Agricultural Reform in China: Getting Institutions Right by Yiping Huang PDF

By Yiping Huang

ISBN-10: 0511628587

ISBN-13: 9780511628580

ISBN-10: 0521620554

ISBN-13: 9780521620550

The profitable agricultural reform conducted in China within the Seventies begun encountering mounting problems from the mid-1980s, as progress premiums dropped and costs elevated sharply. This research analyzes different reform measures brought in China long ago two decades, and offers a whole research of the prevailing agricultural method. via cautious exam of the political economic climate and the several coverage concepts, the writer argues that China should still push ahead with its market-oriented reform measures and introduce the pains of foreign pageant into the rural region.

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

Example text

The next institutional element to be introduced to the agricultural sector to fulfil the government's central objective was the abolition of the 22 Agricultural reform in China household production unit and the introduction of the commune system. A commune was usually organised with three levels: commune, brigade and production team. The production team, consisting of about thirty households, served as the basic unit of production and accounting. Land and other production means were pooled and all production activities were determined by the team leader and carried out by collective labour.

The government did not intentionally set out to do this at the beginning of the reforms. But by 1978 the government had recognised that solving managerial problems within the production team system in agriculture was the key to improving productivity by raising farmers' incentives. In fact the subdivision of collectively owned land and delegation of production management to individual households were both considered violations of socialist principles and were formerly unthinkable (Lin 1994). The introduction of the household responsibility system and other forms of household-based systems began spontaneously with farmers taking production decisions into their own hands in remote areas within the pre-reform agricultural regime.

In China, on the contrary, this share was 10 per cent in the 1950s and further decreased to about 6 per cent in the 1960s and 3 per cent in the 1970s (Song 1987). 8 The holding down of raw material and agricultural product prices was said to reduce the costs of industrial production and to generate more profits for reinvestment. From 1953 to 1957, the number of raw materials and industrial products covered by the material control system increased from about 110 to more than 300 and accounted for more than 60 per cent of total industrial output in 1957 (Lin, Cai and Li 1994b).

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Agricultural Reform in China: Getting Institutions Right (Trade and Development) by Yiping Huang

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