Wu Jinglian, a renowned economist with the Development Research Center under the State Council, pointed out corruption and monopoly are at the root of China's widening income gap.

The remarks came during the Chang'an Forum of Chinese Economists 50 Forum held in Beijing Sunday, reported the China Business News.

Wu Jinglian, a renowned economist with the Development Research Center under the State Council, delivers a keynote speech during the Chang'an Forum of Chinese Economists 50 Forum in Beijing Sunday, June 25, 2006. [Xinhua]

Wu noted in his keynote speech that China's widening income disparity was largely caused by unequal opportunity, which is a result of corruption and monopoly.

"Cracking down on corruption for equal opportunity is beneficial to improving efficiency. High income in monopolized sectors is not a result of personal abilities. The key in reducing the income gap lies in rooting out corruption and marketing monopolized industries," Wu said.

He also called for establishing a complete social security system.

"Low-income allowances for every resident should come first in the system and be made into a restrictive policy, which is well within the country's financial capacity," Wu said.