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About , people work in the local mining industry. Although profitable, the industry has caused numerous healthcare problems for the city authorities, said Wang Yongchang. About 53, of Gejiu residents rely on basic State support.
That's roughly 10 percent of the total number of claimants in Yunnan, even though the city is home to just 1 percent of the provincial population, according to Gejiu's development and reform bureau.
However, the effect of the transformation is already becoming apparent. During the past six years, the urbanization ratio has increased to 70 percent from around 40 percent. Moreover, the average per capita disposable income of Gejiu's urban residents rose to 17, yuan last year, more than double the amount in , but still just 72 percent of the national average, the same proportion as seven years ago.
Since , the central government has awarded Gejiu million yuan. The money is part of a plan to accelerate the economic transformations of 69 resource-exhausted cities. The city government will receive million yuan per annum until to improve its cultural and manufacturing industries.
But it's a costly business; after paying the salaries of public servants and funding infrastructure projects last year, the city government had little left from its initial budget of 2.