Japan's National Income Doubling Plan And The Enlightenment To Chinese Income Distribution

The Japanese government formulated the “income doubling plan”in1960, set theecomomic goals that GNP and GNI per capita doubled in the decade1961-1970. Rapidecomomic development of the “plan” comes from the the Industrial Structure, enriched socialcapital, training, promotion of foreign trade and international corperation, etc. Meanwhile, theJapanese government pay more attention to the reform of income distribution, includingeffectively solving the "three rural issues", promoting the modernization of SMEs, narrowingthe income gap between regions, correcting each income class differential, improving fiscalpolicy and social security mechanisms.These measures aim at narrowing the income gapbetween agriculture and non-agriculture, large enterprises and SMEs, regions.When the“Plan”completed, most ecomomic indicaters exceeded, what’s more, Japan became thesecond largest ecomomy after America in the world.The current China and Japan in the1960s are at the time of the mid-industrialization,facing many problems of economic and social development, especially in the field of incomedistribution.Long-standing “dual”economy system exacerbated the income gap between urbanand rural areas.The western and eastern regions have large differences in natural conditions,national policies. The revenue of monopoly industry is extremely high making industryincome gap increasingly significant. The existence of "gray" income distorted incomedistribution structure. Unbalanced development of economic not only restricted the rapiddevelopment of China’s economy, but also exacerbated social conflicts and lead to a series ofsocial problems. The income gap will inevitably lead to poverty and it will become animportant factor affecting social stability.China should learn from Japan’s "income doubling plan", especially the reform ofincome distribution, such as promoting agricultural modernization, increasing support forSMEs, promoting labor mobility, improving the social security system, to narrow income gapand achieve the change from “wealthy country”to “rich people”. However, compared withJapan, the issue of income distribution in our contry is more severe and complex. Therefore,while learning from the experience of Japan’s reform in income distribution, we shouldcombine this with China’s actual situation, and explore a road of reform of income distribution meeting with China’s national conditions.We can take follow mesures:fundamental reform must taken in state-owned enterprises and monopoly industries; unionorganizations should be established to ensure workers’ rights; breaking dual householdregistration system and promoting urbanization; deepening the tax reform and regulatingincome redistribution mechanisms; reforming social insurance system in order to improve thesocial security system.