 According to the National Bureau of Statistics, the Engel coefficient for urban residents in Beijing reached the well-to-do level in 2006. Engel coefficient is a major indicator of people's living standard internationally. Therefore, the report concludes the lifestyle of people has changed from being merely sufficiently fed and clothed, to comfortable.
Reporter:
One article from the Beijing Daily says the consumption expenditures have increased in recent years along with the average household income. Among all expenditures, food expenses have taken a smaller portion. But the food quality and nutrition has been improved. Also, there are demands for nicer clothes, private cars, cell phones and bigger houses. All these show the living standard of Beijingers has been raised to a higher level.
Qianxian Magazine in Beijing has a report saying the Engel coefficient alone can¡¯t accurately tell the well-being of Chinese people, because China doesn¡¯t have a complete healthcare and social security system. The article cites an investigation showing Beijing residents have to spend nearly half of their incomes on education, housing and medical care. In order to pay for those expenditures, many ordinary families have to keep other expenses low. There¡¯s still a big disparity between the life of residents in Beijing and other developed countries.
Another comment from the paper China Business Times says the gap between poor and rich has made the figure misleading. The reality is the rich have contributed a lot for the expanded expenditures beyond food. The comment points out the lower Engel Coefficient in fact reflect the high pressure on residents in terms of rising spending on education, housing and healthcare. When the figure is forced to go down because of other expenditures, what people actually feel is life is getting harder. To some degree, they have not benefited from the increased family income. The authorities should have a accurate judgment on people¡¯s living standard.
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