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BIZCHINA / Review & Analysis
Smart moves on salaries
(China Daily)
Updated: 2007-08-29 09:58
Keeping people's incomes growing in lock step with the country's
expanding GDP should be part of the government's work, says an article in
Guangzhou Daily. The following is an excerpt:
The government of East China's Shandong Province has just drawn up a
paper saying the growth of workers' average salaries will be a key
element in assessing the work of officials next year.
This would add a new perspective to work assessments, which are now
closely focused on economic growth, government income and taxes. In other
words, the Shandong government has made a choice to benefit the public.
Even as the country's economy has boomed, incomes have improved only
slowly. Things look even worse when the rising costs of day-to-day goods
are factored in.
Actually, salaries have for years accounted for about 15 percent of the
GDP. Salaries account for about half of the GDP of developed countries
such as the United States, Germany, Japan and Britain.
The low ratio of salary to GDP in China is also an important element
behind the determination of Shandong officials to ensure salaries
increase appropriately.
This decision is in line with a simple fact: economic development should
benefit everyone, otherwise it will not be sustainable.
Investment, exports and consumption are the three engines driving the
country's economic growth. Consumption has lagged behind the other two
for years. One of the most important reasons for this is the slow growth
in incomes.
Without a proper level of income, consumption will never be strong enough
to drive the economy, and people will also have difficulty improving
their lives, much less share in the fruits of economic prosperity.
When officials place the average salary of the work force high on their
agendas, they are actually promoting the public interest, which is their
due role. And the decision-makers in Shandong have done a good job in
reminding their peers of that fact.
(For more biz stories, please visit Industry Updates)
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