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Chinese language - China announces measures to promote social justice

CHINA / National

China announces measures to promote social justice

(China Daily)
Updated: 2006-10-19 08:57

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.

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