The Foreign Service Journal, May 2005

protest aimed at official corrup- tion and abuse of power. In 2003 China’s leaders, planning to cool down what was becoming an overheated economy, an- nounced a shift to a more bal- anced “people-oriented” devel- opment strategy that would pro- mote social development and environmental protection, as well as economic development. Taking a cue from the new approach, policy advisers began focusing research attention on social concerns such as the public health system, including HIV/AIDS and drug-use prevention (a trend accelerated by the SARS epidemic of two years ago) — and the income dispari- ties and rights abuses of farmers and migrant workers. There is growing recognition within the Chinese gov- ernment that major socio-economic problems are ham- pering economic growth and social progress, although there is still little understanding of how NPOs can help address them. While the goal of creating a “small state, large soci- ety” remains official PRC policy today, the central gov- ernment recently began wielding a mix of old and new control mechanisms to assure political stability and ease the impact of WTO-related economic restructur- ing. For instance, central and local regulations govern- ing various civic institutions are in a state of perennial revision, as consultations and consensus-building are increasingly required to obtain compliance. This year, the PRC leadership launched the begin- ning of research and public discussion of ways to build a “harmonious socialist society,” adding this to previous goals of creating a socialist market economy, democra- tic socialist politics and advanced (presumably socialist) culture. Vice President Zeng Qinghong, speaking at a party seminar in February, emphasized that “fairness and justice [are] the key link” in crafting social policy, and that to consolidate party rule, “it is necessary to adapt to the profound changes in Chinese society.” This is particularly true as China’s per capita GDP is projected to grow from $1,000 to $3,000 by 2020 and “various interest relationships become ever more com- plex.” Zeng also called for exploring both traditional Chinese and international experience in “social con- struction,” especially in East Asia and Latin America. At the most recent National Party Congress in March, the focus was on those issues of greatest concern to the populace, as revealed in a survey on the eve of the session: employment, cor- ruption, unfair distribution and public safety. Delegates stressed that a dynamic concept of society is required because, as Zeng explained, “a harmonious society is not one without conflict of interests; rather it is a society that has the ability to smooth conflicts of inter- est.” This suggests a willingness at the top to move beyond sterile slogans calling for an unrealistic and sta- tic concept of “unity and stability.” As a result of all these conflicting trends, the implic- it social contract appears to be a matter of growing con- tention in China. How the political elite manages its complex and fluid relations with NPOs and other social groups, and how they address the rapidly growing inequalities of wealth and resources (and the social ten- sions they exacerbate), are probably the most impor- tant challenges facing China’s leadership. The International Factor This may be a prime opportunity for the emerging Chinese nonprofit sector to learn from their interna- tional counterparts. Around the world, after all, social organizations, like economic ones, respond increasing- ly to market and international forces, as well as state policy. Already, over 300 international NGOs, includ- ing many headquartered in the U.S., are key players in China’s nonprofit sector. All together, these interna- tional organizations have made major contributions to China’s economic and social development — not just with funding (now in the range of $200 million per year), but through modeling and practical training in new approaches, as well as practical experience for their Chinese staff. Exchanges involving cultural, media and political- legal elites date back to the 1980s, when they were pio- neered by the Committee on Scholarly Communi- cation with China and the National Committee on U.S.-China Relations. Over the ensuing quarter-centu- F O C U S M A Y 2 0 0 5 / F O R E I G N S E R V I C E J O U R N A L 43 U.S. policy toward the PRC should expand beyond the short-term need to counter human rights abuses, to supporting long-term social and cultural progress.