Agricultural Reform in China: Getting Institutions Right by Yiping Huang

By Yiping Huang

The profitable agricultural reform conducted in China within the Nineteen Seventies began encountering mounting problems from the mid-1980s, as progress charges dropped and costs elevated sharply. This examine analyzes different reform measures brought in China some time past 20 years, and offers an entire research of the present agricultural approach. via cautious exam of the political financial system and different coverage innovations, the writer argues that China should still push ahead with its market-oriented reform measures and introduce the trials of overseas festival into the rural area.

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Extra info for Agricultural Reform in China: Getting Institutions Right (Trade and Development)

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But, at the same time, agriculture did not present itself as a sector which could potentially support industrialisation. First, the growth potential of agriculture was very limited because of a lack of agricultural investment and technical progress. Second, increases in output did not reduce the gap between supply and demand in major agricultural markets. 6 As a result, the commodity rate of agricultural production and even net amounts of supply to the market fell (the commodity rate measures the ratio of output marketed to total output).

It was intended to concentrate on implementing a programme for industrial construction, consisting of 694 'above norm' projects (and 2,300 Ijelow norm' projects), and having as its nucleus 156 key-point projects planned with Soviet aid. These keypoint projects were critical to the government's policy: Institutional distortions in pre-reform agriculture 19 we must concentrate our strength primarily on guaranteeing the completion according to plans of these 156 construction projects. Because the major enterprises are heavy industrial enterprises, these 156 construction projects include modern integrated iron and steel enterprises, non-ferrous metal smelting and coal-mining enterprises, thermal and hydroelectric power stations, heavy machinery manufacturing factories, vehicle, tractor and aeroplane-manufacturing factories, chemical factories, etc.

1). Under the special management system (Dinger Baogan), team members were still involved in collective labour. But they could contract part or fixed pieces of farm work from the team and would be awarded working points depending on the quality of their work. Income distribution remained the same as that in the traditional production team. There were systems where the group, individual or household accepted a contract for a plot from the team. They were responsible for output which determined the amount of working points they would receive from the team.

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