The Gray Dragons—Where Have All the Pensions Gone?
The number of retirees in China’s cities will soar from 48.2 million last year to 70 million in 2010 and 100 million by 2020, according to the Ministry of Labor and Social Security. Unlike the United States and Europe, which prospered before their elderly populations expanded, China is in danger of growing old before it gets rich.
—USA Today
Prior to the economic reforms that began in the 1970s, the centerpiece of China’s economy was its “iron rice bowl” system. In this Marxist system, all state-owned enterprises guaranteed workers not just a livable wage, but also housing, health care, and pensions.
The iron rice bowl was modeled on the Soviet-style collectivization of industry and embraced ...
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