By Yiping Huang
The profitable agricultural reform conducted in China within the Seventies began encountering mounting problems from the mid-1980s, as progress premiums dropped and costs elevated sharply. This examine analyzes different reform measures brought in China long ago 20 years, and gives a whole research of the prevailing agricultural process. via cautious exam of the political economic climate and the various coverage strategies, the writer argues that China should still push ahead with its market-oriented reform measures and introduce the pains of foreign festival into the rural zone.
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Additional info for Agricultural Reform in China: Getting Institutions Right (Trade and Development)
In 1956, various forms of production responsibility systems, including management responsibility systems and contracting of output and cost, were created and operated experimentally within Yongjia county and Ruian county of Zhejiang province, Fengyang county of Anhui province, Yuci county of Shanxi province and Jiangjing county of Sichuan province. 'Contracting everything to the household' (Baogan Daohu) was widespread in Henan province in 1959 and in the southwest and northwest areas in 1964. In 1961, about 85 per cent of production teams had adopted various forms of production responsibility systems.
This contrasted remarkably with the trade pattern in the pre-liberation period. The largest imports in the first half of the century were typically cotton goods, cotton yarn and raw cotton, followed by grain, flour, sugar and tobacco. The major producer goods of petroleum, transport equipment, chemicals and metals were only 10-14 per cent of total imports in the first three decades (Lardy 1992). Machinery imports increased from only 2-3 per cent of imports in the 1930s to 20-40 per cent in the pre-reform period.
Farmers received more income from the increased agricultural output and, at the same time, acquired the rents for land they used to pass on to landlords. The latter part can be regarded as income redistribution. But as income was transferred from relatively high-income households (landlords) to low-income households (previously landless households), it generated a.. significant and positive impact on rural grain demand. Second, many farmers failed to acquire enough food before liberation. It was natural for these farm households to increase grain consumption after they produced more on their own land.
Agricultural Reform in China: Getting Institutions Right (Trade and Development) by Yiping Huang