The Target and Countermeasure of the Current Wealth Structure Transformation in China

Fu -Hongli^a , Zhang -Yuliang^b

a. Educational Administration and Registration Center, Beihua University, Jilin, Jilin , 132013

b. School of International, Jilin University of Finance and Economics, Changchun, Jilin , 130117  

Abstract Improving the wealth structure to transfer from disharmony to harmony is not only the basic requirements of optimizing the form and structure of the wealth, narrowing the gap between the main body of the wealth and the space structure, and reaching the target of common prosperity, but also one part of implementation of the overall development and the construction of a harmonious socialist society. If we want to transform the wealth structure harmoniously, especially if we want to optimize the form and structure of the wealth and try to equalize the distribution of every area, one of the most important way is to speed up the transformation of ways of increasing wealth and the creation of the wealth system in the premise of improving the social wealth creative ability.

Keywords: Wealth structure; Target transformation; Wealth creation; Wealth system

1.  Introduction

Wealth is the carrier and target of living, multiply and developing of the human being. On one hand, it represents the transform relationship of the material, energy and information between labor and nature; on the other hand, it also represents the exchange relationship of material, economy, politics and mental between laborers. The transformation or exchange is the core issue of the human social development, so it attracts the high attentions of the theorists and practitioners.  

There are no specialized classical works on the wealth structure transformation issue in the contemporary western society. Influenced by this fact that wealth is the core issue of the “National Economics” and its obvious sociality, periodicity and epochal character, the western society pay high attention to wealth, wealth structure and its transformation. From the existing works, contemporary western scholars have already given answers to the form, target and principle aspects. First, from the point of wealth structure transformation view, the wealth structure transformation theory mainly experienced the market regulation and the combination of market measure and government regulation. Adam Smith and Milton Friedman put an emphasis on the natural regulatory role of the market mechanism. At the same time, Keynes and Samuelson put the emphasis on the government intervention of the adjustment function of the market mechanism to the wealth structure. Secondly, western society is mainly based on the equity theory from the angle of transformation target. For example, Pigou thought the economic welfare of one country will be increased if the government put the equalized of the redistribution policy in to practice and transfer some money from wealthy men to poor men. Third, from the angle of transformation principle, mainly including production efficiency principle, and utilitarian principle and so on, for example, it is reasonable for productive efficiency principle if the income difference is based on the individual ability and the different level of hard-working, and it requires the government take consideration of efficiency into the wealth adjustment policy. Utilitarianism thinks the individual ability difference can’t explain the unfair division is reasonable, and it requires the equalization of the wealth and reach the interests balanced wealth structure.

Most of the Chinese scholars analyze the current status and structure of the wealth in the respect of the wealth rate of flow concept —–changes of income and division, but all the conclusions show that in our country at current stage, division of the wealth structure in the form, space and main body aspects is unreasonable. From the view of wealth form structure, the scholars mainly think either in the physical form or in the social form, they all lack of innovation or they all have unreasonable structure. From the view of wealth subject, most of the scholars think the structural division of the current wealth in government, firms and residents in China is suitable for the rule of economic society transformation in the transition period, but some scholars also consider that in the wealth subject structure, there are severe problems in the incomplete property system and the unbalances between the different ownership system. From the view of the wealth space structure, scholars generally agree with that the natural gift difference the unbalanced development of the different areas enlarge regional gap of wealth.

• The Wealth Structure Transformation Target of China at the Present Stage

The conception of wealth is the general and the fundamental point of view of people on the sources, acquisition, distribution and use of the wealth. If the conception of wealth is conforms to the spirit of era, it can guide people to look upon wealth correctly, earn money lawfully and reasonably and divide, distribute the wealth fairly.

•  Harmonic Wealth View and Its Significance

Nowadays, the reform and opening up of our country is deepening; the market economic system is improving, the form of the wealth is emerging and the wealth structure is evolving, people’s view of wealth is changing, different social groups have different conception of wealth and it will influence people to implement different wealth behavior. Collisions among different interest group, different wealth conception and different wealth behavior need for the formation and development of the positive, correct wealth conception urgently.

Harmonious wealth view is the requirement of the era. It means looking upon the wealth correctly, developing the wealth scientifically, seeking distributing and dividing the wealth reasonably and legitimately. Realize a wealth view which the interest relationship between human and human, human and nature, economy and society, area and area is developing harmoniously, continuously and healthily. The establishment of the harmonious wealth view can clear up the former wealth view which is attached to the old system; scour the decadent and declining value consciousness in people’s minds; Guide, correct and limit some unhealthy tendencies such as disorder wealth view, collapsing ideal and belief, low moral level, indifferent interpersonal relationship and individual behavior anomie. Strengthen people’s moral and cultural quality; promote the comprehensive development of people and enhance the social cohesion and centripetal force.

•  The Wealth Structure Transformation Target of China at the Present Stage

The wealth structure transformation of China at the present stage must from harmonious wealth view, follow the wealth structure evolution rule, promote the transformation and upgrade of the wealth structure, achieve conversion of wealth structure from disharmony to harmony.

The wealth structure transformation targets of China at the present stage are shown: first, we must solve the outstanding problems during the course of the wealth structure transformation with the method of development, develop the wealth productivity vigorously, continuously create solid material base for the harmonious transformation of the wealth; second, we must adhere to the people-oriented principle, the wealth structure transformation should satisfy people’s growing material and cultural needs ,social wealth should be shared by the people and promote people’s comprehensive development; third, we must step up the construction of social equity justice system, ensure people’s rights and interests in production, distribution, exchange, consumption, and other aspects of the wealth; fourth, implementing policies of industry nurtures agriculture, city supports country, giving more, taking less and loosening control. Promote the construction of the new rural areas solidly. Promote the coordinate development of the urban and rural wealth structure; fifth, implement the overall strategy for regional development, continue to promote the development of the western region, revitalize the Northeast China and other old industrial bases, promote the rise of the central region, encourage the eastern region to take the lead in the development and promote the coordinated development among regions; sixth, focus on solving the environmental problems which are harmful to the health of people and affective to the sustainable development, accelerate the construction of resource-saving and environmental friendly society, promote the harmony between human and nature.

• The Wealth Structure Transformation Countermeasures of China at the Present Stage

Under the lead of the harmonious concept of wealth, on the basis of improving the social wealth continuously, accelerating the transformation of the wealthy growth mode and the innovation of the wealth regime; promote the optimization of the physical and social structure of wealth, promote the basic balance between the wealth subject structure and wealth space structure, promote the wealth structure conversion from disharmony to harmony. Achieve the harmony between human and nature, human and human, economy and society, area and area, and finally achieve the goal of harmonious society.

• Promote Wealth Production; Lay the Foundation for Harmonious Conversion of the Wealth Structure

    Produce or create wealth is the premise for the distribution, exchange and consumption of the wealth, and it’s also the key and the foundation for the harmonious conversion of the wealth structure. So, first we should develop the wealth productivity vigorously, and promote the social wealth creative ability. If we want to improve the level of wealth productivity vigorously, we must improve the quantity and quality of all the wealth productivity factors, make the factors harmoniously and optimize the combination, improve the ability for producing and creating wealth. To achieve this goal, we should protect and make use of the land resources rationally, give full potential productivity play to the existing cultivated land, remiss the contradiction of large population with relatively little land, strive to improve the quality of labor force, enhance the ability of the labor force for creating wealth in order to alleviate the contradictions between the quality and quantity of the labor force; perfect the financial system, optimize capital structure, improve the capital formation scale and the use efficiency; promote technological innovation, in the past, the wealth growth mainly relied on increasing material resources consumption, now we should transform to rely on the progress of science and technology, improving of the workers’ quality, management innovation to increase the wealth growth; Strengthen environmental protection, promoting the harmony between human and nature. Second, we should accelerate the transformation of the wealth growth mode; promote the sound and rapid growth of wealth. It will need we adhere to the new path of industrialization with Chinese characteristics, we should expand domestic demand, particularly consumer demand, improve the economic growth to transform from mainly relying on investment and export to rely on coordination of the consumption, investment and export. From mainly relying on the second industry change into relying on the coordination drive of the first, second and third industry; from mainly relying on increasing material resource consumption change into rely on the progress of science and technology, improving of the workers’ quality, management innovation. We should start work from the system innovation, establish the mechanism which can promote the transformation of the economic development mode, fully perform the basic function of market allocating resources, improve the finance and taxation policy and system which are advantageous to the transformation of the economic development mode, and establish scientific accounting system and environmental management supervision system.

•  Innovate the Wealth System and Provide Protection for the Harmonious Conversion of the Wealth Structure

System innovation means in the existing productive and life environmental conditions. People should realize the innovation of the sustainable development of economic society through creating a new, more effective incentive system which can inspirit people’s behavior. Reforming the unreasonable links and aspects of the current wealth system and making innovation for the imperfect and missing parts will be useful for the construction of the harmonious wealth system and further improve the harmonious conversion of the wealth structure. First, we should reform the tendency system arrangements. Improve the construction of the harmonious system, Improve the system and mechanism the coordination of rural and urban development. Vigorously promote the construction of new socialist countryside, implement the harmonious conversion for the wealth structure of urban and rural residents. Implement the general strategy for regional development, promote coordinated development of regions, achieve the harmonious conversion of wealth space structure, improve the system and mechanism for the overall economic and social developments, promote the harmonious development of economy and society, and provide sound social protection for the harmonious conversion of wealth structure. Second, make up for the defects of the current income and distribution system. Build up a fair and reasonable income distribution system. We need to uphold and improve the distribution according to work as the main body, a variety of modes of distribution coexist distribution system. Improve various production factors participate in the distribution system according to contribution, strengthen and improve the macro-adjusting of the income distribution, deal with the relationship between efficiency and fairness for the first time distribution and redistribution,  further regulate the income distribution order, strive to raise the level of the low income people, expand the proportion of the medium income group, effectively regulate the excessively high income group, resolutely ban the illegal income, fundamentally reversed the trend that income distribution difference is enlarging among different areas and partial society members, and promote common prosperity. Build up a sound, scientific and perfect salary system for the civil servants, Strengthen and improve the adjustment and control policies for the enterprise income distribution, set up and perfect the wealth statistical system, give full play to the role of tax policy to regulate excessively high incomes, advancing the innovation of legal system, eliminate corruption and other illicit enrichment behavior. Third, we should perfect the wealth consumption system; guide the residents to consume reasonably. We need to adjust the consumption tax policy, guide the residents to consume reasonably; collect ecological consumption tax, standardize the productive behavior of the producers; set up ecological consumption system, constructing the harmonious society. Fourth, the innovation of the land system, we should make a clear conception of the relationship between the land rights and interests. We should reform the land system, protect the land rights and interests of the farmers, and that is the important content for ensuring farmers make a harvest of wealth, especially we should give farmers a better and guaranteed land contractual management right, the existing land contract relationships should remain stable and unchanged for a long time; In accordance with the law, protect farmers’ possession, use, income and other rights of the contracted land; strengthen the management and service for the transfer of the land contractual management right, set up and perfect the market for the transfer of the land contractual management right, according to the law, on a voluntary and compensatory basis, allow the farmers to transfer their land contractual management right in the form of sub-contract, renting, exchanging, transfer, and stock cooperation to develop various forms of moderate scale management.

• Conclusion

Since the reform and opening up to the outside, China’s economic society has made tremendous changes. The physical form of the wealth is becoming more and more abundant, from the ordinary commodity to luxury goods and collectibles, from movable to immovable property, from currency storage to investment products, real estate, house property and so on. The value form of the wealth is also constantly changing, from physical currency to virtual currency, especially with gradually widening of the income gap in subject structure and space structure, wealth structure and its conversion problem gradually fall into the domestic scholar’s vision, and then become the focus of research. The author believes China’s wealth structure appears phase characteristics with the rise and fall of the civilized countries, that is, in the creating course of the ancient civilization, promoted and led the world wealth structure conversion. In the modern world it remains stagnant in the course of the fast converting upgrades of the world wealth structure conversion. With the reform and opening up, the wealth structure is changing sharply. It indicates the transformation target of the future harmonious wealth structure in China to the world.

Reference

Baishan Municipal People’s Government, Resources-dependent City Research Center of Northeast Normal University. Assessment Report on Transition Effects of Baishan—A Resource-depleted City, 2010 (in Chinese)

 Development and Reform Commission of Jilin Province, Resources-dependent City Research Center of Northeast Normal University. The “Twelfth Five-Year” Development Planning for Economic Transition of Resources-dependent cities in Jilin Province, 2010 (in Chinese) 

Some Opinions of the State Council on Promoting the Sustainable Development of Resource-dependent Cities, National Issue (2007) No.38, 2007-12-18 (in Chinese)

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