Premium
Social Policy between Plan and Market: Xiagang (Off‐duty Employment) and the Policy of the Re‐employment Service Centres in China
Author(s) -
Wong Linda,
Ngok Kinglun
Publication year - 2006
Publication title -
social policy and administration
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.972
H-Index - 63
eISSN - 1467-9515
pISSN - 0144-5596
DOI - 10.1111/j.1467-9515.2006.00482.x
Subject(s) - mandate , social security , china , unemployment , communism , dilemma , politics , market economy , business , duty , competition (biology) , state (computer science) , economics , labour economics , economic system , economic growth , political science , law , ecology , philosophy , epistemology , algorithm , computer science , biology
China's gradual transition from a command economy to a market system has been vexed by its ailing state‐owned enterprises (SOEs) employing huge numbers of surplus workers. Under the growing challenge of market competition, the survival of SOEs depends critically on the release of unwanted staff. If not handled well, however, massive layoffs could trigger ugly protests, erode social stability and challenge the governing mandate of the Chinese Communist Party. Facing this dilemma, the state's response has been to invent a process of ‘xiagang’ (off‐duty employment) whereby redundant state workers can leave the production process without causing social turbulence, and to introduce a national programme of re‐employment service centres (RSCs) which offer living allowances, social security, job training and re‐employment assistance as a transitional measure. As a distinct form of unemployment, xiagang reflects the special challenge confronting the state and civil society in a critical stage of China's market transition. This article sets out to explore the political and social meanings of xiagang and the RSCs to elucidate how the state uses a specific social policy to balance both group and national interests and to steer the country on to the next stage of market development.