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New roadmap for rural economic development

By Mao Zheshan (China Daily)
Updated: 2008-10-10 13:54

Where is the way out for agriculture? Why have rural areas, which once served as the engine of the country's reform and opening-up initiative, become a drag on further reform? Why have farmers, once the forerunners of our country's reform, become a disadvantaged group? Carrying these questions, a team of experts from the Chinese Academy of Social Sciences recently made an inspection tour of Jintang, Pixian and Dayi, three counties in Chengdu, capital of Sichuan province, which has made much progress in the comprehensive and coordinated urban-rural development. The purpose of this tour was to probe into the key to Chengdu's success and then popularize its experiences in other regions.

Chengdu once experienced the same process of land system reforms as other regions. During the early period after the founding of New China, the country pushed for a collective land-running system. It later turned out that the highly concentrated production model was seriously hampering farmers' enthusiasm for work although it played a positive role under the special historical period. In 1983, a large-scale campaign was launched nationwide to contract collective land to individual farmers. The new land system injected a new vigor into rural areas.

However, 30 years after the reform and opening-up, enormous changes have taken place in the country's industrial structure and development directions. Compared with industry and tertiary industry, the country's agriculture, which is still in the stage of individual operation, has a much lower output value and added value. This has made farmers vulnerable to ever-increasing competition and various market risks.

To change such a situation for agriculture and farmers, Chengdu once again launched an innovative reform of land system, changing the scattered individual-run model to a collectively-run one. For a coordinated urban-rural development, the city government promoted developing the collective economy on farmers' land and put them under its whole social security and housing programs on the voluntary basis. In some regions that boast of favorable conditions, farmers also set up limited cooperatives on their land and are actively pushing for agricultural industrialization under the support and guidance of the local government and through self-financing.

This model aimed at boosting agricultural development through developing industry and participating in market competition through corporate and collective economic entities. It has increased local farmers' incomes and helped expand employment for local farmers.

Agricultural industrialization is the process of carrying out technological molding of traditional agriculture and promoting agricultural sciences and technologies. It is mainly to develop a market-oriented sector in a certain area under its overall development layout. However, without government guidance and participation, it is very difficult for farmers to realize the goal with their current knowledge and ability to assess the market. After analyzing the basic requirements for agricultural industrialization, the Chengdu municipal government has extended necessary policy and funding support and guidance to farmers and from time to time pushed system innovations according to local situations.

For example, in Jintang, the county government put forward three formulas for rural economic development. On the one hand, it directly advocates contracting collective economic entities to some leading companies and on the other, encourages individual farmers to co-run them with companies or to run them on their own.

Under the auspices of the higher-level government, other counties have also strived to develop their own brand industries different from other regions. In this process, the Chengdu municipal government has paid enough attention to the possible fund shortage. For example, it succeeded in bringing some large-scale agricultural investment projects to local regions after negotiating with Yili and Mengniu, renowned dairy producers. It has also extended substantial support to the development of special cooperative economic organizations and new-type collective economic forms in local areas and actively expanded agricultural investment channels. Now each of its districts and counties has set up different forms of modern agricultural investment companies or township ones.

Targeting some farmers' unwillingness to take out their land for collective economic development, the principle of voluntariness has been adopted and farmers have been given time to feel the tangible benefit of the overall development program.

In the process, changing farmers' inborn land complex and comparatively backward mindset poses the largest challenge to local authorities. Most of Chengdu's local governments have taken into full consideration farmers' actual interests. They have also made great efforts to strengthen their awareness of democratic management and participation to make them really feel about their role in developing and managing local economy.

Agricultural industrialization is the only way out for further agricultural development. To realize the goal needs joint efforts from parties concerned. These include government guidance, optimal allotment of production factors, regulation of social organizations and active participation from farmers.

The author is a researcher with the Institute of Sociology under the Chinese Academy of Social Sciences