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Government to Narrow Urban-rural Income Gap

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China will continue to support agriculture by increasing investment, improving the social safety net and making further reforms to bridge the urban-rural divide.

At a two-day Expo forum centering on the topic of economic transformation and urban-rural relations, Zhang Xiaoqiang, vice-minister of the National Development and Reform Commission, mapped out policies aiming to transform the mode of growth of China and promote urban-rural integration.

China has made outstanding strides in economic development but a large population in rural areas and a weak starting point have led to lagging development in rural areas, inequality of public services between city and countryside, and a wide income gap between the two, Zhang said.

The proposed solutions include stronger investment in agriculture, promoting new towns, enhancing the social safety net and furthering systematic reforms, he said.

Official figures show that the income disparity between rural and urban areas was slightly bridged last year, but was still wide despite attempts by the government to close it.

On average, city residents earned 3.3 times more than those in the rural areas in 2009, while in major countries of the world the ratio is between 1.5 to 1 and 2 to 1.

In 2009, the average income for a rural worker was around 5,150 yuan (US$750) - while those in the cities earned 17,180 yuan on average.

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