Income of Beijingers has risen 500%

Thanks to over two decades of economic reforms, the income of Beijingers has risen 500 per cent since 1978, allowing them to lead a 'well-to-do' lifestyle as shown in a decline in the Engel's coefficient.

The Engel's coefficient (proportion of income that goes into food) in the Chinese capital has dropped to 31.7 per cent, indicating that the lifestyle of residents in both urban and rural areas of Beijing has changed from being merely sufficiently fed and clothed, to comfortable, spokesman of the Beijing Bureau of Statistics, Han Nuansheng said.

The Engel's coefficient is a major indicator of the people's living standard.

According to the measure set by the Food and Agricultural Organisation of the United Nations, an Engel's coefficient above 59 per cent represents absolute poverty; 50-59 per cent, barely enough food and clothing; 40-50 per cent, a 'moderately well-off' standard of living; 30-40 per cent, a 'well-to-do' standard of living; and below 30 per cent, a 'wealthy' life.

Eating is taking up a smaller and smaller proportion of Beijing residents' awareness, Xinhua news agency reported.

Statistics show that from 1978, when China initiated its reform and opening-up drive, to 2003, the per-capita disposable income of Beijing's urbanites increased from $44.02 to $1,672.6, almost by 500 per cent allowing for price fluctuations.

Last year, farmers in the city's suburban area saw their per-capita pure income rise to $782.7, up 800 per cent from the 18 level. The Engel's coefficient for farmers has plunged from 62.9 per cent in 1978 to 31.7 per cent in 2003.

Another symbol for the improved living standard of Beijingers is the shift from a 'kingdom of bicycles' to 'a society of motor vehicle,' Han said.

Last year, Beijing's population of private vehicles topped one million for the first time, including 656,000 private cars. Since the start of 24, Beijing has sold 38,000 motor vehicles per month on average, including 27,000 new vehicles.

There are, of course, also low-income earners in Beijing, Han said. A social welfare system for low-income people was introduced in Beijing in 1997. Last year it benefited 161,000 people in the urban area, involving $40.96 million and 7,000 people in the suburban area, involving $4.3 million.