China: developmentalism and social security

China began its social security reform when the market-oriented economy was first promoted in the late 1970s. Initiatives have been taken to replace the employer-based labour insurance model with a largely social insurance model. However, it is a mistake to argue that China is pursuing a neo-liberal agenda in its social initiatives. Instead, the state has played a major role in the process. Based on a developmental analysis, it is argued that the direction of change is generally encouraging. The emerging social insurance programme has the following advantages: it widens coverage, facilitates economic development, seeks a minimum entitlement, fosters social integration, and enhances individual participation and responsibility. The creation of an economically and socially viable social insurance programme will support the economic development of the country in the twenty-first century.