Income gap needs urgent attention: Bo Xilai

Bo Xilai, a deputy of the 11th National People's Congress and Party chief of Chongqing, called on Monday for urgent attention to the widening income gap in the country.

Attending the group discussion of the Chongqing delegation for the Fifth Session of the 11th NPC, Bo said that addressing the growing income gap struck him most among the factors listed in the government work report delivered by Premier Wen Jiabao on Monday morning.

China has seen an ever-increasing income gap over the past three decades as its economy boomed.

Bo, one of the 25 members of politburo, cited National Bureau of Statistics data showing that the Gini coefficient, a gauge of income disparity, rose from 0.317 in 1979 to 0.47 in 2010 - the internationally accepted threshold is 0.4 - indicating income inequality could threaten social stability.

The figure stood around 0.4 for the United States, 0.36 for the United Kingdom, 0.32 for France and 0.28 for Germany from 2008 to 2010, Bo said.

"Income distribution is a highlight in Premier Wen Jiabao's work report and is crucial to solving related social problems," Bo told his delegation.

Bo said enlarging the income gap will not only affect consumption growth, but also threaten social stability and development.

China has been working hard to increase the income of low-income people. The per capita net income of rural residents saw its fastest growth last year since 1985, outpacing urban residents for a second year.

The central government also increased the minimum wage nationwide and raised basic pensions for enterprise retirees for a seventh year.

Wen said in his report that China will continue to reform the income distribution system, in part by raising the proportion of individual income in national income. "We will improve the salary system, put in place a mechanism for regular pay rises, and steadily increase the minimum wage," Wen said.

The Southwest city Chongqing, which has seen its gross domestic product double in the past five years, has taken measures to reform the income distribution system in the past few years. It stands apart from some other Chinese cities or provinces that are overwhelmed in pursuit of economic growth.

Bo said the experience of Chongqing means that rapid economic growth and equal income distribution did not contradict each other.