Let people share prosperity through income distribution reform

How to balance efficiency and fairness is an important topic, says an article in People's Daily. Excerpts: 

If a country wants to maintain stable development, it should try to realize this balance through income distribution reform.

The State Council's economic meeting sent a clear message that the overall reform plan in this area will be made in the fourth quarter of this year. It has caught the attention of foreign media as well, because through this income distribution reform the world will know how China will transform its economic growth model as well as how China will carry out further reform in the future.

The past experience of many developing countries indicates authorities must solve the income gap when the national economy develops to certain level. Some countries that developed quickly from the 1970s to the 1980s cannot maintain their momentum because of their failure in addressing the wealth disparity issue.

How China will avoid the middle-income trap and let the middle-level income group become the majority of the nation is also concern if China can become a real economic power in the future.

On the other side of the coin of income distribution is social justice, which has political implications for reform. The social stability of China will be threatened by a widening income gap. If China can successfully accomplish this income reform, the government will gain more support from its people to carry on further reforms in the other areas that are of vital importance to China's stability and sustainable development.

Income distribution reform is not only a challenge for China but also the world. Even developed countries like the United States are also confronted by this knotty issue. In 2010, the top 1 percent of US families' income growth accounted for 93 percent of the national total. It is predictable that the income gap will be a big challenge for the next US president.

China has demonstrated its ability in feeding 1.3 billion people and lifting hundreds of millions out of poverty. The world will also see China has the confidence and ability to unite all its nationals to continue China's development through effective income distribution reform.