The “Chinese economic miracle” seems to have captured the whole world’s attention, especially when it comes to production, manufacturing, sourcing, FDI inflow to China etc’. But do we know about the biggest sector in the Chinese labour market – the managed farmland near bangalore sector?
The PRC inherited a ruined country, exhausted from both man made disasters such as warlords, civil wars, occupation, and natural disasters, droughts, famine, and floods.
During the Mao era, the Chinese government carried out a wide ranging land reform in the rural areas. Farmers with little or no land were given land of their own, significantly arousing their enthusiasm for production. Overall in Mao’s period, China’s agriculture developed slowly, with some golden times such as 1953-57 when the yearly gross output increased by 4.5% on average.
Under Mao, the conceptual role of agriculture was imperative. The Chinese farmer was basically the equivalent to the Soviet blue collar proletarian, thus the importance of the farmers in the class struggle was fundamental.
After 1978 and under the reforms, China introduced the household contract responsibility system, linking remuneration to output, and started to dismantle the people’s commune system, eliminating the links between organizations of state power and economic organizations. Contracting land out to farmers altered the distribution form of land and mobilized the farmers’ enthusiasm for production. As a result, for six years following 1978, agricultural output grew more than twice as fast as the average growth rate over the previous twenty five years.
The reforms made the market play a basic role in adjusting supply and demand situation for agricultural products and allocating resources, and aroused the farmers’ creativeness and enthusiasm for production.
On the whole, the reformist thrust of China’s economic policy since 1978 has benefited agriculture, as it has benefited the economy in general. Nevertheless, after 30 years of reforms, the sector is still behind most of the other sectors in the Chinese economy.