>This year’s social development report focuses on the accomplishments and issues relating to the social system reforms in Shanghai. With the continued growth of Chinese economy and the development of the market economic system，there is an obvious trend for transition to a modern society. Therefore，we believe that the social system construction and progress has become a critical issue to ensure sustainable economic growth. The reforms will need to deepen into all levels of the society，and propel the changes in the politically system and culture ideology. Shanghai has a special advantage in this regard.

The report analyzes the characteristics associated with the social diversification and structural transition in Shanghai. It has discussed three aspects of Shanghai’s recent social system reforms：the social management system，public service and public goods，and social security system. The analysis points out three key issues. First，the Shanghai social management system is developing into a political and social system of good governance. Second，the major problem in the public service and public goods lies in how to satisfy the growing needs of the general population for education and housing. Third，the key question for developing the social security system is how to avoid building a system based on individuals’ identity and social status，and how to avoid the backlashes resulting from the so-called “piecemeal trend.” The report has also detailed the policy recommendations and future prospects for the aforementioned three issues. It is our hope that the report can serve as an intellectual basis for further deepening our social system reforms and propelling the social modernization.