Through comparisons of the composition of welfare provision in different co
untries and regions, this article shows how welfare systems are determined
by different natural and cultural conditions, and argues that no 'best' wel
fare model exists for all nations. A discussion of different models illustr
ates the distinction between social welfare and occupational benefits, a di
stinction which has often been confused in China. The article points out th
at residual social welfare proves more flexible in adjusting to the challen
ges of globalisation while occupational benefits may represent a new form o
f protection, of benefit to the few, in the context of cross-border competi
tion. Trends in welfare reform are likely to lead to a gradual reduction;of
nation-specific institutional welfare systems and a rapid increase in resi
dual welfare, with occupational benefits also playing a greater role.