Comparison of the social security system between Western countries and China

Abstract
The development of the social security system has been experiencing more than one hundred years, however, its politically speaking, it has been playing crucial in the functioning of the government. It is the cornerstone based upon which the social economy, stability of the politics and the all-around development of the society could be realized. Recent years, both China and some Western countries have 留學生dissertation網been paying more and more attention to the construction and reform of the social security system, and different countries may form their different characteristics with the development of their economy. The short document tries to seek for some useful suggestions and proposals for the sustainable development of the social security system via the analysis and comparison of the social security system of China and Western countries from three perspectives, i.e., the theoretical construction, reform and sustainable development of the social security system.

Introduction
1.1 The introduction of the social security system in Western country
The establishment of the Western social security system was the result of two reasons, the one is the changes in material conditions, the other is the changes in social conditions. After 1970s, with the outbreak of the industrial revolution, the industrialization process has occurred all of a sudden, the evolution of social production was in the form of the large-scale production for the community, and the socialization of the production process has made the social wealth increase a lot, which has provided the material basis for the development of the social security system. At the same time, the development of productive forces also led to the appearing of the working-class wage earners, who have been living up soly on the wages. As a result, once the termination of income had occurred due to various reasons, the worker is likely to be involved in disastrous trouble. For them, whether collective or individual, to get enough strength to resist age, illness, emergencies, disruption of unemployment caused by unemployment and poverty was very difficult. In this case, it is necessary to provide such social services for the survival of the workers.

In 1929, Western developed countries have broke the most serious economic crisis in history, resulting in a violent social unrest, threatening the survival of the capitalist system. Western governments generally recognized that the social security system must be established in an effort to safeguard the capitalist system, and maintain the normal operation of market economy, as a result, at that time, the scope and extent of social security have been expanded. After World War II, the Western countries have experienced a long period of economic prosperity during this period, and the productivity growth has increased at an unconventional pace, which has brought about benefits to both the capitalists and workers, and people in the management positions and professionals in particular. Therefore, the welfare states have began to rise, and the government has carried out in all directions the social security system, and the social security coverage and benefit have been further expanded. The absolute value of the share of government expenditure on the social security in GDP has increased significantly. Western countries during this period has formed a relatively sound social security system. However, after the 1970s, the Western countries generally have entered into the period of economic stagnation, economic stagnation and inflation, making the implementation of the social security system a heavy burden to the government, social security expenditure is increasing as well. One important reason was that aging population has become increasingly prominent. Of the 24 OECD member countries, the population over the age of 65 in 1990 was amount to 1 million people, the average dependency ratio was 19%, and it has been foreseen that, by 2020 this proportion had reached 28%, while average life expectancy of population, dependent on pension income, absolute increase in the number of dependents, so that the government is bound to increase pension and health care for the welfare spending.#p#分頁標題#e#
The rapid growth of social security expenditure has increased the budget of the Government to stimulate the economy, which would affect the construction of social infrastructure, and it may have a negative effect upon the economy. Meanwhile, the labour cost would be increased, affecting country's international competitiveness. In order toovercome adversity, under the promise that the basic benefits should be protected, the Western develope countries have implemented the reform of the social security system, such as the retirement age, reducing pension benefits and so on. To some extent, these reforms has delayed the growth of social welfare expenditures, but because of the rigidity of social security expenditure, it is difficult to achieve a substantial decline. So that some Western countries have generally maintained a high level of social security expenditure.
1.1.1 The introduction of the social security system in UK
Britain is the first country that has enacted the legislations in an effort to protect the social security system in the world, and it is one of the typical high-welfare states worldwide. The formation of the British social security system is the fruits of its industrial structure, social structure and political structural changes in the product development process. After World War II, in order to ease the sharp social contradictions established in the society, the initial social security system has been constructed. After 300 years of development, such system has been transformed from the poor church, small-scale distributed welfare measures into an organized system, a relatively complete, covering the basic needs of civil society in all aspects of "cradle-to-grave "comprehensive social security system.
1.1.1.1 Main content
Britain is the first country that has enacted the legislations in an effort to protect the social security system in the world, and it is one of the typical high-welfare states worldwide. In recent decades, the United Kingdom of Great Britain has reached up to a considerable scale and high level via continuous adjustments and amendments with the national insurance and national health system as its main social security system. Generally speaking, the British social security system currently includes national insurance, special allowances, national health, personal social welfare, housing and education benefits and other aspects.
1.1.1.1.1 National insurance
The national insurance in the UK covers the pension insurance system, unemployment insurance system. First, pension insurance system. Pension insurance is the main subject of social insurance, social insurance payments accounted for the largest share of the social insurance payments. It is a multi-level insurance system, divided into three pillar proportions: they are the national pension system, the employment related pensions, and the occupational pension scheme. Second, unemployment insurance system. British unemployment insurance system is one of the important part of the social security system.The salient features of the unemployment insurance is its mandatory, it requires that in addition to the self-employed, married women that pay premiums and widows, all of citizens that have more than £ 58 weekly income must participate in the unemployment insurance system.The cost of unemployment insurance is shared by the employer, employees and the Government commitment, without any separate sub-item to pay. But the unemployed receiving unemployment insurance for a maximum of one year, after one year if they continue to unemployment, then they are considered to receive social benefits.Those people who are receiving unemployment benefits must register the human services committees, namely, employment agencies, to search for a new job. Third, health insurance. The health insurance system in Britain is combined with the national insurance system, but health insurance is national insurance system, the main project is the sickness and maternity benefits. Fourth, industrial injury insurance system. Britain is a relatively early country that has established the industrial injury insurance system in the Western world, the system covers all the job seekers except the self-employed. The cost of industrial injury insurance system in the UK is different from that of other countries, it is shared by the employer, employees and national tripartite commitment. The industrial injury insurance benefits in the UK are divided into temporary disability benefits, permanent disability benefits, medical benefits and survivor benefits, and the former two are the main benefits received groups. #p#分頁標題#e#
1.1.1.1.2 National health service
According to the National Health Act, all the British people could enjoy free medical care except the expenditure on dental, vision inspection and glasses. Provisions of the national health care system covers that the physicians, nurses, physical therapists, physical therapists, occupational physicians, language barriers, therapists and medical psychology, the elderly, disabled and mentally ill patients were treated and provided free of charge to their artificial limbs, eyes,hearing aids, wheelchairs and other medical means. Disabled patients can re-use the rings for free, radio, television, telephone and heating equipment. 88% of the national health care costs is paid by the government via taxes, the rest are paid by the prescription charges of citizens of national insurance and other fees and charges revenues.
1.1.1.1.3 Special allowance
Special allowance, also known as incidental allowance, which is issued without regard to the fact that if the beneficiaries have pay national insurance, nor affected by the income level and economic conditions of the beneficiary, but on whether the special allowance beneficiaries is qualified for the requirement of the project. Special allowances is mainly to protect children and support persons with disabilities to participate into the social objectives, including mothers allowance, child allowance, widow allowance, disability benefits, sickness care allowance, statutory maternity allowance and statutory sickness allowance, and so on.
1.1.1.1.4 Personal social welfare system
British social welfare of individuals, including the services or equipments by the government departments and community volunteer organizations for residents with special difficulties in the provision of various welfare facilities and a variety of services, including: (1) Building up special housing for those who do not have the ability to work or who are in the loss of jobs, installing the telephone or TV, arranging for them to learn crafts, manufacturing and other occupations, and providing them with special education. (2) For those with mental illness, the registration of the treatment would be undertaken within their family, establishing mental disabilities training center to deal with the various social problems that caused by mental illness and to help hospitalized psychiatric patients.
(3) Serving for the construction of nurseries, kindergartens and children's playground facilities and other projects to facilitate and support the beneficiaries. For families with children, especially those with difficulties in bringing up children in families with help and guidance, attention to the health and hygiene of the children.
(4) The organizations, government departments provide the community volunteer services for the elderly, including meals on wheels, day care, night service, laundry, child care, and provide the elderly club and recreation rooms.
(5) For patients, the elderly and the pregnant, social services department provides the relevant advice and assistance for them via the facilitation of social workers and community volunteers. #p#分頁標題#e#
1.1.1.1.5 Housing benefit system
The central government would force the local governments to establish welfare housing, and subsidies, and then through the local government to provide low-rent to low-income families. Housing owned by local authorities give priority to accept the poor or tenants live in overcrowded living conditions. For low-income families, the government pays housing allowance as well. For the first time low-income families who intend to buy houses, the government would give additional allowances and other concessions.
1.1.1.1.6 Education welfare system
http://www.ttc-switch.com/dissertation_writing/In Western European countries, the United Kingdom's education has always been more developed. The majority of students (primary and secondary education) is the beneficiaries of the free Health Education Fund. In addition to exemption from tuition fees, books and other school supplies are also provided free of charge. Students in private schools at their own expense accounted for 4% of the total number of students. Higher education though not free, but 90% of students who can receive government allowances.
1.1.1.2 Social security fund raising and management
Britain's social security fund revenue sources and the final composition is divided into seven parts: (1) pay part of employers, about 45%; (2) pay part of employees, accounting for about 37%; (3) pay part of the liberal professions, about 2%; (4) pay part of other citizens, or about 2%; (5) the central part of government funding, accounting for about 13%; (6) Interest income, accounting for about 2%; (7) Other, less than 1%. Source of funds is based on the trend of the main business and individual contributions in order to reduce the country's financial expenditures.
1.1.1.3 Main characteristics of social security system in the UK
1.1.1.3.1 Complete system coverage and reasonable project classification
UK social security involves all aspects of social life, covering the insurance, relief and allowance three categories. Overall, its social security and social welfare system closely associated with education, health and income distribution system. As to social security itself, the social insurance and employment of the members of the society are associated with each other, the completion of the payment and the more payment of people may enjoy more rights, which reflects the correspondence between obligations, (Disney and Tanner, 1999). Social assistance is unconditional, and it direct contact with the beneficiary's income level, while it has nothing to do with the insurance payment, it reflects the moral requirements as well as the specific content of human rights protection. The special allowance should be part of social care context. It is the people's preference for a particular people, usually the difficulties, which reflects the social and spiritual civilization.
1.1.1.3.2 Universalization of social security
British national insurance benefits is decoupled income, no matter how much the payment the insured, the beneficiaries have the same enjoyment of the fixed treatment, there are obvious distinction between the insured's income distribution. National insurance benefits provided by the dependents would be redistributed among the insured to their families. The national insurance is in essence a kind of universalism of social protection because its wide range of covering, through the treatment of dependents and extends to almost all citizens, even though it is in form of social insurance.#p#分頁標題#e#
1.1.1.3.3 Penetration to family
British social security system involved in the comprehensive project, and it has the wide coverage, and thus to some extent it could replace the traditional family support. UK National insurance in the treatment guidelines focused on taking into account the situation of family support rather than the compensation for loss of wages. The treatment could be divided into two parts, the one is to maintain the insured's life, the other is the support to the maintenance of human life. In this regard, the national insurance benefits for the insured would assume the maintenance responsibility of the family. UK insists on the implementation of the "national security, full protection" to ensure that various members of the community to enjoy the basic rights of life and life and health, improve the living standards of most people, reducing poverty in the community surface and poverty, adjust the income distribution gap, and promote the stable development of the economy. Thus it has become the world's national social security system and a model for many Western countries to follow suit.
1.1.2 The introduction of the social security system in US
The social security system in the US began in the Great Depression in the 1930s. The main purpose of which is to make post-retirement employment have the sense of security. The main source of funds is from serving officers, a part of the wages as the social security tax of the employees that has been collected and then distributed to the already retired, the disabled and their families by the government, and the incumbent would be able to enjoy the relative benefits right after their retirement. US social security system has a wide coverage, covering all aspects of social life, it is the nation's largest and most influential broad social pension system. According to the relevant data provided by the Department of Social Security in the US, there are about 163 million US service personnel that have been participated in the social security system, accounting for 96% of all serving officers, Bloom and Richard,1992). Moreover, according to the distinctions and differences of different areas of residence, factors such as the rising of the price, the Department of Social Security Department would provide the extra social security benefits for the elderly, disabled and low-income families.This funding is not a part of the social security taxes, however, it is a sum of money that has been collected by the Government from other sources. It has been demonstrated by the Social Security Department that in 2007, and it has been estimated that there are 5,000 million people in the United States that have been received the social security benefits, totaling approximately 602 billion US dollars, and the federal government is one of the largest items of expenditure on the social security benefits.The data also show that in 2006, older Americans over the age of 65 have 90% of people receiving social security benefits that account for 41% of their total income, (Jonathan, 2008).#p#分頁標題#e#
However, the US Social Security Department also reminds people that social security benefits is the most basic protection for the retirees, the disabled or families after the death of the incumbent, and it is the supplement support for them, so it should not be their only source of income. In addition to the social security system, the US government and some companies have also established their own pension system. US Government formulated the "Federal Employees Retirement System." The government staff in addition to participating into the social security system and paying the social security taxes, they must also pay 1.3% of their monthly wage, the government workers could receive the corresponding pension based upon their salary, length of service, etc. Moreover, the federal government employees could also participate in a "thrift savings plan," 5% of monthly salary would be put into the account as a retirement investment funds. According to Kennickell and Annika (1999), after 70 years of development, the United States gradually improved social security system, covering all sectors of American society, it has provided them with basic living security, but also played a significant role in the promotion of the stability of American society. However, the social security system also facing an aging population and social security funds shortage in the United States.
1.2 The introduction of the social security in China
The development of the social security system in China is just about 60 years. The social security system in China has been experiencing six periods, the following would briefly introduce the different periods of the social security system in China (Barry, 2009).
1.2.1 The initial stage
The initial stage of the development of the social security in China is the first decade after the establishment of the People's Republic of China in 1949. During this period, the Chinese government had paid very close attention to the social security development. On May 19th, 1950, the Government Administration Council of the Central People’s Government issued Interim Procedures for Relief the Unemployed Works, and started to build up the social security system of China. In 1951, another legislations Labor Insurance Regulations of the People’s Republic of China has been issued and implemented, and stipulated insurance measures of old age, industrial injury, child-birth, testament, and etc. At the same time, there are other decrees that have been enacted, such as Protective Regulations for Woman Workers of People’s Republic of China (draft), The Regulations of Conduct Measures for the Scale of Occupational Disease and Patient of Occupational Disease, and other decrees. In this period, a frame of social security of the enterprises’ staffs has been formed. Simultaneously, there have been a series of regulations that is fit for the national situations have been established, for instance, the medical treatment protection for women workers, pension for the injured and death, and so on.#p#分頁標題#e#
1.2.2 The second period
The second stage of the development of the social security system in China is the second decade after the found of the state. In this period, the social security system has been further replenished and perfected. In this period, there have been more documents on the social security system such as Regulation, General Provisions, Method, had been passed and issued by the State council and the Standing Committee of National People’s Congress. According to the problems occurred and the summing-up experiences in the implementation of the social security system in China, its frame has been detailed and discreted. The items on collection, management, adjustment and utilization of the funds of the social security system has been come into being nationwide.
1.2.3 The third period
In the process of the development of the social security, there was a period that has been experienced a ten-year turmoil form 1966 to 1976, which is the third period of the development of the social security system of China. During this period, the social security system has been suffered from the serious damage in 1969 in particular, in that the Ministry of Finance has determined that the state owned enterprise should stop to draw out the labour insurance fund, social security and other labour insurance funds for non-business expenditure. Such reform has totally destroyed the programmes in that it has the due consideration for the aspects of the social security, and it has caused the imbalance of financial load between the enterprises, as well as the responsibility of accumulation fund so as to regulate the problems of the aged population. The profound establishment and continuous development of the socialist market economic system have brought about many problems that are concerned with the social security system of China, as a result, the new system on social security under the circumstance of the socialist market economic system has been formed gradually in this period.
1.2.3 The fourth period
In the development process of the social security system of China, the fourth period, that is to say, form 1978 to 1994 is a period that was filled with breeding. The demand for the construction of the reform of the social security was increasing since the days-intensified factors of imbalance, the regional distinctions and the industrial difference in the development of the market economy. During this period, http://www.ttc-switch.com/dissertation_writing/there were four aspects, for instance, social welfare, social relief, preferential treatment and compensation for the disabled that have been included into the framework of the social security system of China. At the same time, the government in China has been taken into account the establishment and perfect of the social security system as a significant part in the construction of the modernization of China as well. Some scholars in this period has carried out profound studies on the better development of the social security people of all walks of life, and implemented both quantitative and qualitative analysis and experiments of social security system on different schemes and thus synthesized factors of the change of population, the development of economy, the system transformation and the improvement of the living conditions. In this period, there were many legislations typically The Resolution of Some Problems About the Establishment of Socialist Market Economic System by the Communist Party of China and the Central Committee has been issued. It has put forward the compose element of the social security system of China, concerning the security items, the social insurance and the commercial insurance, (Wang,1995).#p#分頁標題#e#
1.2.4 The fifth period
The fifth period of the development of the social security is from 1995 to present. The State Council of China has set up the Ministry of Labour Social Security in this period in an effort to strengthen and consolidate the management of the social security work, and gradually, the social security funds have been unified. The funds have been collected from every enterprise and trade in conformed to the economic system, the conditions of the social demand for the funds and so on. The management of the pension of the aged and the people in the rural areas have been improved as well. However, there are still many problems exist that need to be solved. The main problem of which is firstly the expanding of the social security coverage and the social security funds. The following would analysis and compare the social security system in Western country and China in terms of their theory, development, reform and application, and try to put forward some proposals for the development of the social security system in China.