Beijing's income gap grows, as study sees slum potential

Beijing's wealth gap is widening, with the wealthiest 20 per cent earning four times more disposable income than the poorest 20 per cent.

The Blue Book on Society, issued by the Beijing Academy of Social Sciences yesterday, warned that the income gap could affect the central government's goal of 'building a harmonious society'.

The top 20 per cent earners had an average disposable income of 29,634 yuan in 2004 - 22,000 yuan more than the lowest earners. The inequality ratio widened from 3.4 to one in 2003, to four to one in 2004.

Meanwhile, the income gap between rural and urban residents in Beijing also became more dramatic. The latest statistics show that the annual per capita income of Beijing's rural population hit 7,850 yuan last year, compared to 17,650 yuan for urban residents.

'The current residential system divides up urban and rural areas, and limits rural residents to dirty, arduous, bitter and risky jobs, whose income naturally cannot be compared with that of their urban counterparts,' the report said.

The urban poor also faced social inequalities. In the first 11 months of last year, the average price of uncompleted flats reached 6,776 yuan per square metre, a 21.2 per cent increase on the same period the year before.