The restructuring of China’s rural economy began in December 1976, immediately following the third plenary session of the Eleventh Central Committee of the CCP. In the first ten-year period of reform, our rural areas underwent a tremendous transformation, the outstanding success of which attracted worldwide attention. Reform has brought about the conversion of the country’s natural rural economy of selfsufficiency to a system based on the commodity, and thereby opened the way to rural modernisation. The primary aims of reform were (i) to develop a socialist commodity economy; (ii) to promote the modernisation of agriculture; (iii) to increase the wealth and prosperity of rural areas. In practice, the ten-year period of reform witnessed the following measures, aimed at making good the weaknesses of the old structure: reorganisation of the people’s communes; separation of government administration and enterprise management; establishment of a dual-level system of management based on household contract; regulation of industry with the aim of developing a diversity of enterprises; reform of the circulation system; cultivation of a market; encouragement of a variety of flexible economic associations; deployment of mechanisms of price, taxation, credit and the law to regulate the operation of the rural economy and thereby accelerate the process of founding a new system based on a commodity economy.
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- China’s Rural Economic Restructuring
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