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.
