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Pension System in China - Thesis Example

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The purpose of this paper is to analyze the aspect of inefficiency and unfairness in the evolution process of the pension system in China. The determination of China in establishing a pension system that is partially funded is deemed a step in the right direction…
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Pension System in China
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Download file to see previous pages According to the research findings, the growth of the pension funds has consistently represented a challenge especially considering the present position of commercial banking. However, there have also been benefits related to expansion and growth of the financial markets, hence leading to efficiency and liquidity. This paper has found out that an effective pension system requires such pre-conditions as sound commercial banking, market stability, effective financial regulations, and commercial systems of insurance. In the perspective of China, the country is present, at an important period with regard to its economic and social transition. The comprehensive reform of China’s social security and pension systems is a critical strategic factor that will assist in realizing a sustainable development in pension plans as well as a harmonious society. However, its current approach to pension system is inadequate in facilitating a realization of the country’s economic development objectives now and for future generation. Presently, China is at an important period with regard to its economic transition. The comprehensive reform of its social security and pension systems is a critical strategic factor that is aimed towards realizing a sustainable development as well as a harmonious society. The common view by policymakers in China is that the current approach to the pension is inadequate in facilitating a realization of the country’s economic development objectives now and in the future. According to these policymakers, a reformed pension system will see urban systems being sustainable, multilayered, protects at the basic level and has broad coverage. However, though the relevant authorities have placed the increasing premium on a more balanced development between urban, and rural areas, households and different regions, the pension system has a per today only contributed to divergence. ...Download file to see next pagesRead More
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