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Hu vows to cut growing income gap
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In a keynote speech to the 17th National Congress of the Communist Party of China, Hu Jintao said Monday that China will deepen reform of the income distribution system to reverse the growing income disparity in the country.

"We will increase transfer payments, intensify the regulation of incomes through taxation, break business monopolies, create equal opportunities, and overhaul income distribution practices with a view to gradually reversing the growing income disparity," he said at the opening of the congress.

He stressed that equitable income distribution is an important indication of social equity.

A reasonable and orderly pattern of income distribution will be basically in place, with middle-income people making up the majority and absolute poverty basically eliminated, Hu said.

"Vigorous efforts will be made to raise the income of low- income groups, gradually increase poverty-alleviation aid and the minimum wage, and set up a mechanism of regular pay increases for enterprise employees," Hu said.

He pledged that conditions will be created to enable more citizens to have property income, and the Party will protect lawful incomes, regulate excessively high incomes and ban illegal gains.

Hu also detailed other plans for social development with the focus on improving people's livelihood, to ensure that all the people enjoy their rights to education, employment, medical and old-age care, and housing, so as to build a harmonious society.

China has scored glaring economic gains since the reform and opening drive launched three decades ago, but the countryside lags behind, causing concerns that the urban and rural gap might undermine social harmony.

From 2002 to 2006, the per capita income of Chinese farmers has risen by an annual average of 6.2 percent. For the first time since 1985, the growth rate has exceeded 6 percent for three straight years.

But the gap is still widening. The income of urban residents in 2006 was 3.28 times that of rural ones, up from 3.22 in 2005 and 3. 21 in 2004.

The country's Gini coefficient, an international measurement of income disparity, is estimated to have exceeded the danger level of 0.4. The country's richest 10 percent of families possess more than 40 percent of the nation's wealth, while the poorest 10 percent only have two percent.

The regional wealth gap is also yawning, with the per capita GDP of the country's most wealthy province over 10 times greater than that of the poorest province.

The 17th National Congress of the CPC is the year's most important political event that will chart a roadmap for the country's all-round development in the coming five years.

It is set to elect the Party's 17th Central Committee that will decide CPC's new leadership lineup for the coming few years, and elect a new Central Commission for Discipline Inspection.

It will also approve a draft amendment to the Party constitution to embody the scientific outlook on development and other new achievements in the Party's theoretical innovation and progress in practice.

(Xinhua News Agency October 15, 2007)

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