salaries can’t match GDP

February 20th, 2008

It would seem that, in Guangdong at least, salary growth won’t match GDP growth. Not good news considering all the talk of inflation, and I don’t see why this phenomenon would be limited to Guangdong. This is from Nanfang Daily:


Why won’t residents’ incomes rise higher than GDP? Chairman of the Municipal Reform and Development Commission Pan Jianguo: This is a systemic problem


 Chairman of the Municipal Reform and Development Director explains that it’s a systemic problem, Guangzhou is establishing a system for regular increases in salaries.


2008 Guangzhou “Two Conferences”


“Among this year’s expected objectives for economic and social development, why is the speed of increase for residents’ income lower than that of GDP?” representatives in yesterday’s People’s Congress group discussions repeatedly asked Guangzhou Municipal Reform and Development Commission Director Pan Jianguo. Pan Jianguo explained, three years ago Guangzhou noticed the problem of the unreasonable pattern of distribution, and currently Guangzhou Department of Finance is already researching a system for regular increases of civil servants’ salaries.


Urban-rural income gap likely to grow


In yesterday’s People’s Congress group discussions,  Guangzhou Municipal Reform and Development Commission Director Pan Jianguo was also the first member of the Liwan District delegation, and so the representatives were fully active in their deliberation of the planning report.


Representative Wang Yuelin first asked: “Director Pan, among this year’s expected objectives for economic and social development, why is the rate of increase of residents’ per capita income lower than that of GDP? Won’t the 10% increase in city residents’ disposable incomes be too low?”


Statistics show that last year per capita disposable income of Guangzhou urban residents grew by 13.2% while rural residents’ per capita disposable income grew by 10.6%, the difference being 1.3 and 3.9 percentage points lower than GDP growth, the gap between urban and rural residents income changing from last year’s 2.55:1 to 2.61:1.


Representative Rong Xiaoli also pointed out, this year’s expected goal for increase in per capita disposable incomes for urban residents is 10%, while the expected goal for increase in rural residents’ net income is 9%, and this is bound to cause the urban-rural income gap to widen further. In drawing up these targets, shouldn’t the Reform and Development Commission lean towards the rural residents somewhat?


Currently invesitgating a system for regular increases in civil servants’ salaries 

潘建国承认,目前广州的GDP、财政收入和城乡居民收入的增长速度的确存在不匹配的现象。“从经济学的角度来说,这三者之间应该有一个合适的比例,但现在 从国家到省市,这三个数字的增长都不相匹配。比如近五年来,广州的GDP年均增长14.5%,财政收入年均增长17.6%,但城市居民收入的增速为 10.9%,农村居民收入的增速更是只有8.1%,城乡收入差距还呈现拉大的趋势。”

Pan Jianguo acknowledged that the current growth in Guangzhou’s GDP and fiscal revenue, and and urban and rural residents’ incomes are quite distinct phenomena. “From the point of view of economics, these three should all be in suitable proportion, but now, from the national down to the provincial and municipal levels, the rates of increase of these three figures all fail to match. For example, over the last 5 years, Guangzhou’s GDP per annum has grown by 14.5%, fiscal revenue has grown by 17.6% per annum, but urban residents’ income growth has been 10.9% and rural residents’ income growth has been a mere 8.1%, and the gap between urban and rural incomes still seems to be increasing.


Pan Jianguo believes what is important is that the currently existing system for primary suballocation and reallocation and actual operation are unreasonable. Guangzhou already noticed this problem three years ago, but this systemic problem is also a problem at the national level, and can’t be solved by local methods. And when the Development and Reform Commission was drawing up the expected goals, it also had to consider these objective factors.

[note: what the hell is this about: 这主要是现在的初次分配和再分配存在体制上和实际操作上的不合理????]


“The 17th National people’s Congress very clearly reported that the income distribution system needs to be reformed, and now everybody from the central government to the regions is working hard to revise the distribution system.” Pan Jianguo said, “This year’s Guangzhou Municipal Government Work Report raises the need to work hard to improve income distribution relations, accelerate the establishment of a system of regular salary increases including civil servants and workers of public institutions and every kind of enterprise, and raise the minimum wage for company employees.”


Pan Jianguo also revealed that at present Guangzhou is progressively carrying out measures, for example, the Municipal Bureau of Finance is already investigating a system for regular salary increases for civil servants, but the effects of reform would not be immediately apparent, this would take some time.

This is followed up with a table setting out increases in urban residents’ per capita disposable income, rural residents’ per capita net income, GDP and fiscal revenue for 2007 with their projections for 2008.

And really, please, if you spot any mistakes are find any way I could improve my translation, tell me. So long as your criticism is constructive and helpful, I will be happy and grateful. This is done as a language learning exercise, after all.

Oh, and like all language learning exercises, this is x-posted to my much-neglected Chinese study blog.

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