The focus of the Annual Report on Social Development of Shanghai（2008） is on the public service and social development. The report argues that China’s admission to the World Trade Organization marked that China had made major accomplishment in realizing its market economic reforms，and in the meantime，“social development” and “public service” are the most important social consequences associated with China’s economic reforms and have become the most urgent issues facing China in achieving its sustainable socioeconomic development for the future. This term’s Shanghai government （2003-2007） has made it clear at the beginning that its goal is to realize a “responsible，service-oriented，and rule of law government.” In addition，the divergence of resources，polarization of interests，and diversification of needs as a result of the market economic reforms have also contributed to the increasing attention on the importance of social organizations to participate in the public service and social governance in Shanghai.

The report raised five major issues that Shanghai faces in the process of expanding its public service and promoting social development：

· As the primary public service provider （“government responsibility”），the government should increase its resources devoting to the public service. The government should not only enhance public finance for providing public service，but also should plan to deliver state capitals and social public funds to further develop the public service work.

· Resolve the structural differences of urban and rural areas，and try to develop a unified social service model for both urban and rural areas. The reforms of Pudong New Region have offered some good experience in this regard.

· Shift attitudes and enlarge the public service for people working in Shanghai while migrating from other parts of the country. Prioritize different target groups and ultimately realize the objective of “everyone equally enjoys the public service.”

· Further reform social system and rebuild grassroots level community organizations. The community construction should contain the developments of organizational networks of the Party-Politics （dangzheng），corporations，and society. “Good governance” should start from the community level.

· In the context of marketization，China needs to redefine the relationship between the government and social organizations. The society is no longer a “subordinate” of the government，but is an independent entity in the public service and can become a coordinated force in social governance.