Several Major Issues in the Reform and Development of China’s Social Security System: Comments and Suggestions on China’s Social Security Report

Abstract

Of the many research results on social security, China’s Social Security Report (hereinafter referred to as The Report) stands out as one of the achievements in the first phase of “China Economic Research and Consultation Projects” for its selection of key issues and strong lineup of researchers. Besides internationally famous experts on social security such as Nicholas Barr, the participants included Chinese experts such as Li Jian’ge, Gao Xiqing, Zheng Silin, Xiang Huaicheng, Zhou Xiaochuan, Liu Zhongli, Wu Jinglian, Lou Jiwei, Guo Shuqing, Yu Yongding, HouYongzhi, Li Shaoguang and Zheng Beingwen. Resulting from several years’ study, The Report is quite original in that it draws on the latest international experiences as reference, examines China’s national conditions, compares and analyzes the advantages and disadvantages of different modes of old-age insurance, and suggests that the “Non-financial (Notional) Defined Contribution” (NDC) system which is practiced in some European countries be implemented in China, in attempts to straighten out the thinking for the reform of China’s social security system and resolve problems such as the pension fund financial crisis. This report also gives a series of policy suggestions for establishing a uniform social security management system, raising retirement age, allocating state-owned assets, expanding coverage, improving the capital market, and promoting social equity. It is a report analyzing China’s reform on its social security system from a very broad perspective, and also a very deep report about China’s reform on its social security system. In light of my own understanding, I would like to put forward some of my opinions focusing on the key points of this report.