Income distribution reform to tackle social inequality

Jointly organized by China Institute for Income Distribution (CIID) and Business School at Beijing Normal University on May 27, the Forum on Income Distribution gathered scholars to discuss China’s income-distribution system from multiple aspects of the macroeconomic situation, including compensation and social security. Liu Hao, vice-president of the CIID, said the investment-led growth cannot be blindly followed because it would be against an even distribution of wealth among the government, enterprises and residents, inevitably affecting the majority of lower-middle-income groups and their income and consumption. Therefore, deepening reform of the income-distribution system is one of the keys to supply-side structural reform. Yue Ximing, a professor at Renmin University of China, stressed two aspects of the future income-distribution reform. The scale of the overall social security expenditure must be expanded, and the allocation structure of expenditure also should be optimized.