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Editor's Note: of qiushi magazine organized by the red flag manuscript article published November 9, Director of the General Office of the Translation Bureau of cccpc Cui Youping the narrowing the income gap to break administrative monopoly, China's income gap. Article mentions, monopoly industry average wage of staff and workers in China in recent years is 5-10 times the national average. Since 1996, China's monopolized industries and trend of income gap between clearly non-monopoly industries, average annual expansion rate reached 43%. These industries formed the institutional high income due to the existence of administrative monopoly. Li keqiang promote the merger and reorganization
Reads as follows:
With the economic reform and development, China has become the world's economic growth is one of the strongest economies in the world, became the second-largest economy, aggregate income of Chinese residents has been rising steadily. But with raising the level of income, the income gap is an increasingly prominent issue. Latest figures released by the National Bureau of 2012-2014 domestic income Gini coefficient of 0.474, 0.473, 0.469, obviously China's income gap almost two years gradually narrowing but still pretty grim, and residents ' income difference is an important manifestation of large income gap. In this regard, the proposed 18 plenary session of the party, narrowing the income gap, adhere to the residents ' income growth and economic growth, remuneration increased synchronization and productivity, wage levels for the sound scientific mechanisms, mechanisms, payment guarantee mechanism for normal growth, improve the mechanism for the minimum wage increases, improve market factors and mechanisms of distribution according to contribution.
Characteristics of income gap, industry evolution
Monopoly is not perfectly competitive market structures, Pan said. Monopoly industries refers to those who rely on special policies or proprietary technology monopoly in the industry production and management of business, such as oil, tobacco, salt industry, telecommunications, finance, heating, water, gas, electric power, aviation, railway, and so on. By analyzing the historical data can be found, evolution of Chinese workers in wage patterns there are two basic characteristics:
1. widening wage differences between industries.
1980 industry wages coefficient of standard deviation is only 20.44%, in 2000 rose to 26.11%, in 2008 to a record 38.8%, 2012 is 35.45%, is still at a high level. The highest wages and minimum wages to more than 10 years in 1983-1992 are no more than twice, 1993 breakthrough twice, by 1998 reached 2.35 times times, beginning in 2006 exceeded 4 times times, 4.17 times times 2011, 2012 declined slightly, to 3.96 times. While the highest average wage industries with the lowest difference between industry from 1978 to 458 Yuan, equivalent to the average wage of staff and 74.5% of the year by 2012 rising to 67056 Yuan, equivalent to the average wage of staff and 143.4% of the year. If all sectors in relation to housing, health care, welfare and other non-wage income disparities, widening income gap will be more prominent.
Since 1996, China's monopolized industries and trend of income gap between clearly non-monopoly industries, average annual expansion rate reached 43%. Income in monopoly industries ranked in the top are the air transport industry, banking, tobacco, petroleum and natural gas extraction, bottom several non-monopoly industries respectively of textile, food and beverage industry and agro-forestry, livestock and fishery, extreme values than the average industry wages remain at about 6 times. Compared with the non-monopoly, monopoly industries workers ' wages not only in content but also has an absolute advantage in growth. By 2008, the average wage of employees in the securities industry have reached 167995 Yuan, in the 15 largest increase in monopoly industries, at 93.8%, and the agriculture, forestry, animal husbandry and fishery workers wages only increased by 35.5% in two years. Air transport, banking and tobacco industry workers per capita income in 2010 were 91913, 81533 and 78675 Yuan, and per capita income in agriculture, forestry and animal husbandry are 15495, 15499 and 14175 Yuan.
2. wage changes in the industries with the highest frequency.
Reform and opening up, entering the highest wages in the top three industries there are 7 (geological exploration industry, electricity gas and water production and supply industry, extractive industry, finance, insurance, real estate, construction, transport and storage post and telecommunication services), where the first 5 industry (land, electricity, mining, gold, housing) occupies the first position in different years. With the passage of time, tradition with a high labour intensity, hard, dangerous characteristics such as high wage industries (such as construction, geology, mining and other industries) wages being squeezed out of the highest ranks of the industry. For example, the 1978 construction of administrative monopoly and the average level of the whole society makes little difference, combined with the characteristics of great intensity in the construction industry, danger, hardship, their relative wage levels slightly higher than the Community average. But after the reform and opening up, the construction market opening, low barrier to entry and ownership diversity progress soon after the middle of the 90 's, although the absolute level of its employees ' wages are still growing, but its relative levels are declining, that gradually lower than the average level of the whole society. The administrative monopoly of the last 20 years the construction industry than agriculture, least has become the dominant industry, despite its labor intensive, hazardous, hard features still exist, but the relative wage levels has been ranked among the last few. And some employees ' wages are not too high, but have a high degree of monopoly industries (such as water gas production and supply of power, finance, insurance and real estate sectors) have been in the top three.
Second, the monopoly sectors the income level of analysis
Monopoly is to produce economies of scale in our country under conditions of very low concentration, based in a non-competitive market of, rather than from the derived on the basis of fair competition. Such a monopoly is not the result of market economy development, but rather is a product of developed market economy. In particular, the monopoly on the industry-wage effects can be summarized into the following three points:
1. the administrative monopoly trades easier to reap excessive profits. After more than 30 years of development, China's most competitive sectors of the buyer's market has become, without major technological innovation and institutional innovation, these industries will not be able to reap excessive profits. Monopoly industries are different, administrative monopoly formed the main reason for high income of monopoly industries, statistics showed, average wage of staff and workers in China in recent years monopoly industries is 5-10 times the national average. These industries formed the institutional high income due to the existence of administrative monopoly. In economic transformation of process in the, for national economic security of consider or public products supply of features, Government gives monopoly sector special of administrative power, makes these industry most has part administration functions, enterprises, some sector even can using legislation of form will its sector of special interests legalized, and institutionalized, makes monopoly industry with policy system of advantage, can quickly occupation market share, hinder has other economic components of intervention, limit has market competition mechanism of formed, To obtain the high monopoly profits, leading to staff and workers in the sector (especially the Executive class) get high income.
2. the monopoly pricing mechanism push revenue higher. Competitive industry, the market price is established, individual enterprises can not be changed, only passively received. In order to maintain the competitiveness of enterprises, capital increase only on the internal cost pressures caused by digestive tract, so workers ' demands for wage increases to the extent been met, depending upon the cost of the enterprise space and internal digestion, so that wage increases there is a rigid constraint. Monopolistic industry due to the monopolistic concentration is high, it is not passively accept the established price, but by manipulating the market, will increase the cost burden. From the market point of view, the wage level of lack of restriction of monopoly industries. To maximize the benefits from the enterprise point of view, monopolies usually adopt the standards on charges and other means, will increase the workers ' labor costs passed on to consumers. Therefore, in the process of formation of this pricing mechanism, on the one hand, monopoly received excess profits, on the other hand, lead to higher commodity prices, charges for additional services of monopoly industries more directly increase the cost burden on consumers.
3. Government regulation of monopoly industry in place. Current macro-control efforts for monopoly industry in China is still relatively weak, antitrust regulators have not formed an independent sector, national legislation has not conferred upon the authority of regulatory powers, making unclear powers and responsibilities among existing regulators, buck-passing, lead oversight role greatly reduced. While, Government for monopoly industry of financial binding not strong, for monopoly industry of some "grey" income audit not strict, is due to monopoly industry has its itself of price pricing mechanism, simple of market mechanism has cannot from overall Shang inhibit these contains has large non-wage sex income of "gray" of exists, formed has monopoly industry of high income phenomenon, to led to has industry between income gap of rapid pulled big.
In addition, the low transparency of the monopoly industry asset management, business operating costs, profitability, labor standards, and other related information are not known to the public, this is an unreasonably high income of monopoly industries in our country difficult to monitor one of the main reasons.
C, solve the problem of income distribution effects of monopoly on countermeasures
The CPC Central Committee on several major issues of deepening reform decided that: "the further break administrative monopoly in all its forms ... ... Reasonable and strict norms of State-owned enterprises the remuneration packages, post treatment, post consumer, business spending. "Currently, should be based on the system innovation and speeding up reform and solve the problems of administrative monopoly, complemented by other measures, levels, according to the steps to gradually resolve administrative monopoly income problems of the industry.
1. establishment of a sound legal system and management system of monopoly industries. Due to economic reasons, China's monopoly for administrative monopoly and administrative monopoly industries caused by the widening income gap problem, the solution is simply to achieve check on monopoly rights of the monopoly, and the formulation, development and implementation of the law is the most important. Reduce the monopoly of "rent," "rent", regulating the exercise of monopoly power, stop the Act of eliminating or restricting competition, which to some extent are implemented by relevant laws. First, the Government Regulation. Change the past pattern of sectoral governance, regulatory, establish an accountable, supervision of independent, not affiliated with any competent authority and comprehensive economic management departments of the professional regulatory bodies, objective and impartial exercise of antitrust authority. Second, improve and perfect the legal system of anti-monopoly, administrative monopoly and natural monopoly, economic monopoly into regulatory scope of antitrust law, deliver to society through legislation against administrative monopoly signal strong confidence in the anti-monopoly. And strengthen oversight of antitrust regulators, to establish the necessary checks and balances to prevent regulatory abuse.
2. strengthen the regulation of monopoly industry, government regulation of monopoly industry. Judging from the historical evolution of China's economic reform, the current administrative monopoly still exists simply because the Government does not and the Government. Therefore, must change their functions and the separation of sound operating mechanism of State-owned assets in conformity with market and regulatory system. Government should step up market supervision and administration, relaxing market access for monopoly control in monopoly industries by introducing competition, lower prices of monopolized industries to provide products and services through the right of franchise bidding competition and interregional competition so as to enhance its operational efficiency, fundamentally clear the systemic sources of high income of monopoly industry. Meanwhile, to push forward the reform of property right diversification, speed up reform and realize investment subject pluralism of monopoly industries, gradually narrowing the gap between monopoly and competitive industry profit, achieve the industry average profit margins, fair.
3. reform the price formation mechanism of the industry. The monopoly industries in China, often with the Administration, some industry standards of national documents are drafted by the monopoly, they will adhere to the national policy to protect the interests of their industry, legal sector interests. This makes unreasonable pricing of products is an acute problem of monopoly industries. In the case of lack of significant progress in the reform of monopoly industries, pure relax pricing regulations would harm the interests of consumers. Thus, in the context of current benefit structure and system, improve the monopoly price regulation mechanism is very important. According to the experience and practice of our country, monopoly regulation price regulation should include description of price formation, a clear target, standardize pricing, open decision-making mechanism, strengthened information disclosure, improve the price hearings and so on.
4. regulating the operation of monopolies. Monopoly industries to improve the modern corporate system and the internal corporate governance structure, streamline internal property, personnel and finance to achieve symmetry of the residual rights and control over distribution. Implementation of State-owned capital budgeting system, a reasonable requirement of budgetary revenues and budgetary expenditures, implementation of several State-owned capital, profits turned over to the State system. Monopolies of labour as soon as possible the comprehensive reform of personnel and distribution system, in the distribution of income in their long-term national interests, development and combine economic interests of workers. In order to ensure the preserve and increase the value of State-owned assets to prevent monopoly industries rely on its high monopoly profits for employees exorbitant salaries and benefits, government auditors audit of State-owned assets operation supervision should be strengthened. Meanwhile, monopoly industries to establish a strong monitoring mechanism of income distribution in monopoly industries, and is closely related to the pricing and profit part of social public supervision.
5. strengthen macro-guidance and control of the monopoly income levels. First, perfect wage guide line system and labor market wage guide price system, through Government about sector on various career or jobs wage level for widely of survey, after summary, and analysis and amendment, announced has representative of career or jobs of wage guide price, from micro Shang guide monopoly industry reasonable determine workers personal wage level and various personnel of wage relationship, to guide and constraints monopoly industry internal the jobs employees of income level. Secondly, strengthening macro-guidance and control of monopoly income levels should also strengthen guidance to enterprises ' internal reform of distribution system of monopoly industries, and urge enterprises to improve the internal distribution system. Thirdly, the Government should strictly control lending practices of a variety of subsidies and allowances and bonuses, tight control of State-owned and State-holding enterprises executives serving consumer, standard vehicle equipment, entertainment, duty consumer items such as training and standards, salary income effective restriction of monopoly industries. Finally, gradually achieve the monopoly tax to senior staff in key regulatory and implementing bi-directional application and cross-checking system, imposed on monopoly full full deduction of personal income tax declaration system, using tax policy to narrow the income gap and other unreasonable. (Author: Director of the General Office of the Translation Bureau of cccpc Cui Youping)
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