Sustainable Development Of New Rural Social Pension Scheme In Zhongshan City

The construction of China's rural social pension system began in mid-1980s, but the impact is not significant. At present, at the pilot phase of gradual development, it is diversified in various counties. The key characteristics of China's rural social pension system include small number of participants, lower level of social security benefits and obvious difference among pilot counties. In 2009, a new model of rural social pension scheme is formulated by central government, which is making up of base pension and the pension in personal account. Did the design of Government Model be reasonable? And can it be suatainable development in the face of population aging? It is of great importance to summarize our experience leant from those experimental areas for the ongoing rural social pension system reform in China. ZhongShan city of Guangdong province began to construct its new rural social pension system in 2005, and all personnel involved joined the system in 2009. ZhongShan city aims to integrate rural social pension system with urban system by the end of 2011, which seems a big adventure comparing with other pilots. This thesis attempts to empirically analyze the basis for the sustainable development of Zhonshan model, and assess the reasonability and developing path of new rural social pension system formulated by central government in China. It is a contribution to current social pension literature and can also provide policy implications to the new rural social pension reform in ZhongShan and across whole China.The structure of this study is as follows: Based on social insurance and institutional change theory, we first analyze the basic conditions from both financially and politically sustainable development of Zhongshan's new rural pension's, utilizing case study, actuarial and cost-benefit analyzes, inductive and deductive method, et al. We then investigate the reasonability and the sustainable development path of Government model. This thesis proceeds as follows: Introduction and theory summarization in Section I, A brief introduction of the history of China rural pension scheme and ZhongShan Model is given in SectionⅡ. In the following section, the basic conditions for sustainable development of ZhongShan Model were interpreted. ChapterⅤdiscussed the fund balance between revenue and expenditure, the income redistribution effects of ZhongShan Model were analyzed in ChapterⅥand chapterⅦexplains the government behavior in Zhongshan model. In the last section, the feasibility of Government Model selection and its development path were assessed based on the experience of Zhongshan model.The conclusion of this study is that ZhongShan's rural social pension system will be sustainable for a considerable period in the future. The reason is as follows: firstly, the prerequisite of the sustainable development of Zhongshan Model is that the system can keep balance between fund revenue and expenditure and can be politically sustainable because of its fair income redistribution effects. Secondly, the key factor of the sustainable development of Zhongshan Model is the establishment of the cooperative game between local government and rustic collective economy organizations, in which rural stock-cooperation reform as the breakthrough of Linked institutional reform is the key to the development of rustic collective economy organizations. And this paper have two enlights as follows:first, the Government Model of new rurual pension scheme is favorable, the institutional evolution path of this model is Central Government Model——low level Zhongshan Model——high level Zhongshan Model——urban-rural integration social endowment insurance model. Second, the key to the sustainable development of Government Model is to construct an organization for peseant collective action, and rural stock-cooperation reform as the breakthrough of Linked institutional reform is the guarantee for popularizing Zhongshan Model around China.The main innovation of this study is that it points out the key factor to the sustainable development of Government Model is not the financial sustainable but the realization of peseant collective action.