The Greatest Matter - A Study on the Social Security System for Chinese Farmers

Author: Liu Cuixiao
Publisher:
Publish Date: 2006-05-01
Features: The social security issue of Chinese farmers has been attracting academic attention almost simultaneously with the "Three Rural Issues." The "Three Rural Issues" primarily involve a range of problems such as rural poverty, compulsory education in rural areas, rural public health, rural economic development, and rural social stability. All these issues are closely related to the social security of farmers. It can be said that the social security of farmers is the core and key of the "Three Rural Issues." China's social security system was established in 1951, marked by the promulgation of the "Labor Insurance Regulations of the People's Republic of China" on February 26, 1951, by the State Council. However, the regulations only applied to all urban enterprises and employees, excluding farmers. On June 30, 1956, the third session of the th National People's Congress passed the "Model Charter for Advanced Agricultural Cooperatives," establishing the "Five Guarantees" system for rural orphans, elderly, disabled, and widows. According to these regulations, urban employees were entitled to enjoy old-age insurance, medical insurance, work-related injury insurance, maternity insurance, and were provided with low-rent housing by the government, as well as benefits such as kindergartens, canteens, bathhouses, clubs, transportation subsidies, grain and oil subsidies, and heating subsidies. However, farmers were excluded from these benefits, leaving them outside the protection of the social security system, with only limited social relief provided by collective economic organizations for rural orphans, elderly, disabled, and widows. This urban-rural differentiated social security system, in a sense, placed farmers in the position of "second-class citizens" and has been in place for over 50 years, yet it remains unresolved to this day. The long-term absence of a social security system for farmers has led to a series of social issues. For example, rural poverty is indeed directly related to the low and declining income levels of farmers in recent years. However, the lack of medical insurance benefits forces farmers to pay exorbitant medical expenses and bear the high costs of compulsory education, which are also major reasons for their widespread poverty and relapse into poverty. Compulsory education, whether in urban or rural areas, is the responsibility of the state. However, since 1986, rural primary and secondary education has become a privately funded initiative by farmers, resulting in a significant number of rural students dropping out and an unbearable financial burden on farmers. The collapse of the rural cooperative medical system and insufficient government investment in rural public health have led to the resurgence of long-abandoned infectious diseases and epidemics, causing a decline in the overall physical health of farmers due to their inability to afford medical treatment. In recent years, insufficient domestic demand has become a bottleneck restricting China's economic development, primarily because the majority of China's population—farmers—have low consumer enthusiasm. Farmers do not intend to spend their cash on other daily necessities and durable goods beyond basic living expenses but instead save it for their children's tuition, medical care, and old-age support. The dual economic and social structure, characterized by the household registration system and social security, has continuously widened and deepened the gap between urban and rural areas, as well as between the rich and the poor, making farmers the largest vulnerable group. This group, which has long contributed without compensation, feels unfairly treated and has even led to social instability in some areas. All these issues constitute the core of the "Three Rural Issues," and solving them should begin with establishing a social security system for farmers.