Research on Old-age Security for Land-lost Peasants

Wang Limin

Luoyang Normal University, Luoyang, Henan, 471022, China

Keywords: Land-lost Peasants, Provision for the Aged, Insurance Policy.

Abstract: Along with the process of Chinese urbanization, a great number of farmland has been expropriated, bringing

about a new kind of disadvantaged group—land-lost peasants. Those peasants have lost the land they lived

on, and encountered difficulties when migrating to cities and searching for jobs to support their retired life.

This study analyzes reasons of this situation and the necessity of the endowment insurance system for land-

lost peasants. On this basis, suggestions are proposed to improve endowment insurance system for land-lost

peasant for the consideration of relevant governmental departments.

1 CURRENT SITUATION AND

REASONS OF ESTABLISHING

CHINESE ENDOWMENT

INSURANCE FOR LAND-LOST

PEASANTS

1.1 The Large and Increasing

Population of Land-lost Peasants

The significant development of urbanization in

China has led to phenomenal infrastructure

construction in transportation and energy industry in

recent years. It is estimated that there are tens of

millions land-lost peasants and also tens of millions

acres farmland expropriated for non-agricultural

uses. There is also uncounted farmland being traded

privately or expropriated illegally without approval.

In short, by the end of 2012, basic farmland in China

has reduced to 2.027 billion mu (0.0667 hectares).

The loss of farmland has decreased income and

living standards of peasants’ life. Some peasant

households even lost all of their farmland, in other

words, their source of income. Most land-lost

peasants live nearby large or medium-sized cities,

where great and fast modernization happens with the

demand for more farmland. In brief, rural areas

closer to developed cities will lose more farmland.

1.2 Low Literacy of Land-lost Peasants

Low literacy is a common feature shared by many

land-lost peasants in China. A majority of the

peasants only have education under high school,

mostly in primary school and junior middle school.

They have disadvantages in employment market due

to low literacy and the isolation from mainstream

society. For most peasants, the loss of farmland

equals to unemployment and the loss of stable life

status at the same time. Except for low literacy, most

peasants are trained only for agricultural work. The

lack of professional skills brings about more

difficulties for them to find jobs in cities. There is

usually one-off compensation for land-lost peasants

paid by governments and other land expropriators.

However, peasants tend to consider more about

immediate interest and fail to require long-term and

stable compensations. Therefore, some land-lost

peasants only rest on their laurels without a stable

and proper income after that.

1.3 Single Way of Governmental

Arrangement to Resettle Land-lost

Peasants

In the process of farmland expropriation,

governments can serve as land expropriator and

supervisor. As a land expropriator, governments use

the land for the construction of urban infrastructure

such as viaducts and resident-benefit projects. As a

supervisor, governments keep an eye on approved

enterprises when they expropriate farmland to build

commodity houses, etc. Despite the different roles

played by governments, compensation is mainly

paid in a one-off way by cash. Peasants, possessing

money instead of farmland, usually have nothing to

do but stay at home idly. Other than cash

compensation, there is a governmental arrangement

to resettle land-lost peasants: operating collective

business entities. This method is not only risky but

155

Limin W.

Research on Old-age Security for Land-lost Peasants.

DOI: 10.5220/0006021001550158

In Proceedings of the Information Science and Management Engineering III (ISME 2015), pages 155-158

ISBN: 978-989-758-163-2

155

also failed to take actual situation of each peasant

into consideration. If the entities close down or go

bankrupt, peasants will lose not only their land but

also their money. However, if peasants do not follow

governments’ arrangement, they will still have

difficulties to find jobs due to the lack of education.

They can only find part-time and casual work,

instead of stable and long-term one, to support their

families.

2 NECESSITY OF

ESTABLISHING THE

ENDOWMENT INSURANCE

SYSTEM

2.1 Improving Living Standards of

Land-loss Peasants

Young land-lost peasants usually go to cities for

regular education or professional training. The land-

lost peasants over their middle age, however, have to

stay at home. Therefore, the most serious problem

for land-lost peasants is the lack of stable and long-

term livelihood. When they lose their labor capacity

as they get aged, their living standards decrease

sharply. Some of them even fail to support their

daily life. If the endowment insurance system for

land-lost peasants is established through the

cooperation of society and governments, the

peasants will have at least one mean to secure their

retire life. Moreover, this insurance system will also

bridge the gap between urban and rural areas by

involving land-lost peasants into welfare system.

2.2 Lightening the Burden on

Households of Supporting of the

Aged

In traditional Chinese society, supporting the aged at

home is the general way to look after the aged. The

old saying “raising children for old age”, an

expression of the traditional practice, has been

challenged in modern society. Firstly, fewer children

are born in families based on family-planning

policy. Each of them has more responsibilities than

before. Secondly, family structure in China has

changed to be nuclear family with parents and

children only. There is another severe problem for

land-lost peasants to deal with. When many young

land-lost peasants make this way to cities for better

life, their parents will lose their children and land at

the same time. Youngsters are unable to stay at

home and look after their parents. When the aged

parents get ill, their children have difficulty in

making choice between career and family. Besides,

the establishment of endowment insurance will

considerably ease financial pressure of land-lost

households. It can help the households out of

financial crisis and improve living standards of the

aged.

2.3 Promoting Social Stability and

National Development

There is a large rural population in China,

outnumbering its counterpart in urban area.

Unsecured life of rural population is adverse to the

development and prosperity of our country. Land-

lost peasants are only a small part of rural

population. But it is equally important for social

stability and development that land-lost peasants

have better living standards and provision for the

aged. They usually suffer psychologically and

physically from the loss of their land. It may get

worse if there is no proper endowment insurance

system for them. When the negative feelings grow,

they are likely to do things harmful to society, such

as violating the Punishing Rules of Public Order and

Administration, and even committing crimes.

3 SUGGESTIONS TO IMPROVE

ENDOWMENT INSURANCE

SYSTEM FOR LAND-LOST

PEASANTS

3.1 Establishing Endowment Insurance

System for Land-lost Peasants

There are several principles should be taken into

consideration when establishing endowment

insurance system. The system should meet basic

needs, treat every peasant as individuals, perform

fairly and effectively and be in line with current

social security system. China is currently in the first

stage of socialism so does Chinese social security

and economic development. Being unable to provide

land-lost peasants with dynamic endowment

security, Chinese government and society has to

make the best to guarantee their basic living needs.

Given the age span of the peasants, endowment

insurance for the youngsters should consider more

about their future and the immediate interest for the

aged. The fairness of the endowment insurance

system is to be considered in three aspects. Firstly,

opportunity of endowment insurance should be

provided equally to every land-lost peasant,

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disregarding age, nationality and region. Secondly,

governments ought to provide endowment insurance

to land-lost peasant with no excuse when peasants

pay their fees. Thirdly, endowment insurance system

should be connected to social security system as a

whole. The system is unlikely to sustain if isolated

from other parts of society.

3.2 Setting up a Special Fund for

Endowment Insurance

Land-lost peasants have already lost their means of

livelihood. Their living standards will decrease

inevitably if they are required to pay for the

endowment insurance permanently. But without the

payment, governments cannot afford the large

expenses on endowment insurance and peasants will

lose a stable source of income when they get aged.

Therefore, the fund for endowment insurance for

land-lost peasants should be contributed by both

governments and peasants. Governments play a

leading role to make policies and decide budgets for

endowment insurance for land-lost peasants. It

should also set up a special fund and raise money to

financially support the system. Besides,

governments determine the proportion of fund

contributed by peasants to encourage more peasants

take part in endowment insurance system within

their capacities. A special fiscal account should be

opened by governments after enough fund has been

raised. The fund is to be deposited or invested for

long-term increment, lightening the burden of both

governments and individuals.

3.3 Improving Supporting Measures of

Endowment Insurance System

Family supporting is a traditional and important way

to provide for the aged, especially for peasants.

Family supporting for land-lost peasants should also

be emphasized along with the establishment of

endowment insurance system. Endowment insurance

isn’t a complete substitute for other financial sources

of peasants’ income but an improvement of them.

Households are encouraged to support and comfort

aged land-lost peasants by special welfare. For

example, their children can go to nearby school to

receive education.

3.4 Broadening Channels of

Employment for Land-Lost

Peasants to Develop National

Economy

Economic development is the primary task to

improve social security system and people’s living

standards. The contribution of peasants is important

to sustain the endowment insurance system.

However, peasants need to get rich to do this. For

land-lost peasants, only fast economic development

can provide them with a better employment market

and more job opportunities. Governments need to

emphasize on regional economic development of

living areas of land-lost peasants in the first place by

introducing external investments and establishing

employment platforms. Self-employment of land-

lost peasants is given more support by governments

not only in finance but also in policies. Professional

technicians are hired by governments to teach land-

lost peasants in skill training projects, thus

promoting competencies of the peasants for new

jobs.

3.5 Improving the Land Compensation

System

The compensation for expropriated land determines

the pension standards of land-lost peasants to a

certain extent. It is important for peasants, families

and society. Therefore, the amounts and ways of

compensation should be clarified in the course of

land expropriation. Amounts of compensation need

to be made according to the market prices of land

and actual regional situations. Attention should also

be paid to the coordination with peasants and the

relationship between collectives and peasants. Once

the compensation amounts are determined,

governments supervise and ensure the timely

payment of compensation by land expropriators. The

practice of “expropriation first, payment second”

and IOU is not permitted. Compensations for

collective land should be based on a majority of

relevant peasants, instead of partially or radically

determined by leaders.

3.6 Strengthening Supervision

Mechanism of the Funds of

Endowment Insurance for

Land-Lost Peasants

It is crucial to manage properly the funds of

endowment insurance for land-lost peasants. The

funds should be used reasonably and rationally to

keep the value of the funds. Supervision mechanism

should be strengthened to prevent peasants’ interest

from being harmed in “black box operations.” On

one hand, administrative departments regulate the

use methods and standards of the funds in writing.

Transparency of endowment insurance system

makes it easy for social supervision. On the other

hand, functions of administrative departments

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should be clarified and promoted by employing

professional managers. Specialty and authority of

administrative departments help to avoid financial

loss due to human factors. Land-lost peasants will

trust and invest an endowment insurance system

with perfect supervision. This also indirectly

prevents peasants from being harmed by fraud such

as illegal private financing and usury.

4 CONCLUSIONS

In brief, family supporting is still the most important

way of provision for the aged of land-lost peasants,

with the financial support of governments and land

expropriators. Governments establish social security

system while land expropriators provide land-lost

peasants with job opportunities. Basically it is an

issue of economic development. Consequently,

economic development in rural area should be

accelerated to lighten the burden of peasants and

increase their incomes.

ACKNOWLEDGEMENT

The work was supported by a soft science research

project of Department of Technology of Henan

Province [Project No. 142400410745] and a

program of philosophy and social science planning

of Henan Province [Project No. 2013BSH018].

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Wang Min and Yang Yuxia, 2006 (04):119-125. Research

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Liu Shaoqing, Gao Changqing and Ning Xin,

2014(04):85-87. Exploration of inducements of

endowment security of land-lost peasants. Jiangsu

Commercial Forum.

Wang Zhongwei and Xia Congya, 2014 (03):153-156.

Analysis of endowment insurance for land-lost

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Guangxi Social Sciences.

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