Achievements and Challenges in China’s Rural Development

Li Zhou
Rural Development Institute, Chinese Academy of Social Sciences, Beijing, China

Abstract:  China’s grain output has been growing steadily since the 1980s. After reaching equilibrium of supply and demand with the subsequent moderate surplus in the late 1990s, the output of major agricultural products entered a period of growth deceleration, output stability, and continued increase in per-capita possession of agricultural products. The household contract responsibility system is a major factor contributing to the phenomenal growth in agriculture in the early 1980s. After entering the stage of regular growth rate, crop yield is mainly driven by the selection of superior crop varieties, machinery, irrigation, fertilization, use of ground cover film, and concentration of agricultural production into advantageous areas. Under the combined effect of these factors, the contribution of agricultural total factor productivity (TFP) to agricultural growth has been on the increase. With an expanded scope of employment, farmers are contributing more and more to economic growth. Their income and welfare are improving rapidly as well. In the recent decade, China has made much headway in its policy on the countryside, agriculture and farmers, and the environment for rural development has improved to some extent. However, rural development is still confronted with such challenges as weakening agricultural competitiveness, reduced tillage intensity, difficulties in large-scale farming and lack of cooperation among farmers.
Keywords: agricultural growth, agricultural TFP, income of farmers, welfare of farmers, agricultural competitiveness

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