Social security is a government program that provides assistance to underprivileged persons. A system corresponding to the level of economic development is a logical requirement for coordinated economic and social development of any country. Initially China’s Social Security system was very poor, even today to some extent it is still bad. China is one of the biggest country with a largest population in the world and its economy being weak at a time, its social security was not well organized, but now the economy is getting stronger and is the second largest economy in the World, second to USA. Within 20 years it is projected to take over from USA. With this development, China needs to organize itself well, as far as social security is concerned.
Even though China has tried to put a comprehensive social security system in place, accessibility is still low, as some places such as the rural areas do not have most of social security programs offered to their counterparts in urban areas.
Keywords: Financial Liberalization, Integrity of the Market.
JEL codes: F31
Table of Contents
Abstract
1.0 Introduction
2.0 Old-Age Insurance
3.0 Unemployment Insurance
4.0 Medical Insurance
5.0 Insurance for Work-related Injuries
6.0 Maternity Insurance
7.0 Social Welfare
8.0 Special Care and Placement
9.0 Social Relief
10.0 Housing Security
11.0 Social Security in Rural Areas
12.0 Observations
13.0 Conclusion
Objectives and Topics
This paper examines the development and status of China’s social security system and considers issues for its future. It asks how the system’s insurance, welfare and relief arrangements relate to economic reform, population aging and differences between urban and rural areas.
- Social security reform and state-owned enterprises
- Old-age, unemployment and medical insurance
- Work-related injury and maternity insurance
- Social welfare, special care and social relief
- Housing security and rural social protection
- Population aging and future sustainability
Excerpt from the Book
1.0 Introduction
Social security is a government program that provides economic assistance to persons faced with unemployment, disability, or agedness, financed by assessment of employers and employees (Sa Ginka, 2006). In other words it is an economic and social system relating to the vital interests of members of the entire society for safeguarding social stability, social vulnerability, and promoting economic development. The social security system originated in the social salvage system designed to provide material compensation or aid to help citizens overcome difficulties in their livelihood and unexpected disaster.
Since China embarked on full-fledged reforms and market opening in 1978, the market economy has rapidly developed, while social security reforms have also been advanced (Sa Ginka, 2006). With the rapid growth of its economy the government is pushing ahead with social security reforms as a key component of the economic reforms. There are two objectives in making social security reforms a key part of the reforms and market economy. The first objective is to stabilize the national life and society in general. In recent years, the national life has become extremely unstable as unbalanced economic growth causes growing income disparities between coastal and inland, the country side and urban areas. Under these conditions, as aging advanced, the social security system became an unbearable burden on companies, which were responsible for funding retirement pensions in entirety (Li Pei Fu, 1999). In particular, financially troubled state-owned enterprises struggled to pay retirement benefits, and many actually stopped doing so. By putting up social security reforms, the government seeks to alleviate anxieties regarding pensions and thereby stabilize the national life.
The government’s second objective is to provide full support in reforming financially troubled state-owned enterprises. With state-owned enterprises crippled by social security expenses, social security reform is critical to reducing their burden and adjusting excess unemployment so that the reform of these enterprises can proceed smoothly.
Chapter Summaries
1.0 Introduction: The introduction defines social security and situates reform within China’s economic transition and the restructuring of state-owned enterprises.
2.0 Old-Age Insurance: This chapter describes urban pension arrangements, funding channels, management reforms and supplementary enterprise annuities.
3.0 Unemployment Insurance: The author discusses participation, contributions, eligibility, benefit duration and measures intended to support re-employment.
4.0 Medical Insurance: The chapter outlines basic medical insurance for urban employees, payment arrangements and the development of a multi-level medical security system.
5.0 Insurance for Work-related Injuries: This section describes arrangements for injury prevention, compensation, assessment and occupational rehabilitation.
6.0 Maternity Insurance: The author discusses coverage, employer contributions, childbirth allowances and reimbursement of medical expenses.
7.0 Social Welfare: This chapter describes welfare provisions for older people, children and people with disabilities.
8.0 Special Care and Placement: The section addresses preferential treatment and support for service members, veterans and their families.
9.0 Social Relief: The author outlines minimum living support, disaster relief and assistance for vulnerable urban residents.
10.0 Housing Security: This section presents urban housing funds, affordable housing and low-rent housing arrangements.
11.0 Social Security in Rural Areas: The chapter discusses rural old-age insurance, cooperative medical services, social relief and differences in local financial capacity.
12.0 Observations: The author reflects on access to social security, demographic change and the pressures associated with extending coverage.
13.0 Conclusion: The conclusion considers the implications of population aging for pensions, medical insurance, unemployment benefits and social relief.
Keywords
China, social security, social insurance, old-age insurance, unemployment insurance, medical insurance, maternity insurance, work-related injury insurance, social welfare, social relief, housing security, rural social security, population aging
Frequently Asked Questions
What is this paper about?
It examines the development and status of China’s social security system and discusses challenges for its future.
What are the central topics?
The paper covers social insurance, welfare, special care, relief, housing security and rural social protection.
What is the paper’s primary objective?
Its stated objective is to examine the system’s development and present status and discuss outstanding issues for the future.
What research method does the author use?
The paper presents a descriptive discussion based on cited publications and policy arrangements. It does not identify a formal research method or report an original survey or interviews.
What does the main body cover?
It moves through individual insurance programs and other forms of social protection before discussing observations and concluding.
Which keywords characterize the paper?
Key terms include China, social security, old-age insurance, unemployment insurance, medical insurance, social welfare and rural social protection.
How does the paper describe pension funding?
It discusses contributions by enterprises and individuals, government budget subsidies and the national social security fund.
What aspects of unemployment insurance are examined?
The author describes contribution requirements, eligibility conditions, benefit duration, medical subsidies and re-employment support.
How does the paper address rural social security?
It discusses rural old-age insurance experiments, cooperative medical services and relief arrangements, alongside differences between rural and urban systems.
- Quote paper
- Dr. Francis Mulenga Muma (Author), 2011, Social Security and Pension System in China, Munich, GRIN Verlag, https://www.grin.com/document/198361
