According to the “Blue Book on China’s Social Management,” which the International Institute for Urban Development released on Friday, September 14, 2012, the priority of China’s reform should be to develop five elements that are missing in Chinese society.

First, to develop the missing middle class. “The direction of social and even political reform” should be to reduce the gap between the rich and poor. 

Second, to develop the non-government sector of society. Currently without a sector of society that is outside of the government, every reform and innovation has resulted in the expansion of government agencies, which in turn has led to growth in the power of the government. Thus there is no buffer against social unrest.

Third, to develop mechanisms that are missing in the system. Mismanagement is rooted in a lack of appropriate mechanisms, including an effective mechanism that allows people to seek relief from government abuse.

Fourth, to develop the faith that is missing in society. What is prevalent is that people have lost their values, have low or little morality, and lack self-discipline. “When one does not believe in the government, law, faith and moral values, the only thing left in his spiritual pillar is violence. This is the primary root cause of the frequent violence in the current society.”

Fifth, to develop the missing authority. The traditional governance structure is disintegrating and the new one has yet to be established. One innovation needed in social management is to push the government from being a “development-oriented government” to a “service-oriented government.”

Source: China News Service reprinted by People’s Daily, September 14, 2012 
http://politics.people.com.cn/n/2012/0914/c70731-19013702.html

The State’s Xinhua Wenzhai published an article that discussed the internal and external challenges that the Communist Party faces as the ruling party in China. The top 10 challenges are in the following areas: wavering on the basic Party line; diluting the party’s ideology; an incomplete democratic system within the Party; an excessive concentration of power; slackness and a lack of will; complacency and incompetence; deviating from the Party’s mission and rampant bureaucracy; ignoring social justice and shaking the foundation of the Party’s governance; corruption and abuse; the formation of vested interest groups within the Party; and Westernization and ignoring the Western hostile forces efforts.

Source: Xinhua Wenzhai, reprinted at People’s Daily, August 30, 2012
http://theory.people.com.cn/n/2012/0830/c40531-18872226.html

People’s Daily reported that, on September 12, 2012, He Guoxiang, a Member of the Chinese Communist Party Politburo Standing Committee and Secretary of the Central Commission for Discipline Inspection, visited four media companies. While there, he made remarks, emphasizing the need to study and implement Hu Jintao’s speech made earlier at a forum attended by provincial level Party officials. He also called for further strengthening and improvement of the anti-corruption campaign and training with the goal of creating a favorable environment for the opening of the 18th National Congress of the Communist Party.

[Editor’s note: This was the first time in 10 days that He Guoxiang made a public appearance. Since Xi Jinping had not been seen in public since September 1, one of many rumors was that the two had been injured in an automobile accident.]

Source: People’s Daily, September 13, 2012
http://paper.people.com.cn/rmrb/html/2012-09/13/nw.D110000renmrb_20120913_9-01.htm?div=-1