It is a pressing issue to increase people's disposable income
and lessen the burdens in their lives, says an article in
Shanghai Securities News. An excerpt follows:
The Chinese Academy of Social Sciences published the Green Book
of China's Social Security System on Monday. The report shows that
the average annual disposable income of Chinese urban residents
reached 9,421.6 yuan (US$1,224) in 2004, 6.24 times the 1,510.2
yuan (US$196) in 1990. The number for rural residents was 4,039.6
yuan (US$525) in 2004, 5.89 times of the 686.3 yuan (US$89) in
1990.
But during the same period, residents' average expenditure on
medical care increased 19.57 times in urban areas and 5.86 times in
rural areas. Expenditures on education also increased
dramatically.
Living expenses increased faster than incomes, making it hard
for the public to enjoy the fruit of economic development. It
burdens the public, increases people's worries about the future,
and restrains their spending. It has become a major factor
restricting the country's sustainable economic development.
Since the 1990s the proportion of government and enterprises'
disposable income in the total national income has increased
continuously while the proportion of individuals' disposable income
has steadily decreased.
At the same time, the government has retreated from many areas
of public service. The result of the marketization reforms in
public health, education, housing and the pension system is the
rapid increase in individual expenses.
All these have placed a heavy burden on the public.
The current situation not only harms efficiency but also damages
fairness. When the government controls more wealth but shoulders
less responsibility in providing social welfare, there are numerous
opportunities for extravagance and waste. Luxurious government
office buildings are just products of such an abnormal
mechanism.
(China Daily June 1, 2007)