1. ROSA LUXEMBURG STIFTUNG On the Path of Establishing Welfare System with Chinese Socialist Characteristics Sun Wei Yangon, May 28 2014

3. Definition  Social welfare: social insurance, relief aid & national well-being  Social security: Social insurance & relief aid

4. Three development phases:  1949-1983: dual structured socialist welfare  1984-2002: market driven and city–oriented social security  2003 ~~~: adjustments towards appropriate universal-type social welfare system

5. 1949-1983: Dual Structured Socialist Welfare Social relief fund and charity production for mutual assistance Financed by members in form of collective funds of people’s commune Social relief fund financed by state and charity production for mutual assistance Cradle-to-grave welfare plus benefits towards family Financed by State Cradle-to-grave welfare plus benefits towards family Financed by State Unit 1 Governments and affiliated agencies Unit 2 State-owned enterprises Rural members of community corporative Urban unemployed Residents

6. 1984-2002: Market Driven and City – oriented Social Security Living area Employ- ment status Social InsuranceOther benefits Medical care PensionMaternityEmployment Injury Unemploy ment HousingRelief aid Others Urban Civil Servant √√√√√√ Cadre √√√√√√ Enterprise employee √√√√√√ Depends “Unemploy ed” resident √ Rural Community resident √

7. Financial Responsibilities AreaAffiliation Financial responsibility IndividualOrganizationState Urban GovernmentsMinorityMajority Public supported units MinorityMajority EnterprisesShared with enterprises Shared with individuals Other residents Rural ResidentsMajorityMinority in form of collective revenue

8. Problem: medical care coverage of rural population decreased

9. Problem: rich vs. poor gap increased

10. Problem: urban vs. rural gap widened

11. Problem: imbalanced growth of national asset and individual income

12. Comparison: proportion of national expenditure on social welfare over GDP

13. 2003 ~ : policy adjustment towards “appropriate universal-type social welfare system” 2003-2009, subsidy increased to rural residents’ medical insurance and pension 2007-2011,medical care and pension established to self-employed and “unemployed” urban residents 2006, relief funds increased towards rural families Compensation of social insurance towards rural and urban “unemployed” residents 2013, merge social insurance of rural and urban “unemployed” residents 2014, merge social insurance for cadres of government-affiliated agencies (non civil servants) with enterprise employees Merge social insurance towards equal treatment 2006-2008, 1-9 free education available to rural and later urban kids 2008, over 700 house constructed towards poor urban families Better education provision & housing aid

15. Debates  Justice vs. Efficiency  Market vs. Government  Equity vs. Disparity  Individual vs. Collective What is socialist characteristics?

16. Thank You! Sun Wei E-mail: sunwei@rosalux.cn