THE establishment of a national social security system will be the focus of economic reform next year, according to sources close to the State Council.
The sources said that because of the leadership's anxiety to maintain social stability, radical reforms such as privatising state enterprises had been indefinitely postponed.
The so-called 'unified social security system' will cover unemployment insurance as well as old age pensions and medical care.
More than 20 billion yuan (HK$18 billion) has been earmarked for the initial phase, but labour experts said this would just cover the 'most desperate cases' within the security net.
The sources said funds for the payouts would come from several channels. They included contributions from the central and regional governments, enterprises, as well as employees.
Moreover, funds originally earmarked for subsidising loss-making factories would be 'diverted' into the social-security system.