China - Pension reform and the development of pension systems : an evaluation of World Bank assistance

39147 Pension Reform and the Development of Pension Systems: An Evaluation of World Bank Assistance Background Paper China Country Study John Piggott and Lu Bei Director-General, Independent Evaluation Group: Vinod Thomas Director, Independent Evaluation Group, World Bank: Ajay Chhibber Senior Manager: Ali Khadr Task Manager: Emily Andrews 2007 This paper is available upon request from IEG. The World Bank Washington, D.C.  ENHANCING DEVELOPMENT EFFECTIVENESS THROUGH EXCELLENCE AND INDEPENDENCE IN EVALUATION The Independent Evaluation Group is an independent unit within the World Bank Group; it reports directly to the Bank's Board of Executive Directors. IEG assesses what works, and what does not; how a borrower plans to run and maintain a project; and the lasting contribution of the Bank to a country's overall development. The goals of evaluation are to learn from experience, to provide an objective basis for assessing the results of the Bank's work, and to provide accountability in the achievement of its objectives. It also improves Bank work by identifying and disseminating the lessons learned from experience and by framing recommendations drawn from evaluation findings. IEG Working Papers are an informal series to disseminate the findings of work in progress to encourage the exchange of ideas about development effectiveness through evaluation. The findings, interpretations, and conclusions expressed here are those of the author(s) and do not necessarily reflect the views of the Board of Executive Directors of the World Bank or the governments they represent. The World Bank cannot guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply on the part of the World Bank any judgment of the legal status of any territory or the endorsement or acceptance of such boundaries. Contact: Knowledge Programs and Evaluation Capacity Development Group (IEGKE) e-mail: eline@worldbank.org Telephone: 202-458-4497 Facsimile: 202-522-3125 http:/www.worldbank.org/ieg  Abbreviations AAA Analytical and Advisory Assistance ADB Asian Development Bank CAS Country Assistance Strategy COE Collective Owned Enterprise EHSS Enterprise, Housing and Social Security Reform EU European Union FACS Australian Family and Community Services GEF Global Environment Fund GP Golden Protection Project HRD Human Resource Development IBRD International Bank for Reconstruction and Development IDA International Development Association IEG Independent Evaluation Group (formerly OED) IFC International Finance Corporation ILO International Labor Organization IT Information and Technology LDC Less Developed Countries LIL Learning and Innovation Loan MIGA Multilateral Investment Guarantee Agency MOF Ministry of Finance MOLSS Ministry of Labor and Social Security NDC Notional Defined Contribution OED Operations Evaluation Department (changed its name to IEG in December 2005) PAYG Pay-as-you-go PRC People's Republic of China PROST Pension Reform Simulation Toolkit SOE State-Owned Enterprise TA Technical Assistance WBI World Bank Institute   Contents Preface................................................................................................................................. i Executive Summary.........................................................................................................iii 1. Approaching the Evaluation.......................................................................................1 2. Economic Development and Demographic Changes in China ................................3 3. Evolution of Pension Policy Reform in China...........................................................6 Policy Before 1990 ......................................................................................6 Reforms: 1990