Agriculture Reference
In-Depth Information
rural infrastructure. A new rural development strategy—a new socialist
countryside development—was the focus of the 2006 Number One
Document.
The hghlght of the 2007 document was naton-wde abolton of all
agricultural taxes, a plan for increasing investment in agricultural and rural
development in the eleventh Five-Year Plan period and a commitment to
poverty alleviation and other issues such as rural education, sanitation,
healthcare, cultural development and community participation. The 2007
document emphassed the crtcal mportance of modern agrcultural
technques to the new socalst countrysde development.
Conclusions
In this chapter, we have attempted to meet three objectives. First, we
briefly reviewed China's existing agricultural policy, the past performance
of Chna's agrculture and how t changed durng the 20 years of reform
before China's WTO accession. Next, we examined the main features of the
agreement that China committed to in order to join the WTO. Finally, we
briefly reviewed the policy changes since China joined the WTO.
We beleve that one of the most mportant messages from ths chapter s
that, contrary to some opinions, China has begun to adjust to a post-accession
environment. Tariffs have been reduced, many laws have been amended,
publc nvestment portfolos shfted and polcy strateges changed to help
Chna meet ts commtments and assst ts farmers to take on new roles. That
is not to say that the job is over—far from it. The strides that the government
has taken so far show that t understands the role t must play as a member
of the WTO and that t s commtted to lvng up to ts oblgatons.
Most fundamentally, the government's response to WTO accession
nvolves an entre paradgm shft: from drect partcpaton n the economy
to takng on a more ndrect regulatory and fosterng role. The government
has to establsh nsttutons that allow t to create and manage publc goods.
It needs to regulate markets to correct for market falures. It needs to
do the thngs that the prvate sector s not wllng to do and to do those
thngs that wll enhance the productvty of the naton's economc actors.
It also needs to move away from an atttude that Chna's producers need
to produce everythng and establish an environment that foreign irms will
