BEIJING (Economic Observer), March 3, 2008:
Chinese officials are working double to ensure all segments of society are covered by some form of social security, an issue that they admit directly affects social stability. See below for background on the "haves" and and their relationship to the "harmonious society" concept.
Land for Social Security?
The package offered for 400 Shuangxi farmers to give-up their land was: an urban household registry, one-off payment for the land based on the calculation of 8,500 yuan each mu (1 mu is 1/15 hectares), and a life-long pension of 195 yuan per month. Shuangxi, a village in the Chinese central government administered Chongqing Municipality, was one of the first pilot areas earmarked for reform under a program termed as "Land for Social Security" launched in the middle of 2007, whereupon the land was acquired by the government for redevelopment in light of urbanization. Some of the villagers who had given up their land remained in the village despite being an urban resident on paper. Their farm houses and land were both gone, so some opted for renting another house while others checked into nursing homes.
With some villagers having spent all their one-off land compensation, they have struggled to make ends meet with the 195 yuan monthly pension. A statement by Chongqing vice-mayor Ma Zhengqi offered insight on how the villagers fared after the land for social security program: he said in February this year that the average income of farmers in the municipality had increased by 22% to 3,509 yuan per year. As for the Shuangxi farmers-turned-urbanites, their only income source – the monthly pension - amounted to 2,340 yuan a year.
From Public Welfare to the Private Sector
The rapid aging of the Chinese population has created strong demand for elderly care centers. In Shanghai alone, 2.75 million or 20% of local residents were above 60 years old by the end 2006. For the generation born after the one-child policy was launched, juggling between careers and caring for aging parents proved to be challenging. Yet, many Chinese have been reluctant to send aging parents to care centers, partly due to cultural stigma and partly due to the negative perception that welfare-based centers are poor in amenities and services. 
Farmers Struggling in Jilin Province As this report went to press, Shanghai had 505 elderly care centers – a combination of state-run welfare institutions, state-community jointly run centers and private operators – with around 60,000 beds. Some centers have been overfilled while others required years of advance registration, suggesting that more could be built. The high-end market has been underdeveloped and has lately attracted the interest of foreign investors, who have expressed the intention to built luxury centers combining healthcare, entertainment, leisure and learning.
Social Securities at NPC and CPPCC
Chinese Minister of Finance Xie Xuren, at a press conference organized by the 11th NPC session held on March 6, disclosed that this year's central government allocation for social security and employment matters amounted to 276.2 billion yuan, a 24.2% jump when compared to last year's budget. He said over half of the funding would be channeled to increasing the minimum living standard subsidies for rural areas from 30 to 50 yuan yuan a month; and improving pension schemes for workers in SOE's and private businesses. (Source: Xinhua)
Reported by Zhang Xiaohui, Bai Hongyi & Wang Yanchun
Translated by Lam Li
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