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A Sino-Japanese project on rural old age insurance was launched in Beijing Wednesday in a bid to introduce more expertise and vision into China's rural social security reform.

Jiang Mohui, Deputy Director General with the Ministry of Labor and Social Security (MOLSS) international cooperation department, said Japan had encountered problems in its urbanization similar to those being encountered by China with both countries densely populated and having scarce land resources.

"Therefore Japan can offer more credible experience and lessons for China than Western developed countries," Jiang said.

With government approval from both countries the project has been the subject of intense negotiation. Significant preparatory work has been undertaken by MOLSS and the Japan International Cooperation Agency.

Over the next three years experts from both countries will carry out "on site" investigations and policy studies, conduct a pilot survey in eight cities, counties or districts in seven provinces and municipalities in China, including Beijing, Shandong and Anhui Province, before considering the best way to progress.

Osada Mamoru, head of the project's Japanese team, said the eight pilot regions include both affluent neighborhoods like Daxing District in suburban Beijing and less successful areas like Nanhua County in southwest China's Yunnan Province.

"With regions of varied economic success in the package the project could well succeed in gaining a panoramic view of China's vast rural areas which will assist formulate an insurance scheme for China's elderly farmers," Osada said.

Traditionally China's rural families have taken responsibility for providing for the elderly. However, the structure for providing such assistance is being weakened because of the aging rural population and the significant rural labor migration to the urban areas and land seizures from farmers in areas of urbanization.

China attempted to address the issue in late 1980s and early 1990s and a pilot reform was conducted in the rural old age insurance system in several regions. Although progress has been made, problems have surfaced including an unsound fund management system and the inadequate training of professionals. .

Shinichi Nishimiya, Minister of the Japanese Embassy in Beijing, said: "The rural population is aging faster than the urbanites. The rural old age insurance system has a direct impact on the life quality of the aged. This project is significant for both Japan and China."

(Xinhua News Agency February 16, 2006)