Moving towards a multi-level and multi-pillar system: Changes in institutional care in two Chinese cities

This article examines the situation of institutional care in two Chinese ci ties. During China's market reforms, previous state welfare homes have enco untered significant financial difficulties. At the same time, the demand fo r institutional care has been on the increase. In response, the Chinese gov ernment adjusted previous policies for institutional care in order to mobil ise resources from the newly developing market economy. Guided by these new policies, state welfare homes in the two cities tried to solve the problem s facing them in creative and entrepreneurial ways. Their efforts gradually changed their financial bases from total reliance on state resources to ha ving more diversified resources. At the same time, new types of welfare hom es began to emerge, which were funded by mixed resources from the governmen t, the business society, local communities, and families or individuals, In fact, the coverage of institutional care in one of the two cities was grea tly expanded with only very limited state investment.