Unequal Wealth Distribution

Abstract

China’s surging economy has led to a dramatic decline in poverty but has also fostered huge disparities in wealth distribution. According to World Bank, the poverty rate (people living on less than US$1.25 a day) fell from 85 % to 14 % between 1981 and 2005, indicating that 600 million people climbed out of poverty. On the other hand, the income gap between rural and urban areas has widened, with the per capita disposable income in urban areas now more than 3 times as high as the rural figure. Even within cities, wealth gaps remain large. A Credit Suisse report published in 2010 warned that China’s wealth gap is now approaching levels until today unknown outside of Africa. The mainland is home to 251 billionaires (world rank No. 2) and 2.7 million U.S. dollar millionaires, a number that is expected to expand.