1 M ARKETISATON, FEE CHARGING, AND INEQUITY OF THE HEALTH CARE SYSTEM IN MAINLAND CHINA

Illness is a major cause leading to poverty. This is a general criticism against the existing health care system of Mainland China. There is much to explain as to the social, economic and political background of the system and why it arouses so much social discontent. This paper attempts to give an overview of the changes made to the health care system over the years and how it creates social divide and intensifies social inequality between the have and have-not. The speed of economic growth and social reform of China in the last two decades has been dazzling and drastically changed the social and economic landscape of China in many aspects. Noticeably, modernization has produced great effects in town planning, technological advancement and raising the living standard for many. The changes are especially remarkable in the coastal areas and major cities, like Beijing, Shanghai and Guangzhou and their adjacent regions. However, the rocketing development also creates many thorny social problems. Serious social divide in terms of income disparities for individuals as well as for public institutions has set alarms of potential social unrest. The ‘China Human Development Report 2005 ’ released by UN Developmental Program ha