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Introduction:As the well-known discourse by World Bank (2011), social protection is regarded universally as “safety nets” for the society. In the late 1980s, the field of social protection study stepped into a new era so called neo-liberalism which implied that certain emerging perspectives in terms of transformative roles of social protection came out and, gradually, is playing a significant role in affecting policy decision and implementation by the states. After the year of 1978, Chinese government announced officially that the market-oriented economic (Shi Chang Jing Ji) rolled out, which brought about dozens of changes in various social fields. Afterwards, social protection in China has been transformed and developed dramatically in order to adapt the dramatic transformation of the field of economics. In reference of previous literatures, this essay primarily sheds light on the illustration regarding multiply vital factors which are impacting the development and function of social protection in China.
Two viewpoints proposed in this essay are that social protection involves many social fields particularly in contingencies including poverty, unemployment, sickness, senile risks, vulnerabilities, retirement, and even death (Midgley, 2012, p. 12). The influential factors being elucidated in this essay are applicable to integral analysis of social protection in Chinese context. Second one is that influential factors should be classified as the positivity and the negativity. This essay merely discourses what the pertinent factors making a difference rather than distinguishes the goodness and the badness.
The Multiple Parameters
Demographic Structure Transition
As of today, the number of national population rising up closely to 1.4 billion in China (United Nations, 2015). More conspicuously, due to the lower mortality rate and improvement of life expectancy as well as amelioration of healthcare, the number of senior citizens in China is mounting up dramatically. According to the estimated result by United Nations Population Division (2015), by 2020, the number of the elderly citizens (aged over 65) in China will outnumber 23 percent of population. Dozens of social transitions will come out as results of the transition of demography. Especially, in the field of social protection, current pension schemes for the elderly have to make changes to adapt the transition of demographic structure. Meanwhile, domestic labor market could be affected extremely by the demographic transition. The structure of labor force will be changed as a result of population transition, which means that less labor force enter labor market to contribute to the economics and more fiscal pressure from pension and other related expenditures surge up the government, which will lead to vicious spiral in labor market and eventually force the government to think of how to adjust social protection schemes to deal with that corresponding changes. In addition, demographic transition also affect how the government proposes and implements social protection schemes in the field of retirement and healthcare. By now, the government officials and some of scholars are arguing that whether Chinese government should postpone the statutory age of retirement (Wu & Huang, 2013). The basis causation of argument is a result of demographic transition. In other words, due to lack of enough labor force to contribute to economic development, the government has to think of methods to fill up the labor gap. Postponing the retirement age could be one of effective ways to achieve the target of boosting macroeconomics. Yet, changing the retirement age will result in corresponding changes in retirement protection for the retired. Also, preventing labor force from risks and specified diseases when they have to serve longer time will be another argued point in terms of healthcare insurance. Current medical insurance for urban employees so called Urban Employee Basic Medical Insurance (Cheng Zhen Zhi Gong Ji Ben Yi Liao Ban Xian) could be rearranged completely thanks to the change of retirement age. All of these changes are related to demographic transition existing in China.
The Efficiency of Administrative Execution
When discoursing the realistic function of social policy in China, typically, in terms of social protection schemes which are introduced and implemented by the state to solve countrywide social issues, the efficiency of administration is another vital dimension to discourse the efficacy of social policies. As the viewpoint stated above, social protection as social “safety nets” is endowed a significant role in preventing citizens from a series of contingencies in life. How to guarantee social protection schemes being implemented successfully, the government plays a crucial role in the process of decision-making and of implementing policies as well as of monitoring schemes running conditions.
Due to lack of transparency in the process of governing, and of formal or informal “third level” organizations, corruption and other administrative issues still exist in each level government in China (Tam, 2002, p. 303). In the period of governance by Xi’s government, nevertheless, the governments adapt a series of acrimonious actions to advance the efficiency of governance, especially, in terms of avoidance of corruption, lots of deep-rooted political problems still obstruct practical application of social protection schemes in that rigid bureaucracy. Comparing to other influential factors, the issue of politics seems to be more complicated to respond and be solved in appropriate approaches by the state. Especially, healthcare insurance reflects more relevant issues which indicate how the inefficient administration affects the function of social protection implementing in the society. China tries to carrying out healthcare reform endlessly in order to reduce the anxious of citizens in terms of expensive to access healthcare (Kan Bing Gui) and difficulties of receiving medical care (Kan Bing Nan) (He, 2010, p. 40). Unfortunately, thanks to lack of efficiently monitoring by authorities and too much power public hospitals possess, four times of healthcare reform still could not solve the two stubborn social diseases. Another typical signal reflecting the administration inefficiency is that Chinese governments are not eager to allow the “third level” government to be set up systematically like non-government organizations (NGOs). Apparently, NGOs can make a difference on assisting the governments to monitor the operation aspect of specific social protection schemes. In the meantime, NGOs can also help the governments to release certain pressures brought about by social protection implementation, for instance, huge fiscal pressures from redistributing social resources could be shared by NGOs through fundraising and sponsorship.
The Status of Macroeconomics
This part highlights how the status of economy impact the development and function of social protection in China. Given the ideology of neo-liberalism which advocates free market and less interventions by governments, social protection probably obstructs economic growth and also limits human libertarian rights (Hayek, 1960). In this regard, it seems that economics and social protection are impossible to coordinate in whatever ways.
As well known, the annual economic growth can be reflected clearly on the Gross Domestic Product (GDP), which was reported with 6.9 percent decent growth at end of 2015 in China (National Bureau of Statistics of China, 2015). Plus, being seized of gigantic foreign capital reserve, Chinese governments are able to draw more attention on the redistribution of social resources to improve social protection. Historically, China announced and implemented comparatively comprehensive social protection schemes covering most of social fields including pension, medical assistance, poverty illumination, retirement assistance, etc. Undoubtedly, comparing with OECD, China still lacks extremely complete social welfare system. Yet, the development of social protection in China is being a universally recognized.
As retrospect the reasons why Chinese government performs better than other developing countries, ample financial reserve and brisk market-oriented economy make a difference. The government receipts guarantee that the state is able to redistribute social resources to the public efficiently. Meanwhile, in cooperation of brisk market-oriented economy, social capital can be flowed around within the society. As one of key factors affecting social protection implementation, macroeconomics either pushes up or obstructs the implementation of social protection, especially in socialism countries such as China which thinks highly of social stability. Conclusion
On account of the Chinese political ideology, social protection which is tightly related to social stability is a strategic social issue for the government. Introducing and implementing social protection need to consider highly all possible influential factors including impediment parameters and stimulating ones. In the macroscopic view, all of these factors involving major fields within the society, as what is discoursed above, demographic transition, politics and economy status are playing dynamic roles in either stimulating social protection development or obstructing its taking effects. Certainly, other parameters such as social stabilization, state education status are major influencers as well. Consequently, governments should also be able to deal with the relationship between social protection and other social elements in order to benefit the public and the society.
References:
He, A. J. (2010). China’s Ongoing Healthcare Reform: Reversing and Perverse Incentive Scheme. East Asian Policy, 2.3, 39-48.
Hayek, F. A. (1960). The Constitution of Liberty. Chicago. University of Chicago Press.
Midgley, J. (2012). Social Protection and Social Policy: Key Issues and Debates. Journal of Policy Practice, 11 (1-2), 8-24.
National Bureau of Statistics of China (2015). The Annual Report of Gross Domestic Product in 2015. Beijing. Retrieve from http://data.stats.gov.cn/search.htm?s=2015年, 國家GDP
Tam, O. K. (2002). Ethical Issues in the Evolution of Corporate Governance in China. Journal of Business Ethics, 37, 303-320.
United Nation (2015). World Population Prospects: The 2015 Revision (Medium variant). New York. Department of Economic and Social Affairs. Retrieve from: https://populationpyramid.net/china/2016/
Wu, I. Lin. & Huang, Te. Pei. (2013). Political Economy Analysis in the Course of Development for Retirement Pensions in Mainland China. Taipei. National Taiwan University. Retrieve from: http://nccuir.lib.nccu.edu.tw/handle/140.119/67171
World Bank (2011). Tanzania - Poverty, Growth, and Public Transfers: Options for a National Productive Safety Net Program. 21 September. Washington D. C. Retrieved from: http://documents.worldbank.org/curated/en/2011/09/18303908/tanzania-poverty-growth-public-transfers-options-national-productive-safety-net-program
Two viewpoints proposed in this essay are that social protection involves many social fields particularly in contingencies including poverty, unemployment, sickness, senile risks, vulnerabilities, retirement, and even death (Midgley, 2012, p. 12). The influential factors being elucidated in this essay are applicable to integral analysis of social protection in Chinese context. Second one is that influential factors should be classified as the positivity and the negativity. This essay merely discourses what the pertinent factors making a difference rather than distinguishes the goodness and the badness.
The Multiple Parameters
Demographic Structure Transition
As of today, the number of national population rising up closely to 1.4 billion in China (United Nations, 2015). More conspicuously, due to the lower mortality rate and improvement of life expectancy as well as amelioration of healthcare, the number of senior citizens in China is mounting up dramatically. According to the estimated result by United Nations Population Division (2015), by 2020, the number of the elderly citizens (aged over 65) in China will outnumber 23 percent of population. Dozens of social transitions will come out as results of the transition of demography. Especially, in the field of social protection, current pension schemes for the elderly have to make changes to adapt the transition of demographic structure. Meanwhile, domestic labor market could be affected extremely by the demographic transition. The structure of labor force will be changed as a result of population transition, which means that less labor force enter labor market to contribute to the economics and more fiscal pressure from pension and other related expenditures surge up the government, which will lead to vicious spiral in labor market and eventually force the government to think of how to adjust social protection schemes to deal with that corresponding changes. In addition, demographic transition also affect how the government proposes and implements social protection schemes in the field of retirement and healthcare. By now, the government officials and some of scholars are arguing that whether Chinese government should postpone the statutory age of retirement (Wu & Huang, 2013). The basis causation of argument is a result of demographic transition. In other words, due to lack of enough labor force to contribute to economic development, the government has to think of methods to fill up the labor gap. Postponing the retirement age could be one of effective ways to achieve the target of boosting macroeconomics. Yet, changing the retirement age will result in corresponding changes in retirement protection for the retired. Also, preventing labor force from risks and specified diseases when they have to serve longer time will be another argued point in terms of healthcare insurance. Current medical insurance for urban employees so called Urban Employee Basic Medical Insurance (Cheng Zhen Zhi Gong Ji Ben Yi Liao Ban Xian) could be rearranged completely thanks to the change of retirement age. All of these changes are related to demographic transition existing in China.
The Efficiency of Administrative Execution
When discoursing the realistic function of social policy in China, typically, in terms of social protection schemes which are introduced and implemented by the state to solve countrywide social issues, the efficiency of administration is another vital dimension to discourse the efficacy of social policies. As the viewpoint stated above, social protection as social “safety nets” is endowed a significant role in preventing citizens from a series of contingencies in life. How to guarantee social protection schemes being implemented successfully, the government plays a crucial role in the process of decision-making and of implementing policies as well as of monitoring schemes running conditions.
Due to lack of transparency in the process of governing, and of formal or informal “third level” organizations, corruption and other administrative issues still exist in each level government in China (Tam, 2002, p. 303). In the period of governance by Xi’s government, nevertheless, the governments adapt a series of acrimonious actions to advance the efficiency of governance, especially, in terms of avoidance of corruption, lots of deep-rooted political problems still obstruct practical application of social protection schemes in that rigid bureaucracy. Comparing to other influential factors, the issue of politics seems to be more complicated to respond and be solved in appropriate approaches by the state. Especially, healthcare insurance reflects more relevant issues which indicate how the inefficient administration affects the function of social protection implementing in the society. China tries to carrying out healthcare reform endlessly in order to reduce the anxious of citizens in terms of expensive to access healthcare (Kan Bing Gui) and difficulties of receiving medical care (Kan Bing Nan) (He, 2010, p. 40). Unfortunately, thanks to lack of efficiently monitoring by authorities and too much power public hospitals possess, four times of healthcare reform still could not solve the two stubborn social diseases. Another typical signal reflecting the administration inefficiency is that Chinese governments are not eager to allow the “third level” government to be set up systematically like non-government organizations (NGOs). Apparently, NGOs can make a difference on assisting the governments to monitor the operation aspect of specific social protection schemes. In the meantime, NGOs can also help the governments to release certain pressures brought about by social protection implementation, for instance, huge fiscal pressures from redistributing social resources could be shared by NGOs through fundraising and sponsorship.
The Status of Macroeconomics
This part highlights how the status of economy impact the development and function of social protection in China. Given the ideology of neo-liberalism which advocates free market and less interventions by governments, social protection probably obstructs economic growth and also limits human libertarian rights (Hayek, 1960). In this regard, it seems that economics and social protection are impossible to coordinate in whatever ways.
As well known, the annual economic growth can be reflected clearly on the Gross Domestic Product (GDP), which was reported with 6.9 percent decent growth at end of 2015 in China (National Bureau of Statistics of China, 2015). Plus, being seized of gigantic foreign capital reserve, Chinese governments are able to draw more attention on the redistribution of social resources to improve social protection. Historically, China announced and implemented comparatively comprehensive social protection schemes covering most of social fields including pension, medical assistance, poverty illumination, retirement assistance, etc. Undoubtedly, comparing with OECD, China still lacks extremely complete social welfare system. Yet, the development of social protection in China is being a universally recognized.
As retrospect the reasons why Chinese government performs better than other developing countries, ample financial reserve and brisk market-oriented economy make a difference. The government receipts guarantee that the state is able to redistribute social resources to the public efficiently. Meanwhile, in cooperation of brisk market-oriented economy, social capital can be flowed around within the society. As one of key factors affecting social protection implementation, macroeconomics either pushes up or obstructs the implementation of social protection, especially in socialism countries such as China which thinks highly of social stability. Conclusion
On account of the Chinese political ideology, social protection which is tightly related to social stability is a strategic social issue for the government. Introducing and implementing social protection need to consider highly all possible influential factors including impediment parameters and stimulating ones. In the macroscopic view, all of these factors involving major fields within the society, as what is discoursed above, demographic transition, politics and economy status are playing dynamic roles in either stimulating social protection development or obstructing its taking effects. Certainly, other parameters such as social stabilization, state education status are major influencers as well. Consequently, governments should also be able to deal with the relationship between social protection and other social elements in order to benefit the public and the society.
References:
He, A. J. (2010). China’s Ongoing Healthcare Reform: Reversing and Perverse Incentive Scheme. East Asian Policy, 2.3, 39-48.
Hayek, F. A. (1960). The Constitution of Liberty. Chicago. University of Chicago Press.
Midgley, J. (2012). Social Protection and Social Policy: Key Issues and Debates. Journal of Policy Practice, 11 (1-2), 8-24.
National Bureau of Statistics of China (2015). The Annual Report of Gross Domestic Product in 2015. Beijing. Retrieve from http://data.stats.gov.cn/search.htm?s=2015年, 國家GDP
Tam, O. K. (2002). Ethical Issues in the Evolution of Corporate Governance in China. Journal of Business Ethics, 37, 303-320.
United Nation (2015). World Population Prospects: The 2015 Revision (Medium variant). New York. Department of Economic and Social Affairs. Retrieve from: https://populationpyramid.net/china/2016/
Wu, I. Lin. & Huang, Te. Pei. (2013). Political Economy Analysis in the Course of Development for Retirement Pensions in Mainland China. Taipei. National Taiwan University. Retrieve from: http://nccuir.lib.nccu.edu.tw/handle/140.119/67171
World Bank (2011). Tanzania - Poverty, Growth, and Public Transfers: Options for a National Productive Safety Net Program. 21 September. Washington D. C. Retrieved from: http://documents.worldbank.org/curated/en/2011/09/18303908/tanzania-poverty-growth-public-transfers-options-national-productive-safety-net-program