China OKs plan to bridge rich/poor

Cabinet officials in China have given the O-K to a new set of economic reforms that will help bridge the income divide between the country’s rich and poor people. 

In a report by The Guardian newspaper, The Chinese government's State Council approved an Income Distribution Plan to ensure that its citizens can get equal footing on earning money.

Proposals in the 35-point reform plan include raising rural worker's wages, tax state-owned enterprises and giving interest rate incentives for bank savings accounts.

The plan also aims to improve China’s education, healthcare and affordable housing conditions. 

The communist-ruled government made earlier efforts, but accounts of undeclared income and an unpopular response to introduce property taxes hampered efforts to draft the plan until last November (2012).

The reforms were approved shortly after that China’s statistics office reported a rise in the number of countryside-based poor people compared to the more prosperous and city-bound middle class.

The Gini co-efficient indicates a country's rich - poor divide. China’s score was past the pegged warning level set by the United Nations by point-47 points with a reading of zero-.4-7-4.

STORY WRITTEN BY: SATURN DE LOS ANGELES