A mature middle-income bracket is necessary for narrowing the
income gap between the rich and poor, a Hong Kong-based top
political adviser said during the ongoing plenary session of the
Chinese People's Political Consultative Conference (CPPCC)
National Committee.
Chan Chun Tung advised the government to increase the pay of
public servants to help establish the bracket.
Chan defined the middle-income bracket on the Chinese mainland
as those with a monthly salary of 5,000 yuan (US$620) to 10,000
yuan (US$1,200), who have good insurance policies.
"But I am afraid that the group is still rather small on the
Chinese mainland," Chan, president of Hong Kong-based Chaifa
Holdings Ltd and honorary chairman of the Hong Kong Young
Industrialists Council, told China Daily.
According to statistics provided by Chan, there are nearly 17
million middle-income households on the mainland, accounting for 50
million people.
He predicted that by 2010, 170 million people would be in the
middle-income bracket.
In Hong Kong, the middle class accounts for half of the whole
population, according to Chan.
Public servants form the backbone of the middle class in Hong
Kong.
"The class is the most stable part of the society," Chan
said.
"I believe that a bigger middle-class bracket is an important
factor for the stability of the Chinese society," Chan said.
The middle-income bracket should be a big taxpayer group, he
said.
He added: "Although incomes of public servants in the mainland
increased eight times between 1985 and 2003, the governments have
not increased incomes since then."
Chan advised to further enhance the pay of public servants on
the mainland to promote establishment of the middle-income
bracket.
Meanwhile, the social security system should be further
improved, he added.
Statistics show that 80 percent of the laborers on the Chinese
mainland were not covered by endowment insurance, according to
Chan.
The income of the richest is at least eight times that of the
poorest in China, according to the adviser.
"Only the development of the middle-income bracket could help
solve the problem and sustain stability," he said.
(China Daily March 6, 2006)