China has announced detailed measures to promote social justice,
including the adjustment of income and public finance distribution,
and the expansion of social security coverage.
The full text of the Resolution on Major Issues Regarding the
Building of a Harmonious Socialist Society, adopted at the Sixth
Plenary Session of the 16th Central Committee of the Communist
Party of China (CPC) on Oct. 11, was published on Wednesday.
Adjusting Income Distribution
The resolution said macro-regulation on income distribution will
be strengthened in future. Concerted efforts will be made to
improve income for low-income groups and to gradually expand the
medium-income group in order to promote common prosperity.
To improve income for low-income groups, the government will
create more jobs, lower taxes for farmers, improve the minimum wage
system, guarantee a routine and gradual wage increase system and
gradually raise social security standards, said the resolution.
A civil servant's salary system which takes into account both a
civil servant's position and rank will be further improved.
Regional subsidy standards for civil servants will be regulated
and the subsidy system for those working in remote and backward
areas will be improved, the resolution stated.
The income of managerial staff in state-owned enterprises (SOEs)
will be regulated. The gap between the salaries of managerial staff
and common employees in SOEs will be reduced, it continued.
Reform in monopolized industries will be speeded up. The system
of controlling total salary volume of monopolized enterprises will
be improved and strictly implemented, according to the
regulation.
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 regional income gap is also yawning, with the per capita GDP
of the country's most wealthy province over 10 times that of the
poorest province.
And in recent years, the excessively high salaries for employees
in some monopolized industries and managers of some SOEs have been
frequent causes for criticism from the Chinese people.
Expanding Coverage of Social Security
System
To promote social justice, improving the social security system
is a key task, the resolution emphasized.
The government will build a social security system which covers
both rural and urban areas and adapts to an aging society, the
country's urbanization and employment diversity, it said.
Social security funds will be raised through various channels
and be well supervised to avoid depreciation in their value, said
the resolution.
A minimum living allowance system will be gradually established
in rural areas. Various old-age pension systems will be established
in some comparatively developed rural areas. A basic medical
insurance system will be improved for urban employees.
The establishment of a new rural cooperative medical system will
be quickened, according to the resolution. In a recent report,
Minister of Health Gao Qiang claimed that China will establish a
new rural cooperative medical system covering 700 million farmers
in 2010 with an annual capital input of 30 billion yuan from the
state coffers.
Adjusting Public Finance Distribution
The resolution said public finance will be poured into public
service sectors such as education, health, culture, employment,
social security, environmental protection and infrastructure
development.
Great efforts will be made to relieve financial difficulties at
county and township-level to enhance local governments' ability to
provide public services, it said.
To promote social justice, China will safeguard citizens'
democratic rights, improve legislation and improve the judicial
system, it said.
(China Daily October 19, 2006)