Introduction
Different counties have a number of problems, such as social, political, economic, etc. It is essential to understand the very problem, its nature and to consider the actions which may be taken to solve the problem. Each country may have personal solutions to the problems, however, in many cases the international practices may be used for deciding personal needs. Speaking of Chinese culture, it is possible to stress the income gap as one of the main social problems. It is essential to understand the main aspects of the problem and only then to consider the most important steps which are to be taken in order to solve the issue. The income gap between rural and urban population is dramatic in China and change of the very structure of attitude to these two social groups may be the only way out of the situation.
Social situation in China
Considering social situation in China, it should be remembered that this is the most populated country in the world. A high level of people creates additional problems in the labor sphere. Unemployment rate increases and is becomes a basis for further problems such as crimes and poverty. Poor people do not think about social improvement, they search for additional way of earning money and if legal way is unavailable, they do any work, even illegal one. Therefore, poverty and low level of unemployment is one of the main problems Chinese people face. The next problem comes from these two issues, it is crime level. There are many crimes in the modern China. However, the level of crime differs greatly from one region to another that creates additional misbalance in the country.
It is obvious that China has a big income gap, however, this issue is not taken into account while marriages that creates much prejudiced attitude. Such marriages between rich and poor create additional economic and social instability. Considering Chinese social situation, it is possible to pay attention to the differences between the level of life in rural and urban regions. All these issues create a number of problems which are difficult for solution. Social and economical problems of the country are interdependent. There are a lot of gray incomes, and people in urban areas have more opportunities to earn money illegally. Rural arias have neither legal nor illegal ways of earning. Therefore, a vision of prosperity is created. But in reality, the economic situation is worsening and the income gap is increasing.
Income gap
According to Tatlow “gray economic activity is growing faster than gross domestic product” that creates mane problems for both social and economical situation in the country. Trying to explain such outcome of the gray economic activity, it should be remembered that “some economists estimate that the Chinese income gap, as measured according to the Gini coefficient, is currently around 0.48, above the alert threshold of 0.4, with 0 representing perfect equality and 1 representing perfect inequality” (Tatlow). So, why is the difference that huge? Why does the government do nothing in order to make the situation stable? Wang and Rabinovitch are sure that the thing is in the way how farmers are treated. Farmers try to grow more and more products, however, the price they have to sell them by does not encourage. More and more countryside citizens go to cities to work at the factories. However, money they earn is spent in the city and the rural income is not changed (Wang and Rabinovitch).
Considering the problem from statistical side, the following data is to be considered, “in the first half of 2010 per capita income rose 13 percent in the countryside, to $935 a year, and 10 percent in the cities, to $2,965 a year” (Roberts). Fisher stresses the fact that the increased level of income gap creates supportive conditions for corruption. The social problem is expressed via inability of simple people to get appropriate education, social guarantees and health on the level they have the right to use. Chinese government should make necessary steps in order to solve the problem, otherwise, it may become uncontrollable.
Solutions to the problem
Therefore, what can be done in order to change situation and to balance the level of income in rural and urban areas? Davis stresses on the particular program applied by the government with the desire “to raise the income of workers and farmers faster, even if it meant a transfer of wealth from state-owned enterprises—to boost wages at the expense of profits” (Davis). The program is aimed at paying more attention to the rural sector. Having a desire to reduce the costs on the enterprises and increasing the financing of farming, Chinese government wants to balance the income rate. On the one hand, the idea is effective and deserves attention. On the other hand, much should be done in order to overcome the political barrier. Communist Party plays an important role in the development of Chinese society and in case any program contradicts its principles it is not going to be implemented.
Moreover, it is important to understand that many enterprise employees and owners are going to suffer expenses they do not expect. Such situation may increase illegal employment, corruption and other social problems the policy wants to cope with. Therefore, the situation in China is rather problematic. Having a desire to improve the situation and to overcome such social problem as income gap, government creates additional problems which may result in worse social condition.
Conclusion
Therefore, it should be concluded that the social situation in China is rather problematic. Income gap increases and all the steps done by the government are not effective. The country is to reconsider the social and economical policies in general, as these two issues are closely interconnected. The very nature of social and economic policies in modern China creates the conditions for development of corruption and privilege among the government elite. The situation is to be changed. The intention to decrease the financing of the cities and enterprises in particular for increasing the financial leakage into farming is one of the ideas how income gap is to be overcome. Generally, the idea is effective for farmers and rural sector, however, the cities may face some problems. The solution of the rural problems at the extent of the urban population is not a very good idea. However, it may create supportive environment for rural area development in the long term period. It is very important to make sure that enterprises do not suffer much during this period and as a result the income gap is going to be reduced to minimum.
Works Cited
Davis, Bob. “China Tries to Shut Rising Income Gap.” The Wall Street Journal. 2012. Web.
Fisher, Max. “Study: Income inequality skyrockets in China, now among world’s highest.” Washington Post. 2012. Web.
Roberts, Dixter. “China’s Growing Income Gap.” Bloomberg Businessweek, 2011. Web.
Tatlow, Didi Kirsten. “China’s Hidden Wealth Feeds an Income Gap.” The New York Times. 2012. Web.
Wang, Aileen and Simon Rabinovitch. “China warns of slower income growth in rural areas.” Reuters. 2009. Web.