Research On The Sustainable Development Of China’s Social Security Fund

The concept of Sustainable Development is full of extremely rich connotation. Social security is the important guarantee of the economic development and social stability. Currently, the pressure of the economy and social is a challenge for the existing social security system in China. The delayed social security reform has seriously affected China’s economic reform process, and threatened social stability and harmonious development. Social Security Fund is the main department in social security system. Facing the changes in social security system, it is more necessary to sum up and think about again the traditional mode of development for Social Security Fund, to re-examine their business practices and to explore new development model. This paper would like to introduce the universality of sustainable development to special nature of the Social Security Fund’s development, to research and discuss the sustainable development issue of Social Security Fund from the strategic view. Therefore, this paper attempts to study the development problem of Social Security Fund from a point of sustainable development as an entry point, and the research logic is as follows:1.We study the contents and features of Social Security Fund’s sustainable development according to the basic concept of sustainable development, so the sustainable development on Social Security Fund can be defined:Social Security Fund should have a self-sustainability of balance in long-term operation process. The fund balance is that the current fund revenues can meet current fund need and the present value of all funds expenditure can be equal to the present value of all funds revenues at a given point in the future in order to achieve the long-term balance of Social Security Fund. The features of Social Security Fund’s sustainable development contain of:the strategy of objectives, the integrity of development, the sustainability of development, the innovation of development, the strain ability for environment’s changes.2. We study state of Social Security Fund’s development in different countries by comparison and analysis. Firstly, analyze the present status of Social Security Fund and problems about Social Security Fund’s raising, management, investment operations and the supervision in China. And then compare Social Security Fund’s raising, management, investment operations and the supervision of representative United States, Chile and Singapore. And analyze international Social Security Fund’s the management level.3.Social Security Fund’s sustainability is to keep fund balance in the short term and increase fund value in long-term. By analyzing the factors influencing Social Security Fund’s sustainable development according to the theory of sustainable development, so we can conclude that factors of affecting fund balance are raising, management, investment operations and the supervision. And then we use actuarial model of endowment fund balance to make empirical analysis on China’s funding sustainable development according to the quantitative factors.4.How to evaluate Social Security Fund’s sustainable development? After analyzing the evaluating method of Social Security’s sustainable development, according to the basic ideas and basic requirements for constructing the indicator system of sustainable development, the paper tries to set up the indicator system on Social Security Fund’s sustainable development and analyze Social Security Fund’s sustainability by Principle Component Analysis.5.How to achieve sustainable development of Social Security Fund? It is necessary to construct system of sustainable development on Social Security Fund. This paper believes:we should set up sustainable operating system, sustainable specialized investment system and sustainable supervision mode on Social Security Fund.6.The opposite of Social Security Fund’s sustainable development—Social Security Fund’s non-sustainable development. Social Security Fund’s risks and crisis are outstanding performance of Social Security Fund’s non-sustainable development, so it is critical to control Social Security Fund’s risks, which is an indispensable part of the research on Social Security Fund’s sustainable development.In order to accomplish the above all studies better, this paper uses qualitative analysis as a main method, supplemented by quantitative research methods. Main innovation points are:discussing Social Security Fund’s development issues from a new perspective—sustainable development; putting forward connotation, characteristic, international comparison, influencing factors, evaluating indicator, constructing development system, attempting to create a more complete research system about Social Security Fund’s sustainable development; meanwhile, risk control has been included in the Social Security Fund’s sustainable development study, and Social Security Fund’s risk is pointed out as a type of non-sustainable development; trying to use actuarial model to make estimate on China’s endowment fund balance from 2008 to 2037 according to funding available data, find the sensitive factors to funding sustainable development and sequence the main factors; finally trying to set up evaluation indicator system of Social Security Fund’s sustainable development, search for the method on how to evaluate synthetically Social Security Fund.