IDEAS home Printed from https://ideas.repec.org/a/gam/jsoctx/v11y2021i1p22-d517530.html
   My bibliography  Save this article

Challenges and Sustainability of China’s Socio-Economic Stability in the Context of Its Demographic Development

Author

Listed:
  • Andrea Čajková

    (Department of Public Administration, Faculty of Social Sciences, University of Ss. Cyril and Methodius, 917 01 Trnava, Slovakia)

  • Peter Čajka

    (Department of International Relations and Diplomacy, College of International and Public Relations Prague, 150 00 Praha, Czech Republic)

Abstract

Like many developed countries in the world, China currently faces many serious demographic challenges that pose a potential risk to the country’s socio-economic development and stability. The current demographic development and trend is characterized by a change in the reproductive behavior of the population, characterized by a decline in birth rates, a change in family behavior, and a shift in the value system. This paper is aimed at identifying the impact of population policy and the degree of its influence on both the economic and social system of the country. Based on a deterministic approach, the findings reveal and demonstrate the serious demographic challenges facing China, and we are noting that there is no guarantee that parametric adjustments, such as shifting the retirement age, will de facto ensure the financial health of the pension system by preventing bankruptcy. We point out the risks and prospects for the sustainability of China’s socio-economic development based on an analysis of past and current Chinese demographic policy.

Suggested Citation

  • Andrea Čajková & Peter Čajka, 2021. "Challenges and Sustainability of China’s Socio-Economic Stability in the Context of Its Demographic Development," Societies, MDPI, vol. 11(1), pages 1-20, March.
    • Handle: RePEc:gam:jsoctx:v:11:y:2021:i:1:p:22-:d:517530
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2075-4698/11/1/22/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2075-4698/11/1/22/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Zheng Song & Kjetil Storesletten & Yikai Wang & Fabrizio Zilibotti, 2015. "Sharing High Growth across Generations: Pensions and Demographic Transition in China," American Economic Journal: Macroeconomics, American Economic Association, vol. 7(2), pages 1-39, April.
    2. Huan Wang & Jianyuan Huang & Qi Yang, 2019. "Assessing the Financial Sustainability of the Pension Plan in China: The Role of Fertility Policy Adjustment and Retirement Delay," Sustainability, MDPI, vol. 11(3), pages 1-20, February.
    3. Wang, Lijian & Béland, Daniel & Zhang, Sifeng, 2014. "Pension fairness in China," China Economic Review, Elsevier, vol. 28(C), pages 25-36.
    4. Falcone, Pasquale Marcello & De Rosa, Salvatore Paolo, 2020. "Use of fuzzy cognitive maps to develop policy strategies for the optimization of municipal waste management: A case study of the land of fires (Italy)," Land Use Policy, Elsevier, vol. 96(C).
    5. Huan Wang & Jianyuan Huang & Shuangyue Sun, 2019. "Assessment of the Financial Sustainability of China’s New Rural Pension Plan: Does the Demographic Policy Reform Matter?," Sustainability, MDPI, vol. 11(18), pages 1-22, September.
    6. Dong, Keyong & Ye, Xiangfeng, 2003. "Social security system reform in China," China Economic Review, Elsevier, vol. 14(4), pages 417-425.
    7. Fumitaka Furuoka, 2018. "Is population beneficial to economic growth? An empirical study of China," Quality & Quantity: International Journal of Methodology, Springer, vol. 52(1), pages 209-225, January.
    8. Qing Zhao & Haijie Mi, 2019. "Evaluation on the Sustainability of Urban Public Pension System in China," Sustainability, MDPI, vol. 11(5), pages 1-20, March.
    9. Kong Yam Tan & Tilak Abeysinghe & Khee Giap Tan, 2015. "Shifting Drivers of Growth: Policy Implications for ASEAN-5," Asian Economic Papers, MIT Press, vol. 14(1), pages 157-173, Winter/Sp.
    10. Wang Feng & Yong Cai & Baochang Gu, 2013. "Population, Policy, and Politics: How Will History Judge China's One-Child Policy?," Population and Development Review, The Population Council, Inc., vol. 38, pages 115-129, February.
    11. Yang Cheng, Siyao Gao, Shuai Li, Yuchao Zhang and Mark Rosenberg, 2019. "Understanding the spatial disparities and vulnerability of population aging in China," Asia and the Pacific Policy Studies 201905, Crawford School of Public Policy, The Australian National University.
    12. Yong Cai & Wang Feng & Ke Shen, 2018. "Fiscal Implications of Population Aging and Social Sector Expenditure in China," Population and Development Review, The Population Council, Inc., vol. 44(4), pages 811-831, December.
    13. Yang Cheng & Siyao Gao & Shuai Li & Yuchao Zhang & Mark Rosenberg, 2019. "Understanding the spatial disparities and vulnerability of population aging in China," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 6(1), pages 73-89, January.
    14. Jenkins, Rhys & Peters, Enrique Dussel & Moreira, Mauricio Mesquita, 2008. "The Impact of China on Latin America and the Caribbean," World Development, Elsevier, vol. 36(2), pages 235-253, February.
    15. Stauvermann, Peter Josef & Kumar, Ronald Ravinesh, 2018. "Demographic change, PAYG pensions and child policies," Journal of Pension Economics and Finance, Cambridge University Press, vol. 17(4), pages 469-487, October.
    16. Felix Salditt & Peter Whiteford & Willem Adema, 2008. "Pension reform in China," International Social Security Review, John Wiley & Sons, vol. 61(3), pages 47-71, July.
    17. Iris Claus & Les Oxley & Yong Cai & Yuan Cheng, 2014. "Pension Reform In China: Challenges And Opportunities," Journal of Economic Surveys, Wiley Blackwell, vol. 28(4), pages 636-651, September.
    18. Bhargava, Alok, 2019. "Climate change, demographic pressures and global sustainability," Economics & Human Biology, Elsevier, vol. 33(C), pages 149-154.
    19. Yueqiang Zhao & Manying Bai & Peng Feng & Mengyuan Zhu, 2018. "Stochastic Assessments of Urban Employees’ Pension Plan of China," Sustainability, MDPI, vol. 10(4), pages 1-15, March.
    20. Felix Salditt & Peter Whiteford & Willem Adema, 2007. "Pension Reform in China: Progress and Prospects," OECD Social, Employment and Migration Working Papers 53, OECD Publishing.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hasim Turker, 2024. "Charting a Course in Troubled Waters: Towards a New Cold War in Global Commons," Journal of Asian Security and International Affairs, , vol. 11(1), pages 51-75, March.
    2. Chuanming Sun & Guoxin Tan & Xingyu Chai & Haiqing Zhang, 2023. "Analysis on the Satisfaction of Public Cultural Service by Township Residents: A Qualitative Perspective," Sustainability, MDPI, vol. 15(9), pages 1-23, April.
    3. Ibrahim Mutambik & John Lee & Abdullah Almuqrin & Abdulrhman Alkhanifer & Mohammed Baihan, 2023. "Gulf Cooperation Council Countries and Urbanisation: Are Open Government Data Portals Helping?," Sustainability, MDPI, vol. 15(17), pages 1-22, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Huan Wang & Jianyuan Huang & Shuangyue Sun, 2019. "Assessment of the Financial Sustainability of China’s New Rural Pension Plan: Does the Demographic Policy Reform Matter?," Sustainability, MDPI, vol. 11(18), pages 1-22, September.
    2. Li Yang, 2021. "Towards equity and sustainability? China’s pension system reform moves center stage," Working Papers halshs-03215912, HAL.
    3. Li Yang, 2021. "Towards equity and sustainability? China’s pension system reform moves center stage," World Inequality Lab Working Papers halshs-03215912, HAL.
    4. Anping Chen & Nicolaas Groenewold, 2017. "An increase in the retirement age in China: the regional economic effects," Applied Economics, Taylor & Francis Journals, vol. 49(7), pages 702-721, February.
    5. Min Le & Xinrong Xiao & Dragan Pamučar & Qianling Liang, 2021. "A Study on Fiscal Risk of China’s Employees Basic Pension System under Longevity Risk," Sustainability, MDPI, vol. 13(10), pages 1-23, May.
    6. Wei Zheng & Zining Liu & Ruo Jia, 2019. "How private sector participation improves retirement preparation: A case from China," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 44(1), pages 123-147, January.
    7. Shuo Ding, 2023. "Vulnerability to Poverty in Chinese Households with Elderly Members: 2013–2018," Sustainability, MDPI, vol. 15(6), pages 1-30, March.
    8. Mel Cousins, 2021. "The sustainability of China’s Urban Employees’ Pension Programme: A case of getting old before getting rich?," International Social Security Review, John Wiley & Sons, vol. 74(1), pages 59-77, January.
    9. Jingjing Xu, 2024. "Intergenerational transfers in China: What are the patterns of the transfers and when do the transfers occur?," International Studies of Economics, John Wiley & Sons, vol. 19(1), pages 117-150, March.
    10. Titelman, Daniel & Vera, Cecilia & Perez Caldentey, Esteban, 2008. "The Latin American experience in pension system reform: Coverage, fiscal issues and possible implications for China," MPRA Paper 13730, University Library of Munich, Germany.
    11. Said Outlioua & Abdesselam Fazouane, 2023. "Which factors affect the sustainability of pension schemes?," Economic Affairs, Wiley Blackwell, vol. 43(1), pages 89-108, February.
    12. Zhenjiang Song & Baoshu Wu & Yue Huang & Shubin Zhu & Lan Gao & Yi Li, 2022. "Effects of Household Resource Utilization Behaviors on Giant Panda Habitat under the Background of Aging: Evidence from Sichuan Province," IJERPH, MDPI, vol. 19(22), pages 1-18, November.
    13. Niu, Geng & Zhou, Yang & Gan, Hongwu, 2020. "Financial literacy and retirement preparation in China," Pacific-Basin Finance Journal, Elsevier, vol. 59(C).
    14. Xiaohua Chen & Zaigui Yang, 2019. "Stochastically Assessing the Financial Sustainability of Individual Accounts in the Urban Enterprise Employees’ Pension Plan in China," Sustainability, MDPI, vol. 11(13), pages 1-20, June.
    15. Liping Fu & Yuhui Wang & Lanping He, 2020. "Factors Associated with the Psychological Health of Caregiving Older Parents and Support from Their Grown Children: Results from the China Health and Retirement Longitudinal Study," IJERPH, MDPI, vol. 17(2), pages 1-11, January.
    16. Zhen Hu & James Yang, 2021. "Does Delayed Retirement Crowd Out Workforce Welfare? Evidence in China," SAGE Open, , vol. 11(4), pages 21582440211, November.
    17. Changyong Yang & Jianyuan Huang & Jiahao Yu, 2023. "Inequalities in Resource Distribution and Healthcare Service Utilization of Long-Term Care in China," IJERPH, MDPI, vol. 20(4), pages 1-17, February.
    18. Hui He & Lei Ning & Dongming Zhu, 2019. "The Impact of Rapid Aging and Pension Reform on Savings and the Labor Supply," IMF Working Papers 2019/061, International Monetary Fund.
    19. Hao Zhu, 2022. "Spatial Matching and Policy-Planning Evaluation of Urban Elderly Care Facilities Based on Multi-Agent Simulation: Evidence from Shanghai, China," Sustainability, MDPI, vol. 14(23), pages 1-20, December.
    20. Chengmin Zhou & Ting Huang & Xin Luo & Jake Kaner & Xiaoman Fu, 2022. "Recognition and Analysis of an Age-Friendly Intelligent Sofa Design Based on Skeletal Key-Points," IJERPH, MDPI, vol. 19(18), pages 1-21, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsoctx:v:11:y:2021:i:1:p:22-:d:517530. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.