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the other regions as the former received the bulk of the nations resources
and foreign investments. Emphasis on rapid growth of the developed areas
continued to receive emphasis in the Seventeenth Party Congress. Most of
Chinas high priority economic projects were confined to Eastern provinces.
These included the construction of an ego-city and a world-class port in
Tianjin, the industrialization of northeast China. Better and more modern
social amenities and infrastructure were built in the urban rather than rural
areas due to governmental attempt to rapidly upgrade the major Chinese
cities. Cities were becoming financial centers with relatively higher
accumulation of capital wealth. Prices that could be accrued form rural grain
products were suppressed to lower food costs for the nation. This limited the
income of peasantry.
Meanwhile, rising inflationary pressures undermined governments efforts to
improve the livelihood of the majority. Despite governments intervention at
controlling the prices of essential products, the countrys inflation has been
rising half as fast as Chinas spectacular double-digit economic growth. CPI
leaped as global commodity, food and energy prices increased. Rise in the
workers minimum wages was unable to compensate for their losses given
the high inflationary pressures. Sufferings of the rural populace were further
worsened by the heightened frequency of natural disasters by the turn of the
century which destroyed crops, reduced food supply and thus raised food
prices for all.
Geographical differences too played an important part at delaying the
beneficial effects of governments measures to create a more equal society.
Inland provinces with poor accessibility and meager arable land such as
Gansu and Qinghai, remained impoverished despite governmental attempt
to develop them. Commercial centers and ports which facilitate Chinas
export-oriented economy are located in the coastal provinces. Hostile
climate, shortage of fresh water supply and difficult terrains especially in the
northwestern provinces deter many from settling up businesses there.
Private companies are reluctant to invest in and relocate to the countryside
as coast of production which includes transport, employment and training of
workers would be too high.
Specific governmental policies aimed at enhancing overall national priorities
sacrifice the interests of the underprivileged. The problem of income
inequality is worsened by some of the central governments discriminatory
policies against the poorer regions. Construction of the Three Gorges Dam
affected the livelihood of millions who dwell in the interior provinces. Many
were undercompensated for the loss of their lands and jobs. Chinas hosting
of the 2008 Olympics Games has forced the diversion of water supply from
the surrounding rural regions of Hebei province into Beijing. Peasants felt
that their well-being was undermined for the benefit of the city folks. Nuclear
bomb tests are often conducted in the faraway Xinjiang province, which
caused severe health problems for some of its minority inhabitants.
Corruption and abuse of power by local officials created problems that
worsened the lives of the poor. Corruption is rampant at the local levels far
from the effective supervision of the central or even the provincial
authorities. Misappropriations of land form the poor by corrupted officials are
common occurrences. Intolerable rural living conditions such as
environmental degradation and poor social amenities are often
consequences of poor local governance. The majority are dissatisfied by the
fact that the well-off could bribe their way to even circumventing the law,
such as the One Child Policy.
In conclusion, gross income inequality could hardly be eradicated as it is an
inevitable consequence of China rapid development and its quest for
national greatness. Governmental measures to counter the challenge,
though bold and drastic, are therefore limited in their effectiveness.