Abstract 1
Chapter Ⅰ Development and Equity:The State of Human Develop-ment and the Conceptual Framework 5
Concept of human development 5
Comparing the state of China's human development 7
Concept and theory of equity 15
Chapter Ⅱ The State of Equity in China:lncome and Wealth Dis-tribution 21
The framework for analysis 21
Inequality in income distribution 22
Inequality in wealth distribution 31
Chapter Ⅲ The State of Equity in China:Opportunities and Ca-pabilities 38
The labor market 38
Disparities m education 46
Disparities in health and public medical care 54
Chapter Ⅳ The State of Equity in China: Social Security and PublicExpenditure 61
Social security in China 61
Taxation system and fiscal revenue and expenditure 71
The poor population and vulnerable groups 80
Chapter Ⅴ Goals&Policy Recommendations 91
The goal of building a Xiaokang society in an all-round way 91
Policy recommendations 98
Notes 118
Boxes 53
3.1 The Evolution of the Responsibility System for China's Elementary Edu-cation 53
4.1 History of Rural Cooperative Medical Service and Current Reform inChina 67
4.2 China's Agricultural Taxes 72
4.3 The Composition of Poverty-Stricken Households in Urban Areas（Case Study） 84
5.1 The Objectives of Building a Xiaokang Societyin an All-Round Way 92
5.2 China's Progress in Meeting Millennium Development Goals 96
5.3 Dismantling the Hukou System 103
Figures 7
1.1 Changes in China's Human Development Index （HDI） 7
1.2 Urban&Rural Life Expectancy by Province in 2000 （years） 9
1.3 Male&Female Illiteracy Rates by Province in 2003 （15 years&over） 10
1.4 Changes in National, Urban&Rural HDIs, 1990-2002 11
1.5 Human Development Index by Province in 2003 12
1.6 Gini Coefficient for Chinais Income Distribution 13
1.7 Comparison of the Gini Coefficients of Various Countries in 2000 14
1.8 Urban Residents' Recognition of Income Inequality:Should There Be Income Inequality？（Result of 2001 Sample Survey） 16
1.9 Public Opinions on Inequalities in Various Countries in 2002 17
1.10 Public Opinions in Different Provinces on National Income Distribu-tion 18
1.11 Opinions of Different Income Groups on National Income Inequality 19
2.1 Trends in Per Capita Income Changes of Urban and Rural Residents 1990-2003 （at variable prices） 25
2.2 Changes in China's Urban-Rural Income Inequality, 1990-2003 26
2.3 Changes in China's Rural Income Inequality （Gini Coefficient） 28
2.4 Changes in China's Urban Income Inequality （Gini Coefficient） 29
2.5 Changes in National Income Inequality （Gini Coefficient） 30
2.6 Proportions of Urban&Rural Residents in the Wealth Deciles in 2002 36
3.1 Number of Unemployed and the Registered Unemployment Rate, 1981 2004 39
3.2 Changes in the Number of Workers and Unemployed People 40
3.3 Number of Workers in Urban State-Owned and Collective Enterprises,1995-2003 41
3.4 Differences in Average Wages Between Monopolized Industries and Manufacturing Industry 46
3.5 Educational Enrolment and Average Years of Schooling, 1964-2000 47
3.6 Numbers of Teachers at Different Education Levels, 1952-2000， unit:10,000 48
3.7 Percentage of Female Students in Various Educational Institutions 2000 and 2002 55
3.8 Public Expenditure on Education （100Million RMB, Current Prices,1978-2001） 51
3.9 Public Expenditure on Education as a Percentage of GDP 51
3.10 Urban-Rural Comparison of Operation Funds Per Student （Yuan） 53
3.11 Life Expectancy, 1949-2000 54
3.12 Child and Maternal Mortality Rates, 2001 55
3.13 Urban-Rural Comparison of Proportion of Children Underweight or Stunted 56
3.14 Regional Comparison of Children Underweight or Stunted, 1992-2000 57
3.15 Number of Beds in Hospitals and Health Centres, by Province, 2002 （per1,000 Residents） 59
3.16 Hospitalized Deliver Rates in Various Provinces （percent）, 2002 60
4.1 Coverage of All Kinds of Medical Insurance among Rural and Urban Residents 66
4.2 Scale and Structure of Central-Local Fiscal Transfer Payments from 1994-2002 78
4.3 Changes in China's Rural Poverty Incidence from 1990 to 2000 81
4.4 Changes in China's Rural Poverty Gap from 1990 to 2002 82
4.5 Land-expropriated Farmers' Assessment of Changes in Their Living Stan-dards 86
Tables 22
2.1 The Analytical Framework for Inequality 22
2.2 National, Urban&Rural Income Shares of Different Income Groups in 2002 27
2.3 Urban-Rural Breakdown of National Personal Income Inequality in 1988&2002 31
2.4 Level&Composition of Rural per Capita Wealth in 2002 32
2.5 Proportions of Wealth Held by Deciles of Rural Population in 2002 （％） 33
2.6 Inequality in Distribution of Rural per Capita Wealth in 2002 33
2.7 Urban per Capita Personal Wealth and Its Composition 34
2.8 Proportions of Wealth Held by Deciles of Urban Population in 2002 （％） 35
2.9 Inequality in Urban per Capita Wealth Distribution in 2002 35
2.10 Per Capita Wealth and Its Composition in China as a Whole in 2002 36
2.11 Proportions of Wealth Held by Decile Groups in 2002（％） 37
2.12 Inequality in Wealth Distribution in China as a whole in 2002 37
3.1 Years of schooling of migrant and urban workers 43
3.2 Occupation and Years of Schooling of Male and Female Workers 44
3.3 Industrial Distribution and Years of Schooling of Male and FemaleWorkers 44
3.4 Changes in Industrial Differences in Wages, 1993-2002 45
3.5 Proportions of City, Town and City Populations Aged 15-64 Years by Education Level and Years of Schooling, 2000 48
3.6 The Proportions of Government Expenditure on Educational Funding in China and Some OECD Countries 52
3.7 Health of Rural Residents by Income, 1993 58
3.8 Medical Personnel per 1,000 Residents, by Region, in 2002 59
4.1 Main Items of China's Social Security 62
4.2 Pension Enjoyed by the Urban Elderly by Gender, Hukou and Loca-tion （2000） 63
4.3 Pension Enjoyed by the Rural Elderly by Gender, Hukou and Loca-tion （2000） 64
4.4 The Pensions Enjoyed by the Elderly People by Gender, Hukou, Unit and Location （2000） Unit:Yuan/month 64
4.5 A Regional Comparison of the Coverage of Various Social Securities for Urban Workers by Gender （percent） 68
4.6 Proportion of the Population of Assisted Households in the Urban Popu-lation 69
4.7 Rural Elderly Receiving Government Assistance by Gender and Re-gion （2000） 70
4.8 The Differences in Collective Aid Received by the Rural Aged Popula-tion by Gender, Household and Region （2000） 71
4.9 Fiscal Expenditure of Local Governments as a Percentage of Local Fiscal Expenditure, and Its Changes in 2000 74
4.10 The Proportions of Agricultural Taxes and the Govern ments'Agriculture- supporting Expenditures in the Total Fiscal Expenditure and GDP during 1985-2003 74
4.11 Gap between the Health Care Operation Expenses per Capita in Rural and Urban Areas during 1998-2002 75
4.12 Per Capita Fiscal Revenue and Expenditure of Various Provinces （Yuan） and their inequality during 1994-2003 76
4.13 Inequity in per Capita Fiscal Expenditure of County-level Governments within Some Provinces 1994-2003 76
4.14 Proportion of Fiscal Revenue and Expenditure of Governments at the County and Village Levels in National Fiscal Revenue and Expenditure 77
4.15 Provincial Gaps in per Capita Education Operation Expenses of Educa- tion at Each Level in 2001 77
4.16 The Situation of Poverty among Rural Residents 80
4.17 Greatest Changes to the Farmers who Have Lost Farmland （Attitudinal Questions） 85
5.1 China's Millennium Development Goals 95
5.2 Policy Framework 99
Exhibit 145
1.Classification of provinces by HDI 145
2. Classification of provinces by the HDI for urban areas 146
3. Classification of provinces by the HDI for rural areas 147
4. Classification of provinces by per-capita GDP 148
5. Classifiication of provinces by per-capita GDP in urban areas 149
6. Classifiication of provinces by per-capita GDP in rural areas 150
7. Classification of provinces by the average illiteracy ratio 151
8. Classification of provinces by the average illiteracy ratio among urban citizens 152
9. Classification of provinces by the average illiteracy ratio among rural citizens 153
Tables 154
1. 2003 Human development index （HDI） of different provinces 154
2. 2003 Urban human development index of different provinces 155
3. 2003 Rural human development index of different provinces 156
4. 2000 Per capita life expectancy of different provinces 157
5. 2000 Urban per capita life expectancy of different provinces 158
6. 2000 Rural per capita life expectancy of different provinces 159
7. 2003 Rural and urban per capita GDP of different provinces （yuan） 160
8. 2003 Sexual illiterate／semi-illiterate percentage in different prov-inces（％） 161
9. 2003 Synthetic school attendance rate of different provinces（％） 162
10. 2003 Basic Indices for Population in Different Provinces 163
11. 2003 Total Employment and Industrial Structure of Different Provinces 164
12. Registered Number of Unemployeed and Rate of Unemployement in 1990,2002 and 2003 165
13. 2003 Local Fiscal Revenue and Expenditure of Different Provinces （Total amount and per-capita amount） 166
14. The Quantity and Composition of Per-capita Disposable Income of Ur-ban Citizens in Different Provinces in 2003 （yuan） 167
15.The Quantity and Composition of Per-capita Disposable Income of Rural Citizens in Different Provinces in 2003 （yuan） 168
16. The Quantity and Composition of Per-capita Consumption Expenditure of Urban Citizens in 2003（yuan） 169
17. The Quantity and Composition of Per-capita Consumption Expenditure of Rural Citizens in 2003（yuan） 170
18A. Durable Consumer Goods Owned by Urban Citizens in Different Prov-inces in 2003（every 100 households） 171
18B. Durable Consumer Goods Owned by Urban Citizens in Different Prov-inces in 2003（every 100 households） 172
19A. The Quantity and Composition of Per-capita Consumption Expenditure of Rural Citizens in 2003（yuan） 173
19B. The Quantity and Composition of Per-capita Consumption Expenditure of Rural Citizens in 2003（yuan） 174
20A. Health Agencies in Different Provinces in 2003 175
20B. The numbers of Medical Workers and Sickbeds in Different Provinces in 2003. 176
21. The Numbers of People Participating in Basic Pension Insurance, Un-employment Insurance and Basic Medical Insurance in Different Provinces in 2003 （10,000 persons） 177