Download e-book for iPad: Agricultural Reform in China: Getting Institutions Right by Yiping Huang

By Yiping Huang

ISBN-10: 0511628587

ISBN-13: 9780511628580

ISBN-10: 0521620554

ISBN-13: 9780521620550

The profitable agricultural reform performed in China within the Seventies all started encountering mounting problems from the mid-1980s, as development charges dropped and costs elevated sharply. This examine analyzes different reform measures brought in China long ago two decades, and offers a whole research of the present agricultural approach. via cautious exam of the political financial system and different coverage techniques, 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 area.

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

Example text

But where could the resources possibly come from for heavy industrial development in a poor agrarian economy? The only answer was from agriculture, although agriculture itself was very vulnerable. The difficulty was that, while massive construction of heavy industry required tremendous resource outflows from agriculture on one hand, stable and increasing supplies of agricultural products were also crucial for the success of industrialisation on the other. Although agricultural development did not stand high on the policy agenda and the government did not have resources for agricultural investment, it was in the interest of the government, aiming at rapid industrialisation, to keep agricultural output increasing at a similar pace to industrial development.

The results suggest that agriculture will not be damaged by free trade. On the contrary, trade liberalisation not only brings higher income and welfare to the whole economy, but also promotes rural development and raises farmers' real income (chapter 8). The objective of economic reform in China is to establish a market economy. Agriculture is an important part of the whole programme and should not be exempt from trade liberalisation. Agricultural reform is important for China not only in the usual sense of income growth and welfare improvement.

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. Third, some farmers held grain to sell at higher prices in the expectation of rising agricultural prices. 7 Japan is regarded as an example of an economy which used heavy agricultural taxes to accumulate resources for industrialisation. Around 1870, the share of land taxes in total government revenue was as high as 70-80 per cent.

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


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