The idea of “common prosperity (gongtong fuyu)” has long been embedded in China’s national policies and development plans since the commencement of the reform and opening-up drive. In fact, the term was first coined in 1953 by Mao Zedong as “an essential requirement of socialism and a key feature of Chinese-style modernization”*. In broad terms, “common prosperity” refers to a policy aimed at improving the wealth distribution system and narrowing the income gap between different regions and groups across economic, environmental, and social policies. The phrase gained prominence in August 2021 when President Xi Jinping made reference to it as a strategy for achieving the next stage of economic development and it has since become the defining theme of current Chinese politics.
For philanthropists and businesses in China, common prosperity reinforces the concept that private social investment can and should play in moving the country forward in ways that benefit all of its citizens. An important aspect of common prosperity is the “third distribution of wealth” directing individual and corporate philanthropy. Since the announcement of the common prosperity policy, the interest in philanthropy in China has grown significantly. By August 2021 seven Chinese billionaires directed a combined $5 billion to philanthropy, a sum that exceeds 20 percent of all giving nationally the year before.**
* Caixin Global. (2021, October 19). Xi Jinping’s Speech on Boosting Common Prosperity
** Bloomberg. (2021, August 26). Billionaire Donations Soar in China Push for ‘Common Prosperity’
Related resources by CAPS:
- Report: The Tao of Giving
- Report: China Issue Guide
- Article: How China achieved its poverty alleviation goal by seasoning its ‘stone soup’ strategy (2021) South China Morning Post
- Article: What Chinese-style corporate philanthropy can teach multinationals (2022) Nikkei Asia