Social Policy: European Insights and China's Challenges

Author: Zhou Jianming
Publisher:
Publish Date: 2005-03-01
Features: Social policy is a policy system and fundamental institution that has developed in modern society to reduce social risks in the market economy. Its core is the state's redistribution of national income, providing universal social security and support for broad employment as one of its fundamental functions. In industrialized countries, whether they adopt a capitalist system or a socialist system, they cannot avoid the issue of social policy, although the theories and institutions they adopt may differ. Social policy originated in Europe during the process of capitalist industrialization. The industrialization process under capitalist conditions led to significant population mobility, with large numbers of people leaving the land and their hometowns to enter cities and participate in new production methods. The security mechanisms formed in agricultural societies to reduce social risks no longer served their needs. Market economy and capitalism led to severe social stratification, giving rise to new classes. Unemployment and poverty pushed a portion of the population to the brink of survival. Risks such as illness, industrial accidents, and old age in industrialized societies were unavoidable for everyone. If this issue was not resolved, it would lead to great social instability. However, while capitalism created this instability and crisis, it also provided the impetus to find solutions. By having society bear the risks of industrialization, European countries found a common direction through different economic developments. Its characteristic was the emergence of state-run and obligatory social security to reduce social risks in the market economy and industrial society.