CIAO DATE: 05/2011
April 2011
Finnish Institute for International Affairs
While China’s reform strategy has largely been a success story that has seen living standards rise tremendously, it has also led to widening income gaps, regional disparities, and much wasteful investment. Large income gaps breed social discontent that may turn into political demands. The ruling Communist Party has proved itself adroit at preventing such demands from emerging, by taking timely pre-emptive action in response to people’s needs.
Resource link: Whose money? The tug-of-war over Chinese state enterprise profits [PDF] - 2.2M