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. Introduction1. Introduction• 2. Development of the 2. Development of the Primary industry in in

ChinaChina• 3.Cases discussion3.Cases discussion

1. Introduction1. Introduction

• Industry involved with extraction and collection of natural resources.

– agriculture/farming ,– forestry, – grazing, – fishing

* National Economic Industrial Classification （ GB/T4754-2002）

Grain production bases in china

Outline

• 1. Introduction1. Introduction• 2. Development of the Primary industry in 2. Development of the Primary industry in

ChinaChina• 3.Cases discussion3.Cases discussion

Socialist transformation in 1958

• State-owned economy

Founded in 1949 Reform and opening up in 1978

• Collective economy

• Foreign economy

• Individual economy

2.1 Social economy

• Private owned economy (weak)

• Foreign economy

• Bureaucrat capitalism economy

• Farmers and handicraftsman

Left

• State-owned economy

Protected• Private owned

economy

Protected • Individual economy

• Collective economy

Purchased

• State-owned economy

•Sino-foreign economy

• Private owned economy

Purchased

2. Development of the Primary2. Development of the Primary industry in industry in ChinaChina

First stage Second stage Third stage

Landowner owned the land and most farmers had no land.

Farmers owned land.

People's communes, production brigades and production teams owned land.

The household contract responsibility system

• Feudalism economy

Confiscated

Confiscated

2.1 First stage: national economic recovery period

2. Development of the Primary2. Development of the Primary industry in industry in ChinaChina

Land was confiscated from the landowners and allocated to farmers.

Horses were allocated to farmers as production tools.

2. Development of the Primary2. Development of the Primary industry in industry in ChinaChina

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 Primary2. Development of the Primary industry in industry in ChinaChina

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 Primary2. Development of the Primary industry in industry in ChinaChina

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 communegave a performance to the people in Old People's Home.

2. Development of the Primary2. Development of the Primary industry in industry in ChinaChina

2.4 Third stage: reform and opening

Remembrance sculpture of the household contract responsibility system

First contract of the household contract responsibility system

.

2.4.1 China’s reform started from the countryside

2. Development of the Primary2. Development of the Primary industryindustry in in ChinaChina

Resource: Statistic data from National Bureau of Statistics of China

Fig 1. GDP of Primary industry increasing (100 million RMB Yuan)

2.4.1 China’s reform started from the countryside

2.4 Third stage: reform and opening

2. Development of the Primary industry in 2. Development of the Primary industry in ChinaChina

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%

Tab 1. Proportion in China’s GDP

Resource: Statistic data from National Bureau of Statistics of China

2.4.1 China’s reform started from the countryside

2.4 Third stage: reform and opening

2. Development of the Primary2. Development of the Primary industry in industry in ChinaChina

Resource: Statistic data from National Bureau of Statistics of China

Fig 2. Sown Areas and output of Grain Crops

2.4.1 China’s reform started from the countryside

2.4 Third stage: reform and opening

2. Development of the Primary2. Development of the Primary industryindustry in in ChinaChina

Resource: Statistic data from National Bureau of Statistics of China

Fig 3. Amount of the employees working in Primary industry (Ten Thousand)

2.4 Third stage: reform and opening

2.4.2 Employment in primary industry

2. Development of the Primary2. Development of the Primary industryindustry in in ChinaChina

2.4 Third stage: reform and opening

2.4.3 Collective ownership of the land

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.

The collective(village) own the land and farmers(villagers) obtain land use rights by contract.

2. Development of the Primary2. Development of the Primary industry in industry in ChinaChina

2.4 Third stage: reform and opening

New village in Shandong.

2.4.4 New village construction.

New village in Anhui.

• Development of production; • Affluent life; • Civilization; • Tidy and clean village; • Democratic management

2. Development of the Primary2. Development of the Primary industry in industry in ChinaChina

2.4 Third stage: reform and opening

Villagers are voting for the officers of the villagers’ committee.

2.4.4 New village construction.

2. Development of the Primary2. Development of the Primary industry in industry in ChinaChina

2.4 Third stage: reform and opening

2.4.4 Income of Rural Households: Inequality between regions

Fig 4 Per Capita Net Income of Rural Households by Region in 2009

11668.5911668.59

12482.9412482.94

6906.936906.93

10007.3110007.31

5206.765206.76

2980.102980.10

3531.723531.72

4937.804937.80

3883.103883.10

3369.343369.34

2. Development of the Primary2. Development of the Primary industry in industry in ChinaChina

2.4 Third stage: reform and opening

2.4.4 Income of Rural Households : Inequality between rural and urban

Fig 5 Per Capita Annual Income comparison