Monday, January 25, 2016

The "Chinese economic miracle" seems to have captured the world's attention, especially when it comes to the production, manufacture, supply, FDI flows to China, etc '. But we know the most sector important in the Chinese labor market - the agricultural sector?

The PRC inherited a country in ruins, both exhausted man-made disasters, such as warlords, civil wars, occupation and natural disasters, drought, famine and floods.

Farmers with little or no land were given land itself, greatly arousing their enthusiasm for production. Overall, in the period of Mao, China's agriculture is growing slowly, with a few golden moments in 1953 to 1957 when the gross annual production increased by 4.5% on average.

Under Mao, the conceptual role of agriculture was imperative. Chinese farmer was basically the equivalent of the proletarian Soviet blue collar, hence the importance of farmers in the class struggle was crucial.

After 1978, and as part of the reforms, China introduced the system of responsibility of household contract, linking remuneration to output, and began to dismantle the system of the common people, eliminating the links between organizations of power State and economic organizations. Hiring land to farmers changed the shape of the distribution of land and mobilized the enthusiasm of farmers for production. Reforms to the market play a key role in the adjustment of the position of the allocation of agricultural resources and supply and demand, and awakened the creativity and enthusiasm of farmers for production.

Overall, the momentum of the reform of economic policy in China since 1978 has benefited from agriculture because it benefited the economy in general. However, after 30 years of reforms, the sector is still behind most other sectors of the Chinese economy.

The economic and political role of agriculture in contemporary China -

1. The food security. In an extremely large and populous countries such as China, the concept of food security is of paramount importance.

2. The political and social stability. China Farmers are known to have a "rebellious spirit", which is well documented in the history books. When hunger, war or other extreme conditions, took place, China's farmers, who use to be the majority of the population, and continue to be the largest group of people in China, has chosen attack. So there is a consensus that there is no stability without farmers / agriculture, and to avoid the "luan" - great chaos, farmers must be kept quiet and content. Today, again, farmers in China are the largest, but the group, which holds the key to stability in China underrepresented.

The concept of agriculture as a tool in China is somewhat of a paradox. On the one hand, there is a massive range of surplus labor in the agricultural sector, resulting in underemployment or even unemployment. 4. Share of GDP. Reforms in the 1980s initially increased the relative share of the agricultural sector. The share of agriculture in total GDP increased from 30% in 1980 to 33% in 1983. Since then, however, the share of agriculture in total GDP declined fairly steadily, and in 2003 it was only 14%. These figures indicate a relatively small share of the agricultural sector, however, a remarkable overall performance of the Chinese economy.

What are the main obstacles for agriculture in China that?

1. The resources and natural disasters.

2. Education. Chinese state policy documents of the national modernization depends accelerate the shift quantity-quality in the area, as a large rural population "low quality" hinders the progress of tradition, poverty and agrarianism to modernity and prosperity .

3. Technology. The pattern of agriculture of a country is assessed, first, by the competence of its farmers. Poorly trained farmers are not able to apply advanced methods and new technologies. Deng Xiaoping has always stressed the importance of science and technology in agricultural development. provide a solution to our agricultural problems. "

Thus, China is the technology transfer research in the agricultural sector, formed by joint ventures with international collaborators.

4. Limited government investment. In 1998, agriculture and irrigation accounted thsn least 2% and 3.5% of all investments in state construction.

5. Limited access FDI - Foreign Direct Investment. Most sectors in China enjoy a huge entry of FDI, which contributed particularly in two dimensions - technology transfer and the availability of capital. The lack of external financing, accompanied by a reduced local funding contributed to the deterioration of the agricultural sector.

In conclusion, the agricultural sector in China, unlike other sectors of the Chinese economy is still fairly underdeveloped and needs a strong boost to both the local and the international community.