China vows to re­solve grow­ing wealth gap head-on

The Pak Banker - - Front Page -

BEI­JING

Grow­ing wealth gap in China has been iden­ti­fied as the most press­ing prob­lem for the Asia's largest emerg­ing econ­omy and the on­go­ing once-in-a-decade lead­er­ship Congress of the rul­ing Com­mu­nist Party is look­ing to tackle the is­sue head-on, ac­cord­ing to a re­port.

Rapid growth of China's econ­omy is leav­ing mil­lions be­hind and yawn­ing gap be­tween rich and poor is grow­ing. Dur­ing this time of tran­si­tion, the coun­try's lead­ers are look­ing to tackle the is­sue head-on, me­dia re­ported.China's Gini co­ef­fi­cient which re­flects the wealth gap of a coun­try stood at 0.438. That's up from just 0.2 roughly 30 years ago. A fig­ure higher than 0.4 is gen­er­ally con­sid­ered trou­bling, the re­port said.

More than one hun­dred mil­lion peo­ple still live on USD 1 a day here in China. That's in a coun­try that's home to the sec­ond most bil­lion­aires be­hind the US. And an­a­lyst say that as China's phe­nom­e­nal eco­nomic growth be­gins to cool, frus­tra­tion with the gap be­tween the haves and havenots is grow­ing, it said.

In a bid to nar­row the gap, the Chi­nese gov­ern­ment is cur­rently draft­ing an in­come dis­tri­bu­tion re­form plan hop­ing to ad­dress the dis­par­i­ties, the re­port said.

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