On The Evolution Of Individual Income Distribution System In China

The reform of income distribution system is one of the focuses in the reform of economic system in China. The transition from planned economic system to market system in China resulted in a historic leap in the individual income distribution system. During the times of planned economic system, China pursued an individual income distribution system featured by equalitarianism and rations system, with a workpoint system in rural areas and fixed scaled wage system in urban areas. Such a pattern of income distribution, the so called "Daguofan" pattern —egalitarian practice of everyone taking food from the same big pot, featured by low wage, low consumption and full employment, has led to low social productivity and universal poverty. Since the Third Plenary Session of the 11th CPC Central Committee, Chinese individual income distribution system has entered into a new phase of development. In rural areas, Workpoint System was replaced by an All-round Contract System. While in urban areas, a series of reforms were carried out on wage system. With the restoration of the distribution system according to work, piece rate wage system and reward system, the equalitarianist pattern of distribution was abandoned. These reforms aroused people's enthusiasm in production. To further the reform of distribution system and make it more suitable to the socialist market economic system, a distribution system in which distribution according to work is primary and in which a variety of modes of distribution coexist was put forward in the 14th National Congress of the CPC. In the 15th National Congress of the CPC, a system combining remuneration according to work and remuneration according to factors of production put in was put forward. And in the 16th National Congress of the CPC, the principle that labor, capital, technology, managerial expertise andother production factors participate in the distribution of income in accordance with their respective contribution was established, thus perfecting the income distribution system and completing the historic leap in the reform of distribution system. However, due to historical and realistic reasons like imbalance in the regional economic development, problems as the widening of income gap emerged. These problems can only be solved by means of state policies. And we should realize the optimal allocation of resources according to market mechanism and adjust the distribution of nation income among different interest groups so as to achieve the favorable economic development, the improvement of people's life standard, and the final object of common prosperity.