China plans to initiate social security reforms in its vast rural areas next year. Xiang Huaicheng, Chairman of the National Council for Social Security Fund, recently discussed the plan in a speech at the Xiamen National Accounting Institute in the coastal Province of Fujian.
The chairman said that social security scheme, as blueprinted in the nation's 11th five-year plan for 2006-2010, will address the rural areas, where only 13% of the population has been covered mainly in rich eastern coastal regions. His focus will be on the reforms in these economically well-developed places next year, the report added.
China will see about 400 million senior citizens, 60 years of age or older, by the year 2030, which is equal to the total population of the entire European Union, the report said.
A World Bank report in May this year on China's social security fund, says under its present model China needs another nine trillion Yuan, more than one trillion US dollars, to cover the social security in the periods from 2001 to 2075.
Chairman Xiang Huaicheng noted that the enlargement of the social security fund would be in the interest of long-term development and for emergencies. He urged a state strategic status for the social security fund, which aims for value, security and growth.
China, it has been reported, has been under screening for social security models.
Chinese scholars argue about what the basic social security model for this country should be. One is the Scandinavian model, which provides a generous social welfare system for its working class and new middle class citizens. The second is the continental European model with strict levels of social welfare in different sectors that benefit mainly the middle class citizens. The third is the US model with extensive social assistance. Both the middle class and poor people in American society consist of the major supporters for the market-oriented social security system.
