诺奖得主peter diamond系列-social security reform in china issues and options.pdfVIP

SOCIAL SECURITY REFORM IN CHINA: ISSUES AND OPTIONS January 27, 2005 Foreword This report is the first policy study of the China Economic Research and Advisory Programme, in which eminent economists from China and abroad have participated. The report focuses on the problems faced by China in the reform of its social security system. On the basis of economic principles and drawing on the most recent international experience, the report offers practical policy recommendations. The report analyses issues raised by the reform of Chinas social security system from a very broad perspective, thus avoiding the limitation of simply addressing the question of how to overcome the financial crisis in the pension system. Taking account of actual conditions in China today, the report compares the feasibility and implications of various pension models and suggests that China adopt the Notional Defined Contribution Account (NDC or Notional Individual Account) system, which has been implemented in several European countries. The paper considers that this model would not only maintain the benefits of individual accounts, but could also avoid some of the drawbacks of the funded system. The report includes a number of policy recommendations, including the establishment of a unified national social security management system, raising the retirement age, transferring state assets, increasing coverage, improving the capital markets, and enhancing social equity. The report was prepared by an international. research team. The foreign team included Professor Mukul Asher (National University of Singapore), Professor Nicholas Barr (London School of Economics), Professor Peter Diamond (Massachusetts Institute of Technology), Dr Edwin Lim, and Professor James Mirrlees (University of Cambridge). Professor Stanley Fischer, Professor Nicholas Stern, and Professor Salvador Valdes-Prieto (