RSS / e-News
China’s multidimensional social security approach
Photo: Interplast
The social security aspect of the package has focused on further strengthening the existing social security system and enhancing people’s livelihood while supporting the country’s consumption growth. Social security measures have included an increase in the level of benefits through the increase of basic pension benefits, basic cost-of-living allowances for urban and rural residents, and an expansion of work injury insurance and maternity insurance schemes. To extend social security, a pilot rural pension programme was also launched in 2009 tasked with the aim of covering 10 per cent of the nation’s counties by the end of 2009 and the whole country by the year 2020. In the area of health care, a spending plan of approximately USD 125 billion has been launched to provide universal and improved health-care coverage within the next 3 years.
To stabilize the employment situation and to improve the employment rate, the authorities adopted several policy measures aimed at reducing administrative/financial burdens and constraints for enterprise. These have included postponing social security contribution payments, reducing the contribution rate of the basic medical insurance, the unemployment insurance and the industrial injury insurance for companies in financial difficulties.
The results so far have been very promising. In 2009, the downturn in economic growth was arrested. According to The Economist , GDP growth for 2009 was 8.2 per cent and is estimated to grow by 8.6 per cent during 2010. Social security coverage has been further expanded and there were also positive labour market effects. About 5.69 million urban jobs were created in the first half of 2009, corresponding to 63 per cent of the 9 million target for the year as a whole. Laid-off worker’s reemployment registered 2.71 million re-entrants, representing 54 per cent of the 5 million end of year target for 2009. According to government statistics, at the end of the 3rd quarter of 2009 (September), there were over 9 million urban registered unemployed representing an unemployment rate of 4.3 per cent.
Clearly a multidimensional social security response to the crisis can deliver positive outcomes. Having said this, China does represent a special case in terms of its robust economy and its huge disposable income. The philosophy of this good practice approach serves as inspiration for others to replicate, although on a different scale.
Sources
Ifeng. 2010. Employment remains stable: China posts 3rd quarter unemployment of 4.3 per cent
.
http://finance.ifeng.com/job/special/rsb3/zcyw/20091023/1379961.shtml
ISSA. Forthcoming. Good Practice: China’s response to the crisis
.
www.issa.int/aiss/Observatory/Good-Practices
International Institute for Labour Studies, ILO. 2009. World of Work Report 2009
.
www.ilo.org/wcmsp5/groups/public/---dgreports/---dcomm/documents/publication/wcms_118384.pdf
The Economist
, 16 January 2010.
www.economist.com/markets/indicators/displaystory.cfm?story_id=15271341
Type: Snapshot
Topics: Administration & management, Employment policies, Extending coverage, Family policies, Social security and health, Occupational risks, Old age / Survivors
Latest News
Investment in social protection is "alternative to austerity", says Argentine Vice-President
ISSA,
15.05.2012 |
News Strengthening the social protection of migrant workers in Eurasia
The ISSA Good Practice Award for the Americas
Related events
-
10th International Conference on Occupational Risk Prevention
23.05.2012 - 25.05.2012 | Bilbao, Spain -
ISSA European Network Technical Seminar on efficient e-services in social security
ISSA, 24.05.2012 - 25.05.2012 | Warsaw, Poland -
Workers' Compensation Symposium 2012: Past Learnings - Future Solutions
24.05.2012 - 25.05.2012 | Munich, Germany