Social Pension System In Economic Transition In China

As being the biggest developing country, China tranfers the planned economy system to the market economy when its economic reform is being in a key period. The social self-contradict conflicts bring some crisises on population, social resources and economic development, and deeply influence the economy transformation. The main topic of this paper is that how to coordinate puzzle between the populations advanced age and economic growth. It is very importance to solve them for China's keeping development.Apple with the social security theories of Marxist, the Thoughts of Mao Zedong and the researching method of welfare economics, the paper would try to research the good pension system of the urban and rural population in China. To hold the inside relation of the change of economic and social institution from the logic relationship between the structure of population and the economic growth, the paper would put out our basic target mode and reform ways after fulfilling experience in our country and international comparison as well as it would find out the necessity and inevitability to establish the social pension system of China and point out the basic blemish and bad result about the current system.Our social pension system could be divided into two parts. The first is the urban population's social pension plan, which has been three stages: (1) The planned economy stage. The pension is payed for the nation business enterprise's employees. This plan was low layer but its efficiency is higher and the nation did everything for the particular community. (2) The experimental stage. The time is included the plan and merchandise economical period, in which the business enterprises pension system and the nation's social pension system existed at the same time. The general people in cities and towns can enjoy the system too. (3) The marketing economical stage. This duration is the integral period in which all urban populations have the right to enjoy the basic pension system. Then the business enterprise's pension layer and the personal saving pension plan began to appear, which is called the business enterprise annuity system. The second part is the rural social pensions plan that below to the urban system layer. This plan is bening in the experimental and expanding stage but it is the weak link of China social security.Totally, the current social pension system has the transferring property, lacks the stability and shows other district partital characteristics. There are many disputes about it but it could suite to our social productivity for the reform at the main target. In order to solve its difficulties we should innovate the system and take advantage to use for us from the foreign successful experiences of their social security system. To do these we could avoid the low efficiency and the invalids of the establishing system.Abundant labour force is an important resource for our country economic high growth because they provide the high-quality and cheap labour for the economy. It is necessary that the village populations large-scally transfer into cities and towns during the industrying process. The consequences are the follow: The first is the rural populations are accelerating into the advanced aging stage, and the economic independence of people begins to appear gredually so that the functions of the traditional family security are weakened. All of these become the obstacle for the old pension system plan. The next is new employees impact the traditional social pension system and raise the payoff pressure of funds in the future. So we should make systematic arrangement for the imperfection, and requested to have equilibrium the relation between rural and urban social pension system to moderate for the nation's economy development synchronously.Regardless,pay-as-you-go, funding scheme or part-funding scheme, all should match the age structure of people with the level economy development to take the biggest function. Pay-as-you-go could attain the best balance between the economic growth and the valid security method. Facing the populations, using the analytical method of the new classic economics and the welfare economics, this paper puts out that funding scheme or part-funding scheme is the better project to deal with the contradiction between the economy growth and the population advanced ages. These causes be included: The social pension system that could enhance personal responsibility is a means of nation's incomes redistrbution against to the personal income unbalance; The personal income in China is lower so that the only way is to raise the social productivity, the efficiency of the economy for improving the whole social welfare. The fund of social security is an important economic resource for nation's development and the cost is the lowest when funding scheme turn to the other pension plan. So these take advantages for the integral social pension system.Much more advanced age people is not only the social problem, also is the economics problem. This crisis should be controlled by the economic reform. The paper puts outs the gradual mode and the end targets to reform the existing systems. For example: all social members enjoy the more layers of social pension plan; under the predominance of the government, taking nation's social basic pension system as the foundation to build up it and so on. We can also build up gradually such as business enterprise layer and personal layer social pension system, or correct the behavior of the system mechanism and make sure the implementation management and prectect the benefits of the guarantor. In the end of the paper we propose that these plans should become one unite so that we could promte the economic development level and the social walfare.