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Narrowing Wealth Gap between East and West

The gap between China's west and east, instead of shrinking, is growing.

 

Aiming to reduce the huge disparity between its west and east, China launched its "Go West" campaign with great fanfare in 1999.

 

The campaign covers 11 provinces and autonomous regions and one municipality.

 

However, after five years of strenuous effort, the yawning gap has still not been narrowed.

 

The campaign has greatly spurred economic growth in the western region, with its average gross domestic product (GDP) growth rate higher than the national average since the initiation of the policy.

 

The per capita GDP, for example, increased from US$498 in 1998 to US$663 in 2002 in the region, an increase of 33 percent.

 

This figure, however, is dwarfed when compared with figures for the eastern region, which has witnessed a per capita GDP increase of 41 percent from US$1,212 to US$1,704 for the same period.

 

The growing regional disparity, if unchecked, could lead to a host of social or economic problems.

 

Lukewarm domestic consumption has already been a drag on the national economy.

 

At a time when lackluster domestic demand is just beginning to pick up, the widening regional disparity could hamper its momentum.

 

In addition, the growing gap could also threaten social stability, one of the most-cherished goals of government at all levels.

 

The western region's improved economic performance after the adoption of the current "Go West" policy indicates the policy is to some extent working in the region's favor.

 

However, the failure to close the gap between the hinterland and the coastal areas also points to the pressing need to fine tune the policy.

 

Policy review is a necessary step to ensure the policy's effectiveness.

 

Now is the time for such a review, before the regional gap gets out of control.

  

(China Daily July 7, 2004)

 

 

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