U.N. 's Goals in China

Objective 5: "Strengthen the social security system, including health benefits, unemployment benefits, disability benefits and pension schemes in both rural and urban areas"

The UN aims to assist the Government set up and implement an affordable social system with an acceptable standard and coverage to all Chinese citizens.

Severe modifications in the previous comprehensive, social security system now expose the elderly, the unemployed, those needing medical attention, women, children, young people and the disabled to previously unknown vulnerability. In view of the disparities in China and the emerging challenges in the transitional and globalisation process, the further evolution of the social security system is a major concern. Several UN organisations as well as the Bretton Woods Institutions are already working on these issues with the government departments concerned. Most of the attention has recently focussed on the reform of Old-age Pension Insurance for wage employees so as to raise national savings and to serve the purpose of stimulating the economic development of China. The UN is concerned that a balanced development of social security is required, which will serve the needs of the entire population, notably those in rural areas and in precarious employment conditions. The shift in the responsibility to deliver social security from the enterprise-level to the government administration level is bearing serious impact on the future well-being of most of the urban population in China. The Government's endeavour in fulfilling its new duty is monumental as China faces the widest range of socio-economic disparities throughout the country. Unique solutions must be developed to achieve redistribution between regions and income groups as well as to ensure satisfactory uniform standards of social security for all groups of the population.

Promoting social security for all - Priority should be given to sustainable social insurance for most of the population whilst social assistance measures should be solely complementary where social insurance cannot work. This is the best way to ensure a strong and sustainable development of China. The UN will support the development of a policy framework and comprehensive social security system by: assisting the Government in its assessment of the present situation and in the formulation of its policy strategy and by providing tools and building national capacities to develop its social security. Emphasis would be given to reinforce social governance based on a solid knowledge by the State of resources allocated to social security and who is benefiting. The UN will share the relevant best practices and experiences of other countries. It will focus specifically on appropriate delivery and financing mechanisms for social security for all, with particular emphasis on redistribution between income groups and social assistance for the poorest groups.

The scope of social security should focus on the core social risks and needs including health care, old-age, invalidity, work injury, death, family support, maternity support and unemployment benefits. The financing of social security should come from a mix of sources and based on different funding methods to ensure its affordability for all individuals and the society at large whilst it should allow sufficient flexibility for the different levels of Government to redistribute fiscal resources towards the neediest areas and population strata as promulgated under the 20/20 initiative of the World Social Summit.