"iron rice bowl"of guaranteed employment and related social bene- fits for urban residents has been replaced with a market economy in which they must find or make their own jobs.Farmers are increas- ingly leaving the land to seek opportunities in the cities.Personal freedoms have expanded with the widespread loosening of social controls.Change has been supported by establishment of a rather sophisticated body of law adapted in many cases from successful models of other countries,although enforcement of these new laws remains problematic.Concepts of private property rights have grad- ually taken hold and were recognized in an amendment to China's constitution in March 2004.An accompanying amendment for the first time enshrined the notion of respecting and protecting human rights in China. While economic growth has lifted hundreds of millions of Chi- nese out of poverty over the past few decades,this has occurred pri- marily in the industrial eastern part of the country.The government admits there are at least 85 million rural residents who live on less than US$75 per year and cannot afford quality food,education,and health care.Pressing problems such as sharp rural-urban and re- gional disparities,environmental degradation,and rampant corrup- tion,which estimates value at some 3-5 percent of GDP,2 are giving rise to increasing social unrest.Concern over instability prompted the current leadership to focus on better-balanced and sustainable development rather than growth for its own sake,as well as on new mechanisms to help better manage change. Amid all this change,political reform has been modest.The Party,comprised of some 65 million members,or about 5 percent of the population,seeks to maintain tight control over policy formula- tion and implementation,and Party functionaries often concurrently hold government positions,creating what is commonly referred to as the Chinese "Party-state." Under China's constitution,all power belongs to the people,and state power is exercised by them through the National People's Con- gress(NPC)and local people's congresses at the provincial,county, and township levels.The State Council,China's Cabinet appointed by the NPC,is the highest executive body,overseeing the central ministries and the work of local governments.The people's courts, also answerable to the NPC,are part of the administrative structure. The standing committees of the congresses,not the courts at the 56 PART ONE:NATIONAL STORIES FLORINI CH02indd 56 3/2071:21:13PM56 part one: national stories “iron rice bowl” of guaranteed employment and related social bene￾fits for urban residents has been replaced with a market economy in which they must find or make their own jobs. Farmers are increas￾ingly leaving the land to seek opportunities in the cities. Personal freedoms have expanded with the widespread loosening of social controls. Change has been supported by establishment of a rather sophisticated body of law adapted in many cases from successful models of other countries, although enforcement of these new laws remains problematic. Concepts of private property rights have grad￾ually taken hold and were recognized in an amendment to China’s constitution in March 2004. An accompanying amendment for the first time enshrined the notion of respecting and protecting human rights in China. While economic growth has lifted hundreds of millions of Chi￾nese out of poverty over the past few decades, this has occurred pri￾marily in the industrial eastern part of the country. The government admits there are at least 85 million rural residents who live on less than US$75 per year and cannot afford quality food, education, and health care. Pressing problems such as sharp rural-urban and re￾gional disparities, environmental degradation, and rampant corrup￾tion, which estimates value at some 3–5 percent of GDP,2 are giving rise to increasing social unrest. Concern over instability prompted the current leadership to focus on better-balanced and sustainable development rather than growth for its own sake, as well as on new mechanisms to help better manage change. Amid all this change, political reform has been modest. The Party, comprised of some 65 million members, or about 5 percent of the population, seeks to maintain tight control over policy formula￾tion and implementation, and Party functionaries often concurrently hold government positions, creating what is commonly referred to as the Chinese “Party-state.” Under China’s constitution, all power belongs to the people, and state power is exercised by them through the National People’s Con￾gress (NPC) and local people’s congresses at the provincial, county, and township levels. The State Council, China’s Cabinet appointed by the NPC, is the highest executive body, overseeing the central ministries and the work of local governments. The people’s courts, also answerable to the NPC, are part of the administrative structure. The standing committees of the congresses, not the courts at the FLORINI CH 02.indd 56 3/2/07 1:21:13 PM