A senior Chinese official on Saturday urged accelerating the
building of a social security system that covers both urban and
rural areas, noting that this is important for achieving
sustainable economic and social development.
Addressing the opening ceremony of the China Social Security
Forum in Beijing, State Councilor Hua Jianmin called for paying
attention to the welfare and interests of both this and future
generations.
China's social security system, which used to be completely
State-financed, is now jointly financed by the State, institutions
and individuals, said Hua, who is also secretary-general of the
State Council.
Hua added that the establishment of a long-term mechanism, and
improvements in the management and supervision of social security
funds are also required.
China's attempt to create a unified social security system is an
important measure for its large rural population and pool of
migrant workers, who have contributed significantly to the
country's economic growth, said Serge Abou, ambassador of the
European Union (EU).
Last April, China and the EU launched a five-year project on
social security reform, to which both sides have already
contributed 20 million euros each.
However, such efforts face a number of problems, including the
challenge of further urbanization, according to Cheng Siwei,
vice-chairman of the Standing Committee of the National People's
Congress.
"Of China's 780 million-strong workforce, 480 million are in
urban areas, where coverage is improving. But in contrast, only
parts of the developed countryside provide pensions," he said.
Khalid Malik, the United Nations' resident co-coordinator in
China, also called for nations "to learn from and as well as
contribute to" China's social security system.
Government expenditure in setting up a rural social security
network has increased markedly in recent years.
For example, State expenditure on the new rural cooperative
healthcare system increased from 400 million yuan (US$53.3 million)
in 2003 to 11.4 billion (US$1.5 billion) this year. Over the same
period, rural medical relief funds were also boosted from 300
million yuan (US$39.9 million) to 1.32 billion (US$176
million).
In addition, the coverage of minimum allowance mechanisms, which
already cover over 25 million rural poor and 22.36 million urban
residents, has continued to grow.
By last year, the total income of five social insurance funds
for the elderly, the sick, the unemployed, those suffering from
work-related injuries and pregnant women reached 862.6 billion yuan
(USUS$115 million).
But even in urban areas, only 43 percent of the 283 million
employees had basic medical insurance.
(China Daily September 24, 2007)