Social Economy Development Primary industry in China

Social Economy Development Primary industry in China

Three key industrial economic sectors • Primary (raw materials) industry • Secondary (goods production) industry • Tertiary (service) industry Allan. G. B. Fisher. The Clash of Progress and Security ， London： Macmillan， 1935.

Outline • 1. Introduction • 2. Development of the Primary industry in China • 3. Cases discussion

1. Introduction • Industry involved with extraction and collection of natural resources. – – agriculture/farming , forestry, grazing, fishing Grain production bases in china * National Economic Industrial Classification （GB/T 4754 -2002）

Outline • 1. Introduction • 2. Development of the Primary industry in China • 3. Cases discussion

2. Development of the Primary industry in China 2. 1 Social economy Founded in 1949 • Foreign economy Left Socialist transformation in 1958 Reform and opening up in 1978 First stage • Bureaucrat Confiscate • State-owned capitalism d economy Landowner economy owned the land Protected and most • Private owned farmers economy had no (weak) land. Farmers owned land. • Private owned economy ha c ur P • State-owned ed People's communes, has economy c production brigades and production Pur teams owned land. • Feudalism Co economy nfis ca te Protected d • Farmers and handicraftsman • State-owned Third stage economy Second stage s ed • Private owned economy • Sino-foreign The household economy contract responsibility • system Foreign economy • Individual economy • Collective economy

2. Development of the Primary industry in China 2. 1 First stage: national economic recovery period Land was confiscated from the landowners and allocated to farmers. Horses were allocated to farmers as production tools.

2. Development of the Primary industry in China 2. 3 Second stage: Great leap forward, Economic adjustment and Cultural revolution Township governments were replaced by people's communes A celebration of the establishment of a people's commune.

2. Development of the Primary industry in China 2. 3 Second stage: Great leap forward, Economic adjustment and Cultural revolution Lunch time of a people's commune. The kitchen of a people's commune.

2. Development of the Primary industry in China 2. 3 Second stage: Great leap forward, Economic adjustment and Cultural revolution Poster of People's communes Children from the kindergarten of a People's commune gave a performance to the people in Old People's Home.

2. Development of the Primary industry in China 2. 4 Third stage: reform and opening 2. 4. 1 China’s reform started from the countryside Remembrance sculpture of the household contract responsibility system . First contract of the household contract responsibility system

2. Development of the Primary industry in China 2. 4 Third stage: reform and opening 2. 4. 1 China’s reform started from the countryside 40000 35226 35000 30000 25000 22420 20000 14945 15000 12136 10000 5000 0 5062 1028 1978 1990 1995 2000 2005 2009 Fig 1. GDP of Primary industry increasing (100 million RMB Yuan) Resource: Statistic data from National Bureau of Statistics of China

2. Development of the Primary industry in China 2. 4 Third stage: reform and opening 2. 4. 1 China’s reform started from the countryside Tab 1. Proportion in China’s GDP Primary Secondary Tertiary 1978 28. 2% 47. 9% 23. 9% 1990 27. 1% 41. 3% 31. 5% 2000 15. 1% 45. 9% 39. 0% 2005 12. 2% 47. 7% 40. 1% 2009 10. 3% 46. 3% 43. 7% Resource: Statistic data from National Bureau of Statistics of China

2. Development of the Primary industry in China 2. 4 Third stage: reform and opening 2. 4. 1 China’s reform started from the countryside 600. 0 530. 8 500. 0 400. 0 304. 8 300. 0 Output(Billion tons) 200. 0 Sown Area(Billion hectares) 120. 6 109. 0 100. 0 1978 2009 Fig 2. Sown Areas and output of Grain Crops Resource: Statistic data from National Bureau of Statistics of China

2. Development of the Primary industry in China 2. 4 Third stage: reform and opening 2. 4. 2 Employment in primary industry 38914 40000 35000 36043 33970 29708 28318 30000 25000 20000 17317 15000 10000 5000 0 1952 1978 1990 2005 2009 Fig 3. Amount of the employees working in Primary industry (Ten Thousand) Resource: Statistic data from National Bureau of Statistics of China

2. Development of the Primary industry in China 2. 4 Third stage: reform and opening 2. 4. 3 Collective ownership of the land The collective(village) own the land farmers(villagers) obtain land use rights by contract. 1. Can urban residents buy a house on rural collective owned land? No, the rural land use right can be sold only to other villagers of the same village. 2. Can land contractual use rights be subcontracted, exchanged or sold? Can it be mortgaged? It can be subcontracted, exchanged or sold from 2007, but it can not be mortgaged.

2. Development of the Primary industry in China 2. 4 Third stage: reform and opening 2. 4. 4 New village construction. • Development of production; • Affluent life; • Civilization; • Tidy and clean village; • Democratic management New village in Shandong. New village in Anhui.

2. Development of the Primary industry in China 2. 4 Third stage: reform and opening 2. 4. 4 New village construction. Villagers are voting for the officers of the villagers’ committee.

2. Development of the Primary industry in China 2. 4 Third stage: reform and opening 2. 4. 4 Income of Rural Households: Inequality between regions 4937. 80 2980. 10 5206. 76 3883. 10 3531. 72 3369. 34 11668. 59 12482. 94 10007. 31 6906. 93 Fig 4 Per Capita Net Income of Rural Households by Region in 2009

2. Development of the Primary industry in China 2. 4 Third stage: reform and opening 2. 4. 4 Income of Rural Households : Inequality between rural and urban 18000 15780. 76 16000 14000 12000 10493 10000 Urban Households 8000 Rural Households 6280 6000 4760. 62 3254. 9 4000 2000 1510. 2 343. 4 133. 6 2253. 4 686. 3 0 1978 1990 2005 Fig 5 Per Capita Annual Income comparison 2008