(Economic Observer) To promote common prosperity, why does China attach importance to the "three distributions"?
China News Service, Beijing, August 18 (Wang Enbo and Wang Xiwei) The Central Finance and Economics Committee recently held its tenth meeting to study the solid promotion of common prosperity, study the prevention and resolution of major financial risks, and do a good job in financial stability and development.
The meeting mentioned that "to promote common prosperity in high-quality development, correctly handle the relationship between efficiency and fairness, and build a basic system arrangement for the coordination of primary distribution, redistribution, and three-time distribution."
What is the "three allocations" mentioned in this blockbuster meeting?
What does a good three-time distribution mean for China to promote common prosperity?
Prior to this, the Fourth Plenary Session of the 19th Central Committee of the Communist Party of China put forward "emphasis on the role of the third distribution and the development of charity and other social welfare undertakings."
Jia Ruoxiang, director of the Comprehensive Research Office of the Institute of Land Development and Regional Economics of the National Development and Reform Commission of China, pointed out to a reporter from China News Agency that the third distribution is mainly for the over-income groups, encouraging them to participate in some charitable undertakings, take more social responsibilities, and save them. Wealth derived from social accumulation is returned to the society and used to promote social development.
The first distribution, the redistribution and the third distribution have their own distinct characteristics, and they also complement each other.
Jia Ruoxiang said that as China's social wealth cake continues to grow, some high-income groups have naturally emerged.
In this context, encouraging high-income groups to invest in charity and public assistance through the third distribution will play a very good supplementary support and demonstration role in promoting common prosperity.
To better play the role of the third distribution in promoting common prosperity, it is necessary to respect its characteristics and development laws, and to improve and improve related systems and mechanisms.
Since the implementation of the Charity Law in 2016, relevant Chinese ministries and commissions have issued a series of policy documents in the field of public welfare and charity to promote the standardization and sustainable development of related undertakings.
The civil code that was promulgated subsequently further provided detailed and clear guidance and regulations on public welfare and charity activities, and was considered to bring the development of this cause into a new era.
The meeting of the Central Finance and Economics Committee mentioned that “to build a basic system arrangement for the coordination of primary distribution, redistribution, and three-time distribution, increase taxation, social security, transfer payments and other adjustments and improve accuracy”.
Jia Ruoxiang believes that the establishment of a three-time distribution system can further improve the corresponding supportive policies in terms of finance and taxation, further increase the tax deduction for enterprises and residents participating in the third distribution, reduce the cost of participating in the third distribution, and encourage more High-income groups and enterprises participate in related undertakings and play a demonstrative and leading role.
“The life of charity and public welfare undertakings lies in credibility, and credibility comes from openness and transparency.” Liang Peng, a professor in the Economics Teaching and Research Department of the Central Party School (National School of Administration), pointed out that the evaluation and supervision of charitable and public welfare organizations and activities should be strengthened and gradually formed. Government supervision, industry self-discipline, internal control of charitable organizations, and social public opinion supervision are a multi-party coordinated supervision mechanism to promote the development of standardization, rule of law, and professionalization.
What kind of distribution structure will China form with the coordination of primary distribution, redistribution, and three-time distribution?
The answer was given at the meeting: "Expand the proportion of middle-income groups, increase the incomes of low-income groups, reasonably adjust high incomes, ban illegal income, and form an olive-type distribution structure with a large middle income group and a small two ends”.
Zhang Yansheng, the chief researcher of the China International Economic Exchange Center, admitted in an interview with a reporter from China News Agency that there are indeed some imbalances and uncoordinated phenomena in the current national income distribution in China, which is a product of the times.
In the future, China will tell the story of "common prosperity". It is necessary to narrow the urban and rural per capita disposable income gap, narrow the regional per capita disposable income gap, narrow the income gap of social residents, and move towards a more equitable development pattern.
"The olive-shaped distribution structure with a large middle and small ends is the most ideal distribution structure. Not only China, but all countries are pursuing this structure." According to Su Jian, director of the National Economic Research Center of Peking University, the key to achieving this goal It lies in growing the middle class.
He predicts that in the future, China will try every means to tilt its economic growth to this, and gradually cultivate a larger middle-income group.
But Su Jian also emphasized that this does not mean that the high-income class should disappear, otherwise the olive-shaped distribution structure will become a "cylindrical", "this is not what we want."
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