Title: Long-term Care for the aged: critical issues and challenges to China's sustainable development
Authors: Jane Zhang
Addresses: School of Accounting and Economics, Napier University Business School, Craiglockhart Campus, Edinburgh EH14 1DJ, Scotland, UK
Abstract: How to finance Long-term Care (LTC) has become a major policy issue in China. The provision of LTC finance is vital to sustain China|s long-term economic development as the ageing population has a significant impact on the Chinese economy and the social welfare system. This paper examines the need for LTC in an ageing society as a critical social and economic issue faced by the Chinese government in the 21st century and analyses various LTC financing options. Currently, in China, there are widespread concerns over the affordability of LTC in the next 15–35 years when the ageing population reaches its peak. This paper specifically examines LTC social insurance, focusing on its advantages and applicability to China. It is suggested that LTC social insurance should be established in China and contributed by individuals through levying an LTC tax on savings income, an enterprise through business tax and the state through the reallocation of social welfare funds.
Keywords: ageing population; China; finance; long-term care; LTC; social insurance; sustainable development; economic development; economic development; social welfare; elderly care.
World Review of Entrepreneurship, Management and Sustainable Development, 2006 Vol.2 No.1/2, pp.126 - 143
Published online: 23 Feb 2006 *Full-text access for editors Access for subscribers Purchase this article Comment on this article