A minimum standard of living system established nationwide in 1993
is considered the basic safety net of China’s social security
system. How is it being implemented today? Is it working in poor
areas? Do local governments have the wherewithal to support it?
How? Can the present system help the urban poor shake off poverty?
These and other questions were asked recently by china.org.cn to
Wang Zhikun, director of the Social Relief Office, Disaster and
Social Relief Department of the Ministry of Civil Affairs.
china.org.cn: What is the minimum standard of living system? How is
it implemented today in China? Is it in both big and medium-sized
cities?
Wang Zhikun: The minimum standard of living system for city
residents is a new social relief system designed to provide help
according to a set minimum standard of living level. It serves as
the most basic safety net of China’s social security system and is
considered a reform and development of China’s old social relief
system.
In
1993, Shanghai took the lead by setting up its minimum standard of
living system for city residents. In September 1997, the State
Council sent out a notice requiring establishment of similar
systems in all cities of the nation. By the end of 1999, a minimum
standard of living system had been established in the 667 cities of
different sizes and the 1,682 county seats across the nation. Up to
the present, the system has expanded to the non-agricultural
population in many areas. By spring of 2001, some 4,160,000 persons
were benefiting from the minimum standard of living system, with an
average monthly allowance of 60 yuan (US$7.3) per person.
china.org.cn: What is China’s minimum standard of living? What are
highest and lowest standards? How is the gap between the standards
and real life bridged? How are differences among people under the
standards identified and treated? What about regional
differences?
Wang Zhikun: As a system implemented throughout the whole country,
the minimum standard of living system must have uniform
requirements in its basic principles, implementation, funding
resources and the administrative system. Because of the wide gaps
between west and east China and consumption levels in cities of
different sizes, the central government can only formulate general
principles for a minimum standard of living. The actual standards
are left to local governments to decide based on local realities.
According to the Regulations of Minimum Standard of Living for City
Residents came into effect on October 1, 1999, the standard is
determined by civil affairs departments of municipal and county
governments in line with the local costs of basic necessities like
clothes, food and housing. The cost of water, electric and heat, in
addition with tuition for the compulsory education of minors should
also be taken into account. We can see from this regulation that
the minimum standard of living for city residents is the most basic
safety net and the lowest standard of social security system to
support fundamental life of city residents.
The minimum standard of living differs greatly among different
cities and counties of the country. Even in cities and counties
within a province or autonomous region, the standards are not the
same. In general, standards in Beijing, Shanghai and Guangdong are
comparatively high, with Shenzhen the highest 319 yuan (US$38.6)
per person, per month). The regions with the lowest standards
include Guizhou, Jiangxi provinces and Inner Mongolia Autonomous
Region. The lowest standard, which is 78 yuan (US$9.4) per person,
per month, is in Qianxi County in Guizhou Province.
Whether a family should receive the minimum living allowance is
decided by the average income of the family members and the actual
living level of the family. If the average income of a family is
below the local minimum standard of living and its actual living
level is not apparently above the average local level, it should be
granted the minimum living allowance.
Some cities, such as Fuzhou and Xiamen, decide the standard
according to the number of family members. A family having a single
member enjoys the highest allowance, two members the next, and
those having three or more members even lower. Some cities offer a
special allowance that is 20 percent higher than the uniform
standard for widows and orphans.
The minimum living allowance is the difference between the average
family income and local minimum standard of living. For instance,
if the average monthly income of a 3-member family is 170 yuan
(US$20.6), and the local minimum living standard is 200 yuan
(US$24.2), the family should receive a monthly allowance of 90 yuan
(US$10.9).
What’s more, some local governments provide people who receive the
minimum living allowance with aid in kind as they issue them the
allowance. For example, in Beijing, those who get the minimum
living allowance also get a card with a face value of 40 yuan
(US$4.8) when they draw the 280 yuan (US$33.9) allowance. The
holder of this card can use it to pick up food and oil in an
assigned food store.
china.org.cn: Does the minimum standard of living system function
in poor areas of the country? If it does, how can local governments
afford to support the implementation of the system?
Wang Zhikun: As I have said, the minimum standard of living system
functions in every city and county seat around the country.
Unfortunately, in some poor areas, the local financial departments
do find it difficult to support the system. To date, these local
governments are adjusting the structure of their financial
expenditure to invest more in social security including minimum
standard of living system. At the same time, the central government
invests more in central and western China to help the local
governments establish and improve their social security system.
china.org.cn: Who is in charge of the implementation of the minimum
standard of living system? To let the allowance go to the terminal
receive, what procedures are needed?
Wang Zhikun: According to the Regulations of Minimum Standard of
Living for City Residents, local governments are responsible for
the implementation of the minimum standard of living system. To be
more specific, departments of civil affairs in governments of
provincial and municipal level are responsible for the
administration of the minimum standard of living system within
their own administrative regions. Financial departments are
responsible for the collection of security fund. Departments of
statistics, price, auditing, labor and social security, and
personnel are responsible for the related work. The Ministry of
Civil Affairs is in charge of administration of the national
minimum standard of living system for city residents.
The major procedures involved in minimum standard of living system
include application, affirmation, ratification, receiving, change
and adjustment.
china.org.cn: Are all the persons eligible under the minimum
standard of living receiving benefits? Can the existing social
security system help impoverished city residents shake off
poverty?
Wang Zhikun: Although China has set up the minimum standard of
living system, we still have a long way to run. There are people
under living under the standard who do not yet receive benefits.
According to an investigation done jointly by local civil affairs
departments, there are some 14,000,000 impoverished city residents
in the nation. However, up to the end of the first season of this
year, only some 4,160,000, enjoys the minimum standard of living
allowance. That leaves some 10,000,000 impoverished people outside
the system. There are three reasons for this: inadequacy of local
funds; inadequacy in our work, and prejudice against the system and
people who receive the allowance.
The minimum standard of living system can only provide basic living
needs for city residents. It cannot get them out of poverty. The
way for impoverished city residents to improve their condition is
to find employment. Sure, the social security system can be helpful
and beneficial in this respect.
china.org.cn: Who are the impoverished city residents in today’s
China?
Wang Zhikun: At present, aside from those people who traditionally
have received help (those who have no income, no ability to work,
or no legal supporters), there are three sorts of impoverished
families: a family in which its main breadwinner has been laid-off,
a family with disabled people or people who are ill and needing to
pay high fees for medical care, and a family that lacks a working
person or which has a student needing to pay a high tuition.
china.org.cn: Could you tell us something about the situation of
minimum standard of living system in rural areas?
Wang Zhikun: The establishment of a minimum standard of living
system in rural China involved many regions. Statistics reveals
that 29 provinces and autonomous regions by the end of 2000 had
launched the system, and 14 had completed the work of setting it
up. More than 3,000,000 rural people have enjoyed the minimum
living allowance. The allowance totaled 730,000,000 yuan
(US$88,302,891), with about half of it financial investment from
government, and the other half a collective fund.
Compared with the system for city residents, the minimum standard
of living system in rural areas is quite different in content,
method, criteria, duration, and funding resources. The family
income is computed by the year, and the criteria is also drawn up
with a year as the unit.
The establishment of minimum standard of living system in rural
areas means that the previous temporary relief by both the
government and collectives has changed into a standard social
relief system. A gap between richer regions and poorer regions
still exists in the establishment of rural minimum standard of
living system.
The Ministry of Civil Affairs will strengthen its guidance to the
work of minimum standard of living system to improve the existing
systems and help those regions without the system to set up their
own ones.
(china.org.cn, 08/14/2001)