A Study on the Reform Course of Pension Operation in China: Focusing the Introduction and Abolition of the Operation in the Industry - Coordination Pension System (1986-1998)

Abstract

This study aims to analyze the course of introduction and abolition of the operation in the industry-coordination pension system from 1986 to 1998, and to get the lessons for pension reforms in China. This study is proceeded in the following the analytical frameworks: the level of privatization reform in state-owned enterprises, the formation and change of stakeholder groups, the behavior of stakeholder groups, and the influence of stakeholder groups. We focus especially on the power of influence and relationship among actors of central government, local government, administration branches and state-owned enterprises, examining whether the theory of interest group politics could be applied to the Chinese pension system. In our literature review, we used journal and newspaper articles and the internet sites of government agencies. The results are as follows. First, stakeholder groups were formed and changed in the process of privatization in state-owned enterprises. Second, on the basis of understanding relationship, local government, administration branches, state-owned enterprises as well as central government exerted their influence to the process of the Pension Reform in China. Third, the alliance of administration branches and state-owned enterprises and the alliance of local government and ministry of labor wielded strong influence over policy decisions on the pension reform through the collusion of power and capital. The findings suggest that the theory of interest group politics in the west can be applied to China, although to a limited extent.