From 1997 to March 2000, China allocated nearly 5 billion yuan (US$600 million) to protect 3 million urban residents under a system to ensure they could afford basic life necessities.

Depending on their different situations, people could expect minimum pensions ranging from a few yuan to 300 yuan every month (US$36).

More than 2 million state employees, unemployed workers and retired people accounted for 78 percent of the urban beneficiaries.

In rural areas, more than 3 million farmers have also been included in the system. The state allocated over 900 million yuan (US$108 million) for rural areas during 1997 to March 2000.

The on-going reforms to bring about a market-oriented economy has resulted in a large number of unemployed workers since the early 1990s, forcing the government to improve the social security system.

Officials with the Department of Disaster and Social Relief at the Ministry of Civil Affairs said the current social security system now provided a safe and stable footing for China's on-going reforms.

By September 1999, the country's 667 cities and 1,638 towns had set up a new system, three months ahead of a State Council deadline.

In recent years, the number of people receiving regular help ranged from 600,000 to 800,000, while the number of those getting temporary relief exceeded 2 million.

The traditional social relief system, brought in the 1950s and 1960s under the planned economy, was mainly designed to provide a fixed amount of relief.

This traditional social relief system failed to meet the demands of a socialist market economy and was in urgent need of reform, officials said.

The latest change in the system, Regulations on Subsistence Security for Urban Citizens, came into effect in October last year and allowed improvements to be made to the program.

Social security recipients are now selected through a sophisticated verification process in an effort to ensure all those eligible receive help.

(China Daily 10/07/2000)