The average income of Chinese employees has gained an annual
increase of 14.8 percent during the past 10 years, thanks to deeper
reforms of the country's income distribution system.
Labor and Social Security Vice Minister Wang Dongjin said the
rapid growth has resulted from market-oriented reforms and
gradually abandoning of Daguofan policies (the egalitarian practice
of everyone sharing from the same pool of resources).
"But we need more efforts to make the income distribution system
more fair, efficient and comprehensive," said Wang at yesterday's
international symposium on improving the compensation system in
enterprises organized by his ministry.
He said international input is welcomed to make China's income
distribution more market-oriented and compatible with international
practices.
China used to see its incomes distributed in an
equal-share-for-all manner. This method of distribution dampened
people's enthusiasm for better performance, and held back the
progress of productive forces.
Since the early 1980s, the system has been under gradual and
steady restructuring, together with the country's reform and
opening-up drive.
Now, an income distribution framework mainly based on
performance and positions has been established, said Wang.
"We have achieved breakthroughs in this regard over the last
year," said Wang.
At the 16th National Congress of the Communist Party of China
late last year, it was announced that production factors such as
labor, capital, land, technology and managerial know-how will be
considered in income distribution, in accordance with their
respective contributions to production overall.
At the two-day symposium held in Beijing, researchers with the
ministry have expressed their concerns over inequalities in
distribution.
"Despite much progress, income distribution in state-owned
enterprises (SOEs) remains a thorny problem," a senior researcher
surnamed Liu told China Daily.
Salary income distribution in SOEs needs the introduction of
more market elements.
For example, despite the consensus that labor, capital or
managerial know-how should be considered in income distribution,
people disagree as to how to introduce those elements. It will take
a while to hammer out a feasible framework in that respect.
Liu said the newly-devised methods of income distribution for
state enterprise managers in recent years, such as the annual pay
system and bonus grants, lack the support of a comprehensive
framework.
(China Daily November 4, 2003)