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 was almost the same time as the "Three Rural Issues" drew academic attention. The "Three Rural Issues" primarily involve farmers' poverty, rural compulsory education, rural public health, rural economic development, and rural social stability, among other issues. All these are closely related to the social security issue of farmers. It can be said that the social security issue 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 National People's Congress passed the "Model Charter of Advanced Agricultural Cooperatives," establishing the "Five Guarantees" system for rural orphans, elderly, disabled, and children. According to these regulations, urban employees could enjoy old-age insurance, medical insurance, work-related injury insurance, maternity insurance, and also live in low-rent housing provided by the government, receive benefits such as kindergartens, canteens, bathhouses, and clubs provided by their units or enterprises, as well as subsidies for transportation, grain and oil, and heating. However, farmers were excluded from these benefits, leaving only limited social relief provided by collective economic organizations for rural orphans, elderly, disabled, and children. 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 without being truly resolved. The long-term absence of a social security system for farmers has led to a series of social issues. For example, farmers' poverty is indeed directly related to their low income, which has been declining in recent years. However, the lack of medical insurance benefits forces farmers to pay high medical expenses and bear the heavy costs of compulsory education, which are also the main 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 private education funded by farmers' collective contributions, 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-disappeared epidemics and infectious diseases, causing a decline in farmers' overall physical health due to their inability to afford medical treatment. In recent years, insufficient domestic demand has become a bottleneck restricting China's economic development, primarily due to the low consumption enthusiasm of farmers, who constitute the majority of the population. Farmers do not intend to use their cash, except for basic living expenses, to purchase other consumer goods and durable goods, but rather save it for their children's tuition, medical expenses, and old-age care. The dual economic and social structure, characterized by the household registration system and social security, has continuously expanded and deepened the gap between urban and rural areas and the rich and the poor, making farmers the largest vulnerable group. This group, which has long been sacrificing without compensation, feels unfairly treated and has led to social instability in some areas. All these issues constitute the core of the "Three Rural Issues," and solving them should start with establishing a social security system for farmers.