China's growing gap between rich and poor and causes the characteristics of

 China's growing gap between rich and poor characteristics and causes of
Sun Liping
reform in the past quarter century, China established the basic institutional framework of market economy and promotion of market economy to achieve rapid economic growth. But at the same time, the market economy should be matched with the various interests of the balancing mechanism has not set up accordingly, the result is a serious imbalance in the pattern of social interests and the interests of the pattern of imbalance caused by the proliferation of various social contradictions. From the mid-90s of last century, China the trend of growing social polarization. wealth gap, the polarization of the issue, not only China today has begun to form the basic background of many social problems, but also by inhibiting demand, began as a constraint to China the bottleneck of economic growth. Because of this, adjust the pattern of interests has become a harmonious society is one of the most important themes.
why the widening gap between rich and poor: from income to consumption in China's reform and the initial
stage, there had been a short-term no occupation were the most obvious improvement in the situation. Second, the periphery of society there and the development of thriving vitality weather, showing vitality and rural livelihoods, a boom town. This change in orientation of the market economy reform inevitable result. because in the previous system of redistribution of wealth in society is mainly concentrated in the hands of the state, hand in hand with wealth and resources of society the extreme the basic orientation of economic reform, will undoubtedly have a spread of wealth and resources, the effect of growth.
under the overall effect of equalization, partial differentiation of the income gap between rich and poor and even began to appear. this gap and differentiation mainly In: In order to strengthen the incentives within the enterprise to implement a differential in salary and bonus system; in the new employment policies and economic institutional framework that allows self-employed urban residents, some people have been at the bottom of society to become the first through the self-employed the rich traders, workers and the general widening income gap; third early differentiation is mainly reflected in the chivalrous income. was one survey, the public dissatisfaction with the income gap is mainly aimed Naotidaogua, individual, private property owners income is too high, the contractor, lessee, and general workers income gap large, unfair distribution between regions of interest issues. But Overall, the degree of differentiation between rich and poor was still quite limited.
from the mid-80s, things began to change. peasant income growth at a very slow phase urban-rural income gap began to widen, while the loss of state assets started until the later large-scale state-owned assets divided, and the resulting pattern of social interests are significantly unbalanced.
loss of state assets began in goods market, capital markets, financial two-track market. Although today's perspective, leveraging the old two-track system may well be the lever, but the resulting loss of state assets is also undeniable. The loss of state assets, mainly in poor, spread, tax gap over. Into the 90's after, especially after the mid-90s, large-scale state-owned assets divided up into a more substantive phase. was originally called the Meanwhile, with the conduct of enterprise restructuring, accumulated over the past few decades, began to be carved up the state-owned assets. how much this figure is difficult to statistics and computation. In recent years, the state-owned enterprise reform, capital operation, bribery , is the state-owned assets illegally transferred to private hands in the main form. In addition, corruption has also amassed the wealth of more substantial role to play.
the 21st century, a new mechanism for the distribution of wealth began to appear, This is the plundering of wealth between groups. According to Zhong Wei, an economist calculated a year employment enterprises and social security by pushing down wages and more access to 440 billion in profits; real negative interest rates two percentage points, at least means that the depositors lose at least 60 billion per year interest income; in the capital markets, the stock market downturn a few years ago, small investors lost at least in the 1.5 trillion or more; cheap expropriation of peasant land, 20 years approximately 2 trillion total differential land rent, and that a considerable portion of them is implemented in recent years. in the city to implement the demolition plundering the wealth is incalculable.
addition to this obvious exploitation, the fact there is a hidden plunder. This includes: First, the last few years the reform of the social security system, a considerable number of people have lost basic social protection, social security coverage was reduced more than the original, has a variety of social security coverage managed to reach about half the urban population. Second, health care, education, housing The costs will be greatly improved. in recent years, China's annual rate of increase of medical expenses up to 14%, medical costs have increased substantially and significantly increased the financial burden of poor communities. In the past ten years time, our university received costs rose almost 100 times. coupled with soaring prices, people will care, education, housing, called the new process. A few years ago, the State Council Development Research Center of Development Strategy and Regional Economy Research on However, if replaced by per capita expenditure targets, then the total poor population increased to 3710 million immediately. This shows a substantial increase in spending, as part of the population caused by the direct cause of poverty.
redistribution
bad economic system in the market , the market for the first time in the implementation of distribution and redistribution by the state, is the distribution of national wealth of the two major means. in the market mechanism makes the income gap is widening the circumstances, the redistribution mechanism should play an important gap between rich and poor relief role. However, in the past several years, the income and wealth in the possession of a growing gap between the same time, the redistribution has not been able to effectively play the role of mitigation redistribution. even in some redistribution of areas, should have been played redistribution of wealth differentiation of mitigation projects, and have actually played a role in increasing the gap between rich and poor.
The first is China's financial expenditures for basic livelihood of the people's input is too small. Some experts pointed out that China's fiscal expenditure structure of the prominent features is one more with administrative costs, social security contributions less .1990-2001 years, average annual growth rate of administrative costs was 29.2%, 12 years, an increase of 7.3 times, and some poor groups are difficult to fully funded social security funds; II investment in urban construction and more funding for rural development less; three more with the industrial, agricultural inputs less; Fourth, the civil service wage increases and more low income farmers. Zhou Tianyong researcher's findings show that in 2004, our expenditures for administration official ratio of 37.6%, 12.5% in the United States; of the ratio of capital expenditure for the economy was 11.6%, U.S. 5.0%; China for public services and social management of the total expenditure of 25%, 75% of the United States; for other expenditures, China and the United States were 25.8% and 7.5%. Some scholars have pointed out that in previous years for the basic livelihood of the investment-GDP ratio of the low ranking first in the world, is lower than in poor countries in Africa. fiscal expenditure the unreasonable structure, weakening the state's regulation of other social and economic activities, resulting in a shortage of public goods and the lack of basic social security, making the income gap in the market caused by the expanding case, the redistribution of the wealth gap is difficult to help ease role.
sometimes even the limited role of investment is increasing gap between rich and poor of society, not to narrow the gap. China's social security system and the distribution of public goods, are related to urban and rural structure and its Related to this linked to the household registration system. The result is already much higher than the income of rural residents to urban residents enjoy the more social security and public goods, and income have been much lower than urban residents to rural residents is very and even less in some areas can not enjoy social security and public goods, it has to bear the medical, education, pensions, housing, welfare costs and so on. According to the data, in 2001, the budget per student in primary public funds, urban average 95 yuan, 28 yuan in rural areas as in urban areas is 3.39 times the rural areas. junior high school student budget public funds, urban average is 146 yuan to 45 yuan in rural areas, rural towns are 3.24 times. The income of urban population in rural areas have been several times. welfare and the result of unfair distribution of public goods is to make the already among the highest in the world, the widening gap between urban and rural areas. As is often mentioned in recent years, China's per capita income gap between urban and rural residents in more than three times, but if to factors such as welfare and public goods calculated in, the gap between the two will be expanded to 6 times.
even in inner cities, social welfare and the allocation of public goods, there was not fair, limited public service resources by a few people share, such as medical. according to poor countries such as India, Cuba, North Korea (topics, gallery), Sudan, Vanuatu, Myanmar, Burundi, are the implementation of universal free medical system. in the World Health Organization, financing and distribution of medical and health equity in the ordering, the Chinese government only 17% of the burden of medical costs, ranked fourth last in the world. And, according to a medical and health survey, only 17% of the burden of medical expenses by the government, another 80% to 8.5 million in military and political cadres of the main groups of services. According to the Ministry of Supervision, Ministry of Personnel disclosure, the National Party and government departments have 200 million cadres at all levels on extended sick leave, which accounted for 40 million cadres, cadres and long-term ward. cadres guest houses, resorts, spending the year 500 billion.
especially personal income tax revenue is to adjust the gap between rich and poor is an important lever. In some countries, people in pre-tax income gap can be large, but after personal income tax adjustment, which species will greatly narrow the gap. If the United States, only a progressive income tax to the lowest income and highest income groups, the income gap between groups, after-tax than before tax reduced several times. But in China, the personal income tax will not be able effectively alleviate the gap between rich and poor, and sometimes has a negative regulatory role. we are able to adjust the tax in 2001, for example, to see how the expansion of the tax rather than narrow the gap between rich and poor. We look at the urban-rural. in accordance with relevant Statistics, in 2001 a tax revenue of nearly 99.6 billion yuan. In addition, the tax burden on farmers was not canceled. farmers to pay various ) or from the use of point of view, in fact, can be seen as a disguised form of personal income tax. all kinds of money paid by farmers, when in 2000 billion yuan, 200 yuan per capita. If the burden of the farmers see as a disguised person income tax, when the total number of China's actual personal income tax as of 3000 billion, of which farmers paid about 60%, while net income of farmers of all urban and rural residents accounted for only 33% of total revenue. If you do not take into account taxes paid by farmers, the income of urban residents was 2.89 times the equivalent of rural residents. If the farmers take into account the taxes paid by the factors, then expanded to 3.17 times.
in the inner city, the situation is the same is the case, a few years ago some surveys show that In the personal income tax, wages, salaries accounted for 40% of the project, working-class taxpayers into the actual body. In addition some of the sporadic surveys show that in some places a tax paid in the working-class accounted for 60% or even 70 % or more. The wage income of working-class urban residents represent only about 33% of disposable income. This no doubt will expand the income gap within the city. There are data, although less than 20% of the rich people occupy 80% financial assets or savings, but they only pay individual income tax is less than 10% of the total. In Guangdong, high-income people to pay personal income tax accounted for only 2.33% of total. can be seen from the above figures, a tax levied on the inhibition of the trend of widening gap between rich and poor, and do a lot of work. but even so, the trend of widening gap between rich and poor, and not fundamentally changed. This shows that, in our present circumstances, the interests of the adjustment is a very difficult to do. The enormity of the reason is that the current distribution of income and wealth largely in a state of non-standardized, can be used such as the personal income tax and other conventional means to effectively control the process of income and wealth distribution has been relatively limited. From this sense, the gap between rich and poor governance in a non-state have been signs.
I was on the distribution of national income in 2002 conducted a rough estimate, we can look at this as an example look in the year, we have created much wealth, that wealth is through what channels, in what manner the distribution? these riches are given to whom? government departments can monitor the allocation process? If depreciation and other factors ignored, you can roughly say that this year our community to create a 10 trillion of wealth. Here we see how this 10 trillion in various parts of society were allocated. can be roughly divided into four parts. The first piece of the profits of the enterprise, about 1 trillion; second block is the government's revenue, about 2 trillion, of which 1.5 trillion budget revenue; the third block is the income of urban residents in 2002, the national per capita disposable income of urban residents was 7703 yuan, if the urban population by 480 million people (2001 figures) calculated, all urban residents in 2002 the disposable income of nearly 3.7 trillion. The fourth block is the income of rural residents to obtain, 2002 National Rural per capita net income of 2,476 yuan, if the calculation of the rural population by 800 million people in 2002, the net income of all residents in rural areas nearly 2 trillion. The pieces add up to a total of 8.7 trillion. That is, there are 13,000 Can not find Zhuer billion, including depreciation, non-monetary part of the calculation errors. should be acknowledged that the above calculation is very rough, of which double counting, there are errors, etc., but generally still see that our national the general pattern of distribution.
problem is where? First, we can see that a total of 10 trillion in wealth distribution, it is first found Zhuer 1.3 trillion. But the main problem is not here, but in the income of urban residents in 3.7 trillion. This is the biggest piece of proportion, but at the same time is the most vague. so this distribution of wealth needs to be carefully analyzed. In this piece, one part of the total, billion. 3.7 trillion 1.2 trillion removed, there are 2.5 trillion. This city of 2.5 trillion, including those in self-employment income, including dividends, interest, rental income. But we know that a few pieces together , far less than 2.5 trillion. That is, the income of urban residents, there are a considerable part in the gray state, but we are still no way to know the exact number or proportion. But one thing is clear, that the income of urban residents , in addition to total wages are in part under the supervision of the State, the remaining 2.5 trillion, the disposable income of urban residents that two-thirds, are in countries outside monitoring. In addition, China's annual There are a considerable number of existing assets involved in the distribution, the most important is the loss of state assets and the land of farmers forced to obtain the differential rent. If this factor into account non-standard annual allocation of wealth ratio is quite large.
high income and wealth distribution of non-standardized, and to regulate social relations in the interests of the cause of a series of difficulties. First, as the preceding analysis shows, the tax can not be achieved on the growing income disparity effective regulation and control, and sometimes even counterproductive. because the income tax personal income in the income distribution must be established on the basis of standardization, which is at least relevant to know who's income is how much revenue the project is. But in China, As a non-standardized distribution of income, in addition to working-class wage income, the relevant departments of the data difficult to master. In recent years, with the income distribution system reform, the income distribution standardization progress, but this progress has been still mainly in wage income. In this context, a problem caused the alert is needed, that the middle class may become the victim of regulating interest. because relatively speaking, wage-based income of the middle class Standardization is the highest level, the personal income tax is levied on the most vulnerable. In recent years at all levels of government has introduced a number of policy measures to adjust the gap between rich and poor, these policies have been the original intention is to adjust the gap between rich and poor, even in order to achieve ; provide low expansion, the increase, object. and we know that a large presence of middle-income groups, is to prevent the polarization of society to the premise.
Second, the government is difficult to distinguish between rich and poor, redistribution is difficult to accurately implement the adjustment measures to the head. such as in the implementation of the minimum living security system, because the government can not precisely identify the poor and the rich, the object can only be assigned the task of guaranteeing the implementation of the residents committee. But residents of the neighborhood committee can not grasp the exact income, and so it was a pets can not enjoy the subsistence allowances, the use of mobile phones can not do nothing but enjoy the subsistence allowances and other ridiculous criteria. affordable housing and the distribution of low-cost housing is also true that in recent years have emerged in many places to buy houses can not buy, should not buy it buy, room number or even the phenomenon of reselling at high prices. In Beijing, some room number can be sold for more than ten million. There are places, low-cost housing built, but Zhoushaosengduo, late can not be assigned later. In fact, because the little monk is more real or not exactly the most difficult to grasp who is who and who should be the most low-rent housing. The problem, in fact, and income distribution are highly non-standardized linked. < br> to establish a market economy the interests of the balancing mechanism
May 26 last year, the CPC Central Committee Political Bureau held a meeting to study the reform of the income distribution system and standardizing income distribution problems. some media pointed out that this means that the adjustment of interests, narrow the gap between rich and poor has become a consensus. public opinion in the income distribution system reform, will involve the extension of social security side, inhibit the breeding of unfair monopoly, the use of control means, and many other tax measures to the rapid economic growth in the At the same time, promote social equity goals. but need to see, in the interest adjustment, the policy is very important, more fundamental mechanisms.
a worthwhile question is, What makes the income gap in China in October a few years time such a dramatic change occurred? in the underlying factors behind this change is what? to lead the direct cause of this change, there has been much discussed, for example, the issue of income distribution system, personal income income tax issues, corruption issues, divide the problem of state-owned assets, and so on. But the question is, why these different factors will work together to increase the social inequality? why these factors in such a short period of time have on the rich-poor divide such a huge impact? these systems or the factors themselves again in the context of what shape? In fact, if we look back carefully, you can find in the back of these factors, it is the pursuit of different groups in the expression and their own interests that exist on the ability of a huge difference. So we can say is behind the disparity in the expression of different groups pursuing their own interests and ability to balance the results.
fact, a serious imbalance in the back of the pattern of interests, often without exception, the existence of this factor. peasants issue has become a chronic problem of Chinese society, and the ability to pursue the interests of farmers is linked to the disadvantaged; in land acquisition and demolition of the grave injustice is being damaged by a lack of effective interest the interests of the channels and directly related to the expression; repeated violations of labor rights, millions of migrant workers toil without pay after one year, reasons that the interests of their lack of institutionalized channels of expression and the pursuit of profits.
interest in gender differences for institutional context is the right balance. Therefore, the key issue is to establish a relatively balanced, a system to protect the interests of the expression mechanism. to establish an effective mechanism for expression of interest, in fact, is to build a relatively complete market economic system, an essential components. the market economy is essentially based on the interests of a subject based on the differentiation of the economic game, the more sound market economy among different stakeholders is a benign game. In such a system in which expression of interest is the game basis. need to see, and in the interests of the diverse interests of diverse interests on the basis of the formation of conflict and contradiction, not a terrible phenomenon. In general, the expression of interest and the game is a relatively mild Social interaction is a normal part of social life. Furthermore, even if some serious conflicts of interest led to social conflict, in essence, the real cause of conflict is not the result expression, but the interests of the opposition itself, and sometimes precisely because lack of effective channels of expression.
expression of interest in the discussion, it is more the expression of interest to emphasize the importance of disadvantaged groups, which of course is right, but not comprehensive. In fact, in the current Chinese society in the expression of interest not only for the vulnerable groups to the other groups, including powerful groups are also very important. well, in our present circumstances, the interests of vulnerable groups, the expression of the problem becomes more prominent, because they neither institutionalized channels for expressing interest, but also nothing more than institutionalized way fight for their own interests. In contrast, the lack of standardization in the interests of society as a whole to pursue under way, with a strong group with interests in various ways to fight for their advantage. But we must see that these largely non-standardized manner, and, strong group in the use of these methods to fight for their interests, their cost is considerable.