Rural Reform and Peasant Income in China: The Impact of by Ling Zhu

By Ling Zhu

This booklet indicates the influence of the present fiscal reform at the source of revenue improvement of peasant families within the People's Republic of China. The learn was once according to particular info derived from book-keeping documents of the pattern families of some chosen areas in vital China, the nationwide statistical community, neighborhood facts and chronicles. additionally, the elemental instruments of financial research have been utilized to the most difficulties of chinese language rural economic system: advertising and pricing of agricultural enter and output items; structural adjustment; labour productiveness and outmigration; source of revenue distribution; farmer's determination on funding and consuption. this may bring about a greater realizing approximately present improvement of China.

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Sample text

2 million yuan, which was five times that in 1983, with profits of 500 000 yuan. The bulk of the profits were kept for industrial investment within the village. In 1985, for instance, from the accumulated funds, one million yuan was invested in expanding the scale of production of existing enterprises. , one half of electricity costs in agricultural production was paid from this source); village management outlays were also financed from this source. The enterprises play an important role in enabling surplus labour to shift from agriculture to industry and become more productive.

During periods of drought only one motor-pumped well supplies drinking water due to the low groundwater level. It must be emphasized that only about 70 ha of farmland can be irrigated with water from the Yellow River. Since the river flows along the foothills of the uplands, a state investment of one million yuan for sets of irrigation equipment was necessary. However, the equipment is now defective because it was insufficiently used; also little or no maintenance has been carried out since the introduction of the responsibility system.

Per capita net income of peasant households increased by an average of 11 per cent a year within 1978-86, though 3 per cent in 1954-78 at constant prices. 2 The increase in the households' income has also been boosted by non-farm activities that were formerly forbidden in most communes. In 1987 more than 80 million surplus farm labourers were either employed by village or township-owned enterprises or worked as specialists in businesses outside the realms of traditional farming, 18 Rural Reform and Peasant Income in China while about 254 million, that is, 80 per cent of the total rural labour force, remained in the agricultural sector.

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