Saturday, March 8, 2008

History of agriculture in the People’s Republic of China

China has the world’s largest agricultural economy and one of the most varied. The nation stands first among all others in the production of rice, cotton, tobacco, and hogs and is a major producer of wheat, corn, millet, tea, jute, and hemp. This wide range of crops is possible because of the country’s varied climate and agricultural zones. China participates on a large scale in international agricultural markets, both as an exporter and as an importer. A successful agricultural sector is critical to China’s development. First, it must feed more than 1.3 billion people, about 21 percent of the world’s population, using only 7 percent of the world’s arable land. Second, it must provide raw materials for the industrial sector. Third, agricultural exports must earn the foreign exchange needed to purchase key industrial and technological items from other countries.

China has historically struggled to feed its large population. In 20th century, the famine gradually destroyed China’s population. Huge always was invested with emphasis in the agricultural production, but the weather, the war, have frequently relaxed the good intention with politics. Reforms the outset in 70’s later periods, the agricultural relative share (gross domestic product) starts in the gross national product to increase year after year. From revealed the driving rise in price to pay the crops and a trend toward the privatization in the agriculture, the agricultural product increased from 30% GDP in 1980 to 33% gross national product in 1983. From then on, however, the agriculture reduced its share simultaneously the service sector to increase in the economy.

This sector rapidly appeared in 1978 to start since the reform in the rural area. The main reform is: The family contractual liability system, restores to the farmer right use land, the arrangement agriculture factory work, with processes their product; The cancellation condition sale agricultural product monopolizes, with to mostly price regulation agriculture and auxiliary product; Abolishes many restrictive policies, allows the farmer to appear the diverse enterprise and establishes the small town enterprise in order to fires at their enthusiasm is the production. The reform liberated and develops the countryside to have the productive forces the strength, is promoted the agricultural rapid growth - especially in the grain production - and the agricultural structure optimization. In the 90’s, China’s agriculture and the rural economy have faced the unprecedented difficulty and the challenge. But the development momentum basically maintained has been quite good still, with most products in surplus and supplies and demand in balance every year. The year 2004 is a turning point, with 469.47 million tons grains productions, reverses 5 year decline. Now China leads the world in the grain, the cotton, the oil-pressing plant, the fruit, the meat, the egg, the aquatic product and the vegetable product.

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