The central government will establish a nationwide basic social
security system by June that will for the first time cover
historically neglected rural areas, an official of the Ministry of
Civil Affairs said yesterday.
At present, provinces, municipalities and autonomous regions
operate their own systems. The central government has in the past
provided funds only to urban areas.
Sun Yang, an official of the ministry's department of
subsistence security, said a subsidy scheme and nationwide
regulation on basic social security coverage would be unveiled
after the annual session of the National People's Congress in
March.
She did not say how much money the central government would
spend on the system.
However, she did say the central government would give different
subsidies to different areas, with western areas receiving
more.
In addition to the funds from the central government, local
governments will also be required to allocate funds not necessarily
at the level provided by the central government to support the
system, she said.
She said that under the current system, a farmer who qualified
for the system received an average of about 33.2 yuan ($4.25) per
month. This figure could grow once the central government starts
injecting money into the system.
The nationwide system will help redress the absence of any sort
of social security system in six provinces and autonomous regions
Hubei, Yunnan, Guizhou, Ningxia, Xinjiang and Tibet she said.
Sun said different parts of the country would be allowed to set
their own standards for those who qualify for the system.
For example, in North China's Inner Mongolia Autonomous Region,
farmers who earn less than 625 yuan ($80) a year and herdsmen who
earn less than 825 yuan ($106) on average are entitled to minimum
social security.
By contrast, East China's Fujian Province draws the line at
1,000 yuan ($128).
Li Liguo, vice-minister of Civil Affairs, said at a conference
last Thursday that about 3.5 percent of the nation's rural
population would qualify for the system.
Li Shaoguang, a professor at Renmin University of China's
Institute of Social Security, said guaranteeing that the system
operated properly would be a challenge.
"More transparency and democracy are needed to ensure the money
is properly managed and actually ends up in the hands of poor
farmers," Li said.
"We should draw lessons from the major corruption cases
involving misappropriated funds from urban social security funds
last year."
Li also urged the government to increase incomes and other
benefits for migrant workers, saying many rural families depend on
the money such workers send back from cities.
Yang Tuan, a researcher at the Chinese Academy of Social
Sciences' Social Policy Research Center, said the establishment of
a nationwide basic social security system was a reflection of the
progress the government has made in drawing up social policies.
(China Daily January 26, 2007)
