The Investigation On Social Assistance Mode Based On Asset Buliding Theory

In the process of economic and social development, poverty is a social problem in every country. Traditional assistance policy is a policy which based on income, and it cannot help the poor to get rid of poverty truly. In this context, the asset building theory was proposed by Professor Michael Sherraden in1991. It subverted the traditional assistance policy ideas, and provided a new perspective in the area of social assistance system to the poor. It maintains that the poor can get rid of poverty though accumulating personal assets and playing assets’positive utility. The asset building theory was appreciated broadly in the world after it was proposed, and its effect and significance were verified by the successful practices in many countries. In China, after many years’development, the inherent defects of current social assistance system have exposed already, and affected the whole utility of the social assistance to the poor badly. The asset building theory also provides an advanced perspective for the reform of social assistance mode in China. Inspired by the international successful practices of using the asset building theory, this article tries to investigate the reform of social assistance system in China from the perspective of asset building theory, and design an asset-building social assistance system which is fitted for China.This article uses policy analysis, case studies, empirical researches and welfare economics analysis. It starts with analyzing the development and inherent defects of current social assistance system in China, describing the urban social assistance and rural social assistance separately, and concludes that the current social assistance system has many serious problems as a whole, especially ignoring the Poor’s development capability. The social assistance system in China needs to introduce a new development concept. After that, this article points out the necessity and feasibility of introducing the asset building elements into the social assistance in China. The conclusion was verified by analyzing and summarizing practices about attempting to apply the asset building theory in China, such as public good microfinance, rural social security loan program in Xinjiang, and Taipei Family Development Accounts. At the same time, the article benefits from the successful practices, such as American Dream Demonstration and British welfare policies based on the asset, obtaining valuable experience and inspiration which are beneficial to introducing asset building theory into the social assistance system in China. Finally, this article builds an asset-building social assistance mode of China by combination of international experience and domestic facts, and proposes that China should set out Chinese-style individual developing account for the people who have earning capacity and have participated minimum living security projects. The new assistance mode will not take the place of the original mode, and it should be combined with existing social assistance projects. The supporting policies needed by the asset-building social assistance system are investigated at the end of the article.