Dr' Zhang Huidong

1
Agricultural Growth and rural Development in
China

• Dr. Zhang Huidong
• International Poverty Reduction Center In China

2
Outline

• 1. Fundamental characteristics and general
  situation of
• agricultural and rural economy in China
• 2.Agricultural Growth and rural Development
  during
• planned economy
• 3.Agricultural Growth and Rural Development
  during
• economic reform
• 4.Enlightenments

3
1. Fundamental character and general situation of
agricultural and Rural economy in China

• 1.1 Fundamental character
• 1.1.1 small-scale family farming economy
• China is a typical small-scale family farming
  country, has large
• farming Population , but land for farming is
  relative Scarce. farmer
• family is independent in management. Rural land
  belongs to village
• collective (rural community) in terms of
  ownership, and is contracted
• to farmers, Farmer family only enjoy rights of
  use, disposition, and
• surplus governance power. Land purchase and sale
  activities in rural
• area are forbidden, but may be rent to others by
  farmers.

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Basic Conditions of Rural Households in 2004(
15mu1ha.)
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1. Fundamental character and general situation of
agricultural and Rural economy in China

• 1.1 Fundamental character
• 1.1.2 being in initial stage of transition from
  traditional
• agriculture to modern agriculture
• Farmer family make extensive cultivation with
  poor Specialization,
• Systematization and mechanization, main farm
  produce still is
• land-intensive and labor-intensive products,
  farmers consumption
• primarily depends on family farming.

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1. Fundamental character and general situation of
agricultural and Rural economy in China

• 1.1 Fundamental character
• 1.1.3 Characteristics of dual economy is distinct
• Modern industry and traditional agriculture exist
  side by side with
• high proportion of rural population and labor
  force, big productivity
• gap between industry and agriculture, and large
  difference on
• industry structure, employment system, life
  style, and progress of
• public services between urban and rural areas.
• in 2004, Per Capita Annual Disposable Income of
  urban household
• is 3.21 times more than Per Capita Annual Net
  Income of rural
• households. Engle Coefficient of urban household
  is 37.7,in
• rural area the figure is 47.2.

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1. Fundamental character and general situation of
agricultural and Rural economy in China

• 1.1 Fundamental character
• 1.1.4 rural development depends on economic
  growth,
• structure optimization and community public
  service
• improvement synchronously
• Economic growth total output and per labor
  productivity of
• agriculture Increase with that of non-farm
  sectors harmoniously.
• Structure optimization
• Agricultural structure
• land-intensive and labor-intensive to
  capital-intensive and technology-
• intensive
• Rural industrial structure rural
  industrialization and urbanization.

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1. Fundamental character and general situation of
agricultural and Rural economy in China

• 1.1 Fundamental character
• 1.1.4 rural development depends on economic
  growth and
• Structure Optimization, community public service
• improvement synchronously
• Community public service improvement
• fundamental education and vocational
  education
• medical and health service
• social security service

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1. Fundamental character and general situation of
agricultural and Rural economy in China
farmers

• 1.2 General situation
• 1.2.1Agricultural and Rural
• Management system
• Farmer groups and villager committee
• ,both are self-government institutions ,
• manage and handle Rural land and other
• community public Properties.
• Leaders of both are elected by villagers,
• Their decision should be open, and
• supervised by villagers.
• Town government and village
• Committee are primary administrative
• Institutions in rural areas.

Farmer groupnatural village
Administrative village villager committee
town
county
municipality
province
central government
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Basic Conditions of Rural Grassroots Units in 2004
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1. Fundamental character and general situation of
agricultural and Rural economy in China

• 1.2 general situation
• 1.2.2 resources
• A. Arable land
• In 2004, area of whole countrys arable land is
  0.13 billion ha.
• among which, The area of irrigated land is 54.49
  million ha.

Total Sown Areas of Farm Crops in 2004(1000 ha.)
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Composition of land for farming in 2004
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1. Fundamental character and general situation of
agricultural and Rural economy in China

• 1.2 general situation
• 1.2.2 resources
• B. Labor force
• In 2004,there are 0.49billion labors in china
  rural Areas,
• accounting for 64.8 of that of whole country.

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Number and Composition of Rural Laborers by
Sector in 2004(10000 persons, )(The number
of laborers by sector in this table is classified
by main economic activity. For example, those
engaged primarily in agriculture and secondarily
in commerce are classified as the laborers under
farming, forestry, animal husbandry and fishery)
Note1Farming, Forestry, Animal Husbandry and
Fishery 2Construction 3Transport,
Storage, Post and Communication Services
4Wholesale, Retail Trade and Catering Services
5Other Nonagricultural Trades
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1. Fundamental character and general situation of
agricultural and Rural economy in China

• 1.2 general situation
• 1.2.2 resources
• C. Investment(productive facilities and means of
  production)
• In 2004, government expenditure for supporting
  rural production is
• 235.79 billion yuan (RMB), accounting for 8.28
  of national finance
• expenditure.
• In 2004, total investment in fixed assets in
  rural area is 1144.93 billion
• yuan (RMB), accounting for 16.24 of whole
  country. In which, farmer
• family investment is 336.27 billion yuan (RMB),
  accounting for 29.37.
• In 2004, original value of productive fixed
  assets of per rural household
• at the Year-end is 5956.18 yuan(RMB), in which,
  the share used in
• agricultural production is 4457.13 yuan (RMB),
  accounting for 74.83.

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• In 2004, per capita productive cash expenditure
  of rural household is
• 896.2yuan (RMB), in which, expenditure for
  household operation is
• 788.5 yuan (RMB), accounting for 88.03
  expenditure on productive
• fixed assets is 107.7 yuan (RMB), accounting for
  11.97.
• 31.31

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Productive Fixed Assets
Number of Major Productive Fixed Assets Per 100
Rural Households at the Year-end
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1. Fundamental character and general situation of
agricultural and Rural economy in China

• 1.2 general situation
• 1.2.3 output
• Presently, Chinas total outputs of Grain,
  Cotton, Meat, Poultry egg rank
• first in the world.

Yield of Major Farm Crops(10000 tons)and Output
of Per Capita(kg)(2004)
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Total output of major livestock and Aquatic
Products (10000tons) and Output of Per
Capita(kg)(2004)
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1. Fundamental character and general situation of
agricultural and Rural economy in China

• 1.2 general situation
• 1.2.3 output
• Output value

Gross Output Value and value Added of Farming,
Forestry, Animal Husbandry and Fishery in
2004(0.1billion yuan RMB)
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1. Fundamental character and general situation of
agricultural and Rural economy in China

• 1.2 general situation
• 1.2.4 structure

Composition of Gross Domestic Product and labor
force in 2004()
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Composition of Gross Output Value and Labor Force
of Farming, Forestry, Animal Husbandry and
Fishery in 2004()
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1. Fundamental character and general situation of
agricultural and Rural economy in China

• 1.2 general situation
• 1.2.5 farmer income and consumption
• income
• Per Capita Annual Total Income, Net Income and
  Cash Income of
• rural households and related Composition (yuan
  RMB ,)
• Next page

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1. Fundamental character and general situation of
agricultural and Rural economy in China

• 1.2 general situation
• 1.2.5 farmer income and consumption
• Expenditure

Per Capita Annual Total Expenditure, Cash
Expenditure of rural households and related
composition in 2004 (yuan, RMB, ) Next page
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Per capita expenditure for household operations
of rural household in 2004 and related
composition (yuan, RMB, )
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Number and Composition of Per Capita Consumption
Expenditure of Rural Households in 2004(yuan,
RMB, )
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2.Agricultural Growth and rural Development
during planned economy(1949-1978)

• 2.1 Backgrounds
• Industry-priority strategy industrializationMod
  ernization, need
• enough capital, only from Agriculture, deprive
  agricultural surplus to
• accumulate industry capital.
• China take two measures in rural areas
• First, build up state monopoly for farm produce
  purchase and
• Marketing system, restrict free trade. Government
  decide the price
• and quota which farmers sale their surplus farm
  produce.
• Grain purchase and marketing is controlled only
  by state-owned
• grain agencies.

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2.Agricultural Growth and rural Development
during planned economy(1949-1978)

• 2.1 Backgrounds
• Second, build up production teams in
  village-level and people
• commune in township to control production and
  distribution
• In village production brigade and production
  team
• In town-level people commune
• All production facilities and resources belong to
  this two kinds
• of institutions.
• Farmers went into farming production only as
  labor, farmer family
• have no autonomy in management. Production
  decisions and surplus
• distribution was controlled by production brigade
  and people
• commune.

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2.Agricultural Growth and rural Development
during planned economy(1949-1978)

• 2.1 Backgrounds
• this two systems for promoting industrialization
  impaired enthusiasm
• of farmers on farming, resulting in low
  agricultural productivity, slow
• agriculture growth and low standard of living in
  rural areas.
• Nevertheless, rural areas still make great
  progress on economy and
• social services, Especially in infrastructure
  construction, agricultural
• technique, fundamental education and medical
  services.
• Late in 1970s, China has succeeded in
  establishing relatively integrated
• industry system, there is no need to deprive
  agricultural operation
• surplus anymore.
• If continue to conduct past measures, it will
  impair not only rural
• development, but also industry itself.

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2.Agricultural Growth and rural Development
during planned economy(1949-1978)

• 2.2 Agricultural Growth and rural Development

Growth of agricultural output and
resources(19521979)
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????????(19521979)(???)
Growth of agriculture output and
resources(19521979)(continued)
Note output value is calculated by 1980 fixed
priceResource Cheng Shulan, 1999, Page 264.
Agricultural growth met not only the need of
industrial capital accumulation , but also that
of peoples consumption with arable land area
decreasing and total population increasing.
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2.Agricultural Growth and rural Development
during planned economy(1949-1978)

• 2.2 Agricultural Growth and rural Development
• Agricultural production conditions

Changes of agriculture technical facilities and
production conditions(19521979) Next slide
Resource see last table
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2.Agricultural Growth and rural Development
during planned economy(1949-1978)

• 2.2 Agricultural Growth and rural Development
• Rural economic structure

Changes of rural economic structure (19521979) N
ext slide
37
1 Farming 2 Forestry 3 Animal
husbandry4Fishery 5 Agriculture 6 Industry
7 transport 8 construction9commerce Resource
see last table
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2. Agricultural Growth and rural Development
during planned economy(1949-1978)

• 2.2 Agricultural Growth and rural Development
• Agriculture and rural areas have made tremendous
  contribution
• to national modernization, providing food, raw
  materials, foreign
• exchange, consumption market, capital and labor
  to industry.

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2. Agricultural Growth and rural Development
during planned economy(1949-1978)

• 2.2 Agricultural Growth and rural Development
• Development of social programs and services in
  rural areas
• Education and medical service.
• By the year 1979, china has popularized primary
  education in rural
• areas, establishing elementary school in village
  and high school in
• town, teachers are available in abundance.
• At the same time, relatively perfect cooperative
  medical care system
• has been founded with relatively integrated rural
  medical institutions
• and professional medical staff.
• The life expectancy in rural areas increased form
  36 in 1950 to 64 in
• 1979.

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3.Agricultural Growth and Rural Development
during economic reform

• 3.1 backgrounds
• 3.1.1 Agricultural and rural management system
  reform
• Central planned economic system transit to market
  economic System,
• initiated in rural areas and extended gradually
  to urban areas and non-
• agricultural industries.
• A. Change land operation mode rationalize
  ownership to encourage
• investment on production
• Endow the farm households with the right of
  land use, land
• disposal and claim to the rest of land
• Extend land contract
• Regulate land transfer.

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3.Agricultural Growth and Rural Development
during economic reform

• 3.1 backgrounds
• 3.1.1 Agricultural and rural management system
  reform
• B. Reform on market circulation of farm products
  return to real
• price signals, increase the efficiency of
  agricultural resources
• distribution
• Lift government direct control on
  price
• Expand the variety of traded
  products
• Lift the constraint on grain market
  buyer and seller.

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3.Agricultural Growth and Rural Development
during economic reform

• 3.1 Backgrounds
• 3.1.2 Changes of agricultural and rural
  development policies
• Over the past two decades, China shifted from
  agriculture supporting
• industry to industry repaying agriculture, thus
  brought about the
• integrated development of the two sectors and
  balance between rural
• and urban areas.
• Concrete measures involved in following
  areas
• (1)Infrastructure construction in rural
  areas
• (2)agriculture science and technology
• (3)agricultural support and farmers burden
• (4)economic restructuring
• (5)non-farm employment of rural labors

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3.Agricultural Growth and Rural Development
during economic reform

• 3.2 Agricultural Growth and rural Development
• 3.2.1 Agricultural Growth

Gross Output Value indices of Farming, Forestry,
Animal Husbandry and Fishery(1952100)
44
3.Agricultural Growth and Rural Development
during economic reform

• 3.2 Agricultural Growth and rural Development
• 3.2.2 Farmers income

Per Capita Annual Net Income (yuan, current
prices) and Related Indices (1978100,comparable
prices) of Rural Households in China
45
3.Agricultural Growth and Rural Development
during economic reform

• 3.2 Agricultural Growth and rural Development
• 3.2.2 Farmers income

Composition of per capita annual total income of
rural household
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3.Agricultural Growth and Rural Development
during economic reform

• 3.2 Agricultural Growth and rural Development
• 3.2.3 Rural economic structure

Composition of Output Value of Farming, Forestry,
Animal Husbandry and Fishery
Composition of Rural Laborers( 10000 persons, see
next figure)
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1 Farming, Forestry, Animal Husbandry and
Fishery 2Transport, Storage, Post and
Telecommunication Services 3Wholesale, Retail
Trade and Catering Services 4Other
Nonagricultural trades
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3.Agricultural Growth and Rural Development
during economic reform

• 3.2 Agricultural Growth and rural Development
• 3.2.4 Rural social public service development
• Education
• Fundamental education in rural areas in 2004
• Senior Secondary school 2454 student2.55
  million teachers136000 Junior Secondary
  school 38095student31.68millionteacher1.63
  million.
• Primary school0.337 million student73.78
  millionteacher3.91 million.
• Farmers adult education
• Farmer specialized secondary school (in
  2002) 221,student 92056,
• teacher5420.
• Farmer technical school0.192million,stendent
  46.84million.
• Farmer Secondary school2502, student 0.579
  million.
• Farmer primary school68000,student 3.8
  million.

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3.Agricultural Growth and Rural Development
during economic reform

• 3.2 Agricultural Growth and rural Development
• 3.2.4 Rural social public service development
• Medical service
• Rural township hospital41626beds668863Medical
  technical
• personnel1.03 million.
• Village clinic 0.552 million, in which,
• run by village collective0.298million
• private.0.167million.
• Village doctors and assistants 0.883million.
• Village doctors and assistants Per village1.37.
• Village Doctors Assistants Per 1000 Rural
  Population1.02.
• Midwife in rural areas0.227 million (in 2001).

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4. Enlightenments

• 4.1 Economic system
• properties rights and price signal
• 4.2 Integrated industry system
• 4.3 Structure optimization
• 4.4 Public policy