Non-State Care Homes for Older People as Third Sector Organisations in China's Transitional Welfare Economy

Abstract

The rise of the third sector has been a global welfare phenomenon. In China, the growth of social organisations has been a remarkable feature of the transitional society after the adoption of market reforms and political liberalisation. In its emergent welfare economy, the third sector has been hailed as a new growth point in social care as the state retreats from direct provision of welfare services. This article examines non-state care homes for older people in urban China based on a survey of 137 homes in three cities. It begins with a brief review of the theory of the third sector, non-governmental organisations and private markets in the production of welfare. This is followed by a discussion of third-sector organisations, markets and the state in the special context of China. The next section appraises the factors that contribute to the surge of non-state residential provision for the elderly. The final part of the article presents empirical findings on the development, key features and authority relations of 137 non-state care homes for older people. It is argued that their uniqueness marks them out as a special form of third-sector organisation in China's welfare economy.

An Industry in the Making: The Emergence of Institutional Elder Care in Urban China

“…In a significant number of these homes, planned expansions are underway. This phenomenon represents a fundamental shift from the not‐so‐distant past, when institution‐based elder care was rare and dominated by government ownership for a highly select social welfare–dependent population 16,17 . Looming on the horizon is a rapidly developing industry of formal LTC institutions in urban China.…”

“…In recent years, the central and local governments have actively encouraged the development of elder care institutions by the private sector through increased financial inducements per bed built for new construction and the aforementioned ongoing subsidies per occupied bed, regardless of type of residents 8,21 . The government has implemented welfare reform since the mid 1990s to decentralize the financing and operation of welfare institutions to reduce the cost burden 17,22 . The Nanjing municipal government provides financial inducement for new construction in the amount of roughly 2,000 yuan to 4,000 yuan ($300–600) per new bed and an ongoing operating subsidy of approximately 80 yuan (∼$12) per occupied bed per month, 23,24 but the amounts allocated may vary across districts within the city.…”

“…8,21 The government has implemented welfare reform since the mid 1990s to decentralize the financing and operation of welfare institutions to reduce the cost burden. 17,22 The Nanjing municipal government provides financial inducement for new construction in the amount of roughly 2,000 yuan to 4,000 yuan ($300-600) per new bed and an ongoing operating subsidy of approximately 80 yuan ($ $12) per occupied bed per month, 23,24 but the amounts allocated may vary across districts within the city. These amounts, especially the operating subsidies, are small, but because most residents are paying privately as well, these construction and operating inducements are enough to underpin much of the observed growth.…”

Institutionally Individualized Volunteering: Towards a Late Modern Re-Construction

“…I do not claim that it is also generalizable to volunteering in nonWestern countries, although similar processes may be observed. For example, in China, in recent decades, enormous efforts have been made by the Chinese government to promote volunteering among its citizens, and most volunteer efforts are government initiated or government funded (Yuanzhu, 2005;Wong and Jun, 2006). Given the strongly government-led nature of volunteering in China, a parallel could be drawn to the secondary processes of re-structuring described above.…”

China’s Rapidly Aging Population Creates Policy Challenges In Shaping A Viable Long-Term Care System

“…28,29 Since then, these institutions have shifted their financial base from reliance on public funding to more diversified revenue sources, including privately paying individuals. 27 …”