Extracts. China Builds World's Largest Social Security Network China is stepping up efforts to knit a network of pensions and unemployment insurance to cover about 200 million people, the largest of its kind in the world, to replace its outdated "cradle-to-grave" welfare system. Finance Minister Xiang Huaicheng told the ongoing annual session of the country's top legislature Wednesday China will continue to increase funding for the social security program this year. Last year, it injected 87.6 billion yuan into the program, about one-third more than that of the previous year. Premier Zhu Rongji said it remains a "major task" for China in the coming five years to improve its social security system. A separate chapter was devoted to the issue in Zhu's Monday report on economic and social development strategy for 2001 to 2005 submitted for deliberation and approval by the ongoing fourth session of the Ninth National People's Congress (NPC). Under the plan, more Chinese people will be covered by the pension system, and the pension system for urban employees that integrates unified financing and individual accounts will be further improved. Retirees will receive their basic pensions on time and in full, while the basic life allowance for workers laid off by State-owned enterprises (SOE) will be covered by unemployment insurance under the social security system. The new system emerges as China's market-oriented reform progresses, and its life-long welfare system initiated decades ago is no longer considered sustainable. The cradle-to-grave welfare system calls for the SOE to be solely responsible for the welfare of their employees, including life-long employment, medical care and pension. The heavy burden has made it harder for SOEs, the dominating part of the country's economy, to compete with private and foreign- funded enterprises. >From the middle of the 1980s, China began to diversify the sources of funding for medical care and pensions by making the government, the enterprise and the employee share contributions. To date, the total number of SOE employees has dwindled to fewer than 50 million from 70 million due to accelerated reform and economic restructuring, bringing the registered jobless rate in urban areas to 3.1 percent. The central government plans to keep the jobless rate at about five percent during the coming five years. The figure translates into 2.5 million jobless workers, a heavy and growing financial burden on both the government and their employers, making it the most urgent economic task for the government to reshape the social security system. Economists say a sound social security system will create a better environment for SOE reform and development while removing the obstacle to exchanges of professionals. Bo Xilai, an NPC deputy and newly-elected governor of northeast China's Liaoning province, stressed that it will be impossible for economic restructuring to go ahead without a sound social security system. Liaoning, a province of 40 million people and center of the rusty industrial belt, was chosen by the central government as the only province for piloting such a system. At present, all SOE employees in the province, which account for one tenth of the country's total, are 100 percent covered by basic pensions thanks to support from the central government, said the governor. The priority for the province is to ensure that the basic pension be given in full and on time, and that the basic pension be gradually raised so that retirees' standard of life will be maintained. Eventually, Liaoning will gradually incorporate the basic living allowance for laid-off workers into a national unemployment insurance scheme. Out of the 10 million pension policy holders in the province, about 75 percent currently hold jobs and the rest are retirees. Last year, one fifth of the province's overall financial expenditures was used to cover insurance payments, which the governor described as "really a heavy burden". Peter Becker, first counselor of the German Embassy in Beijing, said China could not afford to introduce a German-style costly social security system. What is important is to make sure every one has enough food to eat and clothes to wear, or a thin but extensive social security network, said the diplomat. The trial practice in China also coincides with a World Bank proposal for China, involving a social security system widely applicable through integration of public financing, compulsory and voluntary individual deposits. In Beijing and Shanghai municipalities, Shandong and Jiangsu provinces, a social security system has been set up with funds for unemployment, medical and pension insurance programs accumulated from individual input and public financing. Zhu Junyi, chief of the Shanghai Labor Bureau, said all employees in the city are covered by a social security system, including part-time workers, employees of foreign-funded firms, and even professionals. The trial will be conducted in other cities in a voluntary way throughout China. Yet, they all face the same common problems: a growing aging population, increasing demand for pensions, and the inability of enterprises with poor economic performance to pay their shares of basic social security fees for their employees. Peter Becker believes China is expected to set up a social security system that is capable of supporting every person, but may not be as good as that in some developed countries in the near future. **** Annual NPC Session Holds Fourth Plenary Meeting The on-going Fourth Session of the Ninth National People's Congress (NPC) is holding its fourth plenary meeting Saturday morning. Xiao Yang, president of the Supreme People's Court, will deliver a report on the court's work in the past year, followed by an annual work report by Han Zhubin, procurator-general of the Supreme People's Procuratorate. **** Procurator-General on Battle Against Corruption Han Zhubin, procurator-general of the Supreme People's Procuratorate (SPP), said here Saturday that China's procuratorates at various levels put on file for investigation and prosecution 45,113 cases in connection with corruption last year, retrieving over 4.7 billion yuan (US$566 million) of direct economic loss. Reporting the work of the SPP to the on-going fourth session of the Ninth National People's Congress, Han said SPP focused efforts on investigations of major cases involving officials of county-level and above and cases that involve huge amounts of money and have grave consequences. Han said that last year, the SPP investigated and prosecuted 18, 086 embezzlement and bribery cases each with an amount of more than 50,000 yuan, including 1,335 cases each involving more than 1 million yuan (US$120,000). Also investigated and prosecuted on charges of work-related crimes were 2,680 county- or division-level officials, 184 departmental- or bureau-level officials and seven officials at the provincial level and above. The handling of the case of Cheng Kejie, former vice-chairman of the Standing Committee of the NPC, gave an effective terrifying and deterrent effect on crimes and demonstrated the firm determination of the Chinese Communist Party (CPC) and the government to fight against and punish corruption, Han said. Statistics from the Supreme People's Courts show that Chinese courts in all places sentenced 17,931 criminals in connection with graft and taking bribes, including three public servants of provincial-level and above, 52 public servants of prefectural- or departmental level and 350 public servants at the county level, he said. The SPP investigated and prosecuted 169 government functionaries involved in the extra-ordinary Xiamen smuggling ring. The SPP, in cooperation of the Ministry of Public Security, launched a drive to hunt down fleeing suspects of embezzlement, taking bribes or apportioning of public funds toward the end of last year, Han said. So far, 300 such suspects have been caught in the net of justice. Han noted that procuratorates made greater efforts to deal with bribery, investigating and prosecuting 1,367 such cases, 28 percent more than in the preceding year. In addition, Han said, the procuratorates investigated and prosecuted 7,930 cases of dereliction of public duty and " infringement of rights", 45 percent more than in the previous year. They included 3,360 cases connected with deception for personal gains, such as refusing to levy or under-levying taxes and allowing smuggling and manufacturing of fake and shoddy goods to run their courses, and 1,793 cases involving the encroachment upon the right of person and democratic rights. Also investigated and prosecuted last year were 18,874 suspects on charges of appropriating, secretly dividing up or mis-use state property in the course of conversion of state-owned enterprises into companies and more than 300 cases in connection with the management of key construction projects, ecological protection projects and anti-poverty and relief materials and money. **** Palestinian Leaders Opposes US Potential Transfer of Embassy to Jerusalem Palestinian leaders said on Friday evening that they were opposed to recent statements by US Secretary of State Colin Powell that the US embassy to Israel might be transferred from Tel Aviv to Jerusalem. The Palestinian leadership voiced their complaints in a statement issued at the end of a weekly meeting in Gaza City chaired by Palestinian National Authority Chairman Yasser Arafat Friday evening. Jerusalem is part of the territories occupied by Israel in 1967, said the statement, adding that its status is still on the agenda of Palestinian-Israeli negotiations. Powell said on Wednesday at a meeting of the Parliamentary Committee on Foreign Affairs that the US administration would honor its plead to transfer the US embassy in Tel Aviv to Jerusalem. The Palestinian leadership also in the statement urged Israel's new government sworn in Wednesday to respect the Palestinian people and resume negotiations from where they were left off and on the basis of UN resolutions 242, 338 and 194 and land-for-peace principle. Qatar Rejects Powell's Statements on Moving US Israeli Embassy to Jerusalem Qatar on Friday voiced objection to US Secretary of State Colin Powell's statement on moving the US Embassy in Israel from Tel Aviv to Jerusalem. Qatar was astonished by the statement made by Powell at a hearing before the International Relations Committee of the US House of Representatives on Wednesday, the Kuwait News Agency quoted a Qatari official statement as saying. Qatar totally rejects Powell's statement and the resolutions issued by the US congress which recognizes Jerusalem as Israel's capital, the statement said. It added that the statement violated relevant UN resolutions and constituted a negative factor for the Middle East peace process in which the US is a co-sponsor. Qatar has confidence in the "wisdom of the US administration of George W. Bush in treating this sensitive issue," the statement noted. Arab countries including Qatar regard Jerusalem, which was seized by Israel in the 1967 Middle East war, as the capital of a future Palestinian state. The fate of Jerusalem, border, security and Palestinian refugees are the toughest issues awaiting to be solved in the decades-old Israeli-Palestinian conflict. **** DPRK, Brazil to Establish Diplomatic Ties The Democratic People's Republic of Korea (DPRK) established diplomatic ties with Brazil at the ambassadorial level on March 9, the official Korean Central broadcast (KCB) reported on Saturday. During talks held in New York recently, the two countries agreed to establish diplomatic ties in order to develop friendly and cooperative relations, the KCB cited a joint communique released by the DPRK as saying. The KCB said both sides agreed to develop bilateral relations according to the Charter of the United Nations, the Vienna Conventions on Diplomatic Relations, and the Vienna Convention of Consular Relations under the principles of mutual respect for sovereignty, non-interference in each other's internal affairs, independence and equality. According to the KCB, the establishment of diplomatic relations between the two countries will contribute to the peace and security of the world, as well as economic development, human rights and disarmament. Brazil is the eighth country to set up diplomatic ties with the DPRK this year. **** Russia Says Renaming NMD Can't Change Essence of US Missile Defense The renaming of the US national missile defense (NMD) will not change the essence of the Washington desired missile shields, and Russia will insist on its consistent stand on preserving the anti-ballistic missile (ABM) treaty, Russian Foreign Minister Igor Ivanov said Friday. The statement made by US Secretary of Defense Donald Rumsfeld that the term "national" will be replaced in the name of the US missile defense program cannot hide the essence of the concept. Russia has no interest in playing "words game," Ivanov told a news conference after meeting with Swedish counterpart Anna Lindh in Stockholm, where he arrived Friday for arranging an upcoming Russian-EU summit. The US missile defense plans, NMD and TMD (theater missile defense), will be inconsistent with the ABM treaty reached between Russia and the US in 1972 and will bring about the collapse of the whole strategic stability system in the world, Ivanov stressed. Russia's proposal on setting up a non-strategic European missile defense system calls for a general approach to deploying regional missile defense systems and conforms to the ABM treaty norms, Interfax news agency cited Ivanov as saying. Meanwhile, Ivanov reaffirmed that Russia does not keep any nuclear weapons in Kaliningrad region, a Russian enclave circled by Poland and Lithuania, which are applying for EU membership. However, he noted, it is true that Russia has not undertaken not to deploy nuclear weapons in any part of its territory. Russia is prepared to discuss the issue of tactical nuclear weapons in talks on the Strategic Arms Reduction Treaty-III (START- III) in the future, he added. Russia has offered the United States that all nuclear weapons " be kept only on our national territories," Ivanov said. "This would be an important step towards the consolidation of international stability and trust," he noted. _________________________________________________ KOMINFORM P.O. Box 66 00841 Helsinki Phone +358-40-7177941 Fax +358-9-7591081 http://www.kominf.pp.fi General class struggle news: [EMAIL PROTECTED] subscribe mails to: [EMAIL PROTECTED] Geopolitical news: [EMAIL PROTECTED] subscribe: [EMAIL PROTECTED] __________________________________________________
