What are the institutional models of social security in China? What are the characteristics?

(II) Construction of Rural Social Security System

The existing literature on the construction of rural social security system, the research angles have their own focus:

The first angle, from the differences in rural economic development, the basic idea of establishing a sound rural social security system is to classify the design and implementation of classification based on the level of economic development of different types of rural areas. In the poor rural areas should be established in the content of the basic livelihood security relief social security system, in the subsistence rural areas should be established in the basic needs of life social security system, in the rich rural areas should be established in the insurance type of social security system. And based on the design of the different contents, it should be categorized and implemented in terms of the management system, the breakthroughs in implementation, the financing model and the system guarantee. Different scholars have different views on whether to establish a relatively independent social security system for rural migrant workers in towns and cities, or to incorporate it into the social security system for urban residents, or to incorporate it into the rural social security system. (Ren Baoping and Wang Yan, 2003)

The second perspective is that the rural social security system should take into account the division and stratification of rural residents, and the design of the system varies according to the nature and needs of the targets after stratification. Traditional farmers have been differentiated into traditional farmers and industrial workers, including various non-agricultural industries. Migrant workers, in turn, can be divided into three major groups: one is the migrant worker who has already become a citizen, whose occupational status has completely changed, and who needs to be integrated into the city through systemic reforms and included in the one-citizen social security system. The second part is seasonal workers who come out to work during the agricultural leisure time. Their social security needs are completely different from those of the already urbanized. The third part is the migrant workers who make up the majority of the rural migrant workers, who work outside the city all year round and need a different social security system than the first two (Zheng Gongcheng, 20). When designing a rural social security system, it is important to consider the different needs of different groups of the rural population at this stage, and the increasing diversity of the rural population: some of the rural population has de facto de-agrarianized (for which access to the social security system in the towns and cities should be designed), some of the rural population is still engaged in traditional agriculture (for which the level of security provided by the land is still to be improved), and some are still engaged in traditional agriculture (for which the level of security provided by the land is still to be improved). Some are still engaged in traditional agricultural production (the level of security provided by their main dependence on the land still needs to be improved), and some are the poorest of the poor (they need the "bottom-up" function of the social security system most). (Fan Xiaogang, 2004)

The third perspective, based on China's economic and cultural foundations, holds that the construction of a rural social security system with Chinese characteristics cannot and should not be copied from the Western model, and that China's rural social security system is a unified whole that is based on the household contract responsibility system, with the protection of the rural family as the main line, supplemented by mutual assistance of family members, and combines the strengths of the government and society. in a unified whole. (Yang Fuxing and Zhao Wanshui, 2004)

Third, Social Security Financing Mode--The Fees and Taxes Controversy

The first point of view is that the reform of the social security tax system is an important and complicated difficulty in the reform of the social security system. The role of social security tax is that it is the pillar of the social security building; the essence of the tax system is to promote the welfare social security to the real social insurance model; the social security tax rate and social security financing model is a role and reaction relationship; the main measures to establish a social security tax system with Chinese characteristics are to comprehensively levy, reasonably levy, to encourage levying and to ensure levying (Zkou Dasong, Zkou Dasong, 1997). 1997). This can truly reflect the principle of fairness of the basic pension, is conducive to solving the current basic pension payment crisis, and is conducive to the construction of a unified, standardized and perfect basic pension security system (Gong Xiuquan, Huang Shengkai, 2002).

The second point of view, against the "fee to tax". The second point of view, opposed to the "fee to tax", that social security fees to tax and the current mode of operation of the social security system contradictory. The reasons are: first, the public nature of the tax conflicts with the private nature of the social security individual account. Secondly, the non-direct reimbursement of taxes conflicts with the private nature of social security. Thirdly, it is difficult to connect with the existing social security policy and difficult to operate operationally (Wang Zeying, 2002). In addition, the introduction of social security tax to solve the difficulty of charging and financing problems will put the government in a situation of increasing financial burden (Li Shaoguang, 2002).

The third viewpoint is that social security fee to tax should be slowed down. The reason is that the goal of the fee to tax change is vague, more constraints, there are more technical obstacles, the expected effect is still uncertain, and the international social security reform and development trend does not match (Zheng Gongcheng, 2000). Similarly, it is also believed that, due to China's fiscal and tax system is practiced in the tax system, the introduction of social security tax must be considered to match the right to do things with the right to finance, so that there are only two possibilities, one of which is the establishment of the pension insurance plan can only be local, the local government will need to face a great deal of financial risk, and the second is the national pension insurance plan that still has many remaining problems. Therefore, the establishment of the government our country does not yet have the conditions for the introduction of social security tax (Deng Ziji, 2002).

The fourth point of view, to adopt a non-designated tax or quasi-designated tax variant. This view is that the introduction of social security tax is difficult to avoid the "crowding out effect" of the pay-as-you-go financing method previously used in China, and there is no guarantee that an optimal tax rate can be determined. Instead, the use of alternative financing methods, that is, in the total fiscal revenue in accordance with a certain amount of money, regularly allocated to the pension insurance special fund, which can not only reduce the pay-as-you-go system on the total savings of a part of the crowding-out effect, but also does not hinder the introduction of a social security tax in the future at an appropriate time. Adopting this approach is in line with the current situation of China's pension insurance reform as well as the reform of the financial and tax system (Cheng Zhigang, 2002).

The fifth point of view, the future of China's social security financing model should be a composite, fees and taxes are not you have no me, replace each other, there is no one way of financing can independently meet the huge demand for social security funds fees or taxes and social security model and program selection. Taxes and fees each have their own basis for existence and cannot replace each other. However, the introduction of social security tax is a general trend, irreversible, charges can only be a supplement to the collection of taxes (Wang Yi, Liu Jing, 2004).

Fourth, the fund operation mode

With the financing of China's social security fund from the pay-as-you-go system to the partial accumulation system, the pension fund investment and operation of the social security system reform is an important issue (Cai Xingyang, 1997). At present, the main investment of China's social security fund is still bank deposits, treasury bonds and social security directed bonds, a small portion of the investment in corporate bonds, stock market and other securities market. At the same time to ensure the safety, value preservation and appreciation of the social security fund management has become the face of the difficulties and challenges, social security fund operation mode has been one of the hot issues, involving social security fund into the capital market, investment and operation of diversification, market-oriented, management mode, the choice of residual financing tools and other aspects of the problem. Several typical views are as follows:

The first view, the pension fund should become an institutional investor. Institutional investors are larger, investment tends to be long-term, in the social security fund value-added at the same time can play a role in stabilizing the stock market. However, the pension fund needs to have four conditions, one is to have a capital scale that can bear a certain amount of risk; the second is to be based on a more developed financial market; the third is to have a professional fund custodian; and the fourth is that the pension fund should adopt an indexing investment policy (Cheng Hongye, 2001).

The second view, social security funds should be invested in open-end funds. This viewpoint believes that, first, the open-ended fund is a relatively small risk, relatively high return varieties. As a return *** enjoy, risk *** share of the pooled investment tools, it can neither guarantee investors a certain profit, nor can it guarantee the minimum return, from the point of view of mature social security fund operation in foreign countries, the practice of investing in open-ended funds is more common. Secondly, when making investments, attention needs to be paid to controlling the amount to avoid liquidity risks and payment difficulties. Third, due to the price risk of open-ended funds, social security funds investing in open-ended funds should adhere to the principle of long-term investment and choose income funds for investment (Zhang Shuyuan and Du Aiping, 2001).

The third view, the pension into the capital market is the ultimate choice, but the conditions are not yet mature. This view holds that, theoretically, a pension plan with a full accumulation system must become an institutional investor in the capital market in order for it to get a long-term stable investment return. A stable and prosperous capital market will enable the pension savings to be transformed into efficient investment through this channel, and to share the investment returns so that the reform of China's social security system can maximize the overall efficiency of economic growth. However, in China, because the capital market has long been in a high-risk state, and because there is no fully accumulated pension fund to legally and without fear enter the capital market, so that its theoretical role can not be realized. If fund accumulation can continue to be a major long-term goal in China's pension reform, then access to the capital markets will be an option for pension plans sooner or later. However, the institutional system suitable for the fund to operate in the capital market has not yet been finalized, the organizational structure has not yet been formed, and the operation rules are not yet clear (Li Shaoguang, 2002). Specifically to the exploration of the social security fund to enter the stock market, similar views, the pay-as-you-go nature of the social security fund should not be rushed into the stock market, because no matter from the capital market or from the social security fund's institutional conditions, social security fund to enter the stock market are not mature (Zheng Bingwen, 2003).

The fourth point of view, that according to the basic characteristics of China's social security system, goal orientation, fund management and the current situation of the capital market, China's social fund should be divided into three funds of different natures, that is, the Reserve Fund (the National Social Security Fund), the Account Fund (personal account accumulation) and the Coordinated Fund (the social coordination part of the accumulation). Three independent legal entities should be set up to invest and manage these funds. For the reserve fund, it should be completely separated from the domestic capital market and go to the international market; the account fund should be managed and invested by the central government; and the coordinated fund should be coordinated and invested and managed at the provincial level (Zheng Bingwen, 2004).

The fifth view, the social insurance fund should choose the money market as the main place of liquidity management. It is believed that the social security fund's entry into the money market can increase the supply of funds in the money market and enliven the transactions in the money market; on the other hand, it also helps to promote the competition in the money market and promote the innovation of financial instruments, which in turn improves the liquidity and operational efficiency of the money market. The entry of the social security fund also puts forward higher requirements for financial supervision, because the special requirements of the social security fund for security need the money market to have good order and higher efficiency, which can objectively push the supervisory authorities to improve the level of supervision. There is a difference between the short-term and long-term effects of changes in money market interest rates on the SSF. The interaction between the money market and the social security fund has a positive effect on the development of a country's financial market and social security (Yang Bo, 2005).

V. Management mode - the role of the government

The prominent feature of the modern social security system lies in the dominant position of the government in the construction and operation of social security system. Different modes of government management in social security directly determine and reflect the type of social security system. Since the beginning of the social security reform, the management mode has gone through the process of decentralized management by enterprises - decentralized management by the government - centralized management by the government. At the early stage of the reform, most of the debates about the management mode focused on the perspective of unification or segmentation of responsibility of the national social security administration. For example, with the establishment and improvement of China's socialist market economic system, this mode of management has become increasingly unable to adapt to the needs of economic and social development, and must be reformed from the current multi-sectoral management to unified management by a single department (Tian Jiaguan, 1997). The "five dragons ruling the water" situation of fragmentation should be resolutely reversed, and unified management should be implemented. The social security management system should be separated from government affairs, from politics and economics, from administration and supervision, with the government administration not caring about operations but only about policies, supervision and inspection (Feng Lanrui, 1994, 1996). Regarding the role of the government in the management of the social security system, there are the following views:

The first viewpoint, advocating autonomous management. It is believed that China should establish a centralized and decentralized social security management system, autonomous management, not subordinate to government agencies. The supreme leadership of the insurance organization belongs to the representative assembly, the employer and the employee half and half. The representative assembly elects a council, which is a model of centralized and decentralized management based on the differences in the management requirements of various social insurance programs, centralizing the part of the program that is more *** and implementing unified management, and singling out a number of programs that are more prominent in terms of their specificity for decentralized management by the relevant departments. This management model actively promotes an integrated security system, and is conducive to the establishment of an efficient and streamlined social security management network based on the principle of segregation of duties (Sun Jiupeng, 1996). In addition, based on the different characteristics of social insurance, social assistance and social welfare programs, the management models should be different. The management model of social insurance in China should be transformed from the centralized government management to the autonomous management model of multi-dimensional cooperation by setting up a social insurance management committee composed of the government, employers' representatives, labor representatives and experts (3+1 model) to carry out autonomous management (Zheng Gongcheng, 2004).

The second viewpoint advocates a government-led social security model. It is believed that the social security system provides members of the community with a variety of protection measures, with the nature of the "public **** products" to meet the needs of the community **** the same, with certain financial characteristics. Therefore, the finance-led model should be the basic model for the reform of China's social security system (Ma Cai-chen, 1999). China's social security model selection in the future for a long period of time should be government-led, direct management is appropriate. There are two reasons for this: firstly, from the viewpoint of historical and cultural traditions, China has long practiced a centralized governmental management system, the government has a high degree of authority, and members of the society have a high degree of acceptance of the government, so that there is less resistance to the government's implementation and development of social security and the efficiency is higher; secondly, from the viewpoint of the actual situation of our country, China's government is relatively large in scale, and it is less costly to let the government be in charge of the concrete implementation of social security system. In a short period of time in order to adapt to the needs of the system of transition, increase the government to social security in advance. At the same time, in contrast to the leading role of the government, the market plays a complementary role in the management model of the social security system (Song Wenbin and Zhang Qiang, 2004). This view is the mainstream view at present.

The third viewpoint, hybrid management model. It is believed that our government should take responsibility for the overall direct management of the public **** social security program, while the fund-based social security program is mainly responsible for external supervision and coordination of different social security programs. The long-term goal of the government should be to develop a competitive social security fund, while in the near future the government should assume the leading responsibility for the public **** social security scheme, and legislation should be passed to clarify the responsibilities of the state, enterprises and employees, and to establish an effective scientific and feasible system of fund-raising (Li Shaoguang, 2002).

Regarding the role of the government in social security in the international arena, there is also such a model, that is, mainly through the market to carry out the indirect management of the social security system management ritual, the government only as legislators and supervisors. There are few similar views in the practice of social security system reform in China.

VI. Comprehensive Evaluation

In fact, although the reform of China's social security system has developed to the present day, and the construction of the system framework has been basically completed, there are still a lot of theoretical issues to be researched and explored in the field of social security, and there is a lot of work to be done to build and improve the social security system of the cities and towns as well as the rural areas in practice. In the theoretical and practical sectors, the choice of the model of China's social security system is still being debated and undecided. Summarizing the literature, it can be found that most scholars are able to start from the diversified development laws and trends of social security system models, and research social security system models with Chinese characteristics based on China's national conditions. The following is the reason why the literature on framework selection and specific model selection is very numerous. However, there are also some shortcomings in the other direction:

First, it favors social security system research from the perspective of economics and neglects interdisciplinary research on social security system (Ding Jianding, 2003). Social security involves sociology, political science, economics, public **** management and other fields, especially on the issue of social security system model selection, more affected by a variety of factors (including economic and non-economic factors), and most of the literature in the study of social security model selection problem of disciplinary perspective is relatively single.

Secondly, there are more researches on solving practical problems and fewer researches on fundamental and theoretical problems, especially on the concept of establishment. For example, research on the composition of the content of the social security system and the operation of the fund is favored, and research on the relationship between responsibility and power in social security is neglected (Ding Jianding, 2003). Practice without theoretical guidance often wavers, and sometimes the blind phenomenon of "treating the head when the head aches and treating the foot when the foot hurts" is unavoidable.

Thirdly, there are more single research on "discussing things on their own" (separate research model), and less comprehensive and systematic research. For example, regarding the fund-raising model, many literatures explore the reasons and necessity that the fee should be changed to tax, but there are fewer analyses on the constraints, feasibility, and how to ensure the effect of the fee-tax change in the current situation of China.

Fourth, focusing on the necessity of research and analysis, ignoring the adequacy and feasibility of the argument, theoretical, systematic and comprehensive analysis is not enough. Often can not adequately argue the point of view or to refute the opposite point of view, can be said to have formed a "hundred" and can not form a "controversy" situation.

Fifth, on the basis of international experience (such as fund operation mode, management mode, mobilization mode, etc.), focusing on static research, ignoring dynamic research (such as the system, mode of evolution of the law and influencing factors, etc.); focusing on the universality and validity in foreign countries, failing to take into account China's actual situation, taking into account the differences between foreign countries and domestic in the system foundation, background, etc. In addition, focusing on the contemporary social security of Western countries, it is not easy to find out the reasons behind the development of the social security system in China. In addition, it emphasizes the research on the current situation of social security in contemporary western countries and neglects the research on the development and evolution of social security system in western countries.

Combined with international research themes in the field of social security, the research on the choice of social security system model in China should focus on the following thematic directions: first, the analysis of the effectiveness of the choice of social security system model in the context of China's specific era; second, the analysis of the impact of the trend of population aging and urbanization on the choice of social security system model in China; and third, the analysis of the relationship between the choice of social security system model and labor market (urban and rural labor market), employment market relationship issues.