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CHINA will try to spend its way out of a rural crisis and must close its widening wealth gap to prevent civil unrest, premier Wen Jiabao told delegates at the opening meeting of the country's 3,000-member parliament yesterday.
Calling for the construction of a "socialist countryside" Mr Wen promised to release farmers in the form of reduced healthcare costs, abolishing agricultural taxes, £2.9 billion in education subsidies(津贴), and easier access to credit.
Addressing the 2,927 delegates to the National People's Congress (NPC), gathered in the massive Great Hall of the People beside central Beijing's Tiananmen Square, Mr Wen warned of the "many difficulties and problems in China's economic and social activities".
Recently passing Britain in its total gross domestic product(国内生产总值) measurement, China still has huge developmental differences between town and country. Below the neon-lit skyscrapers of Shanghai and Beijing, 80 million people still live in poverty, earning less than £50 a year. In recent years, average income in the cities has been as high as six times that earned on the farms.
Being able to pay the state-imposed 150,000 yuan (£10,600) "social maintenance fees" to have an extra child has become the latest sign of the dramatic and growing divide between China's haves and have-nots.
China started limit family size in the late 1970s to control growth of its population, now more than 1.3 billion. Ethnic minorities and rural families whose first child is a girl are allowed to have a second.
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