Chinese Character - Top official: Social security vital to nation's growth

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Top official: Social security vital to nation's growth
By Hu Yinan
Updated: 2007-09-24 07:01

A senior Chinese official on Saturday urged accelerating the building of
a social security system that covers both urban and rural areas, noting
that this is important for achieving sustainable economic and social
development.

Addressing the opening ceremony of the China Social Security Forum in
Beijing, State Councilor Hua Jianmin called for paying attention to the
welfare and interests of both this and future generations.

China's social security system, which used to be completely
State-financed, is now jointly financed by the State, institutions and
individuals, said Hua, who is also secretary-general of the State Council.

Hua added that the establishment of a long-term mechanism, and
improvements in the management and supervision of social security funds
are also required.

China's attempt to create a unified social security system is an
important measure for its large rural population and pool of migrant
workers, who have contributed significantly to the country's economic
growth, said Serge Abou, ambassador of the European Union (EU).

Last April, China and the EU launched a five-year project on social
security reform, to which both sides have already contributed 20 million
euros each.

However, such efforts face a number of problems, including the challenge
of further urbanization, according to Cheng Siwei, vice-chairman of the
Standing Committee of the National People's Congress.

"Of China's 780 million-strong workforce, 480 million are in urban areas,
where coverage is improving. But in contrast, only parts of the developed
countryside provide pensions," he said.

Khalid Malik, the United Nations' resident co-coordinator in China, also
called for nations "to learn from and as well as contribute to" China's
social security system.

Government expenditure in setting up a rural social security network has
increased markedly in recent years.

For example, State expenditure on the new rural cooperative healthcare
system increased from 400 million yuan ($53.3 million) in 2003 to 11.4
billion ($1.5 billion) this year. Over the same period, rural medical
relief funds were also boosted from 300 million yuan ($39.9 million) to
1.32 billion ($176 million).

In addition, the coverage of minimum allowance mechanisms, which already
cover over 25 million rural poor and 22.36 million urban residents, has
continued to grow.

By last year, the total income of five social insurance funds for the
elderly, the sick, the unemployed, those suffering from work-related
injuries and pregnant women reached 862.6 billion yuan ($115 million).

But even in urban areas, only 43 percent of the 283 million employees had
basic medical insurance.

Xinhua contributed to the story

(China Daily 09/24/2007 page2)

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