ABSTRACT
The issue of population ageing is currently high on the policy agenda in China, as it is elsewhere. Population ageing is the most significant demographic trend with far-reaching ramifications for the economy and social stability. It has earned the nickname ‘the demographic time bomb’. In China, it is estimated by the World Bank that, by 2030, around 22 per cent of China’s population of 1.2 billion will be over 60 years old (World Bank, 1997). In response to the prediction, the Chinese government needs to develop policies aimed at reducing the long-term financial consequences of this ‘greying’ of the population and at providing adequate pensions and resources for long-term care (LTC) to these elderly whenever they need it. The Chinese family-planning policy of ‘one couple with one child (two plus one)’ has driven the dilemma to a high level because China’s current social policy is based on the assumption that a family is always available and willing to provide LTC for the elderly. Both the current demographic and household changes – and the economic and social reforms – in China have challenged this assumption.
