China’s Wealth Gap

On 27 February, Wen Jiabao (China’s Premier) compared the country’s economic development to a cake that needed to be larger and more evenly distributed.  He insisted it was essential that the government take on the task of “ensuring fair income distribution” over the next five years.  This is not just for the country’s economic stability (which of course is important) but also as a measure of “social justice and fairness” in China.  Whilst indeed the country has witnessed significant economic advancement, it still suffers from social/class difficulties such as a “widening wealth gap and slow increase in incomes.”  In some areas this has even led to social conflict which of course will ultimately impact the country’s economy.