Left to Market and Family – Again? Ideas and the Development of the Rural Pension Policy in China

Abstract

The rural pension policy in China is characterized by a high degree of instability. In the past 15 years since the introduction of pilot schemes in some regions, the state has been unable to establish a stable institutional framework for rural old-age security. This article seeks to integrate the theoretical insights from a growing body of international literature on the role of ideas in social policy reform in order to shed new light on the study of Chinese rural pension policy. I argue that the rise of the rural pension scheme and its eventual failure to make consistent progress towards a comprehensive system is directly related to conflicting ideas among bureaucrats with respect to what sort of welfare provision the rural elderly actually need. The fluctuations in this policy realm vividly illustrate the predominance of the policy idea that peasants could still rely on their land and family, supplemented by private commercial insurance, in their old age. Given this alleged self-reliance on the part of rural residents, the state is very reluctant to set up a comprehensive rural pension scheme. As a result, the old-age security of the peasants in rural China is standing on very thin ice, and the prospect for more active state involvement in the near future remains dim.