A blue paper on social situation by the Chinese Academy of Social Sciences tells seven special realities of the country impeding China's development.

A report entitled "The Analysis and Forecast on the Social Situation of China'' (2004-2005), released by the Chinese Academy of Social Sciences, points out that in 2004 China has entered into a turning point in its development with the per-capita gross domestic product (GDP) reaching between 1,000-3,000 US dollars. Due to some special factors including a large population and the influence of new globalization there appear some special realities in China that are different from the development experience gained by other countries and regions That China has entered into the critical period requires special attention from the decision makers.

Firstly, the report points out that after reaching the per-capital GDP income of 1,000 US dollars, the number of farmers and the ratio of farmers stay high, which brings difficulties to completing the transformation of modern social structure. As a result special attention should be paid to urbanization and to reducing the ratio of farmers. China should strive to transfer another more than 100 million surplus laborers from rural areas in the coming 15 years.

Secondly, after reaching per-capital GDP income of 1,000 US dollars, the income gap has not been narrowed down according to due laws, but continues to expand. So the government should carry out scientific control over income redistribution by the means of finance, taxation and welfare.

Thirdly, after increasing per-capital GDP income to 1,000 US dollars, there does not appear shortage of laborers in China. And there has been a tendency of supply exceeding demand in labor force for a longer period of time, so the issue of employment is hard to be solved. The employment should be solved by developing education in a big way so as to turn a big country with a large population into a big country with human resources, which is an important link for maintaining economic growth in high speed.

Fourthly, being different from the rule of population aging in other countries when becoming rich, China has an aging population before getting rich due to the longer average life span and strict family planning. So the increase of social security and the contradictions in economic development should be paid more attention to and the social security system should be improved.

Fifthly, after making the per-capital GDP reach 1,000 US dollars, there are still more than 100 million people in poverty in rural areas according to the international poverty standards (the average purchasing power is less than one-US-dollar income per day or spending less than one US dollar per day). That is also the special situation for China. The most important indicator for a modernized country is that farmers are no longer poor. Accordingly poverty-reducing project should be carried out in the new century with integrating investment resources in rural areas in the 11th Five-Year Plan (2006-2010) and a basic frame for rural social security should be formed.

Sixthly, under the new situation of globalization, we should attach high attention to the growth of democratic awareness and resolutely restrain corruption by improving a socialist democratic system. We should improve technical levels in social management and ensure a long-term political stability.

Finally, as China is a big country the rise of a big country is completely different from that of a small country. The past development experience shows that the rise and substitution of a big country often change the economic and political situation of the world and might foment international conflicts for spheres of influence. China should keep a cool head and deal with international relations well, especially the international relations between big powers, when it rapidly improves its economic and social status in the world so that a better international environment will be created for China to keep a long-term and stable development.

The report stresses that some countries and regions in the world had their own economy takeoff in 1970 and entered the period, but later they had quite different roads for development. Now some countries and regions with smooth development have average per-capita GDP income reaching up to 10,000-20,000 US dollars while others which do not solve the issues of social contradictions and development have their average per-capita GDP income stayed at less than 3,000 US dollars, from which China should learn a lesson.

By People's Daily Online