ABSTRACT
Entering the twenty-first century, China has adopted a new development paradigm that emphasizes the building of a ‘Harmonious Society’ with more balanced development across regions and across sectors. The paradigm adopts a ‘scientific view of the development process’ ( ) that emphasizes sustainable growth and ‘putting people first’ ( ). This is laid out in some detail in the Eleventh Five-Year Plan and also explained in Wen (2004). Under this new development paradigm, the government has substantially increased its commitment to pro-poor, pro-rural programs. This is reflected in numerous official statements,2
and the many new programs introduced over the past few years. This is a timely shift in policy to redress the large disparities that have emerged
in the course of China’s remarkable economic growth, especially over the past decade.3 The greatest disparities are those between urban and rural residents. By virtually all estimates, the average urban income per capita is now more than three times that of the average rural income per capita, a gap that is among the largest in the world. In addition, rural citizens enjoy public services that are far inferior to those provided to their urban counterparts. Reducing these differences would be a critical step toward building a Harmonious Society that includes all citizens.
