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3 - The rural agricultural labour market

Published online by Cambridge University Press:  22 September 2009

Xin Meng
Affiliation:
Australian National University, Canberra
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Summary

Economic reform began in the Chinese countryside as a result of a grassroots' reaction from those enduring extremely poor living conditions. Between 1976 and 1977, a production team in Anhui province secretly initiated what was, in effect, a partial privatisation movement. The farmers in the team were so impoverished that they did not particularly care if they were caught and punished by the Party. They divided their team's land into equal-sized small pieces on a per capita basis, and each family member was given their share. The production team made contracts with each family. By the end of the year each family was required to pay an amount of grain as taxes to the central and local governments, and the amount of grain required for the so-called ‘collective accumulation’ for the production team, the brigade and the commune. In a radical departure from what had gone on before, the rest of the output was to be family income. Since both production and income distribution systems shrank to the smallest unit where each member's effort was directly rewarded, not surprisingly the total output of the production team more than doubled by the end of the year, and the farmers in the team had enough to eat. Many teams followed the year after, and were all successful at increasing output and family income. At last, the central government realised that this was the only way for Chinese farmers to escape from lifelong poverty and hunger.

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Chapter
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Publisher: Cambridge University Press
Print publication year: 2000

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  • The rural agricultural labour market
  • Xin Meng, Australian National University, Canberra
  • Book: Labour Market Reform in China
  • Online publication: 22 September 2009
  • Chapter DOI: https://doi.org/10.1017/CBO9780511492631.005
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  • The rural agricultural labour market
  • Xin Meng, Australian National University, Canberra
  • Book: Labour Market Reform in China
  • Online publication: 22 September 2009
  • Chapter DOI: https://doi.org/10.1017/CBO9780511492631.005
Available formats
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Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

  • The rural agricultural labour market
  • Xin Meng, Australian National University, Canberra
  • Book: Labour Market Reform in China
  • Online publication: 22 September 2009
  • Chapter DOI: https://doi.org/10.1017/CBO9780511492631.005
Available formats
×