 What I want to talk about is about the economic transition and the income equality in China. So I will focus on three topics. Firstly is that I will present some evidence on the features, changes in the income equality in China in the past three decades. The second issue is how to explain the rising income equality in China. The last one I will talk about some of the policy recommendations for reducing income equality in China. So when I come to the conference a lot of people ask me how is the income equality in China is still rising or not. So I will say that income equality has been raised in all aspects. They have been rising in the urban area, also rising in the rural area, and the rising in the China as a whole. So let me give you some evidence to say that. So in the urban China you will see this picture that is Gini coefficient of the income equality. So from the beginning of the economic reform to the last two years. So you will see that the Gini coefficient in urban areas has been rising over time. And the Gini increased from 0.15 in the 78 and to the 0.35 in the 2011. So also if you want to calculate the income ratios of the top desire to the bottom desire you will see that the ratio increased significantly in the rural area. You will find same patterns in the rural areas. So Gini increased from 0.2 at the end of 70 to the 0.4 in the 2011. So the income ratio of top desire to the bottom desire increased magnificently, you will see. That is the income equality in the rural and urban areas. Yeah, let's come to the China as a whole. For the Gini coefficient you will see that it was 0.4, the less than 4 in the 88. Now you are close to 0.4 at something like that. Income ratios of the top desire to the bottom desire increased from 13 times in the 88 to the 23 times in 2007. So that is the figure, you will see that. That comes with a different estimate. Some estimates come from the World Bank and some estimates come from the National Bureau of Statistics. So if you just look at the changes in the Gini in the last three years, you will find that it's slightly decreased in the last three years. So that is come to the questions. How we should assess the recent trend of the income equality. So whether the China is reaching the Christmas turning point, all the China is reaching the turning period, the not-to-point is period. Also as some argument by some report published in China. But in my opinion it's hard to say the China is reaching to Christmas point. I still think the China is still in the stage of rising income equality. Why? So that depends, that we're concerned about how we should assess how large income equality in China. So whether you say income equality is rising or falling, it will depend on several elements that. The first is that how you define household income, you say the different estimates use the difference, the definition of household income, or the second the issues is related to the rural, urban, the migrants include or not because the large size of rural migrants live in urban area. Since SSB's estimate do not include rural migrants as urban population, that may lead to underestimate the gene coefficient. The third one that we know that all the estimates of the gene or income equality index will based on the household samples. The waste is very important, you use the different waste, you will get a different result. The last issue is about whether you will be used the regional PPP or not because the living cost in rural is much cheaper than in the urban area, if the living cost is high in the coastal area than in the western area. So that means if we want to get comparable income definitions, we should use the PPP to make some adjustment. So when we want to consider these elements, we will get a different estimate. So we estimate the gene by using the difference, the household definition, also use the different waste, also we include or exclude the rural migrants. So then we get the difference estimate for the gene coefficient. So also when we use the PPP, as you mentioned, the PPP index is evaluated by Lauren Brand and his colleagues. So we use that, also we get the difference estimate. To sum up the result we got from our estimations, we will find that if we do not use the regional PPP, so we will get the gene coefficient ranging from 0.47 to 0.45. So if we use the PPP, regional PPP, we will get lower the gene coefficient. So that means if we find some slight increase in the gene coefficient in recent years, we cannot make a judgment whether that increase is real or not. That will depend on how you estimate the gene coefficient. So but in the long term, China has facing the rising income inequality. There is no doubt about that. My second topic is that how to explain the rising income inequality. I will focus on the four elements that the first is that there are some significant differences of the income between urban and rural areas. The second is that is some original, some mobility and monopoly in economic sectors that will be explained, some large difference. The third way is that the rising returns to education. That means the income gap between our single work and the single work has been increasing over time. The last way is corruption that is related to the rising income inequality, also related to the income equity issues. So when we talk about the income inequality, usually we like to talk about the income inequality in rural areas and urban areas separately because China has been the country with a big rural and urban divide. So in the past 50 years, there is a difference. The policies have been implemented for rural and urban areas. So that means there is some significant difference between the urban and rural areas in terms of income and social security and public services access or reflecting the government policy and the political institutions discriminating against the rural people. So it's still very large, the income gap between rural and urban households. Also the big income gap between rural and urban areas play a very important role in explaining the rising income inequality in China as well. You see, first you just look at the income gap between rural and urban households. In the last three decades, you will find there are some fluctuations, but since 1977, you will find the urban and rural income gap has been rising. But just till the 2010, in the last three years, there's some slight difference, but the level is still very high. So when we talk about the importance of rural and urban income gap in China as a whole, you can do some decomposition. If we do the tailoring decomposition, we will find the importance of the proportion of the rural and urban gap in the total inequality has been rising from 1988 to 2007. And at this moment, you will find the income gap between rural and urban is over 50% of the total income inequality in China as a whole. Also you can use the different methods to decompose the total inequality with the same and between the rural areas. The method is based on decomposition of the gene and regression analysis. In 2002, you will find the rural and urban divide explain about near the 40% of the total income inequality in China. So the second element related to the rising income inequality is about uncompleted market reforms. I will say that that is when inequality is about rising regional disparities. China as a whole controls the large regional difference between east and west areas. You will see that the coefficient of variation of the household income per capita among the provinces has been rising particularly in the 90s. But recently it has been slightly decreased. If you just look at the regional inequality at the lower level, at the city level, you will find the monthly wage at the different cities is so big indeed. The city with the lower wages is about 500. The higher wages is three or four times higher than the lower cities. Also you can do some decomposition based on regression analysis that provincial domains can explain 10 to 12% for urban inequality in 2002. So that means the original inequality is a very important role. So also when we come to the wage difference between different economic sectors, monopolistic sectors have high income and the wages. If you compare some monopoly sectors like the banking and the insurance company, like some public sectors compared to manufacturers, you will find the relative wage has been increased significantly over time. So also if you try to do some decomposition, you will find monopoly sector and the competitive sector, you will find the segmentation, you will have become more and more important in explaining the regional and no sectoral income inequality. Also the third element relative to rising income inequality is returns to education by the recent, even with the expansion of the higher educations. So we will find return to education increased over times that will lead to the rising, the income, the gap between skill and unskilled works. So also some decomposition analysis indicated the education to play a more and more important role in explaining the rising income inequality in global areas. Now we will come to corruption and inequality. There are a lot of questions which I cannot answer. Why? Because we do not have the data to show how large inequality can be explained by corruption. But there is no doubt, corruption will increase income inequality, but how large it will be is still a mystery. So we still show more research on this issue. Finally, what kind of policy recommendation? I proposed the number of policies for the Chinese government. Some of the policy recommendations have been accepted by the government. Some new policies have been implemented to reduce the income inequality. But how it will be effect, it will depend on how stress of the policy, how you say deeply the policy will be involved, you say that we will find, perhaps we can find some evidence in the near future. So I should finish here. Thank you.