Research On The Formation Mechanism Of The China Welfare Contest

The paper summed up a definition on welfare competition, welfare competition was considered to be a blind expansion and irrational rising tendency on welfare with the government’s enforcement and pushing Currently, there are some performances on welfare competition like a rapid increase on welfare level, welfare system continuously expanding, social insurance’s evident tendency towards welfare project. Welfare competition has resulted in negative impacts:degenerating on welfare system construction and limiting the market mechanism operating space. Analysis on welfare competition forming mechanism show that an increasing welfare demand, government’s strong willingness on welfare supply and loss control on public policies’decision procedure caused the tendency of welfare competition The ideas and facts on government’s excessive intervention play an important role in the mechanism. The high level welfare in Europe and catching-up policy on welfare in Latin America has resulted in such negative effects as a few countries still can’t get rid of dilemma until now. It is an important notice to China that curbing welfare competition needs to pay attention to populism and improper ideas and remove government’s excessive intervention; a blind welfare increase would result in bad effects to the economy and society; welfare system construction should also pay attention to details and key points. For the countermeasure, we must stress on evaluating the welfares’ adaptation to the economic development, building the system of welfare rules and emphasize initial distribution fairness, the market mechanism and procedure justness.