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Impact of Deng's economic reforms on Chinese society (Economic impact,…

- - - - SOEs used to provide "iron rice bowl"; most occupational insurance and welfare outlays were paid directly by the work units rather than the state.
      - Problem: medical care. In 1993, medical expenses incurred by SOEs amounted to 13.27 billion yuan for the retired -- not even counting currently employed staff. Need to curb spending --> new measures, such as designating a few "approved" hospitals. Created problems especially for elderly with issues with transport.
    - - Number of people in private enterprise / self-employment increased from 150,000 in 1978 to over 23 million in 1996. Necessitated new safety nets, which were not forthcoming.
    - - Spending on social welfare (in million yuan): 1,891 in 1978 --> 12,803 in 1996.
      - Emphasis on economic achievement meant that lion's share of resources went to economic construction; social welfare costs were cut.
      - In contrast, spending on administrative expenses (in million yuan): 4,909 in 1978 --> 104,080 in 1996.