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Farmer income grows faster, but big gap remains

THOUGH rural residents are enjoying faster income growth than urban workers, their income gap remains big, a senior government official said today.

In the first three quarters, seasonally-adjusted cash earnings of rural residents expanded 13.6 percent from a year earlier. The pace was 5.8 percentage points faster than urban residents, said Zhang Ping, director of the National Development and Reform Commission.

In the past two years, earnings of rural residents rose 9.7 percent year on year, 0.9 percentage points higher than urban dwellers, Zhang said in his report to China's top law-makers.

But there is no fundamental change in the wide income gap between rural and urban residents, Zhang said.

To address the issue, Zhang said China should further reform the income distribution system and enlarge the share of ordinary people in the primary distribution of the country's wealth.

His proposal echoed Premier Wen Jiabao's words on Tuesday that China must give rural people a bigger share of wealth from land seized in the name of economic development. Wen also warned government officials not to force villagers to give up their land even if they joined the army of migrant workers.

Meanwhile, domestic demand has become the sole engine of growth for China's economy, Zhang said.

In the first three quarters, domestic demand contributed 101.3 percent to China's GDP growth, indicating exports had a negative impact on Chinese economy.



 

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