Based on the achievements of social development and construction，the report analyses the key issues in social development and social governance：the gap between the urban and rural remains wide；the needs of the disadvantaged is yet to be sufficiently satisfied；the mechanism for city governance leaves much to be desired，the group of citizens capable of collective governance is still rather small. The report concludes that，so far as future development is concerned，differences among groups should be taken into account to achieve balanced development；attention should be paid to the needs of the disadvantaged to insure an inclusive development；in terms of social governance，city governance requires innovative mechanisms；social organizations should be nurtured with all efforts，in view of fostering a new pattern of collective governance.