Scholars at a humanities and social sciences forum in Beijing have urged greater balance between equity and development, warning uneven income distribution is hindering China’s transition from an export-driven economy to one fueled by domestic consumption.
 

The recent forum, which explored humanities and social sciences in the Chinese mainland and Hong Kong, Macao and Taiwan, was co-hosted by the Chinese Academy of Social Sciences (CASS), Peking University and Taiwan University among others. More than 80 experts and scholars from a number of prestigious universities and research institutions across China engaged in in-depth discussion on equity and development.
 

Against the backdrop of the global economy’s sluggish recovery, equity and development has received growing attention from countries around the world. Economists and sociologists, whose opinions were divided at times, have now reached an agreement on the issue.
 

A recently published book titled Capital in the Twenty-first Century written by French economist Thomas Piketty touches upon the fairness problem that remains unsolved within the capitalist framework. Amid social development throughout China, a spate of social problems and incidents in recent years are also concerned with “fairness.”

Fan Conglai, assistant to the president of Nanjing University, noted that inequalities in power and wealth may translate into unequal opportunities, leading to wasted productive potential and to an inefficient allocation of resources.
 

Unequal power will lead to the formation of institutions that perpetuate inequalities, which typically are bad for the investment, innovation and risk-taking that underpin long-term growth, he said.
Unequal wealth distribution is a common issue worldwide, especially in Asia, Africa and Latin America. The Gini coefficient of Chinese society is rising continuously, signaling a growing wealth gap. The urban-rural divide and regional disparities are major causes contributing to the widening income gap.
 

According to the biennial comprehensive inquiry into Chinese society conducted by the Institute of Sociology at CASS, the proportion of the middle-income group in all social classes of China did not rise with income increase from 2008 to 2013, but stood around 27 to 28 percent.
 

“Modern Chinese society is facing an alarming situation. Most people are pessimistic about their socio-economic status,” said Li Peilin, vice-president of CASS.

“Equality” is objective, while “fairness” is subjective, said Li. Adjustment of the income gap depends not only consideration to orientation of income distribution, but also establishment of a system where “fairness” is widely acknowledged, he added.
 

In the field of sociology, there is a theory of “olive-shape” social structure in which the middle-income group or middle class takes up the largest share of all social walks. It is believed that the structure is conducive to social stability and development. Therefore, China has set a goal of income distribution to basically realize an “olive-shape” society by 2020.
 

“Only by applying the outlook on equity and development to China’s practice of income distribution can reform dividends and development achievements benefit the general public more fairly. We should strive to incorporate the content of equity and development into the ‘new normal’ of  Chinese economy,” said Fan.
 

Equity and development always exist contradictorily in a society. How to strike a balance between the two is a test the government should withstand.
 

CASS Member Jing Tiankui pinpointed “bottom-line equity” as the starting point of welfare to maintain balance between equity and development while ensuring social security and benefits.
 

“In regards to the bottom line, it is most important to make clear the boundary between government accountability and market mechanisms, and find the juncture between the two,” Jing said, adding that the theory of bottom-line equity has been practiced in China in recent years with encouraging results.
 

CASS vice president Li Yang stated that the Third and Fourth Plenums of the 18th Communist Party of China Central Committee both put forward the tasks of “deepening reform comprehensively” and “rule of law.” Like a pair of wheels, the two goals jointly share an axis in Chinese society’s future equitable development.
 

In this context, the discussion of “equity and development” is more pressing and meaningful than ever, Li Yang said.