Some Beijing analysts believe the plenary session of the CPC
Central Committee beginning Sunday will focus on how to improve
living standards for the country's low-income citizens and poor
population.
The Sixth Plenary Session of the 16th Central Committee of the
Communist Party of China (CPC) will convene in Beijing from Oct. 8
to 11 with the theme of building a harmonious socialist
society.
Analysts said the meeting may spawn research on safeguarding
social equality, narrowing the yawning wealth gap and expanding
employment, and may decide to carry out a series of important
reforms in sectors like health care, education and social security,
so as to let low-income groups and poor people enjoy the
achievements of the country's reform and development.
Yan Shuhan, director of the scientific socialism department of
the Party School of the CPC Central Committee, said a key item on
the CPC Central Committee agenda is to counter the impact of
factors of disharmony.
He said that, in the future, the Chinese government will not
only encourage citizens to get rich by diligent work and through
legal channels, but also step up protection of low-income and
poverty-stricken groups.
Over the past 20 years, China's income gap has widened
dramatically. In 2005, the per capita income ratio between urban
citizens and rural residents was 3.22 to 1.
The country's Gini coefficient, an international measurement of
income disparity, is estimated to have exceeded the danger level of
0.4. The country's richest 10 percent of families possess more than
40 percent of the nation's wealth, while the poorest 10 percent
only have two percent.
The regional income gap is also yawning, with the per capita GDP
of the country's most wealthy province over 10 times greater than
that of the poorest province.
"The excessive wealth gap is one of the principal disharmonious
factors in Chinese society. To build a harmonious socialist
society, we must pay more attention to low-income citizens and poor
populations," said Ding Yuanzhu, research fellow of the Academy of
Macroeconomic Research under the State Development and Reform
Commission.
Some analysts say China will speed up the establishment of a
social security system with wider coverage and relatively lower
benefits. Farmers may be covered by the system and a new rural
cooperative medical system will be introduced in rural areas.
At the same time, urban community construction will be pushed
forward. Urban poor families may receive subsidies for their
children's education and for health care. Charges for water,
electricity, gas and transportation may be reduced for them.
China's abject poor, whose per capita annual income is less than
85 U.S. dollars, a poverty line set by government, shrank from 125
million to 23.65 million in the 1985 to 2005 period. Most of them
live in rural areas and a large proportion of them are disabled,
ill or live in adverse conditions.
"These 23 million needy people are in great need of direct
government assistance. Promoting the cause of rural social welfare
will inevitably be a topic for the plenary session of the CPC
Central Committee," said Ding.
While China has an impressive record of pulling people out of
poverty, another issue that needs to be tackled is reducing
inequality of opportunity. An efficient way to promote equality of
opportunity is to invest more in education, said an economist with
the Asian Development Bank.
Currently, China's investment in education accounts for three
percent of its GDP, lower than the world average level of five
percent GDP.
Analysts said in future, government may promote compulsory
education not only in rural areas, but in some well-developed
cities.
They said the plenary session might lead the government to
invest more in public facilities and public services, and less in
market-oriented projects.
(Xinhua News Agency October 8, 2006)