Lec 5 : Agriculture Development

agricultural collectives

production : collective labor, working poiint system

allocation; the procurement system state, collective, farmers

1978-1984 : Household Production Responsibility System

agricultural collectives were replaced, and households became a relatively independent economic unit contracting the collective land

they carry out production and management independently according to the contract

except for the part paid to the collective and state following the contract, all income is attributed to farmers

the increases in procurrement prices of crops since 1978

between 1962-1978 the price of grain remained almost unchanged , after the reforms the proces of crops increased

HPRS : why porductivity increased

agricultural colectives; two challenges

1) incentive challenge

• a working point system

• however, work effort is hard to be monitored in agriculture, individual families were not the residual claimants of production,

2) the knowledge challenge

• decision making was concentrated, in the hands of collective leaders who often were somewhat removed from day to day production and had limited access to information

the rural breakthrough also lead to rural industrialization

the number of workers in township and village entreprises locally ryn factories, increased rapiidly, and outut from this sector surged

→ farmers can allocate their own labor in the way they wanted, famers boosted output whil reducing the number of days spent in the grain fields = rural industrialization

The Green Revolution : technology

an integrated package of modern inputs that dramatically increased agricultural output

→ transforms each element by the systematic application of scientific method

• improved seeds, : farmer seed selection is transformed into systematic breeding programs

• chemical fertilizer instead of organic ones

• irrigation is mechanized by the installation of pumps

→ complementary inputs : implemented together to achieve maximum efficiency

agricultural technology centers

was reliable in supplying new generation sof seeds to farmers, the hybrid varieties ca be effectively disseminate to farmers

agriculture motive power : 1950s

during 1950s

• draft animals, oxen, horses, mules and camels, were attractive because anumals not only could pull the plough but also could produce organoc fertilizers; provide transport, and be an emergencu food supply

1977

• animal power was more important than mehcanical power

since then

• machines have steadily taken over from animals,

structural change: grain crops → diversification

the agricultural sector has steadily transformed itself from a grain first sector to one that is producting frowing amounts of higher-valued cash crops, horticultural goods, and livestory, and aquaculture products

shofting consumption preferences

higher income created a demand from more diverse food products

china’s agriculture diversification and specialization

specialization and inter-regional trade

• increased productiive efficiency since different crops are suited to different types of terrain

• trade gains : the large economy in china can achieve efficiency gains by having different localities specialize in crops to which they are especially well suited and then trade with other localities

rural incomes

have steadiliy increased

• rising productivity,

• increasing specialization

• production of higher value crops and livestock

• the expansion of off-farm work

but rising inequality

agriculture sector in the economy

the sector grew in absolute size

the sector falls in the relative importance in the overall economy in terms of both output value and employment