Commentary on an Article on Poverty - Analysis by Lorenz Curve and Gini Coefficient
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- Category: Politics: Economics
- Date Submitted: 08/29/2011 02:29 AM
- Pages: 5
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Poverty gap expands in China |
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By Sherlock Ho
Agencies
2010-01-22 04:16 PM | |
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In this photo taken Thursday, Jan. 21, 2010, a vendor prepares vegetables at a market in Hefei, in central China's Anhui province. China declared it is over the global crisis and signaled a shift in focus to controlling inflation, sparking concern it could hamper growth and the country's contribution to a worldwide rebound. (AP Photo) |
Associated Press |
China claims that the GDP growth last year has reached 8.7%. However, over 150 million people have a daily income of less than $1 dollar(NT$31.9). These people account for more than one third of overall population in China, implying an extremely large poverty gap. China govenment spent 4 trillion rmb to reinvigorate the flagging economy last year. With international hot money pours in, the GDP annual growth of the fourth quarter reached 10.7%. And GDP reached 33.5 trillion rmb dollars. But Ma Jian Tang, director of China State Statistics Bureau, notes that the rise of asset price especially real estate has incurred a lot of problems in China. The latest report by World Bank also indicates that the risk of asset bubble is looming. "The latest data shows that tightening policy is ready to fly. Authorities concerned should take pre-emptive action to prevent an overheat economy. It is estimated that China will end the linkage between RMB and US dollar and raise interest rate," says Royal Bank of Canada emerging market strategist in Hong Kong. December consumer price index increases 1.9% on an annualized basis; producer price index increases 1.7%, the first time over the past 13 months. Meng Yuan, an economist of Paris Bank stationed in Beijing says, "China government worries about inflation problem. A series of tightening actions can be expected." Despite the continuing growth of GDP and expanding economic strength, the poverty gap remains. According to reports of China media, the basic wages of...
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|
|
By Sherlock Ho
Agencies
2010-01-22 04:16 PM | |
|
|
In this photo taken Thursday, Jan. 21, 2010, a vendor prepares vegetables at a market in Hefei, in central China's Anhui province. China declared it is over the global crisis and signaled a shift in focus to controlling inflation, sparking concern it could hamper growth and the country's contribution to a worldwide rebound. (AP Photo) |
Associated Press |
China claims that the GDP growth last year has reached 8.7%. However, over 150 million people have a daily income of less than $1 dollar(NT$31.9). These people account for more than one third of overall population in China, implying an extremely large poverty gap. China govenment spent 4 trillion rmb to reinvigorate the flagging economy last year. With international hot money pours in, the GDP annual growth of the fourth quarter reached 10.7%. And GDP reached 33.5 trillion rmb dollars. But Ma Jian Tang, director of China State Statistics Bureau, notes that the rise of asset price especially real estate has incurred a lot of problems in China. The latest report by World Bank also indicates that the risk of asset bubble is looming. "The latest data shows that tightening policy is ready to fly. Authorities concerned should take pre-emptive action to prevent an overheat economy. It is estimated that China will end the linkage between RMB and US dollar and raise interest rate," says Royal Bank of Canada emerging market strategist in Hong Kong. December consumer price index increases 1.9% on an annualized basis; producer price index increases 1.7%, the first time over the past 13 months. Meng Yuan, an economist of Paris Bank stationed in Beijing says, "China government worries about inflation problem. A series of tightening actions can be expected." Despite the continuing growth of GDP and expanding economic strength, the poverty gap remains. According to reports of China media, the basic wages of...