The Effect Analysis Of Social Security System Of Peasant Workers On International Trade And Exchange Rate

It has become one of the hottest social topics in recent years, for there are a large number of rural people move to the cities and developed area to find a part-time job or do business. Many researches are being done from the aspects of economics, demography, sociology, politics, city geography by related government departments and foreign aid researchers, through the way of comprehensive survey, case study and special subjects research. Upon the statistics of the Ministry of Labor and Social Security, there are 86 millions of rural people lived by a part time job or doing business in cities, including 6 millions of increased moving people. At present, nearly 130 millions of rural people are under a condition of frequent moving. Most of them are in an inferior position of daily life and working, they can't get any rights assurance at all, especially for those measures to aim directly at the peasant workers. To some extent, it will affect the development of labor markets, hamper the process of urbanization and limit the upgrade of industrial structure and the replacement of products.On the other hand, in a long run, the exporting departments in China are limited in the low degree of labor-intensive industry. It is impossible for the peasant workers to increase their incomes. At the same time, those exporting industry are protected by the industrial and exchange rate policy, domestic demands industries are discriminated seriously, these will destroy the continuous economical development in China. Moreover, long-term favorable balance will result in the expectation of increasing on the exchange rate between RMB and foreign exchange. From 2002, Japan and U.S government hope to make those products that made by China to be more expensive by the way of overestimation of RMB price, and to reach a goal of limiting of export of China. Our government will rethink the strategy of economical development, if we want free ourselves from those export trap. These various kinds of allowances should be moved from export industry to the accumulation of human resources, especially for the peasant workers.The aim of this paper is to find out and analyze the effect of social security systemof peasant workers on international trade and exchange rate, from the aspect of upgrade of international trade structure and releasing of pressure on the overestimation of RMB price.