemes, yet their strict enrolment criteria, including labour contracts as well as employer contributions, excludes most lower-skilled migrants (Chen et al, 2020). 

Migrants therefore still face significant difficulties in accessing state social welfare and resources in the cities and SEZs where they work in China. A large number of informal schools, clinics and other resources such as mutual aid organisations have been established across Chinese cities to cater to migrant settlers, but these have mostly not been supported by the state, with many schools and clinics forcibly closed without provision of alternatives (Goodburn, 2014), while third sector organisations serving migrant communities have been the target of state repression (Franceschini & Nesossi, 2018). 

China-associated zones overseas

There are no specific social welfare-related impacts for migrant workers of China-associated zones elsewhere in the world, since social welfare (including access criteria) is typically the preserve of the host country national or subnational state.

Further reading

Aggarwal, V., Solano, G., Singh, P., & Singh, S. (2020). The integration of interstate migrants in India: A 7 state policy evaluation. International Migration58(5), 144-163. https://onlinelibrary.wiley.com/doi/abs/10.1111/imig.12701 

He, A. J., Zhang, C., & Qian, J. (2022). COVID-19 and social inequality in China: the local–migrant divide and the limits of social protections in a pandemic. Policy and Society41(2), 275-290.

Lorenzo Cotula, Liliane Mouan, Labour Rights in Special Economic Zones: Between Unilateralism and Transnational Law Diffusion, Journal of International Economic Law, Volume 24, Issue 2, June 2021, Pages 341–360, https://doi.org/10.1093/jiel/jgab012