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Does a universal non-contributory pension scheme make sense for rural China?
- Authors:
- SHEN Ce, WILLIAMSON John B.
- Journal article citation:
- Journal of Comparative Social Welfare, 22(2), October 2006, pp.143-153.
- Publisher:
- Taylor and Francis
Rapid economic growth in China during the past 25 years has been accompanied by increasing economic inequality. China's old-age social security system has long been restricted to urban areas, leaving the 70 per cent of the population living in rural areas with little or no coverage. The lack of social security for elderly people in rural areas poses a threat to social stability and raises social justice concerns. This study is based in part on interviews conducted in rural northeastern China. It also draws on evidence from Chinese government documents, newspapers, and reports on relevant programs in other developing countries. For rural China the authors propose a variant of the universal non-contributory old-age pension model that takes into consideration rural-urban differences in cost of living. The proposed model would reduce the level of poverty in rural areas as well as the degree of income inequality between rural and urban areas while simultaneously promoting social and political stability.
Social security for China’s rural aged: a proposal based on a universal non-contributory pension
- Authors:
- YANG Yinan, WILLIAMSON John B., SHEN Ce
- Journal article citation:
- International Journal of Social Welfare, 19(2), April 2010, pp.236-245.
- Publisher:
- Wiley
China’s old-age social security system has long been largely restricted to urban areas. This exacerbates the already severe rural–urban economic disparity, slows the rate of rural poverty reduction, poses a threat to social stability, and raises social justice concerns. This analysis draws on evidence from a number of sources including interviews with experts on China, Chinese government documents, Chinese newspaper accounts, and other sources from other countries. Based on the analysis of what has been tried in other countries and the current situation in rural China, this paper offers some suggestions for Chinese policy makers. It suggests that, for rural China, a universal non-contributory old-age pension deserves serious consideration, and refers to a proposed model as a Rural Old-Age Social Pension. It proposes an annual benefit level for each pensioner set at 4% of China’s GDP per capita, but suggests that it could first be introduced at a lower level and at a relatively high age of eligibility. The proposed model will reduce the level of poverty in rural areas and the degree of income inequality between rural and urban areas while simultaneously promoting social and political stability.