China Economic Quarterly

China Economic Quarterly

March 2003

Inequality: A Powder Keg?

As China’s economy has surged, inequality has risen to proportions that alarm many observers. In this issue, CEQ argues that while inequality is certainly growing, it is not in itself a source of social instability. In a large, predominantly agricultural, but rapidly industrializing economy, a rise in income inequality is an inescapable side-effect of development. The question is whether society can organize itself to make this inequality tolerable to most, and to avoid the creation of a permanent class of losers.

The framing of the issue as an economic one – inequality of incomes – implies that the problem is technical, and solvable by skilled economic management.This is what China’s technocratic leaders would like to believe. In reality, the problem is far more profound: ensuring social justice for those at the bottom of the heap.

Also in this issue:

  • Special report: The truth about China’s GDP

  • Corporate strategy: Korean cool

  • Profits: Dreamin’ on

  • Foreign direct investment: The US$100bn country?

  • Consumer finance: Put it on the house

  • Monkey King: Mike McCune

Tomas Wiik2002-05