Agriculture Reference
In-Depth Information
04
Rural-urban income disparity
and WTO impact on China's
agricultural sector
Polcy consderatons
Xiaolu Wang and Ron Duncan
Snce the begnnng of agrcultural reform n the late 1970s and early
1980s, grain output in China has increased significantly. The long-standing
problem of grain supply shortages has basically been solved. However, grain
production and pricing are still not fully liberalised and large fluctuations
in grain prices, together with short-term shortages and surpluses of grain,
have occurred several tmes. These events have serously affected farmers'
incomes. Partly as a result, rural-urban income disparities have grown,
partcularly n the 1990s.
In 2001, China entered the World Trade Organization (WTO). Because
of the commtment made to open the domestc market for agrcultural
products, grain imports are increasing rapidly. Domestic grain production
and farmers' ncomes are facng new challenges. Ths chapter examnes
recent developments in rural-urban income differentials, especially in light
of WTO commitments, the appropriateness of related domestic policies such
as grain pricing and urbanisation policies, and the effects of adjustments
of these polces n response to the new challenges.
Agriculture and rural-urban income disparity in China
After half a century of rapid industrialisation, the dominant role of China's
agricultural sector (including farming, forestry, animal husbandry and
