I would like toexpress my thanks to the organisers for inviting me to speak at this symposiumon Common Prosperity. I think in time Common Prosperity will come to beregarded as one of China’s most important initiatives since the beginning ofthe reform period. In these brief remarks, I want to make four points.

First, inequalityhas grown dramatically since 1978 when the Gini coefficient was just 0.28. Todayit is 0.47, slightly higher than in the US. Such a rise in inequality wasinevitable. Bereft of resources, China had no alternative but to concentratewhat little it had in those parts of the country, namely the south and then theeast, where the prospects for growth were greatest. Inevitably this led togreat regional inequality, with central and western China much less developedthan the south and east. China’s primary focus in this period has been theabolition of extreme poverty which it finally succeeded in doing in 2020. Nowthe great task is to address inequality. This is the key to creating a morebalanced modernisation, providing the conditions for political and socialstability, and ensuring the unity of the country. The threat posed byinequality to unity and stability should never be underestimated.

Second, there are no quick fixes. Building a fairer society is along-term project that will require enormous patience, persistence, andcreativity. We are nottalking about an egalitarian society, but rather one which is much fairer andmore inclusive. Income and wealth are central to inequality, but there are manydifferent causes and drivers of inequality. It finds expression in manydifferent areas of society, ultimately in virtually all. It shapes society in athousand and one different ways. One of the things that I have found mostimpressive in the last few months is a recognition of this fact: privatetuition and private schools, for example, as key drivers of inequality; thetech sector as the source of a new and very acute form of inequality. One of themost harmful effects of inequality is the way that it segments society; thosewho are poor can find themselves on the edge or even outside society. That waswhy the poverty campaign was so important. Meanwhile, the super-rich, be they inthe tech sector or entertainment, for example, can become increasingly detached,and living in a separate world from, the great majority. That is why theemphasis on the rich contributing in fundamental ways to society is soimportant.

Third, CommonProsperity involves and requires a major shift in social and cultural values. DengXiaoping’s genius was to understand the need for Chinese socialism to embrace boththe state and the market, thereby to encourage society to becomeentrepreneurial, to urge every individual to be a risk-taker, to believe in thepossibility of becoming rich. In consequence, the values of society shifted, beingrich came to endow great status, inequality was regarded as necessary and even encouraged.That era is now over; a new balance and harmony is required. China is moving toa new stage of modernisation that will involve a significant shift in values witha stronger emphasis on fairness, equity, inclusivity and social provision.

Fourth, thechallenge of inequality is far from being China’s alone. Inequality has beengrowing apace in the West since 1980, in its most extreme form in the UnitedStates, under the combined impact of neo-liberalism, globalisation, and latterlytechnology. It is a global problem. But there is a fundamental differencebetween China and the West. There are powerful vested interests in the US – andin other Western countries like the UK – that are resisting the growingpressure to address the chronic and debilitating problem of inequality. As a result,very little has so far been achieved. There is talk and rhetoric, but preciouslittle action. China, with its Common Prosperity initiative, is becoming theglobal leader in the fight against inequality. This will be of enormousimportance. China has been the leader in economic development ever since 1978.In its fight against Covid-19, it has set a singular example to the world inthe sheer competence of its governance. And with Common Prosperity, it can showthe world how society can be more equal, fairer and more inclusive, a new kindof society for the twenty-first century.

Thank you very much.