Doubts over income distribution reform must be dispelled

Source:Global Times Published: 2013-2-7 23:33:01

China's State Council recently approved a plan to deepen reforms to income distribution, which represented a major step forward for China. The extent to which the plan can be carried out will affect the interests of millions of households and impact the prospects of Chinese society.

The income distribution system is an issue of public concern. China moved away from attempts at total economic egalitarianism many years ago. However, China has now come to another extreme. Over the past 30 years or so, China has become a country whose Gini coefficient - a measure of income disparity - exceeded international warning levels. Huge gaps in income distribution have been the chief culprit, leading to social injustice.

China should narrow the income distribution gap to promote a fair society. Reforms to income distribution system represent an arduous undertaking. There are many differences in people's understanding of what this entails. It is very important for us to overcome these differences and reach a consensus.

We should firmly understand the urgency of narrowing the income gap and establishing social justice. The development of society should not hinder attempts to narrow the income gap. The principle of distribution according to work should be defended, but monopolies should be broken and excessively high incomes need to be adjusted.

China's Gini coefficient has been on the decline in recent years. A shortage of migrant workers has led to pay-rises in blue-collar jobs. Those in professions such as housekeeping and construction have been the beneficiaries of the change in salary structure, which should strengthen our confidence in reforming the income distribution system.

Academic institutions should conduct and publicly release independent investigations into what the real gaps are in China's income distribution system, and how quickly China could reduce them. China should resolve these problems using the premise that public opinion can reach a broad consensus.

Many people's discontent is not only aimed at the income distribution system, but also targets high housing prices and other problems. These require long-term efforts to solve. China cannot be an idealistically "fair country." The variability of the market economy means development cannot be perfectly evenly spread. However, all of these factors need to be judged against the background that China is a socialist country and common prosperity is the fundamental social ideal in China. China should have the capability to suppress unfairness.

As long as we are determined, we will not only know what we should do, but also what we can do. By then, we will be able to objectively evaluate our achievements.



Posted in: Observer

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