The chinese pension fund system, Financial Management

The Chinese Pension Fund System

Mainland China has a rapidly aging population. This is attributable to two main factors - the one-child policy plus substantial improvements in life expectancy leading to a rapidly deteriorating dependency ratio. The issue of China's aging population first attracted attention in 1982, following the country's third population census. Official projections indicated that China's population was aging faster than in almost any other country and the ratio of retirees to workers was deteriorating more seriously than elsewhere.

China's life expectancy has improved dramatically over the past 50 years. Today, the average life expectancy is 71 years, compared to 50 years in 1949 (male and female combined). At the same time, the one-child policy has been rigorously applied in the urban sector of China since 1979. Quite simply, this policy is arguably the most significant social experiment ever. The policy is, however, modified in its application in rural China and with ethnic minorities.

The so-called 1-2-4 phenomenon, which stands for one child, two parents and four grandparents, is becoming apparent in China. In other words, one child will enter the workforce to take care of two parents and four grandparents. The Chinese government is fully aware of its aging population, and the financial burden being created to provide and care for the elderly. It is inevitable that China's pension system will need to go through significant changes. It must also be appreciated that the Chinese pension reforms are an integral part of the overall economic reforms and the development of China's capital markets.

 

Posted Date: 9/11/2012 1:46:08 AM | Location : United States







Related Discussions:- The chinese pension fund system, Assignment Help, Ask Question on The chinese pension fund system, Get Answer, Expert's Help, The chinese pension fund system Discussions

Write discussion on The chinese pension fund system
Your posts are moderated
Related Questions
Question 1: (i) How are education and economic growth connected? (ii) Explain how the export promotion trade strategy may be more growth promoting for developing economies,

Rights of Investors CERTIFICATES An investor is entitled to receive shares/unit certificates allotted to him within a period of 6 weeks from the date of closure of the sub

Illustrate about the Financial Management Individual businesses face problems dealing with acquisition of funds to carry on their activities and with determination ofoptimum

What is Marginal cost of capital Marginal cost of capital, by contrast refers to incrementalcost associated with new funds raised by firm. Marginal cost is the specific conc

Why do businesses spend time, effort, and money to produce forecasts?  Explain. Businesses fail or succeed depending on how well prepared they are to deal with the situations t

You must analyze how the company is financed through equity and debt financing. You will discuss the level of leverage and how it compares to similar companies in the Industry.

Question 1: (a) Discuss the main limitations of using changes in national income as an index of economic welfare. (b) What are the alternatives measures and issues that sho

Procedure of measurement of Future Value If we are getting a return of 10 % in one year then what is the return we are going to get in two years? 20 %, right. What about return

In January 2010 your firm bought from an Italian firm goods payable in Euros worth EU2,000,000.  Suppose that at that time the exchange rate of the Euros was 1EU=$1.25.  Because th

Once capital markets are integrated, it is hard for a country to maintain a fixed exchange rate. Explain why this may be so. Answer: one time capital markets are integrated int