Beijing: Growing wealth gap in China has been identified as the most pressing problem for the Asia`s largest emerging economy and the ongoing once-in-a-decade leadership Congress of the ruling Communist Party is looking to tackle the issue head-on, according to a report.
Rapid growth of China`s economy is leaving millions behind and yawning gap between rich and poor is growing. During this time of transition, the country`s leaders are looking to tackle the issue head-on, state-run CCTV reported.
China`s Gini coefficient which reflects the wealth gap of a country stood at 0.438. That`s up from just 0.2 roughly 30 years ago. A figure higher than 0.4 is generally considered troubling, the report said.
"More than one hundred million people still live on USD 1 a day here in China. That`s in a country that`s home to the second most billionaires behind the US. And analysts say that as China`s phenomenal economic growth begins to cool, frustration with the gap between the haves and have-nots is growing," it said.
Chen Jiahe, an analysts from China Cinda Securities, said, "I don`t think it`s (the income gap) will keep widening. Firstly China is still a development country and you will always find that the income discrimination is always highest in the developing country."
"It`s because China took the path of export-oriented development, so that means the coastal provinces who gets the job gets the highest income," he said.
Also as a result of China`s privatisation some of its state-owned enterprises in the past twenty years made some people very rich - and that`s a problem, he said.
In a bid to narrow the gap, the Chinese government is currently drafting an income distribution reform plan hoping to address the disparities, the report said.