Dr. Zhang Huidong International Poverty Reduction Center In China Agricultural Growth and rural Development in China Agricultural Growth and rural Development

Dr. Zhang Huidong

International Poverty Reduction Center In China

Agricultural Growth and rural Agricultural Growth and rural Development in ChinaDevelopment in China

1. Fundamental characteristics and general situation of 1. Fundamental characteristics and general situation of aagricultural and rural economy in Chinagricultural and rural economy in China

2.Agricultural Growth and rural Development during 2.Agricultural Growth and rural Development during planned economyplanned economy

3.Agricultural Growth and Rural Development during 3.Agricultural Growth and Rural Development during economic reformeconomic reform

4.Enlightenments4.Enlightenments

OutlineOutline

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

1.1 1.1 Fundamental character Fundamental character

1.1.1 1.1.1 small-scale family farming small-scale family farming economyeconomy

China is a typical small-scale family farming country, has large China is a typical small-scale family farming country, has large

farming Population , but land for farming is relative Scarce. farmer farming Population , but land for farming is relative Scarce. farmer

family is independent in managementfamily is independent in management. Rural land belongs to village . Rural land belongs to village

collective (rural community) in terms of ownership, and is contracted collective (rural community) in terms of ownership, and is contracted

to farmers, Farmer family only enjoy rights of use, disposition, and to farmers, Farmer family only enjoy rights of use, disposition, and

surplus governance power. Land purchase and sale activities in rural surplus governance power. Land purchase and sale activities in rural

area are forbidden, but may be rent to others by farmers. area are forbidden, but may be rent to others by farmers.

Basic Conditions of Rural Households in 2004（ 15mu=1ha. ）

Permanent ResPermanent Residentsidents

(Per househol(Per household)d) 　　　　　　

Full/Semi Labor Full/Semi Labor ForceForce

(Per household) (Per household) 　　　　

Arable land Arable land areaarea

(mu/person)(mu/person)

Hilly area Hilly area (mu/perso(mu/person)n)

Grassland arGrassland areaea

(mu/person)(mu/person)

4.084.08 2.822.82 2.002.00 0.210.21 4.694.69

1.1 1.1 Fundamental characterFundamental character

1.1.2 being in initial stage of transition from traditional 1.1.2 being in initial stage of transition from traditional

agriculture to modern agricultureagriculture to modern agriculture

Farmer family make extensive cultivation with poor Farmer family make extensive cultivation with poor Specialization, Specialization,

Systematization aSystematization and mechanization, main farm produce still is nd mechanization, main farm produce still is

land-intensive and labor-intensive products, farmers consumptionland-intensive and labor-intensive products, farmers consumption

primarily depends on family farming.primarily depends on family farming.


1.1 1.1 Fundamental characterFundamental character 1.1.3 Characteristics of dual economy is distinct1.1.3 Characteristics of dual economy is distinct

Modern industry and traditional agriculture exist side by side with Modern industry and traditional agriculture exist side by side with high proportion of rural population and labor force, big productivity high proportion of rural population and labor force, big productivity gap between industry and agriculture, and large difference on gap between industry and agriculture, and large difference on industry structure, employment system, life style, and industry structure, employment system, life style, and progress of progress of public services between urban and rural areas.public services between urban and rural areas.

in 2004, in 2004, Per Capita Annual Disposable Income of urban household Per Capita Annual Disposable Income of urban household is is 3.21 times more than 3.21 times more than Per Capita Annual Net Income of rural Per Capita Annual Net Income of rural households. Engle Coefficient of urban household is households. Engle Coefficient of urban household is 37.7%37.7%，， in in rural area the figure is 47.2%.rural area the figure is 47.2%.

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


1.1.4 rural development depends on economic growth,1.1.4 rural development depends on economic growth,structure optimization and community public service structure optimization and community public service improvement improvement synchronouslysynchronously

Economic growth:Economic growth: total output and per labor productivity of total output and per labor productivity of agriculture Increase with that of non-farm sectors harmoniously.agriculture Increase with that of non-farm sectors harmoniously.

Structure optimization:Structure optimization:Agricultural structure:Agricultural structure: land-intensive and labor-intensive to capital-intensive and technology-land-intensive and labor-intensive to capital-intensive and technology-intensiveintensiveRural industrial structure:Rural industrial structure: rural industrialization and urbanization. rural industrialization and urbanization.



1.1.4 rural development depends on economic growth and 1.1.4 rural development depends on economic growth and Structure Optimization, community public service Structure Optimization, community public service improvement improvement synchronouslysynchronously CCommunity public service improvement:ommunity public service improvement: fundamental education and vocational educationfundamental education and vocational education medical and health service medical and health service social security servicesocial security service


1.2 General situation1.2 General situation1.2.1Agricultural and Rural 1.2.1Agricultural and Rural Management systemManagement system

Farmer groups and villager committeeFarmer groups and villager committee,both are self-government institutions , ,both are self-government institutions , manage and handle Rural land and other manage and handle Rural land and other community public Properties.community public Properties.Leaders of both are elected by villagers,Leaders of both are elected by villagers,Their decision should be open, and Their decision should be open, and supervised by villagers.supervised by villagers.

Town government and village Town government and village Committee are primary administrative Committee are primary administrative Institutions in rural areas.Institutions in rural areas.

farmers farmers

Farmer group—natural villageFarmer group—natural village

central governmentcentral government

Administrative village— villager committeeAdministrative village— villager committee

towntown

countycounty

municipalitymunicipality

provinceprovince


Basic Conditions of Rural Grassroots Units in 2004Basic Conditions of Rural Grassroots Units in 2004

Number of TownsNumber of Township and Town Govhip and Town Gov

ernmentsernments

（（ unitsunits ））

Number of VillageNumber of Villagers' Committees rs' Committees

（（ unitsunits ））

Number of Rural Number of Rural Households Households

(10000units)(10000units)

Rural populationRural population

（（ 10000person10000personss ））

3695236952 652718652718 2497124971 9425494254

1.2 general situation1.2 general situation1.2.2 resources1.2.2 resourcesA. Arable landA. Arable landIn 2004, area of whole country’s arable land is 0.13 billion ha. In 2004, area of whole country’s arable land is 0.13 billion ha. among which, The area of iamong which, The area of irrigated land is rrigated land is 54.49 million ha.54.49 million ha.

Total Total Sown Sown

Grain Grain cropscrops

Oil-bearing Oil-bearing cropscrops

Cotton Cotton VegetablesVegetables Area of Tea Area of Tea plantations plantations at year-endat year-end

Area of Area of Orchard at Orchard at year-endyear-end

153553153553 101606101606 1443114431 56935693 1756017560 12621262 97689768

Total Sown Areas of Farm Crops in 2004 （ 1000 ha. ）


Composition of land for farming in 2004Composition of land for farming in 2004

Land for Land for Farming Farming

Cultivated Cultivated LandLand

Garden Garden PlotPlot

Afforested Afforested LandLand

GrasslandGrassland Water Area Water Area for Breedingfor Breeding

AquaticsAquatics

100100 43.1843.18 2.332.33 32.2532.25 20.6420.64 1.591.59

1.2 general situation1.2 general situation1.2.2 resources1.2.2 resources

B. Labor forceB. Labor force

In 2004,there are 0.49billion labors in china rural Areas, In 2004,there are 0.49billion labors in china rural Areas, accounting for 64.8 % of that of whole country.accounting for 64.8 % of that of whole country.

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

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)

SectorsSectors 11 IndustryIndustry 22 33 44 55

numbernumber 3059630596 5438.95438.9 3380.53380.5 1475.91475.9 2701.62701.6 6102.46102.4

Proportion in Rural labors

61.661.6 10.910.9 6.86.8 3.03.0 5.45.4 12.312.3

Note:1=Farming, Forestry, Animal Husbandry and Fishery; 2=Construction

3=Transport, Storage, Post and Communication Services

4=Wholesale, Retail Trade and Catering Services

5=Other Nonagricultural Trades

1.2 general situation1.2 general situation

1.2.2 resources1.2.2 resources

C. InvestmentC. Investment （（ productive facilities and means of productionproductive facilities and means of production ））In 2004, government expenditure for supporting rural production is In 2004, government expenditure for supporting rural production is 235.79 billion yuan (RMB), accounting for 8.28% of national finance 235.79 billion yuan (RMB), accounting for 8.28% of national finance expenditure.expenditure.In 2004, tIn 2004, total investment in fixed assets in rural area is otal investment in fixed assets in rural area is 1144.93 billion 1144.93 billion yuan (RMB), accounting for 16.24% of whole country. In which, farmer yuan (RMB), accounting for 16.24% of whole country. In which, farmer family investment is 336.27 billion yuan (RMB), accounting for 29.37%. family investment is 336.27 billion yuan (RMB), accounting for 29.37%.

In 2004, oIn 2004, original value of productive fixed assets of per rural household riginal value of productive fixed assets of per rural household at the Year-end is at the Year-end is 5956.18 yuan5956.18 yuan （（ RMB), in which, the share used in RMB), in which, the share used in agricultural production is 4457.13 yuan (RMB), accounting for 74.83%.agricultural production is 4457.13 yuan (RMB), accounting for 74.83%.


In 2004, per capita productive cash expenditure of rural household is In 2004, per capita productive cash expenditure of rural household is

896.2yuan (RMB), in which, expenditure for household operation is 896.2yuan (RMB), in which, expenditure for household operation is

788.5 yuan (RMB), accounting for 88.03%; expenditure on productive 788.5 yuan (RMB), accounting for 88.03%; expenditure on productive

fixed assets is 107.7 yuan (RMB), accounting for fixed assets is 107.7 yuan (RMB), accounting for 11.97%.11.97%.

31.31%31.31%

Productive Fixed Assets ：：

Number of Major Productive Fixed Assets Per 100 Rural Households at the Year-end

Motor vMotor vehicles ehicles （（ sesett ））

Large and Large and medium trmedium tractorsactors

（（ setset ））

Mini and Mini and Walking Walking TractorsTractors（（ setset ））

Motorized Motorized Threshing Threshing Machines Machines


Carts with Carts with Rubber TRubber Tyreyre


PumpsPumps

（（ uniunitt ））

Draught Draught AnimalsAnimals

（（ uniunitt ））

CommoditCommodity Animalsy Animals

（（ unitunit ））

1.431.43 2.242.24 18.7818.78 10.1210.12 12.8812.88 22.0622.06 34.8334.83 51.8351.83

1.2 general situation1.2 general situation1.2.3 output1.2.3 outputPresently, China’s total outputs of Grain, Cotton, Meat, Poultry egg rank Presently, China’s total outputs of Grain, Cotton, Meat, Poultry egg rank

first in the world.first in the world.

Yield of Major Farm Crops （ 10000 tons ） and Output of Per Capita （ kg ） (2004)

ProductProduct GrainGrain CottonCotton Oil-bearing Oil-bearing corpscorps

SugarSugarcane cane

BeetroBeetroots ots

TeaTea FruitsFruits

Total Total outputoutput

46946.946946.9 632.4632.4 3065.93065.9 8984.8984.99

585.7585.7 83.583.5 15340.15340.99

ProductProduct GrainGrain CottonCotton Oil-bearing Oil-bearing corpscorps

Sugar Crops Sugar Crops TeaTea FruitsFruits

Output of Per Capita

362362 4.94.9 23.723.7 73.8473.84 0.640.64 118.36118.36


Total output of major livestock and Aquatic Products (10000tons)

and Output of Per Capita （ kg ） (2004)

Meat Meat MilkMilk Poultry Eggs Poultry Eggs Aquatic Products

Total outputTotal output 7244.87244.8 2368.42368.4 2723.72723.7 4901.84901.8

Pork, Beef and Pork, Beef and MuttonMutton

Cow milkCow milk Poultry Eggs Poultry Eggs Aquatic Products

Output of per capita

44.644.6 17.417.4 bb 37.837.8

1.2 general situation1.2 general situation1.2.3 output1.2.3 outputOutput value:Output value:

Gross Output Value value added

Farming, Forestry, Animal Husbandry and Fishery

36239.036239.0 21224.921224.9

Farming 18138.418138.4 11827.711827.7

Forestry 1327.11327.1 905.6905.6

Animal Husbandry 12173.812173.8 5953.75953.7

Fishery 3605.63605.6 2081.12081.1

Gross Output Value and value Added of Farming, Forestry, Animal Husbandry and Fishery in 2004 （ 0.1billion yuan RMB ）



1.2.4 structure1.2.4 structure

Primary Primary Industry Industry

Secondary Secondary

IndustryIndustry

TertiaryTertiary

IndustryIndustry

Gross Domestic Product

15.215.2 52.952.9 31.931.9

Labor Force 46.946.9 22.522.5 30.630.6

Composition of Gross Domestic Product and labor force in 2004 （ % ）


Composition of of Gross Output Value and Labor Force of Farming, Forestry, Animal Husbandry and Fishery in 2004 （ % ）

Farming Forestry Animal Husbandry

Fishery

Gross Output Value 50.150.1 3.73.7 33.633.6 9.99.9


1.2.5 farmer income and consumption1.2.5 farmer income and consumption

income income ：：

Per Capita Annual Total Income, Net Income and Cash Income ofPer Capita Annual Total Income, Net Income and Cash Income of rural households and related Composition (yuan RMB ,%rural households and related Composition (yuan RMB ,% ））

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Total incomeTotal income Cash incomeCash income Net incomeNet income

numbernumber %% numbernumber %% numbernumber %%

Total amountTotal amount 4039.604039.60 100100 3234.163234.16 100100 2936.402936.40 100100

Income from Wages Income from Wages and Salariesand Salaries

998.46998.46 24.7224.72 997.56997.56 30.8530.85 998.46998.46 34.0134.01

Income from Income from Household Household OperationsOperations

2804.512804.51 69.4069.40 2019.832019.83 62.4562.45 1745.791745.79 59.4559.45

Income from Income from Properties Properties

76.6176.61 1.901.90 62.5962.59 1.931.93 76.6176.61 2.612.61

Income from Income from TransfersTransfers

160.63160.63 3.983.98 154.18154.18 4.774.77 115.54115.54 3.933.93

1.2 general situation1.2 general situation1.2.5 farmer income and consumption1.2.5 farmer income and consumption

ExpenditureExpenditure ：：

Per Capita Annual Total Expenditure, Cash Expenditure of rural hoPer Capita Annual Total Expenditure, Cash Expenditure of rural households and related composition in 2004useholds and related composition in 2004

(yuan, RMB, %)(yuan, RMB, %)

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Total expenditure Total expenditure Cash expenditureCash expenditure

numbernumber %% numbernumber %%

AmountAmount 3430.103430.10 100100 2862.542862.54 100100

Expenditure for household Expenditure for household operationsoperations

923.92923.92 26.926.9 788.55788.55 27.527.5

Purchase of productive fixed Purchase of productive fixed assetsassets

107.74107.74 3.13.1 107.74107.74 3.83.8

Taxes and fees Taxes and fees 37.4937.49 1.11.1 36.9136.91 1.31.3

Expenses on Household Expenses on Household ConsumptionConsumption

2184.652184.65 63.763.7 1754.461754.46 61.761.7

Expenses on Properties and Expenses on Properties and TransfersTransfers

176.30176.30 5.25.2 174.88174.88 6.16.1

Per capita Per capita expenditure for household operations of rural householexpenditure for household operations of rural household in d in 2004 and related composition (yuan, RMB, %)2004 and related composition (yuan, RMB, %)

numbernumber %%

Amount Amount 923.92 923.92 100100

Farming, Forestry, Animal Husbandry & Farming, Forestry, Animal Husbandry & Fishery Fishery

829.2829.2 89.789.7

Industry Industry 31.231.2 3.43.4

Construction Construction 5.65.6 0.60.6

Transport, Storage, Post and Transport, Storage, Post and Telecommunication Services Telecommunication Services

27.227.2 2.92.9

Wholesale, Retail Trade and Catering Wholesale, Retail Trade and Catering Services Services

18.618.6 2.02.0

Number and Number and Composition of Per Capita Consumption ExpenditurComposition of Per Capita Consumption Expenditure of Rural Households in e of Rural Households in 2004(yuan, RMB, %)2004(yuan, RMB, %)

numbernumber %%

Amount Amount 2184.65 2184.65 100100

Food Food 1031.911031.91 47.2347.23

Clothing Clothing 120.16120.16 5.505.50

Housing Housing 324.25324.25 14.8414.84

Household Appliances and Services Household Appliances and Services 89.2389.23 4.084.08

Health Care and Medical Services Health Care and Medical Services 130.56130.56 5.985.98

Transport and Telecommunications Transport and Telecommunications 192.63192.63 8.828.82

Education, Cultural and Recreation Education, Cultural and Recreation and Services and Services

247.63247.63 11.3311.33

2.1 Backgrounds 2.1 Backgrounds

Industry-Industry-prioritypriority strategy: industrialization——Modernization, need strategy: industrialization——Modernization, need enough capital, only from Agriculture, deprive agricultural surplus to enough capital, only from Agriculture, deprive agricultural surplus to accumulate industry capital.accumulate industry capital.

China take two measures in rural areasChina take two measures in rural areas ：：First, build up state monopoly for farm produce purchase and First, build up state monopoly for farm produce purchase and Marketing system, restrict free trade. Government decide the price Marketing system, restrict free trade. Government decide the price and quota which farmers sale their surplus farm produce.and quota which farmers sale their surplus farm produce.Grain purchase and marketing is controlled only by state-owned Grain purchase and marketing is controlled only by state-owned grain agencies.grain agencies.

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

2.1 Backgrounds2.1 Backgrounds

Second, build up production teams in village-level and people Second, build up production teams in village-level and people commune in township to control production and distributioncommune in township to control production and distribution

In village: In village: production brigade and production teamproduction brigade and production teamIn town-level: people communeIn town-level: people communeAll production facilities and resources belong to this two kinds All production facilities and resources belong to this two kinds of institutions.of institutions.Farmers went into farming production only as labor, farmer family Farmers went into farming production only as labor, farmer family have no autonomy in management. Production decisions and surplus have no autonomy in management. Production decisions and surplus distribution was controlled by production brigade and people distribution was controlled by production brigade and people commune.commune.


2.1 Backgrounds2.1 Backgroundsthis two systems for promoting industrialization impaired enthusiasm this two systems for promoting industrialization impaired enthusiasm of farmers on farming, resulting in low agricultural productivity, slow of farmers on farming, resulting in low agricultural productivity, slow agriculture growth and low standard of living in rural areas.agriculture growth and low standard of living in rural areas.

Nevertheless, rural areas still make great progress on economy and Nevertheless, rural areas still make great progress on economy and social services, Especially in infrastructure construction, agricultural social services, Especially in infrastructure construction, agricultural technique, fundamental education and medical services.technique, fundamental education and medical services. Late in 1970s, China has succeeded in establishing relatively integrated Late in 1970s, China has succeeded in establishing relatively integrated industry system, there is no need to deprive agricultural operation industry system, there is no need to deprive agricultural operation surplus anymore. surplus anymore. If continue to conduct past measures, it will impair not only rural If continue to conduct past measures, it will impair not only rural development, but also industry itself.development, but also industry itself.


2.2 Agricultural Growth and rural Development2.2 Agricultural Growth and rural Development

19521952 19791979 Annual average Annual average growth rate (%)growth rate (%)

Farming laborFarming labor （（ 10000 persons10000 persons ）） 1931719317 2945229452 2.022.02

Rural laborRural labor （（ 10000 persons10000 persons ）） 1824318243 3102531025 2.002.00

Arable landArable land （（ 10000 ha.10000 ha. ）） 1079210792 99509950 ——0.300.30

Gross output of GrainGross output of Grain （（ 10000 tons10000 tons ）） 1639016390 3321033210 2.502.50

Gross output of Cotton(10000 tons)Gross output of Cotton(10000 tons) 130.4130.4 220.7220.7 2.222.22

Gross output of oil-bearing corps Gross output of oil-bearing corps

(10000 tons)(10000 tons)

372.8372.8 564.1564.1 1.441.44

Gross output of Sugar cane(10000 tons)Gross output of Sugar cane(10000 tons) 759.4759.4 2461.32461.3 4.644.64

Gross output of tea (10000 tons)Gross output of tea (10000 tons) 8.28.2 27.727.7 4.694.69

Gross output of fruits(10000 tons)Gross output of fruits(10000 tons) 244.3244.3 701.5701.5 3.863.86

Growth of agricultural output and resources （ 1952——1979 ）



Output of Pork, Beef and Mutton (10000 Output of Pork, Beef and Mutton (10000 tons)tons)

338.5338.5 1062.71062.7 4.254.25

Output of aquatic products(10000 tons)Output of aquatic products(10000 tons) 167167 431431 3.733.73

Total output value of farming(0.1 billion yuTotal output value of farming(0.1 billion yuan RMB)an RMB)

713.0713.0 1431.51431.5 2.512.51

Total output value of Animal husbandry (0.Total output value of Animal husbandry (0.1 billion yuan RMB)1 billion yuan RMB)

98.798.7 299.5299.5 4.204.20

Total output value of agriculture (0.1 billioTotal output value of agriculture (0.1 billion yuan RMB)n yuan RMB)

858.0858.0 1872.21872.2 2.912.91

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 people’s consumption with arable land area decreasing and total population increasing.

Growth of agriculture output and resources （ 1952——1979 ） (continued)


Agricultural production conditionsAgricultural production conditions

Changes of agriculture technical facilities and production conditions （ 1952——1979 ）

Next slide

Resource: see last table



Total power of agricultural machinery(10000 kTotal power of agricultural machinery(10000 kw)w)

1818 1337913379 27.7127.71

Area of land cultivated by machine(10000 hArea of land cultivated by machine(10000 ha.a. ））

13.613.6 4221.94221.9 23.5823.58

Irrigated area(10000 ha.)Irrigated area(10000 ha.) 1995.91995.9 4500.34500.3 3.053.05

Consumption of chemical fertilizer (10000 Consumption of chemical fertilizer (10000 tons)tons)

7.87.8 1086.31086.3 20.0320.03

Gross output of pesticide(10000 tons)Gross output of pesticide(10000 tons) 0.20.2 53.753.7 22.9922.99

Electricity consumed in rural areas(100 million Electricity consumed in rural areas(100 million kwh )kwh )

0.50.5 282.7282.7 26.5026.50

Number hydropower station in rural areasNumber hydropower station in rural areas 9898 8322483224 28.3028.30

Station of agrotechnical extensionStation of agrotechnical extension 232232 1762217622 17.0717.07

Agrotechnician(10000 persons)Agrotechnician(10000 persons) 1.51.5 32.432.4 11.8711.87


Rural economic structure Rural economic structure

Changes of rural economic structure

（ 1952——1979 ）

Next slide


yearyear Composition of agricultural groComposition of agricultural gross output valuess output value （（ %% ））

Composition of gross output value in Composition of gross output value in rural (%)rural (%)

11 22 33 44 55 66 77 88 99

19521952 83.183.1 0.70.7 11.511.5 0.30.3 93.293.2 4.34.3 2.52.5

19791979 76.576.5 3.23.2 16.016.0 1.41.4 69.269.2 19.319.3 1.71.7 6.56.5 3.43.4

Change Change between between 1952 and 1952 and 19791979

-6.6-6.6 +2.5+2.5 +5.5+5.5 +1.1+1.1 -24-24 +15+15 +1.7+1.7 +6.5+6.5 +0.9+0.9

1: Farming; 2: Forestry; 3: Animal husbandry;4:Fishery Animal husbandry;4:Fishery

5: Agriculture; 6: Industry; 7: transport; 8: construction;9:commerce5: Agriculture; 6: Industry; 7: transport; 8: construction;9:commerce

Resource: see last table

2.2 Agricultural Growth and rural Development2.2 Agricultural Growth and rural Development Agriculture and rural areas have made tremendous contribution Agriculture and rural areas have made tremendous contribution

to national modernization, providing food, raw materials, foreign to national modernization, providing food, raw materials, foreign

exchange, consumption market, capital and labor to industry.exchange, consumption market, capital and labor to industry.

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


DDevelopment of social programs and services in rural areas:evelopment of social programs and services in rural areas:Education and medical service.Education and medical service.

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

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

3.1 backgrounds3.1 backgrounds

3.1.1 Agricultural and rural management system reform 3.1.1 Agricultural and rural management system reform

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

3.Agricultural Growth and Rural Development 3.Agricultural Growth and Rural Development during economic reformduring economic reform

3.1 backgrounds3.1 backgrounds

3.1.1 Agricultural and rural management system reform3.1.1 Agricultural and rural management system reform

B. B. Reform on market circulation of farm products: return to real Reform on market circulation of farm products: return to real price signals, increase the efficiency of agricultural resources price signals, increase the efficiency of agricultural resources distributiondistribution

Lift government direct control on priceLift government direct control on price ；； Expand the variety of traded productsExpand the variety of traded products ；； Lift the constraint on grain market buyer and seller.Lift the constraint on grain market buyer and seller.


3.1 Backgrounds3.1 Backgrounds

3.1.2 Changes of agricultural and rural development policies 3.1.2 Changes of agricultural and rural development policies

Over the past two decades, China shifted from agriculture supporting Over the past two decades, China shifted from agriculture supporting industry to industry repaying agriculture, thus brought about the industry to industry repaying agriculture, thus brought about the integrated development of the two sectors and balance between rural integrated development of the two sectors and balance between rural and urban areas.and urban areas. Concrete measures involved in following areas:Concrete measures involved in following areas: （（ 11 ）） Infrastructure construction in rural areasInfrastructure construction in rural areas （（ 22 ）） agriculture science and technologyagriculture science and technology （（ 33 ）） agricultural support and farmer’s burdenagricultural support and farmer’s burden （（ 44 ）） economic restructuringeconomic restructuring （（ 55 ）） non-farm employment of rural laborsnon-farm employment of rural labors


3.2 3.2 Agricultural Growth and rural DevelopmentAgricultural Growth and rural Development 3.2.1 3.2.1 Agricultural GrowthAgricultural Growth

Gross Output Value

Farming ForestryAnimal Husbandry

Fishery

1952 100 100 100 100 100

1979 221.8 204.2 904.2 286.3 1180.4

1995 602.2 439.7 2298.8 1237.7 8915.6

2002 883.6 591.6 2985.6 2040.5 15518

Gross Output Value indices of Farming, Forestry,

Animal Husbandry and Fishery （ 1952=100 ）


3.2 3.2 Agricultural Growth and rural DevelopmentAgricultural Growth and rural Development3.2.2 Farmer’s income3.2.2 Farmer’s incomePer Capita Annual Net Income (yuan, current prices) and Related Indice

s (1978=100,comparable prices) of Rural Households in China

0

2000

4000

Year

0200

400600

800

Value Index

Value 133.6 191.3 397.6 686.3 1577.7 2253.4 2936.4

Index 100 139 268.9 311.2 383.7 483.5 588.1

1978 1980 1985 1990 1995 2000 2004


3.2 3.2 Agricultural Growth and rural DevelopmentAgricultural Growth and rural Development

3.2.2 Farmer’s income3.2.2 Farmer’s income

Composition of per capita annual total income of rural household

0%

20%

40%

60%

80%

100%

1980 1985 1990 1995 2000 2004

I ncome f rom wages and sal ar i es I ncome f rom househol d operat i ons

I ncome f rom propert i es I ncome f rom t ransf ers


3.2 3.2 Agricultural Growth and rural DevelopmentAgricultural Growth and rural Development3.2.3 Rural economic structure3.2.3 Rural economic structure

Composition of Output Value of Farming, Forestry, Animal Husbandry and Fishery

0%10%20%30%40%50%60%70%80%90%

100%

1980 1985 1990 1995 2000 2004

Farmi ng Forest ry Ani mal Husbandry Fi shery

Composition of Rural Laborers( 10000 persons, see next figure)


0%

10%

20%30%

40%

50%

60%

70%

80%

90%

100%

4 1945. 8 2593. 1 4379. 7 5441. 9165 6102. 4

3 462. 6 693. 2 1170. 4 1751. 8437 2701. 59

2 434. 1 635. 3 983 1170. 5769 1475. 86

Const ruct i on 1130. 1 1522. 8 2203. 6 2691. 6685 3380. 53

I ndust ry 2741 3228. 7 3970. 7 4108. 6373 5438. 9

1 30351. 5 33336. 4 32334. 5 32797. 4981 30596

1985 1990 1995 2000 2004

1= Farming, Forestry, Animal Husbandry and Fishery

2=Transport, Storage, Post and Telecommunication Services Transport, Storage, Post and Telecommunication Services

3=Wholesale, Retail Trade and Catering Services3=Wholesale, Retail Trade and Catering Services

4=Other Nonagricultural trades 4=Other Nonagricultural trades

3.2 3.2 Agricultural Growth and rural DevelopmentAgricultural Growth and rural Development3.2.4 Rural social public service development3.2.4 Rural social public service development

EducationEducation ：：Fundamental education in rural areas in 2004Fundamental education in rural areas in 2004 ：： Senior Secondary school: 2454; student:2.55 million; teachers:136000 Senior Secondary school: 2454; student:2.55 million; teachers:136000

Junior Secondary school: 38095;student:31.68million;teacher:1.63 m Junior Secondary school: 38095;student:31.68million;teacher:1.63 million.illion.

Primary school:0.337 million; student:73.78 million;teacher:3.91 milliPrimary school:0.337 million; student:73.78 million;teacher:3.91 million.on.

Farmer’s adult education:Farmer’s adult education: Farmer specialized secondary school (in 2002): 221,student: 92056,Farmer specialized secondary school (in 2002): 221,student: 92056,teacher:5420.teacher:5420. Farmer technical school:0.192million,stendent:46.84million.Farmer technical school:0.192million,stendent:46.84million. Farmer Secondary school:2502, student: 0.579 million.Farmer Secondary school:2502, student: 0.579 million. Farmer primary school:68000,student: 3.8 million.Farmer primary school:68000,student: 3.8 million.


3.2 3.2 Agricultural Growth and rural DevelopmentAgricultural Growth and rural Development

3.2.4 Rural social public service development3.2.4 Rural social public service development

Medical serviceMedical service ：：Rural township hospital:41626;beds:668863;Medical technical Rural township hospital:41626;beds:668863;Medical technical

personnel:1.03 million.personnel:1.03 million.

Village clinic: 0.552 million, in which, Village clinic: 0.552 million, in which,

run by village collective:0.298millionrun by village collective:0.298million

private:.0.167million.private:.0.167million.

Village doctors and assistants: 0.883million.Village doctors and assistants: 0.883million.

Village doctors and assistants Per village:1.37.Village doctors and assistants Per village:1.37.

Village Doctors & Assistants Per 1000 Rural Population:1.02.Village Doctors & Assistants Per 1000 Rural Population:1.02.

Midwife in rural areas:0.227 million (in 2001).Midwife in rural areas:0.227 million (in 2001).


4. Enlightenments4. Enlightenments

4.1 Economic system4.1 Economic system

properties rights and price signal properties rights and price signal

4.2 Integrated industry system 4.2 Integrated industry system

4.3 Structure optimization 4.3 Structure optimization

4.4 Public policy4.4 Public policy

Documents

Dr. Zhang Huidong International Poverty Reduction Center In China Agricultural Growth and rural Development in China Agricultural Growth and rural Development