Theoretical Analysis Of Correlation Between Social Security And Fairness And Efficiency

The social security institution has been developed more than four hundred years since the "Poor Law" was issued by Britain and formed a relatively complete system gradually. As the key indication for the civilized society, the social security system becomes an important part of the modern society. And for those hundred years, of which the practical problems were present unceasingly and the debates about the theories were becoming heat more and more, among those the most critical question is how to balance "fairness and efficiency". Fairness and efficiency are the important values which the human beings pursues, none of them could be lack of, otherwise it would do harm to the harmonious development of the society, so that how to deal with the relationship between fairness and efficiency becomes the eternal theme of human society. As an important social and economic system, the social security system can not avoid a game between fairness and efficiency. The social security system is sprung from people's aspirations for fairness, which makes maintaining social justice becomes the central ideas. Meanwhile, the social security system has an influence on economic growth inevitably in practice, and to promote efficiency is a natural quality of the modern social security system. Therefore, the fairness and efficiency are the fundamental principles which running through the development of the social security system all the time. However, it is a seriously challenge confusing to coordinate the relationship between the fairness and efficiency fruitfully to stimulate the function of the fairness and the efficiency. For that, the thesis analyzed the correlation on fairness and social security, efficiency and social Security, the details are as follows:Fist, the thesis ordered the evolution of social security theories, and analyzed the comments and foundations the economists hold on in the different periods. Classical liberalism believes that competitive markets is perfect under "invisible hand" theory of Smith, and emphasizes that market is the decisive one, therefore, you could (substitute fairness for efficiency, opposing social intervention and regulation of the state, making emphasis on the role of individuals and families in social security. State interventionism advocates that government intervention mechanism could make up for deficiencies of the free market, and stress on social justice and social welfare rights of the public, it seems that social security is only a tool used to redistribution of income and revenue equalization. In the 30 years of the 20th, the birth of Keynesian theory enrich the social security further, as far as the neoclassical synthesis is concerned, it takes the social security as a macro economy's internal stability. As a result, the economic functions of social security have gradually been valued by economists. After World War II, facing the "stagflation" problems in the capitalist economy, the Western theories started to pay attention to efficiency, Monetarist and supply-side school advocates the recommendations on undermining the expenditure of social security from the point of departure the principles of economic efficiency to cope with the failure of state interventionism and the Western welfare state's crisis. In the late 80s or early 90s of 20th, the reforms of liberalization and privatization in Western countries spurred a new economic recession and social crisis, which made "third Road" theory attempting to strike a balance between the fairness and efficiency appeares, and opened up a whole new perspective of the reform of the social security all over the world.Second, the thesis focused on the relationship between social security and equity. The point was developed On the basis of analysis of society equity theory in contemporary Western, it was that the fair was a cycle being composed of starting point, equal opportunities, process and result, the four points were connected closely, apart from that, the thesis also analyzed the relationship of interdependence of social security and equity. On the one hand, Social security is a fair system itself. Mainly as:the fairness is the critical concept of the social security system, the establishment of social security from the people's desire for social justice, this is the first institution of social security; meanwhile, the design of social security system must reflect fair and promote equal opportunity and fair process through the non-discrimination principle. On the other hand, social security can realize the fairness. Mainly as:the social security can promote fair starting point through the compensation to a certain extent, and promote a fair result though redistribution.Third, the thesis analyzed the arrangements of social security that achieve static efficient and commented on the functions of static efficiency about the social security system. The Smith's "invisible hand" idea means that the market will regulate healthy generally and do not want the government to hand, the government is only the "night watchman". However, this ideal is premised on certain assumptions, such as a perfectly competitive market, no externality, the full information and perfect income distribution mechanism. However, there is no such economic environment in the reality, it was necessary for the government to intervene from efficiency point, for that the social security is the one of the means. This chapter strived to explain how it contributed to raising the level of static efficiency from the specific arrangements of the social security, to demonstrate the desirability of implementation of social security from the perspective of static efficiency. However, all of the things have two sides, social security can not only promote static efficiency but also produce non-efficient, and that is mainly due to the moral hazard, the expansion of regulatory agencies and mandatory social insurance. Because the government is the practitioners of social security, so the non-efficiency could be considered as the failure of the government.The fourh, the thesis analyzed influences the social security exerted on dynamics economic growth. As a social equity system firstly, the social security institutional design is not intended to promote economic growth, but it inevitably has an impact on economic growth in practice. The implementation of the social security can change line of the budget constraint of a single family, consequently affect the physical capital and human capital accumulation, by which the social security influence on economic growth. Social Security affects economic growth through changing the behavior of the family savings, human capital investment, and the decisions of reproductive. However, the fact that social security can affect economic growth is unquestionable, but the extent of promoting economic growth is a more controversial issue in the academia.The fifth, the thesis analyzes the balancing of the fairness and efficiency of social security system and the direction of development of the social security system of china in the perspective of fairness and efficiency. The disputes among the academia about the relationship between fairness and efficiency inevitably affect the choices about equity or efficiency. The differences in concepts existing in different countries for dealing, it would directly determine the differences in the choices about models of social security. Sweden focuses on equity and implements welfare-based social security system; Singapore respects highly for the efficiency and implements Central Provident Fund social security system; Germany respects both fairness and efficiency, therefore implements social insurance system. The lessons and success of different models of social security is of great practical significance for improving Chinese social security system. Our knowledge about the fairness and efficiency egalitarianism had undergone several processes, such as egalitarianism, both efficiency and equity, giving priority to efficiency with consideration to fairness, focus on efficiency in the initial distribution and justice in redistribution, pay more attention to fair. Accordingly, the ideas of Chinese social security system have also experienced the stages of egalitarianism, giving priority to efficiency, both fair and efficient, greater emphasis on fair. Which not only presented that our understandings towards social security had make progress, but also signed the reform for future and the development direction of our social security system. Under the perspective of fairness and efficiency, we could take on eight aspects including values and implementation etc. to perfect the existing social security system in order to exert the functions of fairness and efficiency. Furthermore the development and improvement of the social security system in China is an expression of the basic requirements of the socialist system that the people all over the country achieve common prosperity, benefit the people, and all people share the results of reform and development. Compared with the capitalist society, the socialist social security system truly reflects the people's fundamental interests. Therefore, it more focuses on equity, while in order to expand the"pie" constantly, so that more and more people enjoy the benefits, the social security try to improve economic efficiency in the premise of the development of social justice, or pay attention to fairness and efficiency equally.