THE "BALANCES" OF A HARMONIOUS SOCIETY: PERSPECTIVES OF A

C O N F I D E N T I A L SECTION 01 OF 03 CHENGDU 000146

SIPDIS

SIPDIS

STATE FOR EAP/CM AND DRL

E.O. 12958: DECL: 6/6/2017
TAGS: PGOV PHUM SCUL CH
SUBJECT: THE "BALANCES" OF A HARMONIOUS SOCIETY: PERSPECTIVES OF A
SICHUAN POLITICAL SCIENTIST

REF: CHENGDU 43

CHENGDU 00000146 001.2 OF 003


CLASSIFIED BY: James Boughner, Consul General, United States
Consulate, Chengdu.
REASON: 1.4 (b),(d)




1. (C) Summary: In a recent meeting, the Director of the
Sichuan Institute of Political Science said the core of the
Chinese Government's Harmonious Society guiding philosophy is
the balancing of various interests so everyone can enjoy the
fruits of development. In addition, Harmonious Society strives
to solve disputes, address morality there is already a
"blueprint" containing goals for Harmonious Society, and those
goals now need to be proactively implemented. The media is
playing a supervision role, but is cautious because of China's
"sensitive social differences." The New Socialist Countryside
construct should be viewed as implementing concrete measures
such as improvement of "citizen schools" and boarding schools in
rural areas. With regard to problems associated with the
elimination of the agricultural tax, the scholar observed that,
although the direct burden on rural residents has been
alleviated, rural villages are struggling and local governments
are unable to pay their officials. Hu Jintao's "Socialist Core
Value System" has accompanied the development of Harmonious
Society in order to provide people with "spiritual guidance" and
new rules and standards in the ideological field. End Summary.


2. (C) Guo Dan (strictly protect),Director of the Institute of
Political Science at the Sichuan Academy of Social Sciences
(SASS) recently met with Washington visitors from the Bureau of
Intelligence and Research (INR) and Congenoff. We had a
broad-ranging discussion of the "balances" sought by the
Harmonious Society guiding philosophy as well as the concrete
measures envisioned for the New Socialist Countryside.

Harmonious Society Aims to Balance Interests
--------------


3. (C) Guo noted the core of the Harmonious Society guiding
philosophy is the balancing of various interests so everyone can
enjoy the fruits of development. Now more attention is paid to
fairness and how to make development more equal, compared to the
past when economic efficiency was the top goal. The philosophy
was put forward because of the various unharmonious elements
that arose from development -- serious social conflicts and the
income gap between the rich and the poor. China's leaders
believe the single-minded focus on GDP produced some of these
problems.

. . . To Solve Disputes
--------------


4. (C) In addition to finding balance with regard to
development, Guo continued, Harmonious Society also seeks to
solve disputes within society. He explained that there are five
groups in Chinese society: workers, farmers, entrepreneurs,
white-collar workers, and government officials. On the one
hand, Guo asserted, the impetus for development should not be
eliminated. Rather, disputes must be resolved through balance,
by identifying differences, and by finding a "balance point" in
society. Guo said that without this type of resolution, society
will collapse. For example, in the National People's Congress
(NPC) political scientists discussed the balance of
representation in the Congress and decided the number of
representatives of workers and farmers should increase. In this
way, those citizens can express themselves. In provincial level
People's Congresses, there should be representatives from the
migrant community, Guo added.

. . . To Address Morality in Chinese Society
--------------


5. (C) When queried whether Harmonious Society was intended to
addressing morality in Chinese society, Guo responded that the
appearance of new moral standards is due to the market economy.
China went from neglecting the market economy to emphasizing it
and focusing exclusively on development. This had an impact on
all of society, although it is too early to say whether this is
good or bad, Guo stated. In the past, GDP needed to be
developed first because China was so underdeveloped. In
contrast, the focus is now on "citizens first" (yi gongmin wei
zhu),and there has been a change from efficiency-directed
policy to fairness-directed policy. Guo said this shift in
policy requires new moral standards, and a "reliance on past
experience to show us the way." Responding to another question,
he emphasized that it is incorrect to simply attribute the shift
in Chinese morality to the "importation of Western values."
While some people talk about an increase in selfishness from the

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emphasis on development, "I actually see the opposite trend,"
Guo said. Although some people are more selfish, others have in
fact started paying more attention to disharmonious elements in
society and to Chinese traditions.

. . . And to Promote Balanced Development
--------------


6. (C) Citizens are more aware of the need for balanced
development, both in terms of environmental balance and balance
in other areas, Guo suggested. This is a movement away from the
past concentration on solely economic development. When asked
if China has achieved balanced development, Guo responded that
many countries were pondering this same issue, countries such as
Brazil and South Africa. At the 15th National Party Congress
(NPC),there were a lot of economists discussing economic
issues. In contrast, at the 16th NPC, social scientists
attended in greater numbers and the 11th Five-Year Plan was
passed. This is a very dynamic question, not a static question,
Guo continued. The differentiation and gaps in society are
increasing, so new policies will need to be developed. For
example, Western China needs assistance from East China in order
to implement the Great Western Development Strategy.

How To Implement Harmonious Society Goals
--------------


7. (C) According to Guo, there is already a "blueprint" of
goals for Harmonious Society, and those goals now need to be
proactively implemented. He said the only way to resolve
problems is to continue to adhere to the course of economic
development. Many people used to think the government could
organize and administer the economy. In fact, there is a lot of
government impact on the economy in Western countries as well.
But China needs to find a balance. Guo qualified his statement
by adding, on one hand, some things should naturally be
subjected to market forces, but the government interferes. On
the other hand, some things that should be public services are
currently being run by the marketplace.

Harmonious Society and Freedom of Speech
--------------


8. (C) Responding to a question on the role of media in the
Harmonious Society, Guo said the media is playing a supervision
role currently, but it is cautious in its supervision because of
China's "sensitive social differences." However, changes are
still occurring due to media attention on specific issues.
Turning to the question of citizen protests, Guo gave an example
of The Chongqing party secretary who publicly spoke in favor of
a protest taking place right outside his office. Guo thought
this public statement of support for freedom of speech was "very
impressive," but added that if there are protests outside his
office every day, then he has failed to do his job. China's
goal is to eliminate protests by eliminating the causes of
protests, not by dispersing the protesters, Guo claimed. He
opined that Chinese people have the same freedom to protest as
citizens in the United States -- they just have to "apply for
permission."

Concrete Measures for a New Socialist Countryside
-------------- --------------


9. (C) When asked about the New Socialist Countryside
construct, Guo said it was begun several years ago and has
resulted in the implementation of "concrete measures." In the
last two years, the government has been busy "taking over" the
"citizen schools" (minban xuexiao) that typically have
low-quality buildings and teachers. By paying the salaries of
the teachers and constructing new buildings, the government is
making the schools more stable. Now, in the poorest areas of
Sichuan, the best buildings are always schools. The New
Socialist Countryside program is also attacking the new problem
of boarding schools by providing subsidies to boarders. Last
year, the central government announced a policy doing away with
fees in poor schools. In some pilot project areas of Sichuan,
fees have been eliminated.

Smaller Government
--------------


10. (C) Turning to another rural issue, Guo stated that the
elimination of the agricultural tax and the special agricultural
tax has relieved the direct burden on rural residents, but not
on the rural villages (xiangzhen),because they now have debts.
For this reason, it is necessary to reduce the size of the local
governments. Due to lack of revenue, some local government
officials work only half time. Some of these officials are
"holding on" just because they want to retire and get their

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pensions. Guo stated that currently, about 60 to 80 percent of
local officials' salaries are paid by the central government.
Therefore, when the agricultural tax and special agricultural
tax were eliminated, 20 to 40 percent of those salaries suddenly
had no local funding. Guo suggested that some potential
solutions -- none of which are ideal -- include the following:

- Providing technical services to the peasants, and thereby
earning service income.

- Working half the month, like some younger and more energetic
officials do, since they can find other work.

- Merging different town organizations -- for instance, from
ten members down to six; and

- Lowering the number of officials through early retirement.

Socialist Core Value System
--------------


11. (C) To conclude the meeting, Guo commented on the promotion
of Hu Jintao's "Socialist Core Value System" during the
development of Harmonious Society. He noted that people need
to have "spiritual guidance" and there should be new rules and
standards in the ideological field. The tenants of the
Socialist Core Value System should be viewed dynamically. For
instance, if one asks about Marxism (one of the tenants),they
must understand Marxism in a modern way. The "Eight Honors and
Eight Disgraces," another part of the Socialist Core Value
System, is general guidance for the common people, but it only
points out a direction, not a rule, Guo stated. "There are no
absolutes."
BOUGHNER