Five steps to a better society

China's economy is growing, but so is its income divide. The Gini coefficient has increased alarmingly. The coefficient measures income inequality in a society, with 0 signifying perfectly equal distribution of wealth among households and 1 denoting that a single household controls all the wealth.

When China's reform and opening up began in 1979, its Gini coefficient was less than 0.35. Today, it is 0.47. If this trend continues, grievances against the system will grow and could threaten the country's stability, as well as economic development.

In a way, the widening income gap in China is the unwanted result of some of its development policies such as opening up the coastal areas first and leaving inland areas behind. This triggered a mass migration from rural to urban areas.