The Evolution of China’s Social Policies

Richard Herd (Feb 28, 2013)

Background

Stemming growth in inequality

Pension policies

Health care policies

Remaining problems

Suggestions

AGENDA

Chinese economy moves toward a market-base system.

Significant increase in inequality.

Collectively-provided health care systems failed to adapt to the new economic system.

Pension provision ceased to provide for all workers.

BACKGROUND

Inequality increased, then stop rising.

Ratio of rural to urban income might be overstated.

Geographical inequality has stabilized, but high by international standard.

Two-tier labor market --- hukou policy.

STEMMING GROWTH IN INEQUALITY

Pensions for urban population.

Pensions in rural areas.

Incomes of the elderly.

Widening the pension system.

PENSION POLICIES

Medical resources.

Hospital management and price regulation.

Financing of health care.

HEALTH CARE POLICY

Limited impact on catastrophic expenditure.

Increase coverage.

Migrants.

REMAINING PROBLEMS

A new catastrophic health insurances scheme.

New information system.

Rising the retirement age.

SUGGESTIONS