Difference between revisions of "Increasing income inequality in China"

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==Description:==
Currently, China is pushing for urbanization as part of its modernization bid.
If the rich-poor gap continues to grow,<br> it will hinder the development of Chinese cities.
This will get the below problems<br>
1)A widening gap between the rich and poor in cities may result in a multi-  level urban society and cause  confrontation between different groups.<br>
2)The problem could breed more unstable factors which could endanger social  stability and public security.


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==Enablers:==
1) Must give priority to reform of taxation, social security, and more support for rural areas.<br>
2) Considering collecting high-consumption taxation and legacy taxation as ways
to reduce the rich-poor gap by<br> the Chinese government.<br>
3) Measures include building a framework for helping poor citizens and measures to help those unemployed.<br>


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==Inhibitors:==
1) Large gap between the country's urban and rural areas and between the booming coastal regions and underdeveloped western regions.<br>
2) Jobless workers and migrant workers.<br>


==Paradigms:==
==Paradigms:==
Income inequality could have a massive effect on social, economic, and political futures.  Most likely, this income inequality will spark changes to social programs such as welfare, social security, health care, and education as reforms in these programs will help eliminate an income gap.  This income inequality could also lead to a renewed fundamentalism and return to the Communist ideology where the best interests of the community and equality prevail.  Or conversely, the increased income inequality could lead to a push for democracy.
1) Adopted the policy of reform and opening to the outside world.<br>
 
2) The country's per capita GDP has increased by five times.
More extreme scenarios could also result from this driving force.  The widening gap between the rich and poor cities could result in a multi-level urban society and cause confrontation between different groups.  These problems could breed more unstable factors which could endanger social stability and public security, eventually leading to civil war.
 
==Experts:==
==Experts:==
http://www.mof.gov.cn/index.htm <br>
http://www.mof.gov.cn/index.htm <br>
http://www.mof.gov.cn/english/english.htm
http://www.mof.gov.cn/english/english.htm
==Timing:==
==Timing:==
*1977-2006 - The absolute number of poor in rural areas declined by 91% in the last three decades, dropping from 250 million in 1977 to 21.5 million in 2006. [9]
The 2008 Olympic Games in Beijing
*1990-2004 - The poverty ratio declined from 33% in 1990 to less than 10% in 2004. [9]
*2003 - President Hu Jintao is elected by the National People's Congress
*2004 - China's Gini coefficient hit 0.465 in 2004 [7]
*2006 - In 2006, the income of urban residents was 3.28 times that of their rural counterparts. China’s Gini coefficient, a measure of income disparity, is 0.44 (the closer the coefficient is to one, the higher the inequality) against the 0.10 prevailing before 1978.[9]
 
==Web Resources:==
==Web Resources:==
#[http://www.econ.qmul.ac.uk/papers/doc/wp548.pdf Qin, Cagas, Duncanes, He, & Liu. 2005. Income Disparity and Economic Growth: Evidence in China.]
http://www.xinhuanet.com/english/index.htm<br>
#[http://www.asiasentinel.com/index.php?option=com_content&task=view&id=816&Itemid=324 Poon, A. 2007. China's Gini Coefficient and Market Economy]
http://www.btmbeijing.com/contents/en/business/2005-09/focus/chinaamendtaxlaws
#[http://www.china.org.cn/english/Life/39623.htm People's Daily. 2002. China Urged to Heed Enlarging Income Disparity.]
#http://www.xinhuanet.com/english/index.htm<br>
#http://www.btmbeijing.com/contents/en/business/2005-09/focus/chinaamendtaxlaws
#[http://news.bbc.co.uk/2/hi/asia-pacific/country_profiles/1287798.stm#leaders BBC News. 2009. Country profile: China.]
#[http://en.ce.cn/Insight/200509/13/t20050913_4669147.shtml China Economic Net. 2005. How to interpret Gini Coefficient in China]
#[http://www.hartford-hwp.com/archives/55/366.html South China Morning Post. 2001. Growing income disparity ‘threatening development’]
#[http://www.livemint.com/2007/10/30012312/Income-disparities-persist-in.html Wall Street Journal. 2007. Income disparities persist in China.]
 
 
==Revision History:==
#"Elimination the gap between poor and rich in China" created by Btchoi2 on 16-11-2005
#"Renamed "Increasing income inequality in China" and updated by Johanna Little 18-09-2009

Latest revision as of 06:19, 6 September 2011

Description:

Currently, China is pushing for urbanization as part of its modernization bid. If the rich-poor gap continues to grow,
it will hinder the development of Chinese cities. This will get the below problems
1)A widening gap between the rich and poor in cities may result in a multi- level urban society and cause confrontation between different groups.
2)The problem could breed more unstable factors which could endanger social stability and public security.

Enablers:

1) Must give priority to reform of taxation, social security, and more support for rural areas.
2) Considering collecting high-consumption taxation and legacy taxation as ways to reduce the rich-poor gap by
the Chinese government.
3) Measures include building a framework for helping poor citizens and measures to help those unemployed.

Inhibitors:

1) Large gap between the country's urban and rural areas and between the booming coastal regions and underdeveloped western regions.
2) Jobless workers and migrant workers.

Paradigms:

1) Adopted the policy of reform and opening to the outside world.
2) The country's per capita GDP has increased by five times.

Experts:

http://www.mof.gov.cn/index.htm
http://www.mof.gov.cn/english/english.htm

Timing:

The 2008 Olympic Games in Beijing

Web Resources:

http://www.xinhuanet.com/english/index.htm
http://www.btmbeijing.com/contents/en/business/2005-09/focus/chinaamendtaxlaws

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