1、With the global economy causing concerns across the boards, much focus has been zoning in on the monetary powers of the developing nations.China being one of them, has even been talked of as a possible source of funding for the faltering Eurozone.However, as CRIs ABHIJAN BARUA reports, there are a n
2、umber of issues marring the Chinese economy internally.Earlier this year Chinas economic growth forecast for 2012 was downgraded from 9 percent to 8.25.Just a month later, it was reported that Chinas millionaires and billionaires were getting richer amidst an economy supposedly slowing down.Liu Baoc
3、heng, from the University of International Business and Economics feels the vast differences have been creating ridges within Chinese society for a while now.Now you see the three types of typical gaps. One is between the urban area and the rural area, and the other is between the coastal area and t
4、he hinderland area, third one is between the intellectual class with those who are labour class. These three major disparities are existing in China for years.So how exactly does more money find its way into the hands of the rich?Patrick Chovanec from the school of economics and management at Tsingh
5、ua University, believes the wealth disparity has more to do with governmental business policies than income distribution.Its an important distinction because if you believe that income inequality is the problem then you would want the government to step in and take a larger role in trying to correct
6、 it. But if you believe that inequality of privilege is the problem then actually its a function of the government playing too large a role in the economy and picking winners and losers and you actually want to reduce the governments role.If indeed the scopes and opportunities available arent spread
7、 out as evenly as they should, how best can the situation be addressed?According to Liu Baocheng, the solution lies in approaching it from two aspects.First we have to give equal treatment to farm workers. Discrimination is not tolerated by the Chinese need to further reform society. The other is, p
8、olitically the hinderland area needs to be given support for by tax system, direct aid, also by giving more opportunities not only to invest but also to work and travel.However this is viewed, its clear the growing economic powers of China must be regulated internally to avoid a breakdown.For CRI, Im ABHIJAN BARUA.
