From Enterprise Protection to Social Protection

Abstract

The Chinese system of social protection has been subject to significant reforms over the past 25 years, but it can still be regarded as a system in transition. These reforms have been impressive in scope and much has been achieved in extending coverage, pooling resources, improving administration of payments, and in starting to address the issue of future financing requirements. Nevertheless, the system is not yet fully appropriate for the challenges facing China over the next decade and beyond. This article assesses the main features of the development of the Chinese pension system, and identifies a number of issues to be addressed as part of future reforms. The article compares the Chinese system with those operating in other world regions, and also in other parts of Asia. Chinese developments are also discussed in the context of global social policy developments and the role of international organizations. The article also discusses possible approaches to dealing with future challenges.

De la Protection d'Entreprise à la Protection Sociale: Réforme de la Retraite en Chine

Le système chinois de la protection sociale a fait l'objet de réformes considérables pendant les derniers vingt cinq ans, mais il peut toujours être considéré comme un système en transition. Ces réformes ont été d'une envergure impressionnante, et beaucoup de progrès ont été fait pour étendre la couverture sociale, mettre en commun des ressources, améliorer la gestion des versements, et commencer d'aborder le sujet des exigences de financement futures. Pourtant, le système n'est pas encore tout à fait prêt pour les défis auxquels la Chine va faire face pendant la prochaine décennie et au-delà.

Cet article évalue les traits principaux du développement du système de retraite chinois, et identifie un certain nombre de problèmes qu'il faudra aborder dans des réformes futures. L'article met en comparaison le système chinois avec ceux qui fonctionnent dans d'autres régions mondiales, et aussi dans d'autres régions en Asie. Les développements chinois sont aussi examinés dans le contexte des développements globaux de politique sociale, et dans le rôle des organisations internationales. L'article examine aussi différentes approches possibles d'aborder des défis futurs.

De la Protección en la Empresa a la Protección Social. La Reforma del Sistema de Pensiones en China

El sistema social de protección social en China se ha visto sometido a reformas significativas en el ultimo cuarto de siglo pero todavía es posible considerarlo como un sistema en transición. Las reformas han sido impresionantes desde el punto de vista de su alcance y se ha alcanzado ampliar la cobertura, unificar recursos, mejorar el sistema de administración de pagos, e iniciar acciones para confrontar el problema de las necesidades de financiamiento que surgirán el futuro. No obstante, el sistema no es todavía suficientemente apropiado para abordar los retos que China enfrentará durante la próxima década y posteriormente. Este artículo evalúa las principales características del desarrollo del sistema chino de pensiones e identifica una serie de cuestiones que deberá enfrentar como parte de las futuras reformas. El artículo compara el sistema chino con los de otras regiones Asia y del mundo. Los acontecimientos en China también se discuten a la luz de los acontecimientos en las políticas sociales globales y del papel de las organizaciones internacionales y también discute posibles enfoques para tratar los retos que encierra el futuro.

Keywords

ageing China pensions social security

Get full access to this article

View all access options for this article.

References

Asian Development Bank (2001) Key Indicators of Developing Asian and Pacific Countries. Manila: Asian Development Bank.

Chai Pui Phin (1992) `The Welfare Policy Implications of China's Ageing Population', Working Paper No. 73. Perth, Australia: Murdoch University.

Davis, D. (1988) `Unequal Chances, Unequal Outcomes: Pension Reforms and Urban Inequality', China Quarterly 114(June): 223-42.

Fuery, M. , Stanton, D. and Walters, C. (1996) `Reforming Social Security in China', Social Security Journal (December): 128-47.

Han Liacheng (1998) `The Old-Age Insurance System and Fund Management in China', in International Social Security Association (eds) Financing Retirement Benefits: The Asia and Pacific Experience. Social Security Documentation No. 20 (pp. 81-91). Geneva : International Social Security Association.

James, E. (2001) `How can China Solve its Old Age Security Problem? The Interaction between Pension, SOE and Financial Market Reform', The Journal of Pension Economics and Finance 1(1): 53-75.

Ministry of Labour and Social Security (2000 ) Social Insurance Year Book. Beijing : MOLSS.

Müller, K. (2003, forthcoming) `The Political Economy of Pension Reform in Central and Eastern Europe', in P. Whiteford (ed.) Practical Lessons in Pension Reform: Sharing the Experiences of Transition and OECD Countries (pp. 1-26). Paris : OECD.

National Bureau of Statistics (various editions) China Statistical Yearbook. Beijing: China Statistics Press.

10.

Oecd (1998a) `Income Distribution and Poverty in Selected OECD Countries', Economics Department Working Papers No. 189. Paris: OECD.

11.

Oecd (1998b) Maintaining Prosperity in an Ageing Society. Paris: OECD .

12.

Oecd (2000) Reforming China's Enterprises. Paris: OECD.

13.

Oecd (2002) China in the World Economy: The Domestic Policy Challenges. Paris: OECD.

14.

Ortiz, I. (ed.) (2001) Social Protection in Asia and the Pacific. Manila: ADB.

15.

Palacios, R. and Pallarès-Miralles, M. (2000) International Patterns of Pension Provision. Washington, DC: World Bank.

16.

Shah, A. (2000) Issues in Pension System Reform in India. Bombay: Indira Gandhi Institute for Development Research .

17.

Shang Xiaoyuan (2000) `Rethinking "Social Welfare" and "Social Security" in China', paper presented to Theories and Policies: Social Welfare in China conference, Beijing, 27 November-1 December.

18.

Stanton, D. and Whiteford, P. (1998) `Pension Systems and Policy in the APEC Economies', vols. 1-3, Report prepared for the Asian Development Bank, Manila.

19.

Tang, K.-L. and Ngan, R. (2001) `China: Developmentalism and Social Security', International Journal of Social Welfare 10(4): 253-9.

20.

United States Social Security Administration ( 1999) Social Security Programs Throughout the World, Office of Policy, Washington, DC.

21.

World Bank (1994) Averting the Old Age Crisis: Policies to Protect the Old and Promote Growth. Washington, DC: World Bank.

22.

World Bank (1997a) Pension Reform in China: Old Age Security, China 2020. Washington, DC : World Bank.

23.

World Bank (1997b) Financing Health Care: Issues and Options for China, China 2020. Washington, DC: World Bank.

24.

Zhao Rewei , Li Shi and Riskin, Carl (eds) (1999) Research on Income Distribution of Chinese Residents - Income Distribution in the Context of Economic Reform and Development. Beijing : China's Financial Economy Press.

25.

Zhou Jianguo (2001) Developing Social Pension Insurance in China's Rural Areas. Beijing: Rural Social Insurance Department, Ministry of Civil Affairs.