Common Prosperity in the New Development Paradigm

¹YU Miao-jie:National School of Developmen,Peking University

²CAO Jian:China Center for Economic Research,Peking University

Abstract：

During the 14 th Five-Year Plan period, China will ground efforts in the new stage of development, apply the new development philosophy and create a new development paradigm. Therefore, promoting common prosperity is an inevitable requirement. Promoting common prosperity is long-term, arduous and complex. The practice of promoting common prosperity in China has experienced four stages. The first stage was from 1949 to 1978, mainly emphasizing fairness. During this period, the gap between the rich and the poor was small, while the economic growth was slow. The second stage was from 1978 to 1984, when rural reform took the lead. Due to the household contract responsibility system, farmers' income increased and the gap between urban and rural areas narrowed. The third stage is from 1984 to 2012, with more emphasis on efficiency. Urban reform was accelerated, and people's living standards had been greatly improved, but the gap between the rich and the poor had widened. The last stage is from the 18 th CPC National Congress in 2012 to the present, giving consideration to efficiency and fairness, which has effectively promoted the common prosperity of all people. There are three measures to promote common prosperity. The first is to correctly treat the relationship between efficiency and fairness. The second is to build a coordinated system of the first distribution, the second distribution and the third distribution. The last is to form an olive distribution structure with large middle and small ends.

Keywords：New Development Philosophy; New Development Paradigm; Common Prosperity; the Third Distribution; Tax Reform;