On the Difference and Coordination of the Social Security System in the Urban and Rural Areas of China
中国社会保障制度的城乡差异及统筹改革思路

There has existed a greatly different and unbalanced social security system between the urban and rural areas of China for decades, which has induced the contorted function of social security and has been proven to block the development of society and economy in both rural and urban areas. The analysis in the aspects of security mode, administration system and security level of the social security system of China shows that the difference, unbalance and contorted function in social security between rural and urban areas result from the planned economy system of China. Under such a system, this social security system mixes with social production system and cannot regulate the redistribution among industries or between urban and rural areas. The existing social security system which separates the rural area from the urban area in China, not only fails to adapt to the development of market economy and the requirement of the economic reform, but also exerts some very negative influence on the all-round growth of social economy. The influence is mainly as follows: (1) failure to provide farmers with the basic treatment of social security, which demonstrates the great social inequality; (2) the contorted function of income redistribution of the existing social security system, which widens the income gap between urban and rural residents; (3) failure of the existing social security system to cover all laborers, which hinders the furthering of economic reform; and (4) the existing separate social security system, which is harmful to ensure the coordinated development in the urban and rural areas. Therefore, in the new situation of social changes and economic transformation, it is inevitable and imperative that the urban social security system and rural social security system will develop. At present, the reform of the urban social security system in China should focus on the adjustment and optimization of social security items, the proper control of social security level (according to the conditions of developing social economy and social security fund), and the widening of the coverage of social security (for example, migrant rural workers). In addition, due attention should be paid to improve the social security system in providing for the aged, medical treatment and salvation, and combating poverty with a view to increasing the level of social security.