Urban-Rural Divide More of A Concern Than Rich-Poor Extremes – Du Runsheng

From The Economic Observer, translated by CDT:

Rich-poor polarization, if truly happening, is a progress. Why so? The Party’s 15th Congress noted that, to build a socialist market economy, we need to combine labor-based income distribution with production factors-based distribution. Capital, expertise and knowledge, etc. will become part of the income distribution. Also, income gap will be a result.

Now, the gini coefficient is between .4-.5 (.45 for 1995). Generally speaking, if it is below .2, it means absolute equality, .3-.4 means rational, over .4 means the un-equality is great. We don’t have to worry too much about polarization, even if the coefficient goes above .5, it is not necessarily a social threat. The key is to “care about the low-income groups,” not looting the rich to help the poor, not to restrict liberal development or backpedaling to equality-ism. Reform is a process that readjusts all the interests, some people will definitely make the sacrifice. [Full Text in Chinese]

Polarization cannot be solved by market economy. The essence of market economy is to promote polarization, who has the economic advantages will live a better life. So we should stress social equality, caring more about disadvantaged groups, for example farmers. They generally make 2-3,000 yuan a year, after tax and other fees, have about 500 yuan at hand.

How to care about these people? First, we need to provide them with enough jobs and make them “obedient people,” not “rioting people.” Other measures include: reducing taxes, agricultural subsidies, labor migration (changing current residency regime), protecting farm land, more help on rural education and protecting farmers’ rights.

The income gap between farmers and urban residents is at least three times, and farmers don’t have social security, have greater difficulty to find jobs and need a lot more caring. Now farmers are “second-class citizens” and they don’t have spokespersons who can call out for their sufferings. I wrote a letter to the central government in 1985 suggesting to set up farmers’ associations and guarantee their rights to negotiate. It’s better for farmers to protect their own interests, regulate themselves and participate in state affairs.

CDT’s coverage on income gap

CDT EBOOKS

Subscribe to CDT

SUPPORT CDT

Browsers Unbounded by Lantern

Now, you can combat internet censorship in a new way: by toggling the switch below while browsing China Digital Times, you can provide a secure "bridge" for people who want to freely access information. This open-source project is powered by Lantern, know more about this project.

Google Ads 1

Giving Assistant

Google Ads 2

Anti-censorship Tools

Life Without Walls

Click on the image to download Firefly for circumvention

Open popup
X

Welcome back!

CDT is a non-profit media site, and we need your support. Your contribution will help us provide more translations, breaking news, and other content you love.