Policy Research Of Developmental Finance Support To Private Old-age Service Projects

In the 21st Century, China's population aging problem becomes more and more serious; the elderly population growth rate is 3% per year. According to the 2005 National Economic and Social Development Statistics Bulletin, as of the end of 2015, the national population of 60-years-and-over has amounted to 222 million, accounting for 16.1% of the total population; the population of 65-years-and-over has reached 144 million, accounting for 10.5% of the total population. Compared with the end of 2010, these two numbers have increased by 2.8 percentage points and 1.6 percentage points respectively. Therefore, according to the international common aging standard, China has entered the stage of rapid development of aging. The large population of the elderly population, the rapid growth and the increasing trend of aging and "empty nest", the rising need to take care of the disabled and semi-disabled elderly people, the task to strengthen the construction of social service system for elderly people is very arduous. The issue of providing for the aged has become a major issue related to people's livelihood and national long-term stability. It is also an important part in actively responding to population aging and promoting structural reform of supply side. It's an urgent task in completely building the well-off society; strengthening the old-age service system is a major livelihood projects to deal with population aging and to ensure the harmonious development of the society.At present, China's old-age service agencies can accommodate only 0.8% of the elderly population, far behind the proportion of 3%in developed countries. Huge old-age service market has been formed, but the lack of old-age service industry facilities and the gap in funding have become increasingly apparent. At present, China's public nursing homes generally have high threshold, it's difficult to get admitted. In order to further alleviate the difficult situation in old-age service, the local governments have issued policies to support the development of private old-age service institutions, improving the pace of development of private old-age service institutions. Vigorously developing the private old-age service institutions is the objective requirement to optimize the allocation of pension resources and the effective way to solve the problem of aging population. However, due to the limitations of subjective and objective factors, China's private old-age service organizations are facing the prevalent problem of financing, which becomes a huge obstacle in the development of China's private old-age service institutions.From the perspective of the developmental finance theory, this paper points out that China's development of old-age service industry is in urgent need of the developmental finance support. Starting from the specific practice, with Liaocheng project as the case analysis, the paper has summarized the experience and put forward the policy suggestions for developmental financial support to the development of private old-age service projects.