Thursday, October 21, 2010

Income Gap

Gucci Store

Village home in Yunnan

An article published on MSNBC.com entitled "China's Wealth Gap Strains Social Fabric" discusses the income gap between China's urban rich and its rural impoverished population.

On the one hand, the author describes how wealthy Chinese people are purchasing designer brands (Gucci, Prada, Armani, etc) like candy.  Their buying power is tremendous, and their wealth has increased exponentially over the past ten years.  A Gucci store employee is quoted as saying that many people in their urban area will spend USD$10,000 during one shopping trip.

If the recent wealth experienced by millions of people on the east coast, urban regions isn't staggering enough, the poverty of the rural areas is even more shocking.  The author states, "for all the money flowing to China's new middle class and wealthy elite, much of the population still lives in or near poverty."  A typical rural family lives on less than $2 a day (China Data Center).  

Chinese government officials acknowledge that a huge income gap exists in the country; they have made it a point of discussion and a high priority.  But their ability to change it won't be easy.  Lu Kang, deputy director general at the Ministry of Foreign Affairs' Department of North American and Oceanic Affairs, states, "In 10 years, China will still be a developing country."  He notes that the overall standards of living in China will continue to improve (mostly in urban areas), however, he cuts right to the core of the issue as he states, "The rural areas are totally different.  That's (the income gap and rural poverty) not something we can solve in the next decade."

Forgotten and ignored, many rural villagers in Yunnan struggle daily under the constraints of poverty.  They are without drinking water, without basic knowledge of health and hygiene, without any assistance to rise above the suffocating poverty.  They can't wait a decade for help!

CWEF is working in China to serve these people - the impoverished rural poor.  By implementing fresh water systems in the villages, CWEF empowers the villagers to escape from poverty.  The number of animals villagers can raise is no longer limited to the amount of water they can carry to feed them; the women are able to work and raise the children, rather than spending 5 to 6 hours a day hauling water.  Additionally, CWEF health and hygiene training improves the quality of life and the general health in the villages.  In the same way, CWEF's community development projects (i.e. biogas projects, animal gift projects, micro-credit loans), aid and assist the people in rural Yunnan.  (For more information on CWEF's projects visit our website: www.cwef.org.hk).  These projects make a significant impact in the villages.

So regardless of the number of new designer stores built in China's cities, the buying power of its upper class, or the continuous news of China's growing economy, the facts still remain -- China faces an enormous income gap, the government's ability to change it is greatly limited, and most rural Chinese families who live on less than $2 a day need help!  The impoverished rural poor need assistance to get out of poverty, making CWEF's work here so crucial.