China expands social welfare
Wed, November 12 2008
China will become a welfare state within 40 years due to the introduction of universal medical care and old age pensions, says a report compiled by a panel of 208 Chinese experts.
The report says the country will achieve the target in three stages.
The first stage, from 2008 to 2012, will see the creation of a safety net, which would include minimum living allowances, medical insurance and pensions for all urban and rural residents.
From 2013 to 2020, the government will formulate welfare policies and measures to make the social security network stable and sustainable.
From 2021 to 2049, it will continue efforts to eventually “build a socialist welfare society with Chinese characteristics.”
The social security system already includes social insurance; benefits for the elderly, orphans and the disabled; special care for servicemen, social relief and housing.
But because most of the existing policies target urban residents, 737 million rural dwellers have been left with no pensions or medical insurance.
To make up the gap, the government has been developing a rural minimum living allowance system since the 1990s.
The plan was expanded in 2007, when it was formally established in all 31 provinces, autonomous regions and municipalities on the Chinese mainland.
The number of rural beneficiaries reached 38.23 million people by August this year.
The central government launched a new co-operative medical care programme in 2003 to offer basic health care to rural people.
The plan now covers 91 per cent of farmers in 98 per cent of rural areas.
The report suggested the government incorporate the rural cooperative medical programme with the urban medical insurance system.
It also urged government to set up an old age pension system in rural areas.
Renmin University professor Zheng Gongcheng, head of the research team, said the government-supported project was launched in May 2007.
Zheng said the 200-member team had conducted field investigations in more than 11 provinces, autonomous regions and municipalities and even went abroad to study practices of foreign countries.
He hoped the lengthy report, reviewed by many officials and which included action plans, would serve as a blueprint for China’s social security system and provide reference for the government.