Lao delegation explores social insurance innovations in China

VIENTIANE, Lao People's Democratic Republic (ILO news) – A delegation from the Lao Social Security Organization (LSSO), with support from the International Labour Organisation (ILO), has travelled to China to learn about advancements and innovations in social security management and administration.

The study visit, supported by the ILO-UNDESA Project “Accelerating Universal Social Protection for Achieving the SDGs and Ending Poverty through Strengthened Governance and Digital Transformation”, took place from 21 to 26 October 2024 in the Chinese cities of Chongqing and Qingdao. The delegates learned about social insurance management, administration, digitalisation and communication from the Ministry of Human Resources and Social Security (MOHRSS) and the local administrations.

The visiting Delegation was welcomed by Zhai Yanli, Director-General of the Social Insurance Administration of MOHRSS. Expressing appreciation for the visit, he explained that China is currently implementing five schemes providing protection to almost its entire population—pension insurance, medical insurance, work injury insurance, maternity insurance, and unemployment insurance.

© MOHRSS

© MOHRSS

“Social insurance is the cornerstone of China's social protection system”, said Zhai Yanli, as he provided a comprehensive overview of the system tracing its historical evolution till the present and highlighting key facts about its structure and management.

Summarizing the lessons from China's experience, the Director-General explained, “First and foremost, social protection must be aligned with economic capability. Accuracy in management and system design is also important, as well as the adoption of simplified formulas and adjustable parameters for contribution and benefit calculations. This should go hand-in-hand with enhancing public awareness, by demonstrating the system's value.”

With near universal coverage, China is focussing its efforts on improving adequacy of benefits, by encouraging citizens to contribute more, and simplifying eligibility and administrative requirements to make the processes easier for people. Leveraging digital technologies and collaboration with other ministries and public organisations has aided these efforts.

Phetsamone Soukthaviphone, Deputy Director-General of LSSO and Head of the Lao Delegation emphasized the importance of the visit: “The takeaways will help Lao People’s Democratic Republic strengthen our social security system to improve effectiveness, efficiency and accountability. We were interested to see the application of digital technologies, good governance and administration. The practical visits to the rural and urban offices, banks, enterprises and call centres helped us to visualise and better understand the topics. We enjoyed the visit to the model ‘Wood Ear’ Town in Yubei District to see the Convenient Service Center for elderly people.”

The Demonstration Base at Chongqing helped delegates see the standardization of China's social insurance services, while the Data Laboratory allowed participants to visualise how social insurance services are effectively delivered through information management.

© MOHRSS

© MOHRSS

“The visit offered valuable lessons on providing easy and improved services to members. In Qingdao, it was especially useful for us to visit a bank to see the retirement pension payment processes with a people-centred approach, an industrial park to see how the human resource office manages the enterprise scheme for a large workforce, and a call centre to see how trained staff can respond to customers efficiently as well as how technologies are used to reduce waiting times and improve communications”, said Loveleen De, Social Protection Programme Manager, ILO Vientiane.

“We hope that this visit opens avenues for further mutual learning and cooperation between China and Lao People's Democratic Republic in the field of social protection and paves the way for more cooperation between China and countries of the Global South, with focus on countries under the Belt and Road Initiative, and with ILO support. China has a long and rich experience in building the largest social security system in the world and many countries can benefit from the good practices in extending coverage and building a robust and efficient system”, added Rubén Vicente Andrés, Social Protection Programme Manager, ILO Beijing.