Q: What is the structure of the household contract
responsibility system? What changes has the system brought to
China's rural areas?
A: The practice of household contract responsibility was in fact
initiated by a group of farmers in small village in Anhui Province,
central China. The late Chinese leader Deng Xiaoping once termed it
"a great invention of Chinese farmers."
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The system contains two features. First, farmland is still owned by
the public. Second, production and management are entrusted to
individual farming households through long-term contracts. During
the contract period, the farmers pay taxes to the State and
collective reserves to local governments, and keep all the other
produce for themselves.
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The system was so warmly accepted by farmers that by the end of
1983 it had incorporated more than 90 percent of the country's
farming households. The system not only released rural productive
forces but also turned out to be the breakthrough of the rural
reforms.
?
Firstly, the system greatly inspired farmers' production
initiative, sharply increased agricultural output, and raised rural
productivity.
Secondly, large amount of rural labor force was released from
land cultivation and entered village-run factories and township
enterprises, which have evolved into an important sector in the
rural economy.
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Thirdly, the system transformed production mode in rural areas and
changed farmers' lifestyle. It helped elevate farmers from
self-sufficient petty producers to commodity producers and
managers, while promoting the development of rural market.
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Finally, with rapid development of the rural economy, farmers'
living standards have been improved markedly. Many of them are now
living a relatively well-off life.
?
Since the household contract responsibility system was implemented
more than two decades ago, China's agricultural production has bee
increasing at an average annual rate of 6.7 percent, well beyond
the world average. The annual growth rate grain production is 2.7
percent, with total grain output exceeding 500 billion kilograms in
1996, making China the largest grain producer in the world. Output
of cotton, cereals, oil, sugar, meat and milk products has
increased several times over. Per capita consumption of meat, eggs
and milk is either close to or above the world average.
?
In August 2002, the Standing Committee of the ninth National
People's Congress enacted the Rural Land Contracting Law, which
became effective on March 1, 2003. The law provides a legal
guarantee for farmers' long-term and secured land-use rights...