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Growing Inequalities

In: The China Development Model

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  • Dominique Rambures

Abstract

The average income of the upper 20 per cent of the population accounts for 133 times the average income of the lowest 20 per cent. Not only is the degree of inequality in China high, it is also worsening: the richest 10 per cent own 45 per cent of the national wealth while the poorest 10 per cent own only 1.4 per cent (see Table 7.1). In January 2013, for the first time since 2000, the National Bureau of Statistics (NBS) published China’s Gini index,1 a measure of the level of inequality. The Gini Index increased from 0.30 in 1978 to 0.474 in 20122 (0.22 in Japan), well above the 0.40 which is considered to be the threshold of social troubles. According to UNO,3 China is placed 143rd out of the 177 recorded countries in terms of inequality. According to some economists, China’s Gini Index may be as high as 0.61, which would make China one of the most unequal countries in the world. According to data published by the Ministry of Interior and Security, ‘violent’ (this is the Chinese definition of social troubles) demonstrations (over 500 participants) numbered 8700 in 1993; in 2005, 87,000; and, in 2011, 180,000. Table 7.1 Income scale (average income per head of every 20 per cent group (US$)

Suggested Citation

  • Dominique Rambures, 2015. "Growing Inequalities," Palgrave Macmillan Books, in: The China Development Model, chapter 7, pages 116-138, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-137-46549-8_8
    DOI: 10.1057/9781137465498_8
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