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Some Suggestions from the U.S. Experience on How to Establish a Social Protection System with Chinese Characteristics

Author: GEORGE S-F CHU and DASONG DENG
Published in IJED, Vol. 1 No. 4

This paper examines the Chinese social protection system within a broader framework. First, it points out some of the valuable U.S. experience. It then discusses policy implications that are relevant to the current reform in China. From the U.S. experience, ten suggestions are proposed on how to establish a social protection system with Chinese characteristics. Specially, this paper suggests that China (1) reform the social protection system gradually, (2) broaden and improve social assistance and welfare programs, (3) encourage the development of private insurance, (4) establish a social protection system with multiple layers, (5) determine insurance benefits based on basic needs, (6) ensure adequate funds for all social protection programs, (7) establish an income record system, (8) establish a poverty-line system, (9) establish a social protection trust fund commission, and (10) unify the management and administration of social protection programs.

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