http://www.bloomberg.com/apps/news?pid=20601109&sid=a2c4a3o81mM0&refer=home

Dec. 16 (Bloomberg) -- Liu Hao, who graduated in June with a degree in
manufacturing from a Beijing technical school, found a job he loves --
in a village of 288 people surrounded by peach orchards.

“Even the villagers think it’s surprising,” he says. “They say,
‘what’s a college graduate doing coming here?’”

Forty years after Mao Zedong forced millions of young people to leave
their families and schools for a new life in the countryside, China is
seeing another migration for very different reasons.

Mao believed that living among the peasants would transform the
students into ideologically pure, proletarian laborers. Now the
government is encouraging college graduates like Liu, 22, to help
transform the countryside by taking their newly minted skills to rural
areas where development has lagged behind the affluent cities and
coastline.

“For Mao, it was really a political thing: He wanted to create a
generation of revolutionaries,” says Michel Bonnin, director of
studies at the Center for the Study of Modern and Contemporary China
in Paris. Now, as the world’s fourth-largest economy feels the drag of
a global recession and rising unemployment, students need jobs and
“there is a real need in these regions for people with some good
education. This is more rational.”

Remote Provinces

Many of China’s current senior leaders spent long periods in the
country or in remote provinces during Mao’s Cultural Revolution.
President Hu Jintao was sent to help build a dam on the Yellow River,
carrying baskets of gravel for a year and earning 54 yuan a month,
$7.88 at the current exchange rate.

Mao’s program for high-school students -- “Shang Shan Xia Xiang” or
“climb the mountains and go down to the villages” -- did little for
the communal farms that absorbed almost 17 million teens between 1968
and 1980. Bonnin, the author of a book on the movement, says the young
people had few practical skills.

“I did not help the farmers,” says Li Ping, 54, who earned 2 cents a
day growing lettuce, string beans and pumpkins in a Sichuan village
from 1972 to 1974. “They taught me what to do because I had to know
how to plow a field, how to plant seedlings, how to harvest. I knew
nothing before I went.”

Li, now the Beijing representative of the Seattle-based nonprofit
Rural Development Institute, says today’s college graduates perform a
service by connecting villages to the markets and networks driving
China’s economy.

Offering Incentives

Liu Hao has signed on for three years as a cun guan, or assistant to
the Communist Party secretary and village head of Songpeng village,
more than 60 kilometers (37 miles) northeast of downtown Beijing. He’s
among some 20,000 people who began working as assistants and teachers
this year in the program, which was created in 2006. The government
wants to boost the total to 100,000 by 2012 and is offering incentives
such as help repaying student loans.

The opportunity appeals to some young people who face a grim
employment situation. China’s growth has slowed for five consecutive
quarters, and its 9 percent third-quarter expansion was the weakest in
five years. The World Bank last month forecast growth next year at 7.5
percent, which would be the slowest pace in almost two decades.

An estimated 6.1 million new graduates will enter the job market in
2009, joining 4 million from previous years who are still looking for
work, Zhang Xiaojian, the deputy minister of human resources and
social security, said Nov. 20. The unemployment rate for these young
people is more than 12 percent, triple the official urban rate, the
Chinese Academy of Social Sciences said in a report released
yesterday.

Practical Ambition

Liu was one of seven students accepted for the program out of 400 from
his school who applied. Those who participate are motivated by
practical ambition to further their careers, says Bin Wu, a senior
research fellow at the University of Nottingham in the U.K. who
studies sustainable development in China’s rural areas.

Liu spends his time reading up on government policies related to
medical services, innovative planting techniques and the safe use of
firewood. Then he explains the policies to the villagers. Over lunch,
he talks with animation about the art of pruning fruit trees and the
need to better market the peaches that are his village’s main
product.

“If you really want to help people, you have to understand the
countryside,” says Liu, who has ambitions to work in government.

‘Helps Us Analyze’

Having “college grads come here is great,” says Jiao Shichun, 50, a
villager who wanders into Liu’s bedroom-office in the village
headquarters. Lui “helps us analyze how to do things,” he says.

Jiao’s own two daughters, 27 and 25, live in Beijing. The older one
owns a car and an apartment and makes 6,000 yuan a month working for a
makeup company.

They reflect a major obstacle to the government’s plan: In China’s 30-
year capitalist evolution, the flow of population has always been from
rural to urban, with some 200 million farmers-turned-laborers moving
to manufacturing boomtowns such as Dongguan in southern China before
the economic slowdown began sending many back home.

While the countryside has benefited from China’s years of double-digit
growth, per-capita income is still a third of incomes in the cities.
Closing that gap requires educated people to stay and work in the
rural areas for a long time.

Ticket Out

“The problem is the value system,” says the University of Nottingham’s
Wu: The perception is that higher education should be a ticket out of
the country.

Yu Cuihong, 24, has a degree in computer and network engineering. Her
mother and father, who are farmers, weren’t entirely accepting at
first of her decision to work as an assistant in a community near
Liu’s village.

“So many years of schooling, it was like it was all a waste,” she says
of their attitude.

In her spare time, she’s preparing for graduate school and, even
though her parents are now more supportive, she says she doesn’t plan
to return to the countryside if she earns another degree.

“It’s not likely,” she says. “I’m studying to get a better job.”
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