PRICE CONCERNS: Consumer representatives at a hearing on water pricing in Beijing. The one-way uptrend of public service prices seems increasingly unbearable (ZHANG XU)

Rewards From People

A year has passed since Shenmu county government in Shaanxi Province led the country in offering free medical services to local residents. County officials said the government had made a big investment and also benefitted greatly because local residents now worked harder for the county's development since the start of the free program.

All-inclusive coverage of free medical services absorbed only 150 million yuan ($22 million) of the Shenmu county government's annual income of 4 billion yuan ($586 million), about 400 yuan ($58.6) per capita for the county.

More importantly, many anticipated problems, such as excessive treatments and waste of medical resources, did not happen. In the first few months, the number of outpatients and hospitalized patients did soar but soon became stable because many ill people who had not previously been able to afford medical treatment had been cured; and many studies showed a fair medical system was more efficient financially than an unfair one.

Besides free medical services, Shenmu is also proceeding with free 12-year compulsory education and gives living allowances to students from impoverished families.

The win-win story for the government and residents in Shenmu again indicates, while energetically developing the economy, the government must implement projects improving people's livelihoods in line with its financial capability. In a society of fairness and happiness, more people are able to contribute more to social development.

Guangzhou Daily

The Worst Education

In a middle school in Shanghai, students of local residents and migrant workers have been reportedly divided into two separate groups by management, each occupying different parts of the school building.

Calls for educational equality are supported by the public but realization must be gradual. During such a process, competition for good teaching resources is always tight. Local residents think they have many reasons to reject migrant workers and their children, and they are more influential with schools and education authorities.

This discrimination is common in big cities. Children of many migrant workers are treated unequally in recruitment, provision of teaching resources and in other fields.

These blameworthy practices will only result in widening gaps between local residents and migrant workers. Worse still, they are detrimental to the building up of awareness of equality among their children.

Yangtze Business Daily

Present Priorities

It's reported China may formulate policies and measures to optimize the national income distribution system before the end of this year to promote social fairness and justice. There are also scholars suggesting China model its 12th Five-Year Plan on the "income-doubling" plan launched by Japan in the 1960s, because its rapid economic growth allows China to boost personal incomes. China can increase its national income by 15 percent a year, doubling it in five years, the experts say.

It is a really ambitious plan. But there are few precedents around the world to show big pay rises can coexist with rapid economic growth, stable consumer prices and full employment. So this realization in China is only possible, not certain. More importantly, it is a typical characteristic of economies during take-off stages that the growth of gross domestic product is faster than household income.

Regarding China's actual conditions, the state should first invest all available financial resources in improving its social safety net as quickly as possible, to ensure aged workers who were not able to amass personal wealth during previous decades of low welfare benefits are able to spend their later years in comfort.

Besides long-term goals, it is important to put greater stress on society's present urgent needs.

Southern Metropolis Daily

Up Forever

"Pricing leverage" now is a worry for many Chinese people. This is because, in most cases, the employment of pricing leverage in the end turned out to be a public service price hike.

There are many examples in this regard. Many regions have considered or are considering adopting a progressive water pricing system. Without exception, it is stipulated consumers have to pay much more for the use of water above a specified amount...but no price cuts are offered for households consuming less water than government-sanctioned level. As a result, the adoption of progressive pricing will only result in higher water prices. So does the progressive pricing system for household electricity use in operation in many regions.

The government is reportedly to raise vehicle and vessel use taxes sharply to encourage low-emission and energy-efficient cars. Though the objective can also be achieved by lowering taxes for environment friendly cars, this option seems to have been overlooked by policymakers.

Excuses such as energy conservation, greenhouse gas emissions cuts and environmental protection are always used to justify employment of pricing leverage. But if public service prices always trend upward, adjustments only end up in increasing government fiscal revenue and costing the taxpayers.

Yangtze Evening News