Economist: Income gap stems from corruption, monopoly
By Jessie Tao (chinadaily.com.cn)
Updated: 2006-06-26 17:17
Wu Jinglian, a renowned economist with the Development Research Center under
the State Council, pointed out corruption and monopoly are at the root of
China's widening income gap.
The remarks came during the Chang'an Forum of Chinese
Economists 50 Forum held in Beijing Sunday, reported the China Business News.
Wu Jinglian, a renowned economist
with the Development Research Center under the State Council, delivers a
keynote speech during the Chang'an Forum of Chinese Economists 50 Forum in
Beijing Sunday, June 25, 2006. [Xinhua]
Wu noted in his keynote speech that China's widening income disparity was
largely caused by unequal opportunity, which is a result of corruption and
"Cracking down on corruption for equal opportunity is beneficial to improving
efficiency. High income in monopolized sectors is not a result of personal
abilities. The key in reducing the income gap lies in rooting out corruption and
marketing monopolized industries," Wu said.
He also called for establishing a complete social security system.
"Low-income allowances for every resident should come first in the system and
be made into a restrictive policy, which is well within the country's financial
capacity," Wu said.