ABSTRACT
Conceptual distinctions among types of social security systems Research into social security systems has been a “weak link” in both economic and administrative circles. Some basic concepts are misunderstood, which leads to the inability to discuss the subject intelligently. In the past, China’s social security structures and concepts were in fact determined by the department in chargeeach system was different depending on the sector of the economy. We now have a new understanding of this subject, as a result of the Decision (the “Decision on Major Issues concerning the establishment of a socialist market economy”) as approved by the Third Plenary Session of the 14th Central Committee of the Communist Party of China (1993). This includes a new approach to determining sources of funds and methods of guaranteeing benefits depending on the different types of social security. For the first time, the Decision also proposed the idea of setting up individual accounts for social security.
