Agriculture Reference
In-Depth Information
Growth and nsttutonal reform
Thanks to the mplementaton of market-orented reform and openng-up
policies, Chna's economy acheved remarkable growth durng the last 20
years or so. Nominal per capita GDP grew from 379 yuan to 6,534 yuan
during the period of 1978-99. Real GDP per capita in 1999 was 5.22 times
as high as that in 1978, recording an average annual growth rate of 8.2 per
cent (China Statistical Yearbook 2000:53, 56). Rural residents' income per
capita increased from 133.6 yuan in 1978 to 2,210.3 yuan in 1999 (China
Rural Statistical Yearbook 2000:249). Deflated by the retail price index, the
average annual ncome growth rate for rural populaton was 7.5 per cent.
Both urban and rural residents benefited from the enormous economic
growth; however, rural income has grown more slowly. As a result, the
ncome gap between rural and urban households has wdened. Wthn the
rural population, the income gap between the east, middle and west regions
has also ncreased. The ncome nequalty between rural and urban areas
and between the rural regons has rased concern among polcymakers and
the general publc.
Producton of major food and other agrcultural products has ncreased
at different rates over the last 20 years or so (Table 3.3). Bulk agricultural
products such as grain and cotton grew at rates of less than 3 per cent
per annum during the period, in part because the growth in demand for
consumpton of the products has been relatvely low. Output of other
products such as fruit, meats and aquatic products increased more quickly;
agan because of changes n dets towards these products as ncomes
ncreased. In contrast to the wdespread concern about severe shortages
in the supply of grain and other agricultural products in the late 1980s
and the mid 1990s, China's agricultural sector has been facing problems
of oversupply n recent years.
Of many factors behnd the unprecedented growth n Chna's agrcultural
sector, two have been critically important. One is the technological progress
that has fundamentally changed the agrcultural producton functon. The
other s the market orented reform that has provded ncentves for farmers
to work harder and better. The past performance of the Chnese agrcultural
sector s suggestve n gaugng the growth potental of Chnese agrculture.
If t can be assumed that technologcal progress n agrculture wll not halt
and the market reform will not be reversed, China's agricultural system
