ABSTRACT
Since the fi nancial crisis in Asia in 1997, China’s social security system has undergone continual reform and readjustment and has been integral to efforts to perfect the socialist market economy and a harmonious socialist society. Although building of the social security system has yielded tremendous results, it has also left a number of problems in its wake. As China’s economy and revenues grow rapidly, a larger cross-section of the population is imposing greater demands on the social security system. Finding ways to perfect the system so that it conforms to current circumstances is an arduous task. This chapter begins with a brief retrospective of the development of China’s social security system between 1997 and 2007, and then evaluates the role and effects of the system in meeting its own challenges, improving the socialist market economy, and analyzing problems and challenges in the system. The chapter concludes with suggestions for improving the present system.
