Evolution And Prospects Of China's Individual Income Distribution System Since Reform And Opening-up

The reform of income distribution system, which is an important part of the socialist market economic system, is one of the focuses in the reform of economic system in China. During the times of planned economic system, China pursued an income distribution system featured by equalitarianism and rations system, leading to low productivity and universal poverty. Since the Third Plenary Session of the 11th CPC Central Committee, China has entered a new phase of development. So has Chinese individual income distribution system. In rural areas, Work point System was replaced by an All-round Contract System, while in urban areas, a series of reforms were carried out on wage system. The reform of income distribution system began with the abrogation of equalitarianism and restoration of the distribution system according to work. In the 14th National Congress of the CPC, 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 15th National Congress of the CPC, a system combining remuneration according to work and remuneration according to factors of production put in was forward. And in the 16th National Congress of the CPC, the principle that labor, capital, technology, managerial expertise and other production factors participate in the distribution of income in accordance with their respective contribution was established, thus perfecting the income distribution system. However, with the rapid growth of economy, the problem of efficiency and fairness attracted more and more attention. So does the income distribution structure. The income gap between urban citizens and rural people, between different urban citizens and between different rural people is widening, resulting in many social problems. These problems should be solved by 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.