Measures should be taken to further eradicate poverty, narrow the income gap and broaden the social security network

China has managed to sustain high-speed economic growth since reform and opening-up and made noteworthy achievements in eradicating poverty and improving people's livelihoods.

However, due to the existence of some systematic imperfections in the country's transition from a planned economy to a market economy, improvements in people's livelihoods have failed to keep pace with the country's national economic growth and income disparities have kept widening, especially since the mid-1990s. In some regions, developing the economy has even involved the sacrifice of local people's livelihoods. All these problems, if unresolved, will likely affect social stability and will pose a major challenge to the government efforts to guarantee and improve people's livelihoods and promote social harmony.

The Chinese government should do its utmost to resolve the poverty issue. While the country has made remarkable progress in reducing poverty over the past decades, the size of its impoverished population is still large. According to its own 1,274-yuan ($197) annual income standard set in 2010, China still has 26.88 million people living in poverty. The figure rises to 150 million under the United Nations' criteria of $1.25 per day.

China should first take all measures available to help resolve the food and clothing issues of the impoverished population. Then, some timely measures should be taken to meet their health and education needs. These are the basic requirements to help realize people's all-round development and the foundation for a country to achieve prosperity. After that, an equitable and fair social system should be set up in a bid to ensure improvements in people's livelihoods amid the rapid development of the national economy.

To facilitate this process, the government should set up a reasonable income distribution mechanism and continuously improve it in a bid to provide all individuals with equal access to the fruits of the country's economic development. Such a mechanism as an embodiment of social equality would serve as an important means for people to improve their livelihoods through their own efforts. Under the country's current market conditions some imperfections still exist, and the disparities in income distribution are still large. That calls for concrete steps from the country to make institutionalized improvements to standardize and regulate income distribution and redistribution.

To resolve the current income distribution disparities, the country should try to launch some sweeping systematic reforms as soon as possible in a bid to realize a simultaneous growth in people's incomes and national economic development, and in labor remuneration and labor efficiency.

A public service and social guarantee system that covers both urban and rural areas should be set up as early as possible in an effort to guarantee and improve people's quality of life and promote a more reasonable and equitable redistribution of social revenues.

However, for an equitable, balanced and well-developed public service and social security network, fiscal input alone is not enough and a carefully designed system is also necessary to ensure efficiency and equality.

The central government should clearly confirm the responsibilities of governments at various levels in the fiscal input and management of the public service network and try to promote a balanced distribution of the country's basic public services. Roles and responsibilities of the government, society and individuals should also be clearly defined for the country's social security system, in a bid to avoid social income redistribution in an adverse direction.

In addition, a unified labor market should be established to ensure all people have equal employment opportunities and to promote the smooth and unblocked flow of labor forces within society.

The country should pay particular attention to the employment of new-generation migrant workers and university graduates, and ensure employment is only decided by the capability of job applicants instead of by their gender, age, residence and conditions related to their power and wealth. Despite some positive reforms and the progress the country has made in this area, some unreasonable limitations still exist for ordinary job applicants and there are frequently under-the-table dealings in the recruitment process.

As a matter of fact, unequal education, healthcare and resources acquisition opportunities have exacerbated the unfavorable position of some low-income groups. Thus, the country should try to eradicate such systematic inequality and push for a more open and transparent system in bid to promote equality, raise the efficiency of the labor market, and improve the current income distribution conditions.

As an important way to improve and guarantee people's livelihoods, the country should try to push for democracy within society, especially grass-roots democracy.

The author is a member of the Standing Committee of the National Committee of the Chinese People's Political Consultative Conference and deputy director of the Subcommittee of Economy of the advisory body.

(China Daily 07/19/2011 page8)