China will now take measures to bolster the country's social security
network. The country's top policy-makers earlier this month appropriately linked
a good social security network to equity, justice and the building of a
harmonious society. A commitment has been made.
One of the first steps the government should take is to increase pensions and
provide more medical benefits for retirees in cities. These senior citizens
spent most of their working years during the era of the planned economy, when
workers were significantly underpaid but enjoyed a cradle-to-grave welfare
system. The old welfare system was gradually scrapped since the 1980s.
Progress of the construction of a new social security network, financed
jointly by the State, employers and employees, has been painfully slow.
Universal coverage in cities has not been achieved. In regions where the
system is already working, the benefits are generally low. The retirees,
naturally, are among those who are most vulnerable to the unfavourable change.
Chen Shu, a veteran actor who starred in Bernardo Bertolucci's 1987 film "The
Last Emperor," highlighted the retirees' plight.
Chen passed away last week at the age of 86. While his fans lamented the
death of a respected artist, they also felt sad about his depressing life during
his final years: He had to live on a pension of 1,100 yuan (US$135) per month in
Shanghai, one of the most expensive cities in the country. His family had to
borrow money to pay for the bulk of his medical expenses because only a small
portion of his medical expenses could be reimbursed under the existing social
security system.
The standard for pensions and other benefits have been somewhat raised during
recent years. But they are still low. The wealth created by Chen's generation
was definitely worth more than the income and benefits they received. The
country owes a debt to them.
The State coffers, teeming with swelling fiscal income and foreign exchange
reserves, are now capable of allocating money to pay at least part of that debt.
Improving the social security system is a huge project that should be
undertaken step by step. But the retirees' welfare enhancement is an immediate
imperative.
Most of the people of the older generations experienced much hardship during
their life - wars, starvation and turbulences.
In a society that champions equity and justice, it should not let their
senior citizens spend their final years in misery.
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