For over 20 years since reform and opening，China’s economical system has made great progress and primarily established a Socialist Market Economy System. However，compared with economical system，reform of social field significantly lags behind and seriously curbs development of all social undertakings. SARS occurring in 2003 has given us a warning. Premier Wen Jiabao has said for many times that in development，economy and the society shall not have large gap with each other. Decision on Improving Socialist Market Economy System adopted at the 3rd Plenary of 16th National Congress of CPC held at end of 2003 passed policies integrating economy and social development，made comprehensive and systematic arrangement and clear requirements for reform in science and technology，education，culture，hygiene，sports and other fields. In summary，we shall make sure several points as follows.

① To speed up development of social undertakings，we shall make use of market mechanism，introduce competitive mechanism and trigger enthusiasm of all walks of life and increase input of social funds besides input increase by the government to the social undertakings.

② We implement different management systems towards public welfare institutions and business-related public institutions. Business-related public institutions shall speed up system transformation towards public institutions，and public welfare institutions shall also deepen internal reform and increase vigor.

③ The government shall enhance functions of social management and public service and create sound environment for development of all undertaking in social field.

④ Development of all social undertakings shall keep to human-orientation，improve population quality for all-around development of human beings and meet all-around demand of human beings.

In line with the above basic requirements，all public institutions and reform in social field shall give priority to science and technology，education and health care. So far，still very serious，problems in these fields can by far meet demand of economical development and the people.

For system of science and technology，we shall give priority to combination of science and technology with economy. The last term of government has taken a significant step forward in driving forward arrangement of research institutes system reform，but generally technology and economy are still not integrated with each other，so we need to deepen the reform；For serious insufficiency of technological input，absence of drive mechanism and shortage of enthusiasm in technological research of the research institutions，technology has become an serious bottleneck for industrial structure upgrading and sustainable economical development.

For serious issues in the education system，firstly，the education structure and talent demand structure are not well integrated. Most of the fresh graduates each year cannot find right jobs matching their specialties. On one hand，professional talents urgently needed by many industries and employers are short，and on the other hand with more supply than demand，graduates of some specialties cannot find right employers. Students graduating from universities or schools at all levels and all categories generally lack ability in innovation，entrepreneurship，employment and living. Adaptation of education structure to market demand and adaptation of the trained talents to market competition shall be solved through reform of education system，including university（school）management system. Secondly，in the situation that products and service of all products and service supply more than the demand，education is the only industry that cannot meet demand of people. While constantly increasing education input by the state treasury，we shall encourage non-government schools and increase enthusiasm of investment by all walks of life in education to meet the rapidly increasing needs of the people for education.

Health care system reform shall solve two pressing problems：Firstly，medical resource distribution is seriously uneven. According to joint survey by WHO and China Ministry of Health，so far medical resource distribution of China is very uneven，ranking the 3rd from the bottom among over 180 countries in the world. Cities and towns with only 30% of the total population occupy 80% of health care resource，but the newly added health care resource is still being reversely distributed. Secondly，Medical costs are too high. People with income at mid-low level，especially farmers，cannot afford the costs of medical treatment. Large amounts of profits go to medicine production，circulation and service links. Counterfeit and low quality drugs still exist in spite of much surveillance and enforcement. These problems must be solved through deepening heath care system reform.

Achievements of social reform depends on settlement of the above problems. Not to avoid contradictions，reform must solve them. More complicated than economical system reform，social reform shall adopt different management systems according to characteristics of different industries. Through in-depth investigation and study，we shall find good examples，learn from mature foreign experience，formulate reform plans in line with actual situation of China and commit them to implementation on basis of adequate evaluation. Through advancement of social reform，we will make remarkable contribution to carrying out Scientific Outlook on Development，making all people share achievements of economical development and achieving overall construction of a welfare society.