The Economic Role of Agriculture in China

"China's economic miracle" seems to have taken the attention of the whole world, especially when it comes to manufacturing, manufacturing, acquisition, FDI entry into China etc. But do we know of a major sector in the Chinese labor market - the agricultural sector?

The PRC inherited a devastated country, due to the exhaustion of both people committing disasters such as warlords, civil wars, labor, and natural disasters, droughts, famines and floods.

During the Mao era, the Chinese government underwent extensive land reform in rural areas. Farmers with little or no land are given their land, which stimulates their productivity. Overall in Mao's time, Chinese agriculture improved slightly, at times golden as in 1953-57 when the total annual output increased by 4.5% on average.

Under Mao, the role of the agricultural concept was important. The Chinese farmer was basically the equivalent of a blue Soviet woman, so the importance of farmers in the class struggle was paramount.

After 1978 and under the reforms, China introduced a system of domestic contractual obligations, which linked wages and exemptions, and began to dismantle the civil society system, removing communication between state power organizations and economic organizations. Land redistribution to farmers changed the nature of land redistribution and combined farmers' enthusiasm for productivity. As a result, in the six years following 1978, agricultural production grew more than twice as fast as the average growth rate of twenty-five years ago.

These changes have enabled the market to play a key role in improving the supply and demand of agricultural products and the distribution of resources, and have stimulated farmers' ingenuity and productivity.

Overall, China's economic policy reforms since 1978 have benefited agriculture, as it has helped the economy as a whole. However, after 30 years of change, the sector is still lagging behind other sectors in the Chinese economy.

The economic and political role of agriculture in present-day China -

1. Food security. In a very large and populous country like China, the concept of food security is very important. The task of feeding its people has probably been a priority for its rulers throughout history.

2. Political and social stability. Chinese farmers are known to have a “rebellious” spirit, which is well documented in the history books. In times of famine, war, or other extreme conditions, Chinese farmers, who work the majority of the population, and who always have a large group of Chinese people, choose to strike. Therefore, there is a consensus that there is no stability without farmers / agriculture, and in order to avoid "da luan" - great chaos, farmers must be silenced and satisfied. Currently, Chinese farmers are the largest, but most under-represented group, holding the keys to stability in China.

3. Employment tool. The concept of agriculture as a recruitment tool in China is confusing. On the other hand there is a high rate of labor surplus in the agricultural sector, leading to unemployment or unemployment. Agriculture, on the other hand, remains one of the largest industries in the world, and it maintains the social and political order of about 60% of China's population.

4. GDP allocation. Changes in the early 1980's began to increase the share of the agricultural sector. The share of agricultural production in total GDP increased from 30% in 1980 to 33% in 1983. Since then, however, the agricultural share of GDP as a whole has declined equally, and in 2003 it was only 14%. These figures show a very small share in the agricultural sector, yet they are based on the overall performance of the Chinese economy.

What are the biggest obstacles to agriculture in China than?

1. Natural and disaster resources. At the beginning of the 21st century, China still has to contend with many serious environmental / environmental issues, some of the consequences of human error, and some of which are simply the result of the "natural mother" course. The biggest problems are water supply, namely shortage, waste and quality. In the agricultural context, irrigation can be a very important factor.

2. Education. Chinese policy documents state that national modernization depends on accelerating the transformation of the quality of the masses in rural areas, because the large "low" population of rural people hinders the progression from culture, poverty and agrarianism to modernity and prosperity.

3. Technology. The agricultural standard of a country is determined, first and foremost, by the ability of its farmers. Poorly trained farmers are unable to use advanced methods and new technologies. Deng Xiaoping always emphasized the importance of science and technology in agricultural development. He said - "Agricultural development depends first on policy, and secondly on science. There is no limit to the development of science and technology, or the role they can play .... ultimately it is possible for science to provide a solution to our agricultural problems."

Similarly, China seeks the transfer of technology in the agricultural sector, which is made up of joint ventures and international partners.

4. Limited investment from the government. Between the second and fifth five-year programs (1958-1962 and 1976-1980), the agricultural allocation for capital and other appropriate investment initiatives by the government remained slightly above 10%. In 1998 agriculture and irrigation were calculated respectively, less than thsn 2% and 3.5% of all state investment.

5. Limited FDI Income - Foreign Direct Investment. Many sectors in China are enjoying a major FDI entry, which has greatly helped the 2nd largest - technology transfer and capitalization. The shortfall in foreign exchange, coupled with a reduction in local currency, has contributed to the deterioration of the agricultural sector.

In conclusion, the agricultural sector in China, unlike other sectors in the Chinese economy, is still developing, and needs great encouragement from local and international communities. It is my prediction rather than that, most foreign investors will find great power and act accordingly.