China Wealth Gap Divide Grows

NTDTelevision
822
80 views
  • About
  • Export
  • Add to
The gap between the rich and poor is growing at an alarming rate in China.
Economists represent income inequality with the Gini coefficient, where any number over 0.4 is a significant cause for concern. According to the Survey and Research Center for China Household Finance, in 2010 China's Gini coefficient was 0.61.

Professor Frank Tian Xie at the Aiken Business School, University of South Carolina, says the coefficient could be much worse than the published figure.

[Dr. Frank Tian Xie, University of South Carolina Aiken Business School]:
“In the past year or two, the gap between rich and poor has increased. People's discontentment keeps growing. Corruption in the CCP and seizure of wealth by force is becoming more and more rampant. Therefore, it is no surprise that China's Gini coefficient is getting close to 0.7.”

An example of this inequality can be seen in the average annual income of Communist Party officials, which is 15 to 38 times higher than ordinary workers. The annual income of state personnel at the lowest level is 6 to 12 times that of ordinary local workers. This income data also does not include paid vacations, free goods and other benefits to state employees’ families.

[Jian Tianlun, Economist]:
“Social riots usually take place when the rich and the poor are polarized. Other social injustices also cause great discontent. I totally believe in the prediction of China's Gini coefficient. Actually, we all know that the polarization between the rich and poor is very severe in China.”

Over the past few years, social unrest in China has been increasing along with the Gini coefficient. Tsinghua University professor Sun Liping says the number of riots in 2010 was 180,000… twice as many as in 2006.

[Dr. Frank Tian Xie, University of South Carolina Aiken Business School]:
“The Gini Coefficient is not the only indicator of the coming collapse of the CCP regime, it is also indicated by political, social and other indices.”

During last month’s Communist Party Congress, leaders in Beijing addressed the widening gap. New Party head Xi Jinping said that corruption could endanger authorities’ rule over the Mainland.

For more news and videos visit ➡ http://english.ntdtv.com‬
Follow us on Twitter ➡ http://twitter.com/NTDTelevision‬
Add us on Facebook ➡ http://on.fb.me/s5KV2C

0 comments