Archive for March 13th, 2010

Saturday, March 13, 2010

Income Distribution: SASAC not Available

The Chinese government and the IMF are collaborating on a Financial Sector Assessment Program, writes Anoop Singh, director of the IMF’s Asia and Pacific Department. [..] spurring faster growth in services is a complex undertaking, he observes. Entry barriers, particularly in service industries dominated by state-owned oligopolies, need to be lowered. A more dynamic service economy would invariably boost consumption as well – a frequently re-iterated need to move from China’s export-driven model to stronger demand at home.

Much of the focus of the National People’s Congress (NPC) and Chinese People’s Political Consultative Conference (CPPCC) was on state enterprises and their role in driving income disparities, as described by Miao He in an Asian Social Science article:

[…] monopolizing enterprises can possess limited resources alone so as to amass excess profits and widen social gap in income and distribution by setting up systems such as entering a barrier and restricting competition. August 30th, 2007, China’s “anti-monopoly law” first introduced, but the whole law articles working out aiming to solve the unfairness of income and distribution in monopoly industry are still full of shortcomings.

The article contains some details about the rich and powerful families (i.e. companies), sometimes also referred to as “eldest sons” (长子).

Zhang Meiying (张梅颖), CPPCC deputy chairwoman and member of the “China Democratic League” (中国民主同盟), noted with regret that the State Assets Committee (国务院国有资产监督管理委员会 or 国资委) [didn’t wasn’t] present at the proposals consultation (提案办理协商会) – she would have had some questions to discuss with them. The state council departments that were present and spoke at the consultative conference hardly addressed the issue of wages in monopoly sectors, writes Xinmin Net.

Was the State Assets Committee available when the IMF’s Asia and Pacific Department brought together Chinese officials, academics, international analysts, and IMF staff to discuss how best to catalyze household consumption in China?

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Related
Hu Haifeng, in his Academic Capacity, March 11, 2010
Urban-Rural Income Gap Widest, Philippine Times, March 2, 2010
Reform without Zijiren, October 5, 2009
Zheng Yongnian about Farmland Reform, October 17, 2008

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