We are aware of the significant gap between the rich and the poor, but how serious is the disparity here in Taiwan?

From observing the income tax returns, the yearly average earnings of the top 5 percent of the population is 66 times greater than those in the bottom 5 percent of the totem pole.

The high profile opening of the Bella Vita department store revealed a number of luxury brands inside that few people can afford.

With Taiwan's economy still recovering from the global financial crisis, this business correctly targeted themselves at the upper end of the pyramid, with high net worth individuals who continue to exhibit spending power.

On the other hand, some people have no place to live, even struggling with basic food and clothing which are all a problem.

How big is the gap between rich and poor?

Looking at income tax reports, one learns that in the 2008 income, the top 5% of the population averaged 4.5 million NT$ while that of the bottom 5% was just 68,000 NT$, leading to a gap of 66 times.

Also, there were 8,500 people with reported income in excess of 10 million NT$, including 4,700 people in Taipei. The wealth gap is also apparent in difference between urban and rural areas. As former CEPD Chairman Chen Tian-jy said that Taiwan is making more money from technology and a change needs to be made in the industrial structure,

as we must strengthen the development of non-trade services, to improve income levels.

However, changing the industrial structure to raise pay levels will not result in visible short-term effects as the government should develop a policy to help the economically disadvantaged through employment or subsidies. Scholars emphasize that education must be thoroughly implemented and enacted throughout the society to give underprivileged children the opportunity to climb up the socioeconomic ladder.

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