Roots of Welfare System in China

East Confucianism Buddhism Taoism 三民主義

West Communism Socialism

SocialismSocial welfare as the

strategy to achieve socialism ….

Proletarian work ethic Egalitarianism Mass line Revolution ethics of

loyalty and obedience Control of resources

Welfare Strategies collectivisation distribution according t

o work and need related to economic

policy (primary distribution)

Enterprises

Urban / Rural Government

Ministry of Civil Affaris

3-Tiers System

Enterprise

Full-employment Life-long job Low wage High benefit A ‘community’

Welfare Development, 1949-77

Urban government

City government Street Committee

街道委員會 Resident Committ

ee

居民委員會

Rural Area

Commune Five Protected Ho

useholds 五保戶 Benefit levels vari

ed in different districts

Ministry of Civil Affairs

administrative & welfare functions

From central to local ‘Three Nos’ 三無 Veteran & martyrs 優撫 Welfare Factory 福利工廠 Fupin 扶貧

Cultural Revolution 1966-76

1978: Economic Reform & Modernisation

‘Structural’ Reforms

Ownership of resources End of Commune to new collective

Reform of SOE

Private ownership of resource / company

Removal of protection which have been provided by the former

collective (through employment and membership of a collective -- commune / committee)

From ‘collective’ / state to ‘individual’

Enterprises….. Urban …..

Enterprise / Collective end of full / tenure

employment layoff and dismissal lost of work and lost

of protection co-payment

(workers’ contribution to social security / insurance)

Urban government alternative sources fo

r financing the services

mobilisation of community resources

setting up of minimum living standard protection system

Rural …..

Formation of new collective (from commune to town, village etc)

Development of rural-based enterprises

Creation of social security / insurance system

Ministry of Civil Affairs

Lack of money Socialisation of Com

munity Service 社區服務社會化

Welfare factory facing with competition in open market

Continuos variation of benefit standards across district

Current Issues ….

Public finance problem Unemployment Increasing inequality Commercialisation of social service

s, social stratification Needs fulfillment?!

Increasing affluent!