China's State Council Outlines Rural Reform
Plans
In an effort to narrow the wealth gap between China cities
and countryside, China's State Council, the equivalent
of the Cabinet, has issued a new major policy paper titled
"Document No. 1".
According to the document, rural farmers are under intense
pressure from factories and cities. Many are drawn to
cities where they work as construction labor, and often,
are not paid on a regular basis. Present economic policy
favors urban growth, often at the expense of rural development.
Document No. 1 lists 22 action items aimed at easing
economic pressure on farmers and improving their livelihood.
Some of them are:
- Decrease or abolish almost all taxes on farmers, except
for taxes on tobacco
- Increase prices paid for agricultural products using
the free market, not subsidies
- Encourage farmers to plant products with higher value-added
- Improve the distribution network so their products
can reach market more quickly
- Encourage investment in agricultural enterprises which
are environmentally-friendly
- Study development of export products for agricultural
products
- Bring safety and hygiene to international standards
- Encourage investment in financial services for farmers
- Bring education and communications tools to farmers
so that they are aware of the latest market developments
China's current population is 1.3 billion, and of this
number, more than 1 billion are farmers. Implicitly, the
document encourages investment by foreign and domestic
private enterprises in China's agricultural sector, bringing
modernization to China's farmers.
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