By Albert J. Nyberg, Scott Rozelle
"...two concerns stay imperative to the [Chinese] government's rural improvement goals: nutrients safety and poverty relief. China has made outstanding growth in assembly those targets: the economic climate, together with the agricultural quarter, has grown at exceptional premiums in the course of the reform period." whereas China's rural items, enter, hard work, and land markets are bettering, they continue to be nascent. China nonetheless must foster a number of severe associations, akin to an efficient economic method, a extra effective rural economic system, a viable land tenure association, and a made over alternate and funding atmosphere for agriculture. the first goal of this record is to spot and consolidate info on those an important concerns that effect on rural improvement in China. This record assesses strategic thoughts from the viewpoint of potency, equitable improvement, and development. it really is meant to help executive officers and international financial institution employees to prioritize coverage and institutional reforms and public funding judgements within the rural region.
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Extra resources for Accelerating China's rural transformation
While economic growth is clearly associated with poverty reduction, programs for reducing poverty have had mixed success in increasing growth. If poverty programs are to contribute to long-term growth, they must be based on efficiency criteria and add to investment stock. The subsidized credit program for poverty alleviation generally has not reached the poor, achieves low repayment rates, and should be replaced with programs that place funds into the hands of rural households. In some areas, "grassroots" microfinance programs that are able to reduce the transaction costs involved in evaluating projects, issuing loans, and monitoring repayment by using peer monitoring and group lending have succeeded in alleviating poverty.
However, obstacles still prevent farm families from moving to locations that promise them higher returns, particularly features of the urban economy, such as strict prohibitions to job access, urban resident permits, and restricted access to urban services. Rural barriers are less restrictive, although debate continues regarding how land tenure arrangements, quotas, and other institutions affect household decisions to seek employment or residence outside of agriculture. China should make every effort to eliminate the barriers to the movement of labor off the farm.
Despite the rapid emergence of China's markets, problem areas remain, including continued intervention by government grain agencies, incomplete separation of policy and market functions, the continuance of producer quotas, and the high expense involved with a large and costly grain reserve. The marketing channels of the grain bureau continue to incur losses, ex- Page xvii tend overdue loans, and require large subsidiesinefficiencies that result in part from the conflict of their operating commercially while implementing policy directives.
Accelerating China's rural transformation by Albert J. Nyberg, Scott Rozelle