The Relationship Between The Social Security System And The Cost Competitiveness

The establishment of the social security system is a sign and achievement of human civilization and social progress.Since the first legal of pension with modern significance has emerged in Germany in 1980s, this system has already exerted the important function of"steady device"and"shock absorber"for economic and social development. However, due to the deterioration of the world economic environment since 1970s, this traditional kind of social security of"from cradle to grave"has given the developed more and more pressure. Financial deficit is emerged in these countries where the social security system has been implemented for many years and the pace of economic development slows down . In the enterprises and political circles there exists a general concern that the employer's high social security contribution rates will increase labor costs, and then weaken the corporate and national competitiveness.Along with the phenomenon of economic globalization and the structural adjustment becoming even more deepen, people are urgently in need of social security than ever. because in the market economy, as a means of achieving fairness in the modern society ,social security has become one of indispensable basic systems. There are many factors in the economic situations. We can not blame social security system because of a period of economic recession, and never to say to abolish the social security system ,what we are only to do is to reform and improve on the previous basis of the social security system .Therefore, it is urgent for many western countries to reform the existing model of the social security system, to reduce the financial burden on enterprises and the governments, and in order to explore a suitable model of social security system for economic and social sustainable development.From the tortuous development and the controversial subject of the social security system, we can come to the conclusion that although the existing social security is the burden of enterprises, but for the human development in general, it is an investment or support. In the current background of globalization, countries throughout the world are working hard to seek the equilibrium between social security and cost competitiveness, so as to achieve the economic and social harmonized development. Avoiding the problems of the West and searching for a system model which can balance the cost competitiveness and the social security, it is very important for our country which is now building the social security both in theoretic and realistic significance. This paper aims to precede a tentative study.There are six chapters in this paper. The first one simply introduces the background, the status ,the way and the innovation of this study; the second one discusses the relationship between the social security and the cost competitiveness theoretically in detail; the third and the fourth analyse the implemental background of social security system both in China and Singapore and the social security contribution variation reasons realistically, then appraise the practical response of the cost competitiveness to the social security; the fifth compares a series of economic and social indicators which can influence the social security system, then analyzes the implemental reasons of social security policies from the macrocosmic and microcosmic point of view; the last one puts forward to a series of advice which can not only improve our present social security system, but also can keep the enterprises'cost competitiveness of our country.