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On July 31, the National Bureau of Statistics released new figures which cast a worrying light on the income gap in
During the first half, the average cash income of farmers grew 11.9 percent from the same period last year to 1,797 yuan, 0.6 percentage points lower than the same period last year; while the average disposable income of urban citizens grew 10.2 percent to 5,997 yuan, 0.7 percentage points higher. Five famous Chinese economists expressed their opinions on this phenomenon.
(Wu Jinglian (L1), renowned economist from the Development Research Center under the State Council; Xiao Zhuoji (L2), professor from Peking University; Zhao Renwei(L3), former director of the Economy Research Institute under The Chinese Academy of Social Sciences (CASS); Fan Gang (R2), director of National Economics Research Institute from China Reform Foundation; Ineluctable widening trend Fan Gang, director of the National Economics Research Institute of China Reform Foundation, said the income gap is inevitable and will last for five to ten years. He said that in essence, people’s income will rise step by step but that due to social development and unbalanced growth, the income gap would become wider and wider. Although overall their quality of life has improved, residents in rural areas and many common workers in cities still feel unsatisfied with the current situation, when compared with the rapid income increase for people in better-earning jobs. According to Fan, this trend is one of the by-products of social development. Most people seem deeply convinced that this issue is rooted in corruption, and are thus revolted by it. However, Fan believes that even if corruption were totally eradicated in the future, the income gap would still exist. Wu Jinglian, a renowned economist from the Social reform cannot be its “scapegoat” Professor According to him, the income gap between urban and rural areas now reflects a gap amounting to 40 percent of the national total. Since 1997, the difference in urban and rural development has grown in severity and has now become the main cause for the income gap. Differing policies across different regions have caused unbalanced economic development and widened the gap. Only by broadening economic reform can this gap ever be bridged, said Li. Zhao Renwei, former director of the Economy Research Institute under The Chinese Academy of Social Sciences (CASS), also opposes simply blaming economic reform as the principal cause for the income gap, or that economic progress should be impaired because of it. He argued that on one hand, the income gap eliminates simple equalitarianism and that to a certain extent, each person gets what they deserve and that on the other hand, the income gap is a fair price to pay for social development and reform as long as it does not get out of control. It cannot cause turbulence In Peking University Professor Xiao Zhuoji’s opinion, the income gap will not cause too much trouble and society has a whole will maintain its stability and prosperity, even though the Gini coefficient has reached its warning limit. Firstly, the Chinese economy is growing faster than ever and this ascending trend shows no sign of slowing. Secondly, the government has laid out many policies ensuring social stability and a better life for all, such as aid for people living in poverty; living allowances and redundancy insurance. (China.org.cn by Wang Ke, August 13, 2006) |
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