ABSTRACT

China and the United Kingdom have much in common. Both have governments that are, at least in some vestigial sense, socialist in their goals. In both countries there has over the last two decades been substantial economic liberalization. Both have a long-standing and continuing concern with inequality and poverty. China with a population of over one billion is huge compared with the United Kingdom. Income levels in Britain are on average far above those in China. Just as there is appropriate technology that reflects the relative scarcity of physical capital in a developing economy such as China, so to there is appropriate human capital which reflects the state of economic development. The evidence for the growth of inequality that is presented by Guan is based on changes in Gini coefficients - a measure of how far the distribution of incomes differs from total equality.