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III. Thoroughly Applying the Scientific Outlook on Development To continue to build a moderately prosperous society in all respects and develop socialism with Chinese characteristics at the new stage of development, we must follow the guidance of Deng Xiaoping Theory and the important thought of Three Represents and thoroughly apply the Scientific Outlook on Development. The Scientific Outlook on Development is a continuation and development of the important thoughts on development advanced by the previous three generations of central collective leadership of the CPC and a concentrated expression of the Marxist world outlook and methodology with regard to development. It is a scientific theory that is in the same line as Marxism-Leninism, Mao Zedong Thought, Deng Xiaoping Theory and the important thought of Three Represents and keeps up with the times. It is an important guiding principle for Chinas economic and social development and a major strategic thought that we must uphold and apply in developing socialism with Chinese characteristics. In light of the basic reality that China is in the primary stage of socialism, the Scientific Outlook on Development has been formulated to meet new requirements of development by analyzing Chinas own practice and drawing on the experience of other countries in development. At this new stage in the new century, Chinas development shows a series of new features which are mainly as follows: The economic strength has increased markedly, but the overall productivity remains low, the capacity for independent innovation is weak, and the longstanding structural problems and the extensive mode of growth are yet to be fundamentally addressed. The socialist market economy is basically in place, but there remain structural and institutional obstacles slowing down development, and further reform in difficult areas is confronted with deep-seated problems. A relatively comfortable standard of living has been achieved for the people as a whol