THE WEALTH GAP IN CHINA Shiyuan ying

THE WEALTH GAP IN CHINA What is the wealth gap in China? What has led to this ever-widening wealth gap (Reasons)? How to narrow down the wealth gap (methods)?

The definition Ever since China initiated its reform and opening up 32 years ago ,China has lifted hundreds of absolute poverty, and the rapidly growing economy has made a better life accessible to most Chinese people .However , as the reforms further developed in recent years , the benefits of rapid economic growth have not been shared by all. The gap between rich and poor is widening .Namely, it is the wealth gap. BACK

REASONS 1 The social transition: labor skills are not conform to social needs, such as the large state-owned enterprises laid-off workers. The unfair distribution of social resources : various of rules and regulations in the HUKOU system and Educational system which caused the limitations on the development of the society.

REASONS 2 The family planning policies :the population in urban areas is only half of that in rural areas . So, This is inevitably lead the educational priorities or some others priorities in Cities. And all of this would deepen the wealth gap in society. 。 Geographical and environmental reasons: Coastal cities has more developing advantages than that in inland cities. The grey income and corruptions. several types of income gap. Per capital income gap between different locations ,or urban and rural residents, or residents in the same locations .

The grey income

Corruption

Reasons 3 The invisible hereditary : the children of high-ranking officials take over the higher political positions in authorities .And control the main capital movement or transfer the capitals oversea.(富二代) The tax system:　China’s tax sources are mainly from the work-classes ,However some high earners want to evade the tax(逃税).

The secondary generation

Figures ☆ Before China's reform and opening-up ,China has the balanced distribution of the personal wealth , the social Gini coefficient is in about 0.2 for a long term。 ☆ In 2006 , the social Gini coefficient is about 0.497.　 ☆ In 2009,about the 0.4 percent of rich groups have owned 70 percent of the whole wealth. ☆ In the end of 2009,　the economic gross in china has surpassed that in Japan. The Gini coefficient has become 0.496 which has already caused great influence on the social construction and development . 　 The warning line of Gini coefficient is 0.4.　

How to narrow down the wealth gap (Methods 1) ★ The regional policies :the government has decided to push reforms on pay and distribution to make the society a harmonious one. ★ The removal of agricultural tax , the central government has allocated more funds into rural regions to enhance infrastructure and education. ★ Remitting the tuitions in the period of Nine-years compulsory education. ★“ San nong (三农) “system: the rural areas the farmers and the agriculture .The central government pay more attention on the agriculture.

Methods 2 ★ The government should root out corruption and marketing monopolized industries. ★ China ‘s top legislature held its first legislative hearing in late 2005 on lifting the cutoff point of the personal income tax from 800 yuan to 1500 yuan .

CPPCC WenJiaobao Transform the economy, bridge the gap between rich and poor In a two-hour speech at the start of the annual session of the People’s National Congress, Premier Wen Jiabao outlined China’s main objectives for the year. He said the economy needed restructuring because it was too dependent on foreign exports, and that the gap between the rich and the poor had to be reduced by better redistributing the benefits of the economy.

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