In this dissertation, regional inequality problems and their systematic development in modernization process were discussed, using some theories and methods associated with Modern Development, Unbalanced Growth and Opening System. Modernization is a process changing from traditional agricultural society to modern industrial society. Modernization process must experience industrialization period and lead to reforms in society, economy, science, culture, etc. Based on the idea of Sustainable Development, modernization is also social practice which puts Growth and Development Theory into a reality in a country or region. Modernization is optimum process for social economic system which is an opening system and far from balance. Rapid economic growth in the early stage of industrialization led to regional inequality, which is an universal phenomenon. Inequality is a social moral and political problem as well as an economic problem. There are different attitudes toward inequality among different countries, regions and people. Compromise must be made among the choice of rowth? Efficiency?and quity? The modernization process in China entered social mobilization period after eform and Opening?policy was launched in 1978. This paper focused on economic and social development in Jiangsu Province since 1978. The static appearances of regional inequality in the Province were analyzed by using uzzy Comprehensive Criterion Model? dynamic evolution of regional inequality of four main economic indexes by 176 using oefficient Variation? regional direction of unbalanced growth by using rowth Center Method? and industrial direction of unbalanced growth by using ndustrial Competitive Component Model? and finally efficiency in some resources distribution was also discussed. The following are some conclusions: I. eform and Opening?policy sped up modernization process in the Province. GOP of the Province increased by 12.6% annually between 1978 and 1998. In the early mid-1990?s, the peopleliving standard reached omfortably Off? In 1998, modernization process reached middle period of pre-modernization. H . Rapid growth of economy enlarged regional inequality. Differences among regions of the Province enlarged between 1978 and 1992. In 1993, it reached maximum. It was at a stalemate after 1994, which was keeping with he Williamson Law? ill. Social and economic levels differed according to regions. The highest grade region is centered around Taihu Lake and the lowest grade region is centered around Hongzehu Lake. The gradient axis is the Grand Canal. The highest grade region, supported by secondary industry and tertiary industry, is more open, gets more investment (from government or other sources), and has higher productivity than others. The lowest grade region, however, is supported by the primary industry. IV. The Province was divided into five parts according to economic development levels. The Center of Growth is Suzhou and Wuxi. The Sub- Center is Nanjing. The First Transitional Region is Changzhou, Zhenjiang and Nantong. The Second Transitional Region is Xuzhou, Yangzhou, Taizhou and Yanchen. The Under-developed Region is L