Urban Poverty and Anti-poverty Measures

I.Background and characteristics of urban poverty in 2009

　　Since the mid-1990s, with the deepening of SOE reform and the further adjustment of economic structure, there have been a large number of laid-off and unemployed people, resulting in the occurrence of "new urban poverty". Urban poverty is not only a harsh reality, but also a challenging social problem. Over the past two decades, to solve the problem of urban poverty, the Chinese government has issued a series of anti-poverty measures, including social insurance and social assistance policies to guarantee the basic livelihood of the poor. In 2008 and 2009, however, China experienced freezing rain and snow disaster, Wenchuan earthquake, the global financial crisis and other major events, which further exacerbated the urban poverty.

(I) Financial crisis had an impact on real economy and the employment contradiction of supply and demand created new poor

　　In 2008, a subprime loan crisis broke out in the United States and a number of banks went bankrupt. Subsequently, the crisis spread from the United States to the whole world and from financial system to the whole real economy, becoming a financial "tsunami". The financial crisis had a significant negative impact on China's employment situation and further exacerbated the oversupply of labor. The relevant study shows that in 2009, a total of 24 million people were in need of employment and there was a supply and demand gap of about 12 million (Yin Weimin, 2009). The reasons for the exacerbated contradiction between supply and demand include both macro and micro factors. From a macro perspective, the financial crisis made China's economic situation show a clear downward trend, impacting the employment situation on the whole. It is estimated by relevant department that the increase of each one percentage point in the gross domestic product (GDP) will help one million people get jobs. According to the data of the National Bureau of Statistics, in 2008, China's GDP growth rate was 10.6%. In the first three quarters of 2009, however, the GDP growth rate was respectively 6.2%, 7.1% and 7.8%, with a decrease of more than 2-3 percentage points compared to 2008, having an obvious impact on the employment situation. From the perspective of micro-economy, the real economy was generally hit by the financial crisis. It is not only hard for real economy itself to add new jobs, but has generated a large number of new unemployed people. The reduction in corporate jobs caused by the decline of export was particularly obvious. In March 2008, China's export growth rate was 30.6%, but this figure in March 2009 was only -17.1%, with a decline of 47.7%. If the change of one percentage point in export reduced 200,000 jobs, there was a reduction of approximately 9.5 million in the employment opportunities in China. The survey of Ministry of Human Resources and Social Security also show that, due to the financial crisis, the corporate jobs were reduced by 8%, the urban unemployment rate rose, the number of registered unemployed people exceeded 9 million for the first time, reaching 915 million. There was not such a situation over the past six years (Mo Rong, Yin Weimin; 2009). According to statistics, in the first half of 2008, 67,000 SMEs closed down due to rising cost pressure and financial difficulties, and the number of private enterprises in China only rose by 2% (Li Peilin, 2008). The rising unemployment rate and the weaker ability of labor market to absorb new labor force not only exacerbated the employment situation, but also increased the difficulties of college students and urban poor in finding a job. China's college graduates in 2009 reached 6.11 million. Plus accumulated unemployed graduates over the years, the number of college graduates in need of employment was more than 7 million. Due to the financial crisis, however, enterprises reduced demand for personnel. As of the end of May this year, the number of the employment opportunities provided for college graduates was reduced by 20% and a large number of university graduates face the risk of unemployment. Under such a severe employment situation, it is more difficult for urban "4050" people, zero-employment families and disabled people to find a job (Yin Weimin, 2009). In addition, the impact on flexible employment group was also obvious. 30% -40% of the new jobs were for flexible employment group. The social security coverage of this group was only about 50%, in an unstable state (Mo Rong, 2009). Due to the economic slowdown, the Ministry of Human Resources and Social Security determined the employment target for 2009: 9 million new urban jobs, 1 million less than that in 2008. In short, the coexistence of unemployment and employment difficulties made a considerable number of people fall into poverty and become new poor in the city.

 (II) A large floating population fell into poverty due to unemployment

　　There is an increased mobility of floating population (migrant workers) between urban and rural areas and the units receiving migrant workers are mainly non-state-owned enterprises. Most of the employments for these people are "hard, tiring, dirty and dangerous" jobs, which is a "complement" rather than a "substitute" for urban employment (Mo Rong, 2008). According to the survey, the average time for a migrant worker in Shanghai to get a job was 10.9 months in 2006 and 12.75 months in 2007. The city's migrant worker mobility rate was 7.52% (Hua Yingfang, 2010). Migrant workers are one of the groups most affected by the financial crisis. Most of them lost jobs due to the financial crisis. According to statistics, in 2007, there were 226 million migrant workers in China, accounting for 58% of the employees in secondary industry and 68% of the employees in processing and manufacturing industry. Especially in the processing and export-oriented enterprises in coastal areas with a large number of migrant workers, the situation of unemployment, waiting for jobs and hometown returning due to financial crisis was very serious. Before 2009 Spring Festival, 70 million migrant workers returned home in advance, accounting for about 50% of the total migrant workers in the city, of which more than 12 million migrant workers returned home due to temporary unemployment caused by financial crisis, accounting for 8.5% of the total (Mo Rong, Yin Weimin, 2009). Many migrant workers did not want to return home after losing their jobs and still stayed in the city. Without regular income and social security, they became "new urban poor". According to the survey of Beijing Normal University conducted in 10 cities nationwide in 2009, the working time of migrant workers is usually longer, reaching 9.62 hours per day, nearly 10 hours, 1.62 hours longer than the normal eight hours a day. According to the working time classification, a total of 1309 people work eight hours a day, accounting for 35.72% of the total; 1154 people work longer than eight houses but shorter than ten houses per day, accounting for 31.49% of the total; 942 people work longer than ten hours a day, accounting for 25.7% of the total (Table 1). (Research Report on Old-age Security and Socio-economic Status of Migrant Workers, School of Social Development & Public Policy, Beijing Normal University (funded by AusAID, 2009)

Table 1 Weekly working time of migrant workers

Classification	Number	Percentage
Less than 6 hours	48	1. 31
6-8 hours (not including 8 hours)	155	4. 23
8  hours	1309	35. 72
8-10 hours	1154	31. 49
10-12 hours	206	5. 62
12-14 hours	610	16. 64
Longer than 14 hours	126	3. 44
Valid samples	3608	100

　　However, as for social security, the participation rate of migrant workers in pension insurance system, work injury insurance system, medical system and unemployment insurance system was respectively 18.9%, 15.5%, 18.3% and 10.7%. According to the survey of Beijing Normal University conducted in May 2007, the unemployment rate of migrant workers was as high as 33.1% in 2006 and only 2.46% of them received unemployment insurance benefits. The average unemployment time was 83 days. (Research Report on Migrant Workers, School of Social Development & Public Policy, Beijing Normal University (internal data), 2007)

　　According to the survey conducted by the School of Social Development and Public Policy, Beijing Normal University, the new groups of poor migrant workers living in cities are those who have lost their jobs. The main characteristics of these people are: First, the primary problem they currently face is less income or no income source due to the difficulty in getting jobs. Although they are probably not poor for the moment, they are not far from the margin of poverty and can be quite risky to become poor. Secondly, many of them choose to stay in cities to get jobs rather than returning to their hometown and thereby become urban poor. Thirdly, the most important thing is that: as an excluded tribe, they are not covered by the current social security system. For example, in the interview of Shanghai, there locally appears a tribe covered by none of the security systems: those who do not have stable jobs or neither of a couple is from Shanghai, and they do not have stable residence. People of such a tribe are not covered by any social security policy of Shanghai. Among them, if some people have stable jobs, they can enjoy the security, if either of the couple is from Shanghai, the social security will be available, and as to the rest who have no stable residence, they are not within the consideration of the government policy. Since the employment of migrant workers is of various styles, such as day labors and temporary labors, they always face the consequent shift of being employed or unemployed affected by the economic environment. However, there is not an exact number of the poor among the migrant workers since they do not have relatively stable housing. It is estimated by grass-roots cadres based on their experience that poor migrant workers account for about approximately 5%-10% of the total migrant workers in local area.

　　Due to the economic depression of some enterprises, some migrant workers are forced to leave, but a great number of them are excluded by the formal social security system. We found in the interview that many unemployed migrant workers are unaware of the unemployment insurance or even aware of that, they are not willing to take it due to the complicated procedure. In addition, many of them solve the current financial problem by getting their money in the personal account back through withdrawing the pension insurance. In the interview, a migrant worker said: “I did join in the unemployment insurance system, but almost nobody can successfully receive the insurance fee due to the complicated procedure, such as some proofs; I never expect to get it…; some people do not known how to get it since no introduction is made by the Bureau of Social Security; it will be quite OK if I can get only the money in my personal account back”. The current system results in such a condition: these people are excluded by both urban and rural areas and are not covered by the social insurance, i.e., neither the employment insurance nor the social insurance and they thereby become “the third category” out of both the systems of the urban and rural areas. To summarize, the international financial crisis created two kinds of new poor groups of migrant workers in urban and rural areas.

　　In the long-term informal employment, migrant workers cannot enjoy urban social security benefits, so it is hard for them to live in the city for long; without the right for promotion, they are not on a rapid increase in job skills, limiting them to adapt to the changes in urban industrial structure. Combined with the social discrimination and marginalization of residence and other factors, migrant workers face many multiple social exclusions in urban life and work, so it is hard for them to accept the city, hindering their integration process with the city.

　　In addition, children's education has also become the main challenge for migrant workers. According to the data of the "Compulsory Education Program for Migrant Children" of the World Bank- Ministry of Education, by 2005, the number of China's migrant children of 0-14 years old reached 19.41 million, the number of the children involved in whole family mobility reached 14.70 million, accounting for 75.75% of the total migrant children. Although the state has issued the "two first" policy - "first consideration of the place of inflow and the public school", in practice, it is very difficult for many migrant children to be enrolled in public schools. As for school choice, the distance between home and school is the first thing for the migrant workers and their children to consider, followed by the quality of the school. The "two first" policy is actually disconnected with the actual needs of the education of migrant children. Meanwhile, the "marginalization" of the children of migrant workers links them with urban private schools for migrant children or weak public schools. The two complement each other in benefits: the private schools for migrant children or weak public schools can meet the minimum schooling needs of the children of migrant workers. Meanwhile, receiving migrant children can delay the closing down or employment transfer of teachers of some urban schools weak in education and promote the development of some private schools for migrant children. The quality of teachers and the facilities of the schools receiving migrant children, especially private schools for children of migrant workers still need to be improved (Wang Xiaoyan, 2008). In addition, according to statistics, among the urban migrant children of 6-11 years old and those of 12-14 years old, school enrollment rate of boys was respectively 95.68% and 94.37% and that of girls was respectively 95.43% and 94.15%, 1-2 percentage points lower than that of local children of the same age. 3.57% of the boys and 3.67% of the girls among the 6-11-year-old migrant children never go to school, about one percentage point higher than that of the local children in the city (Gao Wenshu, 2009). Children of migrant workers cannot enjoy the same educational rights as urban children, which undermines their ability to achieve upward mobility.

(III) Sichuan earthquake created new poor

　　At 14:28 on May 12, 2008, a strong earthquake measured 8 magnitude took place in Wenchuan, Beichuan and Qingchuan of Sichuan Province, causing huge casualties and property losses. Many people became homeless and could not find jobs, relying on relief for a basic living. After the earthquake, according to the survey, 87.4% of the people continued their work before the earthquake, 6.5% of the people choose a new job after the earthquake and 6.1% of the people became unemployed. 12.3% of local urban residents lost their jobs. In addition, before the earthquake, 11.8% of the population engaged in non-agricultural household business activities. After the earthquake, however, 53.5% of the non-agricultural operations encountered difficulties and 15.8% of non-farm business could not continue due to the disaster. The biggest difficulty for the household business operation of the victims is that "they have no market (37.9%), no capital (27.1%) or no store / plant (12.6%)" (Wang Fenyu, etc., 2008). Many residents lost the ability to work due to disability, or fell into poverty due to unemployment. According to statistics, the original number of unemployed people in Sichuan Province was more than 300,000, plus the additional 370,000 after the earthquake, Sichuan has now a total of nearly 800,000 unemployed people. In the disaster-hit areas, there was an increase of 51,000 in the number of zero-employment households after the earthquake. Rural areas were significantly affected by the earthquake. 1.15 million people who lived on the land before the quake have lost their land or forest resource (Zhang Xiaojian, 2008). In 2008 and 2009, according to relevant statistics, there was a substantial increase in the number of objects of the urban minimum living security system in Sichuan, Shaanxi and Gansu compared to 2007 and most of them are new poor who fell into poverty due to the earthquake. The objects of urban minimum living security system in Sichuan at the end of 2008 were 120,000 more than that in 2007, and that in 2009 was 150,000 more than that in 2007. The objects of urban minimum living security system in Shaanxi at the end of 2008 were 20,000 more and that in 2009 was 50,000 more than that in 2007. The objects of urban minimum living security system in Gansu at the end of 2008 were 170,000 more and that in 2009 was nearly 190,000 more than that in 2007 (see Table 1).

　　Table 1: Comparison of the objects of urban minimum living security system in Sichuan, Shaanxi and Gansu before and after the earthquake

Province	2007	2008	2009
Sichuan	1739767	1860263	1892185
Shaanxi	816988	837097	862667
Gansu	726448	897653	834567

 

II.Urban anti-poverty policies and measures

　　In order to effectively deal with the urban poverty appeared in 2009 and protect the basic livelihood of the poor, under the existing framework of social security systems, the Chinese government has adopted a series of measures to further expand the coverage and improve the management of the systems and strengthened the development and implementation of employment promotion policy.

(I) Improve the social insurance system to prevent and resolve survival risk of urban poor

　　China's social pension insurance for urban workers, basic medical insurance, unemployment insurance, industrial injury insurance and maternity insurance took shape in early 1990s. After that, the coverage of the systems has been constantly expanded and the benefits have been continuously increased, and the security systems have played an important role in helping urban residents prevent and alleviate poverty risk.

　　- Endowment insurance. In June 1991, the State Council issued the "Circular on the Reform of the Old-age Insurance System for Employees of Enterprises" (Guo Fa [1991] No. 33) and explicitly declared the implementation of pension insurance, marking the establishment of the new endowment insurance system. In 1995, the State Council issued the "Circular on the Reform of the Old-age Insurance System for Employees of Enterprises", formulated the reform plan of the old-age insurance system combining social pooling and individual contribution, and clarified for the first time the implementation plans of old-age insurance for the non-salaried employees, e.g. operators of individual businesses, private entrepreneurs, etc. In 1997, the State Council issued the "Decision on the Establishment of a Unified Basic Old-age Insurance System for Employees of Enterprises", and started to establish the unified old-age insurance system in the whole country. According to the regulations of the State Council, the proportion of basic old-age insurance premiums by the enterprise (hereinafter referred to as enterprise premiums) generally shall not exceed 20% of enterprise's total payroll (including that in the individual accounts); the people's governments of provinces, autonomous regions and municipalities determine the specific proportions. If the proportion actually needs to exceed 20% of enterprise's total payroll due to larger number of retired workers and too heavy burden on old-age insurance in few provinces, autonomous regions and municipalities, it shall be reported to the Ministry of Labour and Ministry of Finance for approval. The proportion of basic old-age insurance premiums by the individual (hereinafter referred to as individual premiums), in 1997, shall be no lower than 4% of individual taxable salary, and since 1998, shall rise by 1% every two years to finally reach 8% of individual taxable salary. Open the individual account of basic old-age insurance for the employee based on 11% of the individual taxable salary; all the individual premiums shall be logged into individual account, and the other part shall be introduced from enterprise premiums. With the rising of the proportion of individual premiums, the enterprise premiums shall be gradually reduced to 3%. The interest for the individual account should be calculated based on the deposit rate of the bank in the same period and the money in the individual account can only be used for old-age support and cannot be drawn in advance. When the employee is transferred, all the money in his individual account shall be transferred. When an employee or retired worker dies, the money in the individual account can be inherited. Those who started working after the implementation of this decision and have paid individual contributions for more than 15 years will be paid the basic monthly pension after retirement. The basic pension is composed of basic retirement pension and the pension of individual account. The basic monthly pension after retirement is 20% of the average monthly salary of the previous year in local provinces, autonomous regions, municipalities or regions (cities); and the monthly basis of pension of individual account shall be the amount by dividing individual contribution by 120. If a worker does not pay individual contribution for 15 years, he shall not enjoy the basic pension and the individual contributions will be paid to him once. In 1999, Provisional Regulations on Collection and Payment of Social Insurance Premiums issued by the Ministry of Labour and Social Security, PRC (Decree No. 259 of the State Council of People's Republic of China) clarifies that the collection and payment scope of basic pensions: State-owned enterprises, urban collectively-owned enterprises, foreign-invested enterprises, urban private enterprises and other urban enterprises as well as their staffs, and institutions practicing enterprise system as well as their staffs. According to the Regulations, the people's governments of provinces, autonomous regions and municipalities directly under the Central Government can include urban individual units into the coverage of basic pension system based on local actual situation. In December 2000, the State Council issued the "Circular on the Issuance of Pilot Programme to Improve the Urban Social Security Systems" (Guo Fa [2000] No. 42) and selected Liaoning Province as the pilot area. It officially points out that freelance workers and urban individual businesses should participate in the basic old-age insurance system and the specific measures are provided by the provinces.

　　In December 2005, the "Decision on Improving the Basic Pension Insurance System for Employees of Enterprises" (Guo Fa [2005] No. 38) issued by the State Council points out that the employees of various types of urban enterprises, individual units and freelance workers should all participate in the basic old-age insurance system. At present and in a period of time in the future, we must focus on the insurance participation of non-public enterprises, individual businesses and freelance workers to expand the coverage of the basic pension insurance. We must further implement the state's policy on social insurance subsidies to help those in difficulties of employment to participate in the insurance system.

　　- Medical insurance. In 1998, the State Council issued the "Decision on the Establishment of Basic Pension Insurance System for Urban Workers" and China began to establish the basic pension insurance system for urban workers. According to the provisions of the State Council, all urban employers, including enterprises (state-owned enterprises, collectively-owned enterprises, foreign-invested enterprises, private enterprises, etc.), organs, institutions, social organizations, private non-enterprise units and their employees, should participate in the basic medical insurance system. The people's governments of provinces, autonomous regions and municipalities decide whether township enterprises and their workers, owners of urban individual units and the employees should participate in the basic medical insurance system or not. The basic medical insurance premiums of urban workers are jointly paid by the enterprises and employees. The enterprises' insurance premiums should be controlled within 6% or so of the total payroll of employees, and the insurance premiums paid by the employee should be 2% of his or her salary. The minimum basic medical insurance premium of urban workers is about 10% of the average salary of local workers and the maximum premium is, in principle, controlled within four times of the average salary of local workers. The medical expenses below the minimum premium are deducted from the individual account or paid by individuals. The medical expenses above the minimum premium but below the maximum premium are mainly paid by the pooling fund and individuals also pay a certain proportion.

　　In 2007, the State Council issued the "Guidance on Pilot Basic Medical Insurance for Urban Residents" and decided to launch pilot projects of basic medical insurance for urban residents that year. The goal of the pilot projects: Select two or three cities in the provinces with certain conditions for the implementation of pilot projects in 2007 and expand the pilot area in 2008. In 2009, the pilot cities should cover more than 80% of the total cities. In 2010, the projects should be implemented nationwide to gradually cover all urban non-employee residents. Objects of the pilot projects are primary and secondary school students (including vocational high schools, secondary vocational schools and technical schools) not covered by urban basic medical insurance system, children and other non-employed urban residents, etc. Basic medical insurance for urban residents is based on family payment and the government issues appropriate subsidies. Enterprises with certain conditions can provide subsidies for the staffs' family members to participate in the insurance system. To the insured residents in pilot cities, the government should provide grant of no less than 40 Yuan per person per year. The Central Government, since 2007, has been providing a subsidy of 20 Yuan per person per year for the residents living in the central and western regions through special transfer payment. It also provides appropriate subsidies for the residents in the eastern regions according to the subsidy standard of the new rural cooperative medical system. The basic medical benefit fund of urban residents is mainly used for the inpatient and outpatient expenses of the insured people. The regions with good conditions can gradually try unified payment for out-patient medical cost.

　　- Unemployment insurance. In 1998, the State Council issued the “Regulations on Unemployment Insurance” and established the unemployment insurance system. According to the “Regulations on Unemployment Insurance”, state-owned enterprises, urban collectively-owned enterprises, foreign-invested enterprises, urban private enterprises and other urban enterprises shall pay unemployment insurance premium, which is 2% of their total amount of salaries. Staff and workers of urban enterprises and institutions shall pay unemployment insurance premium at a rate of 1% on the basis of their own salaries. The unemployed who meet the following conditions may obtain unemployment insurance benefits: (1) those who have participated unemployment insurance according to regulations, and the unit to which they belong and they themselves have performed the obligation of paying premium not less than one year; (2) those who suspended employment not due to their own willingness (3) those who have undergone unemployment registration and have requested new jobs. The unemployed can receive other insurance benefits according to regulations during the period of receiving unemployment insurance compensation, including: (1) Those who receive medical treatment and who give births to babies in the designated hospital can apply for 70% subsidies of medical charges according to regulations. (2) Those who run private enterprises, individual businesses and who are self-employed can receive unemployment insurance of the remaining period once and for all during the period of receiving unemployment insurance compensation (no more than 24 months plus months during which they have received compensation after this approval ) as support funds for production. (3) Those who died during the period of receiving the unemployment insurance have funeral allowance for compensation and pension for spouse and direct relatives supported by the dead once and for all. (4) Women workers who give birth to babies in line with national regulations on family planning during the period of receiving unemployment insurance can apply for a three-month maternity compensation with the same standard as unemployment insurance. (5) They can receive such employment services as free vocational guidance and vocational training. If the accumulative time period in which the units to which the unemployed belong before their unemployment and the unemployed pay premiums is not less than one year but not more than five years, the maximum period of receiving unemployment insurance compensation is 12 months; if the accumulative time period of paying premiums is not less than five years but not more than ten years, the maximum period of receiving unemployment insurance compensation is 18 months; if the time period of paying premiums is not less than ten years, the maximum period of receiving unemployment insurance compensation is 24 months; if anyone is re-unemployed after reemployment, the time period of paying premiums shall be recalculated. The time period of receiving unemployment insurance compensation may be calculated together with the previous period in which he should have received but have not received unemployment insurance compensation, but the maximum time period may not be longer than 24 months. The standard for unemployment insurance compensation is to be set by people’s governments of provinces, autonomous regions and municipalities directly under the Central Government at a level which is lower than the minimal local salary standard but higher than the minimal living security standard for urban residents.

　　-Work-Related Injury Insurance. In 2003, the State Council promulgated the "Regulations on Work-Related Injury Insurances". According to the Regulations, employing units shall pay work injury insurance contributions on time. Staff members and workers are not required to pay work injury insurance contributions. The work injury insurance contributions to be paid by an employing unit are the payroll of the employing unit multiplied by the contribution rate applicable to the said unit. A staff member or worker shall be identified injured at work in any one of the following circumstances: first, injured in a work related accident at the workplace during the working time; second, injured in an accident when making work related preparations or conducting work related winding up work at the workplace around the working time; third, injured by violence or other unexpected hazards in performing work related responsibilities at the workplace during the working time; fourth, afflicted with an occupational disease; fifth, durante absentia for work, injured due to work or the whereabouts thereof is unknown due to an accident; sixth, injured in a motor vehicle accident on the way to work from home or back home from work; seventh, other circumstances that shall be identified injured at work as provided by laws and administrative regulations. According to the Regulations, a staff member or worker is deemed injured at work in any one of the following circumstances: first, died on the spot or within 48 hours after unsuccessful emergency medical treatment of an acute disease breaking out during the working time and at the work post; second, injured in protecting the interest of the State and the public, such as in dealing with an emergency or providing disaster relief; third, the staff member or worker is wounded or becomes disabled in war or on duty during the term of military service and is therefore given a certificate for injured or disabled serviceman, but the previous injury recrudesces after working for the employing unit.

　　- Maternity Insurance. Enterprises shall pay their maternity insurance contributions as a proportion of their total payrolls to the social insurance management agency, in order to establish the maternity insurance fund. The contribution to the maternity insurance fund shall be determined by local people’s governments in accordance with the number of infants within the ambit of family planning and other expenses such as childbirth subsidies, medical expenses for childbirth, and may be readjusted correspondingly in accordance with expenditures. However, the maximum rate shall not exceed 1% of the enterprise’s total payroll. Maternity insurance contributions paid by enterprises shall be listed as management expenses. Individual employees are not required to pay maternity insurance contributions. After childbirth, women workers shall be entitled to maternity leave with pay in accordance with relevant laws and regulations. The childbirth subsidies during maternity leaves shall be calculated in accordance with the average monthly wages of employees in the enterprise of the previous year, and paid from the maternity insurance fund. The expenses of women workers for prenatal examination, delivery, operations, hospitalization and medications shall be paid from the maternity insurance fund. Expenses exceeding the standard charges as provided for medical services and medications (including charges for medications at their own expenses and nourishing medications) shall be paid by the employees themselves. Medical expenses for diseases caused by childbirth after the employees leave the hospital shall be covered by the maternity insurance fund; medical expenses for other diseases shall be paid in accordance with the provisions on medical treatment insurance benefits. After childbirth or abortion, the women workers herself or the enterprises she belongs to shall appear before the local social insurance management agency to undergo the requisite formalities, and to receive the childbirth subsidies and apply for reimbursement of medical expenses incurred as an incident to childbirth.

　　The establishment and implementation of the social insurance systems effectively reduced the pension burden, medical burden, unemployment burden, work injury burden and childbirth burden on urban residents and prevented urban residents' falling into poverty due to unemployment, the loss of some or all of the leadership or having no money for old-age support, or becoming poor due to heavy medical or childbirth cost. These insurance systems have played an important role in urban anti-poverty. According to statistics, as of the end of 2009, 234.98 million people had participated in urban basic old-age insurance system nationwide, 16.07 million more than that of the previous year, including 177.03 million insured employees and 57.95 million retired people; 400.61 million people had participated in the urban basic medical insurance system, 82.39 million more, including 219.61 million who participated in basic medical insurance for urban workers and 181 million involved in basic medical insurance for urban residents; 43.35 million migrant workers had participated in the urban basic medical insurance system, 690,000 more than that of the previous year; 127.15 million people had participated in the unemployment insurance system, 3.16 million more than that of the previous year; and 2.35 million people  received unemployment insurance benefits at the year end; 148.61 million people had participated in the work-related injury insurance system, 10.74 million more, including 55.8 million migrant workers, 6.38 million more; and 108.60 million people had participated in the maternity insurance system, 16.06 million more (National Bureau of Statistics, 2010).

（II）Strengthen the social assistance system to guarantee the basic livelihood of the urban poor

　　Social assistance is the last "social safety net" and plays a very important and indispensable role in combating and alleviating urban poverty. In the context of the financial crisis and earthquake disasters, the state and local governments all take effective measures to further improve the social assistance system and effectively protect the basic livelihood of the urban poor.

　　1．The minimum livelihood guarantee system for urban residents

　　China launched the pilot project for the minimum livelihood guarantee system for urban residents in 1996 and established the system nationwide in 1999. After that, with the increasing transfer payments from the central government, the system always covers about 22 million people since 2002 and the level of assistance has increased year by year with the price changes. In 2007, in response to rising prices, the Ministry of Civil Affairs and the Ministry of Finance successively issued policies three times to temporarily improve the level of subsidy for urban residents. Based on current prices, these policy measures continued to be implemented in 2008. In the second half of 2008, the Ministry of Civil Affairs and the Ministry of Finance issued the "Circular on Improving the Subsidies for Urban and Rural Objects of the Minimum Living Security System". Since July 2008, according to the Circular, there must be an increase of 15 Yuan per person per month in the subsidy for urban objects of the minimum living security system and an increase of 10 Yuan per person per month in the subsidy for rural objects of the minimum living security system. The central government provides appropriate subsidies to the objects of the minimum living security system based on the original scope. Those regions that have established the dynamic adjustment mechanism for urban and rural minimum living standards must conscientiously implement the policy based on local actual situation. Meanwhile, local governments must conscientiously implement the policy to enhance the level of subsidy benefits for urban and rural residents. Local financial and civil affair departments must timely allocate the subsidies of central government and local governments to ensure the policy is effectively implemented and the subsidies are given to needy people. Local departments of civil affairs and financial sectors should continue to closely monitor price changes to ensure the level of the basic livelihood of urban and rural residents does not decline with price changes. At the same time, they must actively explore the establishment of normal adjustment mechanism for urban and rural minimum living standards and the dynamic subsidy mechanism compatible with price changes.

　　The Ministry of Civil Affairs actively promotes the standardized building of grass-roots minimum living security system and demands local governments to further improve the urban and rural minimum living security systems and other social relief systems through system building, standardizing the management and operational links and strengthening supervision and inspection. In 2009, the Ministry of Civil Affairs issued the "Opinions on Actively Carrying out the Identification of Urban Low-income Families", which provides that the urban low-income family refers to an urban resident family which meets the low-income standards set by the local people’s government in terms of the per capital income of family members and the family property status. The identification of urban low-income families is the premise and foundation for the extension of the coverage of housing assistance, medical assistance, education assistance and other special social assistance systems as well as the temporary relief system from the objects of the minimum living security system to low-income families. It is an important measure to further improve urban social relief system. The overall objective of the identification of urban low-income families is to gradually establish a relatively complete system for the inspection of the economic status of urban families through checking the family income and property status of the applicant, constantly standardize the identification of urban low-income families and promote low-cost housing and other special social assistance system to cover all urban low-income families.  

　　In 2009, a total of 23.477 million urban residents enjoyed subsistence allowances from the government, of which 3.245 million were senior people, accounting for 13.8% of the total; 13.882 million were adults, accounting for 59.1%; and 6.35 million were juveniles, accounting for 27.1%. See Table 2 for details. The urban subsistence allowance was 227.75 Yuan per person per month, 22.45 Yuan more than the figure (205.3 Yuan) in 2008, up 10.9%; and the monthly subsidy per capita was 165 Yuan, 24 Yuan more than the figure (141 Yuan) in 2008, up 17%. 

　　Table 2: Age structure of urban residents

/	Objects of subsistence security system	The Elderly	Proportion	Adults	Proportion	Juveniles	Proportion
Total in China	23477443	3244496	13.8	13882077	59.1	6350870	27.1
Beijing	147609	13882	9.4	91801	62.2	41926	28.4
Tianjin	179160	20315	11.3	106717	59.6	52128	29.1
Hebei	891056	118264	13.3	504062	56.6	268730	30.2
Shanxi	944358	95836	10.1	568642	60.2	279880	29.6
Inner Mongolia 　　Autonomous Regions	874685	150093	17.2	508454	58.1	216138	24.7
Liaoning	1303712	154995	11.9	769797	59	378920	29.1
Jilin	1308489	170030	13	858120	65.6	280339	21.4
Heilongjiang	1545103	183801	11.9	982464	63.6	378838	24.5
Shanghai	362761	4401	12	260730	71.9	97630	26.9
Jiangsu	470681	74443	15.8	295625	62.8	100613	21.4
Zhejiang	94656	24295	25.7	49001	51.8	21360	22.6
Anhui	947654	191922	20.3	452680	47.8	303052	32
Fujian	187174	27664	14.8	101957	54.5	57553	30.7
Jiangxi	984455	191124	19.4	550601	55.9	242730	24.7
Shandong	613079	78514	12.8	434361	70.8	100204	16.3
Henan	1483293	174502	11.8	914574	61.7	394217	26.6
Hubei	1452175	232059	16	958895	66	261221	18
Hunan	1470498	220750	15	862019	58.6	387729	26.4
Guangdong	408101	65305	16	222398	54.5	120398	29.5
Guangxi Zhuang Autonomous Regions	626681	163954	26.2	343666	54.8	119061	19
Hainan	181829	27866	15.3	115025	63.3	38938	21.4
Chongqing	704054	78135	11.1	460564	65.4	165355	23.5
Sichuan	1892185	220897	11.7	974479	51.5	696809	36.8
Guizhou	554665	77812	14	311367	56.1	165486	29.8
Yunnan	905818	124143	13.7	509235	56.2	272440	30.1
Tibet Autonomous Regions	39415	4079	10.3	29267	74.3	6069	15.4
Shaanxi	862667	74301	8.6	564786	65.5	223580	25.9
Gansu	834567	92874	11.1	494629	59.3	247064	29.6
Qinghai	220578	18058	8.2	120760	54.7	81760	37.1
Ningxia Hui Autonomous Regions	207921	44677	21.5	113689	54.7	49555	23.8
Xinjiang Uygur Autonomous Region	778364	125505	16.1	351712	45.2	301147	38.7

　　Source: Department of Minimum Living Security of the Ministry of Civil Affairs

　　Among all urban residents receiving subsistence allowances, the disabled, those who have no ability to work, who have neither sources of income nor family support, or whose family supporters do not have the ability to support them ("three-no people"), the students at school and other "vulnerable groups" accounted for 25% of the total in 2009. See Table 3 for details. 

　　Table 3: Proportions of the disabled, "three-no people" and students in urban residents receiving subsistence allowances

/	Urban residents receiving subsistence allowances	The disabled	Proportion of the disabled	"three-no people"	Proportion of "three-no people"	Students at school	Proportion of students at school
Total in China	23477443	1725686	7.4%	927458	4.0%	3494110	14.9%
Beijing	147609	22167	15.0%	2981	2.0%	29523	20.0%
Tianjin	179160	22007	12.3%	1132	0.6%	35043	19.6%
Hebei	891056	43829	4.9%	35658	4.0%	134978	15.1%
Shanxi	944358	56929	6.0%	20399	2.2%	170227	18.0%
Inner Mongolia	874685	73889	8.4%	36068	4.1%	151446	17.3%
Liaoning	1303712	148211	11.4%	29208	2.2%	243721	18.7%
Jilin	1308489	89022	6.8%	93177	7.1%	128647	9.8%
Heilongjiang	1545103	180168	11.7%	40886	2.6%	231047	15.0%
Shanghai	362761	26967	7.4%	647	0.2%	94565	26.1%
Jiangsu	470681	42692	9.1%	18985	4.0%	59527	12.6%
Zhejiang	94656	18036	19.1%	6492	6.9%	11472	12.1%
Anhui	947654	60146	6.3%	42768	4.5%	132662	14.0%
Fujian	187174	16338	8.7%	8867	4.7%	17355	9.3%
Jiangxi	984455	142986	14.5%	61394	6.2%	137392	14.0%
Shandong	613079	35152	5.7%	19014	3.1%	62467	10.2%
Henan	1483293	69165	4.7%	64288	4.3%	202853	13.7%
Hubei	1452175	101011	7.0%	73112	5.0%	147974	10.2%
Hunan	1470498	91701	6.2%	59460	4.0%	194270	13.2%
Guangdong	408101	30263	7.4%	25348	6.2%	77593	19.0%
Guangxi	626681	49450	7.9%	55802	8.9%	76804	12.3%
Hainan	181829	13685	7.5%	6234	3.4%	27319	15.0%
Chongqing	704054	45822	6.5%	12762	1.8%	134344	19.1%
Sichuan	1892185	94684	5.0%	67281	3.6%	257240	13.6%
Guizhou	554665	32245	5.8%	17523	3.2%	104000	18.8%
Yunnan	905818	44321	4.9%	31074	3.4%	107006	11.8%
Tibet	39415	1721	4.4%	8421	21.4%	4009	10.2%
Shaanxi	862667	35955	4.2%	20293	2.4%	132197	15.3%
Gansu	834567	46630	5.6%	17868	2.1%	161783	19.4%
Qinghai	220578	7892	3.6%	3868	1.8%	49649	22.5%
Ningxia	207921	22190	10.7%	12469	6.0%	34217	16.5%
Xinjiang	778364	60412	7.8%	33979	4.4%	142780	18.3%

　　The adults of the urban residents receiving subsistence allowances included in-service staffs, flexible employees and registered and unregistered unemployed people. The number of the in-service staffs was 783,000, accounting for 3.3% of the total; the number of the flexible employees reached 4.055 million, accounting for 17.3% of the total; the number of the registered unemployed people was 5.067 million and the number of the unregistered unemployed people was 3.977 million, respectively accounting for 21.6% and 16.9% of the total. See Table 4 for details. 

　　Table 4: Proportions of various types of adults in urban residents receiving subsistence allowances

/	Objects of subsistence security system	In-service staffs	Proportion	flexible employees	Proportion	Registered unemployed people	Proportion	Unregistered unemployed people	Proportion
Total in China	23477443	783232	3.3%	4055494	17.3%	5066742	21.6%	3976609	16.9%
Beijing	147609	14221	9.6%	13119	8.9%	39914	27.0%	24547	16.6%
Tianjin	179160	6301	3.5%	18660	10.4%	46939	26.2%	34817	19.4%
Hebei	891056	23082	2.6%	170948	19.2%	184423	20.7%	125609	14.1%
Shanxi	944358	50814	5.4%	225445	23.9%	123182	13.0%	169201	17.9%
Inner Mongolia	874685	19186	2.2%	196297	22.4%	123710	14.1%	169261	19.4%
Liaoning	1303712	49260	3.8%	258036	19.8%	264922	20.3%	197579	15.2%
Jilin	1308489	67531	5.2%	137306	10.5%	375733	28.7%	277550	21.2%
Heilongjiang	1545103	34081	2.2%	249473	16.1%	371172	24.0%	327738	21.2%
Shanghai	362761	58912	16.2%	5448	1.5%	126971	35.0%	69399	19.1%
Jiangsu	470681	15448	3.3%	76308	16.2%	113650	24.1%	90219	19.2%
Zhejiang	94656	3415	3.6%	12290	13.0%	12821	13.5%	20475	21.6%
Anhui	947654	19006	2.0%	142549	15.0%	159960	16.9%	131165	13.8%
Fujian	187174	5694	3.0%	27225	14.5%	37389	20.0%	31649	16.9%
Jiangxi	984455	17046	1.7%	235361	23.9%	166018	16.9%	132176	13.4%
Shandong	613079	43715	7.1%	82903	13.5%	231519	37.8%	76224	12.4%
Henan	1483293	44260	3.0%	252077	17.0%	429860	29.0%	188377	12.7%
Hubei	1452175	64484	4.4%	268066	18.5%	397657	27.4%	228688	15.7%
Hunan	1470498	23973	1.6%	199097	13.5%	416905	28.4%	222044	15.1%
Guangdong	408101	16407	4.0%	70862	17.4%	62414	15.3%	72715	17.8%
Guangxi	626681	25578	4.1%	139932	22.3%	85854	13.7%	92302	14.7%
Hainan	181829	5501	3.0%	41049	22.6%	24992	13.7%	43483	23.9%
Chongqing	704054	2958	0.4%	193209	27.4%	129591	18.4%	134806	19.1%
Sichuan	1892185	26212	1.4%	340869	18.0%	242731	12.8%	364667	19.3%
Guizhou	554665	10356	1.9%	89885	16.2%	89228	16.1%	121898	22.0%
Yunnan	905818	34403	3.8%	131174	14.5%	189471	20.9%	154187	17.0%
Tibet	39415	4420	11.2%	14024	35.6%	6505	16.5%	4318	11.0%
Shaanxi	862667	21095	2.4%	164988	19.1%	224251	26.0%	154452	17.9%
Gansu	834567	32511	3.9%	132311	15.9%	230537	27.6%	99270	11.9%
Qinghai	220578	6386	2.9%	31833	14.4%	25466	11.5%	57075	25.9%
Ningxia	207921	5585	2.7%	32700	15.7%	40267	19.4%	35137	16.9%
Xinjiang	778364	31391	4.0%	102050	13.1%	92690	11.9%	125581	16.1%

　　2．Living assistance system for earthquake victims

　　After the devastating earthquake in Sichuan, to protect the basic livelihood of affected people and promote social stability in disaster-hit areas, the Ministry of Civil Affairs, Ministry of Finance and the National Food Authority immediately issued the "Notice Concerning Relevant Issues on the Implementation of Temporary Living Relief for Needy People in Disaster-hit Areas in Wenchuan Earthquake" and provided temporary living relief for the needy masses in disaster-hit areas. According to the Notice, the temporary living assistance should include grants and relief food and the relief is provided for the needy masses without house to live, means of production or source of income. The subsidy standard was 10 Yuan relief fund and 1 jin refined grain per person per day and the relief period was three months. The subsidy for the orphans after the disaster, old and lonely, injured and disabled people is 600 Yuan per person per month, and the subsidy for the orphans, old and lonely and disabled people before the disaster was also increased to 600 Yuan per person per month. The subsidy period was 3 months. The grants were allocated by the central government; relief food was transferred to provincial governments from the central grain reserves and the provincial governments were responsible for the grain delivery, distribution and processing and then provided the refined food to the victims for free. The Notice also required that the grants must be directly issued to the relief objects by month. The relief grain delivery, distribution, processing and issuance should be conducted by the grain sector and the department of civil affairs. The departments of civil affairs, financial departments and food sectors at all levels in disaster areas must be highly responsible for the relief work, overcome difficulties and closely cooperate with each other to accurately understand and serious implement the relief policy, immediately organize forces to conduct in-depth investigation into the disaster-hit areas, check the relief objects and register and publicize the object name list to accept the public supervision and ensure no leakage or overlapping. The provincial departments of civil affairs and finance must submit the number of identified relief objects in sub- counties (districts) to the Ministry of Civil Affairs and the Ministry of Finance as soon as possible. The civil affair, financial and grain departments of the disaster areas must effectively strengthen the management of the issuance of relief funds and grains to needy masses in disaster areas, establish special accounts and special funds for the relief and any misappropriation and false fraudulent application is strictly prohibited. Once found, relevant persons will be punished according to the law. The Notice also emphasized that the civil affair, financial and grain departments at all levels in the disaster areas must develop the local implementation plans according to the spirit of the notice and timely issue the relief fund and food to the victims in full.

　　After temporary relief to the victims for three months, the State Council Earthquake Relief Headquarters decided to extend the temporary living assistance for three months. In July 2008, the Ministry of Civil Affairs and Ministry of Finance issued the "Notice on the Issues Related to the Implementation of Follow-up Living Relief for Needy Masses in the Disaster Areas of Wenchuan Earthquake". According to the Notice, taking into account the high degree of damage, big difficulty in living and long-term reconstruction period in the disaster areas, on the 23rd meeting of the State Council Earthquake Relief Headquarters, the government decided to continue to provide follow-up living relief for the needy masses in the disaster areas of Sichuan, Gansu and Shaanxi Province after the three-month temporary relief policy expires. The relief objects included: orphans, lonely old people and the disabled; family members of the victims (including missing persons) in livelihood difficulty and the seriously injured and handicapped; non-local resettled people; and the victims living in difficulty as their houses collapsed or severely damaged in the disaster. The relief period was from September to November 2008, three months in total. The follow-up living relief was issued in cash and no food was provided. The relief standard was 200 Yuan per person per month. The affected provinces must implement classified relief based on the actual situation of the victims and appropriately enhance the subsidy standards for orphans, lonely old people and the disabled, family members of the victims (including missing persons) in livelihood difficulty and seriously injured and handicapped. The subsidy standards were established by provincial departments of civil affairs and finance and then submitted to provincial government for approval before they were put into practice. Relevant funds for the follow-up relief were provided by the central government and the local governments were responsible for the use of the funds. The notice specially emphasizes that, after the follow-up relief policy expires at the end of November 2008, the victims in disaster areas who still lived in difficulty could be, based on the actual situations, covered by the urban and rural minimum living security system, rural five-guarantee system and the winter and spring temporary relief system for victims to ensure their basic livelihoods. The departments of civil affairs and financial sectors at all levels in the disaster-hit areas should make early preparation, make clear the situations of the relief objects and do a good job in policy convergence to achieve the smooth transition of follow-up relief policy to social relief system.

　　3．Special assistance systems

　　Based on the minimum living security system, the state further improved the medical assistance, education assistance, housing assistance and other special relief systems to help poor urban residents to solve the difficulties in seeing a doctor, child education and housing.

　　- Medical assistance system. In order to implement the "Opinions of the CPC Central Committee and the State Council on Deepening the Reform of the Medical and Health Care System" (Zhong Fa (2009) No. 6) and the "Notice of the State Council on Issuing the Plan on Recent Priorities in Carrying out the Reform of Health Care System (2009-2011)" (Guo Fa (2009) No. 12), the Ministry of Civil Affairs, Ministry of Finance and Ministry of Health jointly issued the "Opinions on Further Improvement of the Urban and Rural Medical Aid Systems" in June 2009. According to the Opinions, we must meet the basic medical needs of needy people based on the actual situation of China's economic and social development; continue the overall coordination to link medical aid system with the social security system and explore the establishment of an integrated urban and rural medical assistance system; highlight key points, implement classified rescue, make the relief public and convenient and give play to the emergency relief role of medical aid system; and adhere to government leadership and social participation to vigorously develop health care philanthropy. The "Opinions" proposes to further improve the medical aid system, consolidate the base line of medical security system and established the medical aid systems nationwide with stable source of funding, standardized management and obvious relief results that can provide convenient and quick services for the needy masses. The "Opinions" also points out that the scope of relief should be reasonably determined. After including the urban and rural residents receiving subsistence allowances and the family members of "five-guarantee" households into the scope of medical aid, we should gradually include the members of other economically disadvantaged families into the scope of the medical aid. The members of other economically disadvantaged families mainly include the seriously ill people of low-income families and other people in with special difficulties identified by local governments. The specific standards for the identification of relief objects are set by local department of civil affairs and financial sector based on local economic conditions and medical aid fund-raising situation, poor people's ability to pay and basic medical needs, and then submitted to the government at the same level for approval. Assistance should be provided in a variety of ways. As for urban and rural residents receiving subsistence allowances, family members of five-guarantee households and other economically disadvantaged families, we should provide subsidy for the individual payments of the basic medical service for them to participate in the basic medical insurance system for urban residents or new rural cooperative medical system according to relevant regulations, and improve the relief services. Meanwhile, we should provide medical aid services according to the different medical needs of the relief objects, and pay attention to outpatient relief while focusing on hospitalization relief. Hospitalization relief fund is mainly used to help solve the personal burden of medical expenses for hospitalization of the relief objects; outpatient relief fund is mainly used to help solve the personal burden of medical expenses for emergency and first aid for common diseases, chronic diseases and the diseases requiring long-term drug treatment of the objects who meet relevant conditions. Reasonable subsidy plan must be developed. Local governments must develop scientific medical aid subsidy plan based on the amount of medical relief funds that year, gradually reduce and cancel the bottom line of medical assistance, set a reasonable cap line and further enhance the relief proportion for personal burden of basic medical expenses after the relevant basic medical subsidy is provided.

　　- Education assistance system. Based on the "Opinions of the State Council on Establishing and Improving the Subsidization Policy System for the Students from Poor Families in General Universities, Higher Vocational Colleges and Secondary Vocational schools", the relevant departments have issued the "Provisional Measures for the Implementation of National Scholarships in Regular Undergraduate Institutions and Higher Vocational Schools", "Provisional Measures for the Implementation of National Student Grants for Regular Undergraduate Institutions and Higher Vocational Schools", "Provisional Measures for the Implementation of National Motivational Scholarships in Regular Undergraduate Institutions and Higher Vocational Schools", "Guidance on the Identification of Needy Students of Colleges and Universities", "Circular on the Implementation of Student Aiding Pilot Loan Program in Some Students' Hometowns" and other relevant policies to further improve the national scholarship, grant and motivational scholarship systems and help needy students to solve relevant education fees including poor urban residents' children. In addition, relevant authorities also issued the "Notice on Providing Locally-granted Student Loans" and pointed out that student loan is the loan issued by China Development Bank and other financial institutions to the college students at school from eligible families with financial difficulties (hereinafter referred to as "students") and relevant procedures shall be conducted in the counties (cities, districts) where the students' residence is from before enrollment. It is a kind of credit loan. Each borrower can apply for a maximum loan of 6,000 Yuan per year in principle and the loan is mainly used to pay the tuition and accommodation fees of the students during the school time. The students and their parents (or legal guardians) are co-borrowers who share responsibility for repayment. According to the Notice, in 2008, the coverage of locally-granted student loan shall be expanded and the government shall vigorously promote the implement of this policy. The governments of Jiangsu, Hubei, Chongqing, Gansu and Shaanxi further summarized the experiences, improved the mechanism, consolidated the results and continued to provide student loans. In other provinces (autonomous regions, municipalities), on a voluntary basis, locally-granted student loan may be issued after being approved by the Ministry of Finance and Ministry of Education based on the loan needs of local needy students and the actual situation of national student loan in universities and colleges.

　　Relevant departments also issued "The Work-Study program Management Rule for the Students in Universities" to demand the full-time regular undergraduate colleges, vocational schools and colleges to carry out work-study activities, organize students to provide labor services after school for legitimate reward to improve learning and living conditions. The work-study employments include stable ones and temporary jobs. The students serving at fixed positions at school should be paid monthly. The payment for 40-hour work per month should not be less than the local minimum wage or minimum living standard determined by local government or relevant department and can be adjusted appropriately. Students serving at temporary positions in schools shall be paid by the hour. Remuneration per hour can be determined based on the minimum hourly wage set by local government or relevant department, no less than 8 Yuan per hour in principle. Meanwhile, the government issued the "Interim Measures for the Tuition Fee and National Student Loan Repayment of Graduates of Higher Education Institutions". According to the Measures, the full-time junior college students (including vocational), graduate students, the second bachelor's degree graduates of the colleges and universities directly under the Central departments shall go to work in 12 western provinces (autonomous regions, municipalities) after graduation, namely Tibet, Inner Mongolia, Guangxi, Chongqing, Sichuan, Guizhou, Yunnan, Shaanxi, Gansu, Qinghai, Ningxia and Xinjiang, or to 10 central provinces, namely Hebei, Shanxi, Jilin, Heilongjiang, Anhui, Jiangxi, Henan, Hubei, Hunan and Hainan. In addition to the above-mentioned areas, to the students who serve for more than three years (including 3 years) in the grass-roots units in remote areas with harsh conditions designed by the State Council, the government will pay their tuition fees. For the students obtain national student loans at school (including student loans for college and university students and the locally-granted student loans, the same below), the tuition fee paid by the state should be first used to repay the principal and interests of the loan before it is fully repaid. The grass-roots units include the following institutions, enterprises and units: township government organs, rural primary and secondary schools, state-owned farms (animal husbandry, forestry field), agricultural technology extension stations, veterinary stations, township hospitals, family planning service stations, township cultural stations, etc., or the forefront of production of central organs engaged in weather, earthquakes, geological, hydro construction, coal, petroleum, marine and nuclear industry with work site in the central and western regions and remote areas under harsh conditions.

　　- Housing assistance system. The "Low-rent Housing Security Measures" targets at urban low-income families with housing problem, i.e. the families living within the location of the city or county government with family income and housing conditions meeting the relevant conditions set by the city or county government. The housing security is achieved through combining the implementation of monetary subsidies and house renting. In order to implement the "Low-rent Housing Security Measures", the Ministry of Housing and Urban-Rural Development issued the "Notice on Strengthening the Management of the Quality of Low-rent Houses", which requires local governments must strengthen the construction management, be strict in implementing the basic construction procedures, covering project bidding, construction drawing review, construction permits, quality control, final acceptance, etc. and strengthen the supervision and management of various links. Quality supervision institutions should develop special quality control program according to the characteristics of low-cost housing construction, adjust and increase supervision efforts, and strengthen the supervision and inspection on the quality behavior and project quality of all parties concerned in the project construction. Planning departments should take full consideration the actual situation of low-income families in living and employment. The low-rent housing project should be implemented through combining supportive construction and concentrated construction in the key development areas, industrial areas and the regions with convenient traffic in near future. Construction units must take overall responsibility for the quality of low-rent houses and strengthen the project design and construction quality control to ensure the reasonable project period and cost of the house building. Investigation units must conduct survey according to the mandatory standards for project construction to ensure the data in the survey documents are true and reliable. Design units shall design according to the features of low-rent houses and try to achieve the basic functions for use in a relatively small space to meet the needs of houses for lighting, sound insulation, energy saving, ventilation and public health. Construction units must strictly implement the construction design documents and technical standards, strengthen quality control and strictly implement the material inspection, process inspection and verification systems to ensure the quality of project. No jerry-build or unqualified building materials. The supervision units must strictly implement the "Code for construction project management" and effectively implement their supervisory liability. The construction departments of various regions must strengthen the management on inspection and acceptance work and check the project quality one by one to ensure that all the houses reach the conditions to be used. In addition, the Ministry of Housing and Urban-Rural Development, National Development and Reform Commission and the Ministry of Finance also issued the "Notice on the Issuance of 2009-2011 Low-rent House Security Plans" and decided to, from 2009 to 2011, basically solve the housing problem of 7.47 urban low-income families in economical difficulties within three years. In the fourth quarter of 2008, it began the construction of 380,000 low-rent houses. Within three years, it is planned, 5.18 million low-rent houses will be added and rent subsidies will be issued to 1.91 million more households (see attached table for the tasks of various provinces, autonomous regions, municipalities and Xinjiang Production and Construction Corps). Meanwhile, the government will further improve the low-rent housing system combining material support and subsidy support for house renting and, on this basis, speed up the construction of the urban housing security system and improve relevant land, fiscal, taxation and credit loan support policies. In 2009, it solved the housing problem of 2.6 million urban low-income families, added 1.77 million low-rent houses and issued renting subsidies to additional 830,000 families. Specific security approaches: get houses through new construction, acquisition and transformation and then continue to implement the rent subsidy system to solve the housing problems of urban low-income families through multi-channel approaches. The low-rent houses are constructed in two ways: newly built, or constructed to support the projects of affordable housing, commodity housing and the improvement of shantytowns, with the latter as the main way. Security standards: the objects of low-rent housing security system are urban low-income families with housing problem. The specific conditions are determined by the city or county government. The low-rent housing area is about 13 square meters of building area per person and 50 square meters for each suit and the basic living functions must be ensured. Rental subsidy is determined based on local average market rent and the housing affordability of the needy families. The circular stressed that the central government will increase housing security subsidies for the regions with financial difficulties. The subsidy standards from the central government for low-rent house building in 2009: 400 Yuan per square meter for western region, 300 Yuan for central areas and 200 Yuan for the regions with financial difficulties in Liaoning, Shandong and Fujian. Provincial People's Government should learn from the practice of central government to increase investment in the construction (including the acquisition, transformation) of low-rent houses and rental subsidies for the cities and counties with financial difficulties. Local governments can make overall deployment for the use of the investment subsidy and low-rent housing security subsidy allocated by the central government within the budget according to the actual situation. City and county governments can raise low-rent housing security fund from various channels according to relevant regulations of the state. The city and county financial departments should include the low-rent housing security fund into annual budget. All net value-added proceeds of housing fund should be used in the construction of low-cost houses. Effective measures should be adopted to ensure that no less than 10% of the net income of land transfer is used in low-cost housing security.

III.Risk-sharing mechanisms for migrant workers and aid policies for poor migrant workers

　　In recent years, the welfare of migrant workers has been increased, but still faces serious challenges. From the perspective of wage, the wages of 11.67% of the migrant workers are below the minimum urban wage; the average weekly working time of the migrant workers in fixed positions is 55.46 hours and the migrant workers of flexible employment averagely work for 63.92 hours per week. If the working time of migrant workers is the same as that of urban employees, then the wages of 23.02% of the migrant workers are below local minimum wage (Wang Ran, 2008). In case of economic fluctuations, it will first have an impact on the basic livelihoods of migrant workers. To alleviate the survival risk of migrant workers and protect their legitimate rights and interests, our government has been committed to the establishment of various social security systems related to migrant workers, including social insurance and social assistance.

(I) The social insurance system for migrant workers

　　The "Decision of the State Council on Establishing a Unified Basic Medical Insurance System for Staff Members and Workers in Cities and Towns" issued by the State Council in 1997 points out that "the coverage of the basic endowment insurance system should be gradually extended to include all urban enterprises and their employees. Urban self-employed people should also be gradually covered by the basic pension insurance system". In December 2001, the Ministry of Labor and Social Security issued the "Notice Concerning Relevant Issues on Improving the Basic Endowment Insurance Policy for Urban Workers". Article IV explicitly states: "After the contract migrant workers who have participated in pension insurance system terminate or sever labor relationship with the enterprises, social insurance institutions should retain their pension insurance relationship and keep their personal accounts with interest-bearing. All those who find new jobs should continue or transfer the pension insurance relation or, according to the regulations of provincial government and the application of the workers themselves, the individual contributions in the personal account should be given to the workers themselves one time and the pension insurance relation is terminated at the same time. All those with new jobs should again participate in the pension insurance system. The male migrant workers above 60 years old and female workers above 55 years old who have paid individual contributions for more than 15 years will be paid the basic pension according to relevant regulations. Those who have not paid individual contributions for more than 15 years will be given all the individual contributions".

　　Endowment insurance and medical insurance are priority issues of migrant workers. According to the survey, 39.8% of migrant workers choose to participate in pension insurance system, 5.7% of migrant workers choose to participate in work injury insurance system (Zhang Yi, 2007). Another study found that more than 50% of migrant workers are willing to participate in urban or rural pension plan and 66.6% of migrant workers are willing to participate in the medical insurance system. In the questionnaire survey on the quality of life of migrant workers in China, when asked what help they want most the state to provide, 19.6% of migrant workers selected medical assistance and the improvement of living conditions; when asked what is the social problem they are most unsatisfied with, 33.1% of migrant workers selected medical and health service (Wang Dewen, 2008).

　　At present, local governments are all exploring the establishment of social insurance systems for migrant workers, mainly in a few modes: First, include migrant workers into the social insurance systems like Guangdong. In Zhejiang, however, "double-low" (i.e. " low access threshold and low-standard enjoyment") model is adopted for migrant workers to participate in social insurance for urban workers. For example, the "Tentative Procedures of Low Payment and Low-standard Enjoyment for Migrant Workers to Participate in Basic Pension Insurance in Hangzhou" (hereinafter referred to as "Double-low Procedures") provides that all the middle/low-income migrant workers of various enterprises who meet the relevant conditions for participating in the basic pension insurance in Hangzhou can apply for the participation of the basic pension insurance according to the "Double-low Procedures". The basic amount of individual contribution of the workers can be calculated based on his or her average monthly wage of the previous year and the basic amount of individual contribution of the workers in the new working position or with a new employing unit cal be determined according to the monthly wage set by the employing unit that year. If the average monthly wage of a worker in the previous year is below 60% of the provincial average, the bottom line of its individual contribution will be set according to 60% of the provincial average wage. Before the provincial average wage of the previous year is announced, the amount is determined according to the provincial average wage the year before. The individual contribution accounts for 5% of the total; and the proportion of the contribution of employing unit is 14% according to the provisions of the uniform management measures for basic pension insurance for employees of enterprises.

　　Secondly, establish independent social insurance systems for migrant workers. Independent institutions in favor of the rural migrant workers in cities have been established in Shanghai and Beijing. For instance, it is stipulated in the "Interim Regulations on the Comprehensive Assurance" that the comprehensive assurance for migrant employees (hereinafter comprehensive assurance) includes occupational injury (or accidental injury) insurance, hospitalization and medical care, and old-age subsidy; migrant employees refer to those from other provinces, autonomous regions or municipalities directly under the Central Government working or doing business in the city yet without permanent census register. The comprehensive assurance regulation applies to the state organs, social organizations, enterprises (including nonlocal construction enterprises), public institutes, individual economic organizations (hereinafter referred to as employing units) that are approved to hire the migrant workers and their employed migrant workers as well as migrant workers without employing unit. The main part to pay the comprehensive assurance is employing units and migrant workers without employing unit. The cardinal number of the comprehensive assurance paid by employing units is outcome of the population of the employed migrant workers multiplying 60% of the average pay of all the employees in the city of the previous year, and that of migrant workers without employing unit is 60% of the average pay of all the employees in the city of the previous year. The comprehensive assurance premiums by employing units and migrant workers without employing unit are 12% of the insurance base, and the premiums paid by nonlocal construction enterprises are 7.5%. The comprehensive assurance premium is paid every 3 months and the figure is the total premiums of the past 3 months. The migrant workers realizing the duty in accordance with the law should be entitled to the following welfare: (1) migrant workers hired by employing units enjoy occupational injury insurance, hospitalization and medical insurance and old-age subsidy; (2) migrant workers without employing unit enjoy occupational injury insurance, hospitalization and medical insurance, and old-age subsidy; (3) migrant workers of the nonlocal construction enterprise enjoy occupational injury insurance and hospitalization and medical insurance.

　　No matter the existing urban social insurance system for migrant workers to participate or the independent social insurance system established especially for migrant workers, the participation rates of migrant workers are both not high. In 2009, 43.35 million migrant workers participated in the urban medical insurance, 690,000 more than that of the previous year; 55.80 million migrant workers participated in the industrial injury insurance, 6.38 million more than that in 2008 (National Bureau of Statistics, 2010). We can analyze the reason for the low participation rate of migrant workers from two aspects: supply and demand. The supply factors include segmentation of household registration system, urban bias policies, unreasonable payment rates, the government's financial burden, lack of overall system design, poor law enforcement, etc. The demand factors include personal income-generating capacity and ability to pay, access to system and the portability, risk frequency and response mechanism, the payment rate and the expected benefits as well as incentives, lasting living preparation and arrangements (Wang Dewen, 2008). Due to the mobility of migrant workers and as the existing social insurance system is mainly designed for urban residents, there are a number of problems for migrant workers to participate in social insurance, including: no uniform systems, high threshold for insurance participation, low level of overall arrangement, allowing cancellation of insurance, short-sighted and not active action as well as high mobility of migrant workers in social insurance participation, difficulty in management and operation, no clear government responsibility on social insurance of migrant workers, low participation rate and high surrender rate, etc. (Hua Yingfang, 2010).

　　In early 2006, the State Council issued "Some Opinions on Resolving the Problems Faced by Migrant Workers" and clearly stated: First, we must attach great importance to the social security of migrant workers. Based on the most pressing needs of migrant workers for social security, adhering to the principle of classified guidance and steady progress, we must give priority to industrial injury insurance and serious medical problems and gradually solve the problem of old-age security. Secondly, include migrant workers into the work-related injury insurance system according to law. All employing units must promptly apply for work-related injury insurance for migrant workers and timely pay work-related injury insurance premiums in full; when a migrant worker who has not participated in work-related injury insurance is injured in working time, the employing units must may pay him or her in accordance with the standard of the work-related injury insurance. Thirdly, we must urgently address the serious illness medical security problem of migrant workers, s focus on solving medical security problem of migrant workers during their working period in the city. Those regions with certain conditions can directly include the migrant workers with stable working positions into the basic medical insurance system for urban workers and migrant workers can also voluntarily participate in the new rural cooperative medical system in their native places. Fourthly, we must explore the endowment insurance program based on the characteristics of migrant workers and step up the study on approaches for the establishment of a system with a low-insurance premium and wide coverage that can be transferred and can be linked with the existing endowment insurance system.

　　In 2009, the state issued the "Circular of the General Office of the State Council on Forwarding the Tentative Measures for Transfer and Continuity of Basic Endowment Insurance Relationship of Employees of Urban Enterprises Promulgated by the Ministry of Human Resources and Social Security and the Ministry of Finance". The "Tentative Measures for Transfer and Continuity of Basic Endowment Insurance Relationship of Employees of Urban Enterprises" stipulates that, all the workers participating in the basic old-age insurance for urban enterprise workers, including migrant workers, can transfer their old-age insurance relationship when they transfer to work in other provinces. Specific measures: When an insurant gets employed in another province, the social insurance agency at the place where he purchases insurance shall issue an insurance premium payment receipt, and his basic pension insurance relations shall be transferred to the new place. When an insurant meets the conditions for obtaining the basic pension insurance money, the number of years when insurance premiums have been paid shall be calculated on a consolidated basis, and the amount of deposit (including principal and interest, same below) in his individual account shall be calculated on a cumulative basis. Before reaching the age for obtaining the insurance money, no one may stop the basic pension insurance relation and handle the insurance withdrawal formalities. The Measures specially stipulates that, when the migrant workers suspend the employment or do not continue to pay insurance premiums after returning home, their basic pension insurance relationships are retained by the original social security agencies, their insurance premium records and personal accounts are retained and the money in personal accounts shall be given interests continuously according to relevant provision. For the migrant workers who go back to obtain employments in the city, the number of years when insurance premiums have been paid shall be calculated on a consolidated basis no matter they return home or go to other cities for employment. Those who meet the conditions for obtaining the basic pension insurance benefits shall enjoy the same basic pension benefits as urban workers. For those migrant workers who do not return to the city for employment, all the records of insurance premium records are valid. According to the actual situation of migrant workers, they shall enjoy the same basic pension benefits as urban workers after they meet the conditions for obtaining the basic pension insurance benefits, or transfer to the new rural social pension insurance. The policy for the convergence between migrant workers' participation in the basic pension insurance for urban workers and the new rural social pension insurance will be further studied and formulated.

　　(II)The social assistance system for migrant workers

　　The Research Group of Beijing Normal University conducted field research in Zhejiang, Shanghai and Guangdong, the major destinations of migrant workers, and labor-exporting province Henan in February 2009. The survey results show that: Migrant workers are strong labor forces who contribute their youth and health during the period of the rapidest economic growth. When economic crisis came, they strived to help the state and society to tide over the difficulty with the greatest capacity for resistance, the maximum tolerance, the greatest efforts and the largest extent of their ability. Unemployment of migrant workers is currently the most important livelihood issue. Unemployed migrant workers tend to strand in the city and thus become new poverty-stricken people under the financial crisis. The migrant workers who returned home will also become another kind of new poor group as they lost the means of livelihood. According to the survey, Zhejiang, Shanghai and Guangdong all encourage and require migrant workers to participate in social security insurance and strive to improve the policy for the children of migrant workers to study in the place where they live to ensure the migrant children enjoy the same treatment as the urban children. In addition, through relief systems, local governments strive to help poor migrant workers to tide over difficulties.

1、 Temporary relief system

　　Temporary relief system mainly helps solve the sudden and temporary living difficulties of migrant workers. For example, the "Opinions of Linhai City on the Implementation of Temporary Relief for Needy Masses (Trial)" of Zhejiang stipulates that the objects of temporary relief system include the new Linhai people (migrant workers) with temporary residence permits and the relief is mainly one-time living subsidy of 500-1500 Yuan for each of those living in difficulties due to fires, traffic accidents, chronic diseases and sudden public accidents. Shanghai has established helping network in the sub-district offices and neighborhood committees to help solve the difficulties of migrant workers based on the areas concentrated with migrant workers, also covering other areas.  

2、 Medical assistance system

　　Medical assistance system is set up to solve the medical treatment problem of migrant workers. In February 2008, for example, Wenzhou formulated the "Tentative Procedures of Wenzhou Concerning Medical Assistance for Migrant Workers" and decided to provide medical assistance for needy migrant workers with the downtown temporary residence permit of Wenzhou who have signed labor service contracts with local enterprises, institutions, units or other organizations and served with the units for more than one year, and have participated in social medical insurance and need medical treatment or hospitalization. Relief standard: when the personal burden of medical cost is 5,000-10,000 Yuan, the government shall pay 25% of the medical expense; when the personal burden of medical cost exceeds 10,001 Yuan, the government shall pay 35% of the excess amount; and the limit line is 20,000 Yuan for normal migrant workers and 30,000 Yuan for those titled "Top Hundred New Wenzhou People". The "Tentative Procedures of Jiaojiang District of Taizhou Concerning Medical Assistance for Migrant Workers" stipulates that the objects of the relief are the migrant workers with the temporary residence permit of the district who have signed labor service contracts and served with local enterprises, institutions, units or other organizations for more than one year. Relief standard: when the personal burden of medical cost is 5,000-10,000 Yuan, the government shall pay 40% of the medical expense; when the personal burden of medical cost exceeds 10,001 Yuan, the government shall pay 50% of the excess amount, and the limit line is 20,000 Yuan.

3、 Trade unions' aid

　　Trade unions' aid focuses on emergency relief, including basic living assistance and medical assistance. In most of the employing units with independent trade unions or joint trade unions, migrant workers are union members. When the migrant workers suffer from illness or encounter other difficulties, the union will mobilize, on the one hand, staffs to raise money for them and carry out mutual aid activities between staffs and, on the other hand, it will provide necessary financial assistance. In addition, local governments also carry out helping-the-poor activities for migrant workers during the New Year Day and the Spring Festival. In the Spring Festival of 2008, for example, Jiaojiang District of Taizhou City provided holiday allowance of 200 Yuan for each of the 1,000 migrant workers temporarily not working due to work-related injury, 5,000 migrant workers suffering from serious illness and 300 migrant workers engaged in household services suffering serious illness; and provided holiday subsidy worth 100 Yuan for each of the 100 needy migrant nursing persons serving with the nursing home or the elderly at home. According to statistics, the heart-warming activity organized by labor unions in Xiaoshan District of Hangzhou in 2008 provided relief for 2576 needy families, including more than 760 families of migrant workers, accounting for 30% of the total.

IV.Employment-oriented urban anti-poverty strategies

　　Employment has a vital bearing on people's livelihoods and is one of the fundamental anti-poverty strategies in the city. To solve the employment problem under the financial crisis, in March and June 2009, the State Council held two executive meetings to discuss employment issue and successively formulated the "Notice of the State Council on Doing a Good Job in Employment under the Current Economic Situation", "Notice of the General Office of the State Council on Strengthening the Employment of Graduates of Regular Institutions of Higher Education", "Notice of the General Office of the State Council on Doing a Good Job in Employment of Migrant Workers under the Current Economic Situation" and "Notice of the General Office of the State Council on Forwarding the Guiding Opinions of the Ministry of Human Resources and Social Security on Promoting Employment by Entrepreneurship". The Ministry of Human Resources and Social Security and the relevant departments successively formulated the "Notice on Adopting Active Measures to Reduce Burdens on Enterprises and Stabilize the Employment Situation", "Notice on the Implementation of Special Vocational Training Programme", "Notice on the Implementation of A Series of Employment Service Activities in 2009" and some other policy documents and strived to support the employment of migrant workers and urban needy families, etc. The central government also increased investment. The employment fund covered by the budget was 42 billion Yuan, 66.7% up over the previous year. In July 2009, more than 300 cities of 31 provinces in China had issued the seven documents on related policy measures, forming a complete set of policy system to combat financial crisis and stabilize and expand employment (Yin Weimin, 2009).

 (I) Reduce the burden on enterprises, stabilize the existing jobs and actively stimulate employment

　　In order to help enterprises tide over difficulties and encourage them to conduct no or less layoffs, apart from reducing taxes, the country also issued policies to guide enterprises temporarily facing difficulties in their production and operation and migrant workers to have collective consultations. Enterprises are required to conduct no or less layoffs and stabilize existing jobs by adopting flexible employment management and organizing trainings. Enterprises are guided to fulfill their social responsibilities and prevent large-scale layoffs. The departments concerned also issued the measures of "five delays, four reductions, three compensations and two-side consultation" to help enterprises stabilize jobs. "Five delays" mean that in certain conditions enterprises that cannot afford to pay social insurance premium can postpone their payments of pension insurance, medical insurance, unemployment insurance, work-related injury insurance and maternity insurance premiums. "Four reductions" are the periodic reductions of insurance premium rate except for pension insurance. "Three compensations" means using the unemployment insurance fund to help enterprises in difficulty pay social insurance premiums and post subsidies for their stable positions and using special fund to subsidize them to conduct on-job-trainings. "Two-side consultation" means that when enterprises in difficulties have to conduct economic layoffs, they can sign economic compensation agreements to pay installments or pay in other ways based on equal consultation between enterprises and labor unions or workers if they really cannot afford one-time payment of compensation. In addition, based on the major initiatives to expand domestic demand and promote economic growth, local governments give play to the role of government investment and promoting by major projects, and encourage and support the development of labor-intensive industries, especially services and SMEs to enhance their ability to absorb migrant workers; through tax incentives, subsidies and other social insurance policies, they guide enterprises to absorb more employees; promote the development of featured backbone industries to stimulate employments; and encourage the government-funded of state-owned enterprises to provide jobs as many as possible. According to the quick survey of the Ministry of Human Resources and Social Security on the dynamic monitoring of unemployment in 15 cities of five provinces, in June 2009, 258,349 people in the cities under monitoring had cancelled or terminated labor relationship with enterprises, there was a net increase of 1510 corporate positions after the offset of growth and reduction, up 0.23%, and overall job loss is slowing down. As of end of June 2009, by delaying payment and reducing the payment rate, the state directly reduced business burden of 16.6 billion Yuan, and it used the surplus unemployment insurance fund of 1.79 billion Yuan to support the 6,000 enterprises in difficulty and stabilized the jobs of 3.18 million staffs (Mo Rong, 2009).

(II) Provide employment services and make proper arrangements for the employment of focus groups

　　While stabilizing the employments, the relevant state departments actively carry out employment services and provide employment assistance for college students, migrant workers, urban needy people, victims, etc. Specific measures are as follows:

　　1）Encourage and guide the employment of college graduates. In 2009, the state successively introduced a package of policy documents on the employment of college graduates, expanded the employment channels for urban and rural grass-roots units, private small and medium-sized enterprises, scientific research, entrepreneurship and joining the army, and provided detailed initiatives on employment services, job placement and employment assistance. Departments concerned carried out the "action to promote employment of college graduates" in July, August and September, strived to do a good job in linking the employment of college graduates before and after graduation, earnestly implemented the "Village Official Program", "Special-post Teacher Program", "Three Supports and One assistance Program" and "Western Programme", and organized a large number of unemployed graduates to participate in the employment practice and service projects. Relevant department also launched a series of employment services activities of college graduates, targeting at unemployed fresh college graduates or the college graduates who have left school but have not found any job yet, mainly the needy graduates. Objectives: First, strive to make the initial employment rate of fresh college graduates reach 70%; Secondly, make the employment rate of the registered unemployed college graduates reach 60% within half a year after registration; Thirdly, establish a system for the registration and identification of college graduates from economically disadvantaged families and make the employment rate within half a year after registration reach 90%. Before school leaving of fresh college graduates, the government focuses on collecting working position information for graduates, organizing companies to hold special recruitment fairs at campus and carry out online recruitment to help the college graduates in finding jobs. After school leaving of fresh graduates, relevant departments will focus on organizing the graduates who are registered for jobs or the registered unemployed graduates to participate in employment practice, vocational training, job introduction, entrepreneurship services and the implementation of related policies as well. For those unemployed and needy graduates who have left school, the government employment service agencies, talent service agencies and graduate employment guidance agencies should strengthen cooperation to provide effective employment service and do a good job in registration and identification of needy graduates as well as employment assistance. In addition, in mid-May 2009, 100 large and middle-sized cities nationwide jointly organized recruitment week activities of private enterprises, targeting at college graduates, to build a platform for the linkage of private enterprises and various types of labor forces and help college graduates to find jobs in private enterprises. On September 1, 2009, the initial employment rate of fresh college graduates was 74%, almost the same as the previous year. As of the end of October 2009, among the more than 1.8 million unemployed college graduates, 930,000 had obtained employments, accounting for 51.6% (Yin Weimin, 2009).

　　2）Guide and support migrant workers to obtain employment and reemployment. After the financial crisis, a large number of migrant workers lost their jobs. To this end, while supporting enterprises and stabilizing working positions, relevant departments carried out a series of spring breeze activities, targeting at migrant workers and surplus rural labor force, mainly those who lately lost jobs and the landless farmers. Objectives of the activities: First, make the migrant workers who newly lost their jobs but still wanted to stay in the city get free employment services provided by public employment service agencies; Secondly, make the migrant workers who are going to work in the city get free, effective employment information and employment services and have the opportunity to participate in the organized labor export activities; Thirdly, the migrant workers who are willing to receive trainings shall have the opportunity to participate in the vocational trainings that enjoy policy subsidy; Fourthly, organize a group of rural surplus labors to achieve employment transfer through joining local enterprises or participating in public infrastructure construction projects. After the Spring Festival of 2009, the governments of various regions generally distributed "spring breeze card" free of charge to introduce the labor demand situation of major labor input areas, the basic knowledge for farmers to work in the city, matters needing attention for rights safeguarding, contact ways of public employment service agencies and private employment service agencies, etc., to help farmers find jobs. In some places, migrant workers were organized to participate in vocational training or business training to promote the transfer of employment or business launching after home-returning; they established the mechanism for employment information communication between labor output places and labor input regions to provide correct employment information for the farmers who are going to work outside local areas and, through organized labor output, help farmers to go out to work orderly. In some places, local enterprises and public infrastructure construction projects could provide some employments for a number of rural surplus labors. In addition, in the third week of February 2009, the Ministry of Human Resources and Social Security, the All-China Federation of Trade Unions, the Central Committee of the Communist Youth League and the All-China Women's Federation jointly organized the "Spring Breeze Program for Working Positions". They organized public employment service agencies and relevant social groups' grassroots organizations and service agencies to collect in advance suitable employment information and establish a nationwide communication platform to help a group of migrant workers, including women and young people to achieve the transfer of employment through information dissemination, holding special recruitment fairs and organizing activities to provide jobs in rural areas. As of the end of October 2009, most of the migrant workers had obtained employments and most of the migrant workers who did not go out to work achieved local employment or entrepreneurship. According to the monitoring survey of the National Bureau of Statistics, at the end of the third quarter, the number of rural migrant workers reached 15,198 million, with an increase of more than 11 million over the previous year (Yin Weimin, 2009). According to relevant statistics, in the three months before and after the Spring Festival of 2009, 70 million migrant workers moved between the city and countryside, but there was no large-scale stranding of migrant workers in the city or blind flow between urban and rural areas. Currently, 95% of the migrant workers have returned to the city and found jobs (Mo Rong, 2009).

　　3）Actively help those with difficulties in finding employments, members of zero-employment families and the labors in disaster-hit areas to find jobs. In 2009, relevant departments carried out a series of employment assistance activities. The activities mainly served those with difficulties in finding employments, zero-employment families, new urban unemployed due to business closure or layoffs, mainly the emerging unemployed with difficulties in finding jobs and zero-employment families. Objectives of the activities: First, make each emerging person with difficulties in finding jobs who meet the conditions and the zero-employment families to get registered timely in sub-district offices and public employment service agencies in communities and get employment assistance; secondly, help registered unemployed people with difficulties in finding jobs to obtain employments within a certain period of time through businesses' absorbing, public welfare position arrangement or flexible employment; thirdly, ensure that at least one member of every zero-employment family can get a job within a certain period of time; fourthly, help qualified people to get social insurance benefits, job subsidies, etc. Local governments further strengthened employment assistance and generally carried out home visits activities, established and improved the registration and identification system for those with difficulties in finding jobs and zero-employment families and the assistance system of "one-to-one helping". In some places, the government increased efforts on creating public welfare working positions, organized relevant vocational trainings, entrepreneurship services and the implementation of related support policies, and carried out targeted special service activities in different periods of time. From January 10 to 16, 2009, the Ministry of Human Resources and Social Security, the All-China Federation of Trade Unions, the Central Committee of the Communist Youth League, the All-China Women's Federation and China Disabled Persons Federation jointly organized the "Employment Assistance Week". Through conducting home visits, they mastered the actual situations of those with difficulties in finding jobs and developed programs to carry out "one-for-one" key assistance to effectively help a number of people with difficulties in finding jobs and zero-employment families to achieve employment or re-employment and implement relevant supportive policies. In September 2009, local governments of various regions specially carried out household-reaching employment assistance activities to consolidate the results of helping needy masses and fully implement the support policies for those have obtained employments. From January to November 2009, they helped a total of 1.46 needy people to find new jobs, exceeding the annual task of helping 1 million people find jobs (Yin Weimin, 2009).

　　4）Actively support the employment and reemployment of the victims. The overall reconstruction plan clearly demands the government to make employment assistance an important task for the next three years. On June 30, 2008, the State Council held a seminar on the recovery of industrial production in disaster-hit areas and the expansion of employment, requiring 20 provinces (municipalities)  to support the employment promotion work of three disaster-hit provinces, determine the objectives and sign the agreement. The agreement determined three tasks for the period from July to September: First, the 20 provinces (municipalities) must provide 100,000 relatively good jobs for the disaster areas with monthly salary above 1,000 Yuan and should apply for social insurance for the employees. Actually, the monthly salary of the provided jobs was usually above 1,200 Yuan. Secondly, 35,000 people should be organized within three months to support non-local employment. Thirdly, both sides were required to jointly help 175,000 labors from disaster-affected areas to get jobs locally. By September 2008, the 20 provinces (municipalities) had provided 440,000 jobs, which were all relatively good working positions in various regions. As for the second requirement, 33,000 people had been sent; as for the third requirement, 250,000 people had got jobs (Zhang Xiaojian, 2008). In addition, according to relevant statistics, from July 2008 to the end of September 2009, the pairing-off employment assistance in disaster-hit areas achieved organized output of 652,000 labor, including 475,000 non-local residents; and provided employments for 1.357 million people to work locally, including 219,000 public welfare positions (Mo Rong, 2009).

　　(III) Encourage independent entrepreneurship

　　In September 2008, the General Office of the State Council forwarded the Guiding Opinions of 11 sectors including the Ministry of Human Resources and Social Security on promoting employment by entrepreneurship, and further improved the tax incentives, small loans, financial subsidies, venue arrangements and other support policies in favor of entrepreneurship of labors. The departments concerned required local authorities to focus on guiding and facilitating the entrepreneurship of college graduates, unemployed people and the migrant workers who returned home, take active measures to promote the entrepreneur of demobilized army personnel and returned overseas students and, within three to five years, strive to achieve a substantial increase in the number of workers with their own businesses and the number of employees who got jobs through promoting employment by entrepreneurship and basically establish a policy system for entrepreneurship to promote employment to help more labors willing and with the ability to launch their own businesses become entrepreneurs successfully. Local governments should reduce entrepreneur threshold from the land, fees, information, business registration and tax services to increase support for the entrepreneur of returned migrant workers; practice union examination and approval, "one-stop" service, services within limited time and commitment service to open up the "green channel" for migrant workers to start their own businesses; and encourage migrant workers to develop agricultural processing industries, the secondary and tertiary industries in rural areas, ecological agriculture and SMEs in counties. A total of 82 cities in China carried out the activities of building entrepreneurship-type cities. Many regions implemented the development strategy of "whole people entrepreneurship" to promote the entrepreneurship of returned farmers and college graduates through improving policy system, promoting policy implementation, establishing venture capital, building business bases, strengthening entrepreneurship trainings and improving entrepreneurship services. In some places, the government practiced the operation integrating "project, policy and funding". In some other places, the government organized the relevant departments to carry out "entrepreneurship relay baton" activities, clarify specific requirements for counterpart support in various links of entrepreneurship, build a platform for entrepreneurship services and encourage and support the unemployed and other groups to start their own businesses.

　　(IV) Strengthen vocational training and improve the quality of workers

　　Relevant departments developed special vocational training program and decided to spend two years or so, from 2009 to 2010, to concentrate on the skills trainings and employment transfer trainings for the employees of needy enterprises to help them achieve stable employment; organize vocational training or business skills trainings for the migrant workers who returned home to help them achieve the transfer of employment or start their own businesses; organize middle or short-term skills trainings for the unemployed (including the registered unemployed university graduates and the unemployed migrant workers staying in the city) to help them get new jobs; and organize reserve skills trainings for new labors to enhance their employability. In 2009, the Ministry of Human Resources and Social Security, the National Development and Reform Commission and the Ministry of Finance organized local governments to carry out job trainings for the staffs of needy enterprises, skills trainings for migrant workers, re-employment trainings for the unemployed, labor service preparation trainings for new labors and free vocational trainings for retired soldiers. Throughout the whole year, trainings were organized for more than 30 million person-times. Vocational trainings funded by government were organized for about 21.60 million person-times, including trainings for more than 2.6 million employees of needy enterprises, rural labor employment transfer trainings for 11 million person-times, re-employment trainings for 4.5 million urban unemployed people, labor service preparation trainings for 2.4 million person-times and entrepreneurship trainings for 1.1 million person-times.

　　From January to September 2009, 25.72 million people nationwide enjoyed various employment policies and employment fund of 31.8 billion Yuan was spent. From January to October, local governments adopted the policy of "five delays, four reductions, three compensations and two-side consultation" to reduce the burden and increase subsidy of 33.85 billion Yuan for 1.6 million enterprises, covering more than 60 million employees, of which 9.18 billion Yuan of social insurance premium was delayed to be paid by enterprises; 19.34 billion Yuan of four kinds of social insurance premium was reduced, and 5.33 billion Yuan of subsidies were issued for the implementation of using the unemployment insurance fund to pay social insurance premiums or post subsidies and using employment fund to conduct on-job-trainings (Yin Weimin, 2009).

V.Outlook on urban anti-poverty

　　"The 11th Five-Year Plan for National Economic and Social Development" proposed to establish a sound multi-level social security system with wide coverage suited to the situation of economic development. The 17th National Congress of the CPC clearly stated that by 2020, a social security system covering both urban and rural residents should be basically established to ensure universal access to basic subsistence, and a reasonable and orderly pattern of income distribution should be basically formed, with middle-income class as the majority, and absolute poverty should be basically eliminated ... ... we must strive to build a harmonious society in which "all people are well educated, workers well paid, patients well treated, elders well tended, and families well accommodated". A lot of work still needs to be done in urban poverty alleviation and we must strive to achieve the objective of "five access".

　　(I)Further strengthen the convergence of various systems

　　Currently, the social insurance, social relief, social welfare, medical service, education, housing, employment services and other policies are respectively developed by various institutions. The Ministry of Education is responsible for providing education assistance, the Ministry of Civil Affairs is in charge of medical assistance and minimum living relief work, the Ministry of Agriculture and the Ministry of Human Resources and Social Security are responsible for employment trainings, medical insurance is under the responsibility of the Ministry of Health and the Ministry of Human Resources and Social Security, housing issues are under the responsibility of local governments and social insurance is in the charge of the Ministry of Human Resources and Social Security, etc. In the process of poverty reduction, the phenomenon of multiple management or leakage often occurs, resulting in waste of resources and affecting the overall efficiency of poverty reduction. Therefore, it is recommended to strengthen inter-sectoral coordination and establish an information platform for urban poverty reduction to achieve the convergence between policies and ensure pro-poor policies can cover all urban residents, including migrant workers living in the city.

(II) Pay special attention to the problem of poverty among migrant workers

　　A large number of migrant workers in the city have made a great contribution to urban growth and the national economic and social development of China. They've contributed labor services and their youth to the city. In the process of urbanization, the farmers who lost their land have also made a contribution to China's economic development. In the state's pro-poor strategy, therefore, cities should take the responsibility to reduce poverty among these migrant workers and landless farmers, provide these people with employment opportunities, social security and public services and help them integrate into city life as soon as possible. At the same time, a large number of human resources are also flowing towards rural areas to contribute to rural development and poverty reduction. Therefore, urban poverty and rural poverty should be included in one unified system framework instead of independent policy systems. The poverty of migrant workers is not only reflected by income poverty, but also by the difficulties in integrating society, by obvious capacity poverty and opportunity poverty. In addition, due to low income, it is hard for migrant workers to settle down and accumulate capital and goods in the city, and their children can hardly be well educated, resulting in higher risk of intergenerational transmission of poverty. Therefore, in addition to increasing the income of migrant workers, we should also be concerned about the poverty of this group in other dimensions.

(III) Give play to the key role of employment and human resource integration

　　Economic growth is the most important prerequisite for solving the employment problem and the most important measure to increase workers' income and reduce their poverty. Urban anti-poverty strategies should give play to the fundamental role of employment in poverty reduction, expand employment, promote re-employment and support full employment of labors. Therefore, we should further encourage urban residents, including migrant workers to start their own businesses and increase employment or vocational trainings to improve the quality of job seekers or workers. Meanwhile, according to the statistics of the Ministry of Civil Affairs, there are nearly 20 million volunteers nationwide. In the implementation of urban anti-poverty strategies, we need to do a good job in providing channels for information of volunteers, organize the establishment and improvement of the network of volunteers, make full use of volunteer resources and give full play to their role in poverty reduction.

　　References

1. Yin Weimin, China's employment situation is basically stable this year, better than expected, the Website of National People's Congress of China

2. Mo Rong, Zhao Liwei, Chen Lan: 2009: the Employment Situation and Relevant Policies under the International Financial Crisis; 2010 China's Social Situation Analysis and Prediction, Social Sciences Academic Press, December 2009.

3. China Development Research Foundation, "Poverty Eradication in the Development", China Development Press, September 2007

4. Wang Dewen, Social Security of Migrant Workers, "China's Population and Labor Report No. 9", Social Sciences Academic Press, October 2008

5. Wang Ran, Welfare of Migrant Workers, "China's Population and Labor Report No. 9", Social Sciences Academic Press, October 2008

6. Hua Yingfang, Social Security of Migrant Workers, "China's Social Security Development Report", Social Sciences Academic Press, April 2010

7. Wang Fenyu, He Guangxi, etc., "Survey Report on the Living Conditions and Policy Needs of the Disaster-affected Population in Wenchuan Earthquake Area",  "2009 China Social Situation Analysis and Forecast", Social Sciences Academic Press, December 2008

8. National Bureau of Statistics, 2009 China Statistical Bulletin

9. Wang Xiaoyan, Education of Migrant Children: Problems and Recommendations, "'Further Promotion of Fair Experience", Social Sciences Academic Press, March 2008

10. Research Group of Beijing Normal University, Social Protection Policies and Suggestions for the New Poor under the Financial Crisis

11. Gao Wenshu, Study on the Education of Left-behind and Migrant Children, "China's Population and Labor report No. 10", Social Sciences Academic Press, August 2009.

 

　　Author: Professor Zhang Xiulan, professor

　　Unit: Beijing Normal University

扫描下载手机客户端