An Analysis Of Path Dependence In The Institutional Change Of Rural Social Pension Insurance System In China

With the huge number of migrant workers and lose-land peasants in the industrialization and the enhancement of average lifespan day by day, aging in countryside is becoming more and more serious. The rural social pension system is an important social policy which is tie to the basic livelihood of the 800 million countryside residents and the development of socio-economy. In September, 2009, the State Council has issued "The Guidelines on Piloting the New Rural Pension Insurance System". The nationwide experiment of new rural pension insurance system symbolizes that the pension system has entered into a comprehensive and critical reconstruction phase. The path dependency theory of institutional change believes that once an institution functioned on a path, it will set the direction for future development and get a self-reinforcement. That is to say, the previous institution will affect the development of the latter ones. The history of rural social pension system has been nearly 30 years, and there must be certain path dependence in the zigzagged and slowly development. In such a crucial new period, the innovation of rural social pension system should get out of its path dependence. Therefore, its positive role on aging security will truly put into effect.This thesis reviewed the rural social pension system changes over the four stages of the course of the initial exploration, experimental generalization, suspending process and exploration innovation. By analyzing the important policy during the long period of development, we find the path dependence which is mainly manifested as follows: persisting in dual path of urban and rural; over-dependence on step-by-step implementation and changes; issuing institution according to policy earlier while with uncompleted law later; adopting classified and hierarchical policies; weak social security attributes in institutional design and system supply significantly depending on land, family and collectivity. This paper further analyzed the causes of path dependence from the aspects of the restriction of institution environment, the impulse of socio-economy and the influence of informal system, and also its specific effects. Considering the reality of our country, the article puts forward six suggestions to avoid the path dependence in institution reform of the rural social pension system and to realize the pension system innovation. These are accelerating pension insurance to balance urban and rural; improving the legal system; realizing the integration of its whole system; strengthening the rural social insurance system; dovetailing the rural social pension system with other social security systems and reforming rural social insurance system, household registration system and land system together.