National Income Distribution System In The Third Distribution

With the promotion of China's market economy, the gap between rich and poor has already become the irrefutable fact. Some scholars began to consider charity as an important issue and do some research work on it.The third distribution, namely charitable public service, following the first and the second distribution, has its inevitab existing at the present stage.The thesis point out the definition and characteristics of the third distribution, which is differ from the first distribution and the second distribution in function and principle. The third distribution is a voluntary means of wealth transference. Rich people relief of unfortunate or needy people, which will compensate for government failure and market failure in equality of income distribution.The Gini co-efficient,a key gauge of income, reached 0.45 in china for several years, which has passed the internationally recognized danger lever. The massive income gap is a major factor that affects our social harmony. There are two reasons for the gap of the rich and the poor. Firstly , a market-driven distribution system, which take efficiency as principle, caused inequality of income distribution in china. On the other hand, government distribution enlarged the gap, too. So , it is necessary and urgent to promote charity undertaking in china.The fourth part discusses the status quo and major problem of charity in china. There are some elements, such as culture, law and taxation, constraint charity's development. The thesis tries to explore the way for developing, china's charity undertaking. The conclusion and the proposals which are based on practical conditions in china, would be valuable in operation.The third distribution of income can adjust the urban income gap in china and promote fairness and stability in china. All of us should become the member of this system.