Abstract Fair deal means that governmental agencies promote external economic and social justice through internal political justice, while harmony and stability mean the fair equilibrium of social interests. Therefore, there is a positive correlation between fair deal and harmony and stability, which means that there is an intrinsic correlation between social disharmony and instability and governmental unfair deal, and that governmental fair deal policy is conducive to social harmony and stability. The mechanism of this positive correlation is shown as: the balance of interests is the intermediary factor between governmental fair deal and social harmony and stability; the government should and is able to promote social harmony and stability through fair deal; the realization mechanism of governmental fair deal to promote social harmony and stability is to focus the peoples livelihood. At the present stage, the basic paths and measures for China to promote its social harmony and stability as well as longterm peace and order are to focus on the peoples livelihood, implement governmental fair deal, and promote the new type of social management that stresses the peoples livelihood.
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