Agricultural policy Agricultural policy formulation in Chinaformulation in China

Ye XingqingYe Xingqing(Research Department of Rural (Research Department of Rural Economy,Research Office of the Economy,Research Office of the

State Council)State Council)

A miracle—agricultural A miracle—agricultural development in Chinadevelopment in China

I ndex of Total Output Val ue ofFarmi ng, Forestry, Ani mal Husbandry and Fi shry

0100200300400500600700

Grai n(10000 tons)

30000350004000045000500005500060000

I ndex of Per Capi ta I ncome of Rural Househol d

0

200

400

600

800

1000

1200

Rural Poverty I nci dence i n PRC

05

101520253035

Why China’s agriculture Why China’s agriculture succeeded?succeeded?

China’s economic success is closely related to its China’s economic success is closely related to its agricultural success which is the result of policy agricultural success which is the result of policy success. success.

For more than three decades, as China’s For more than three decades, as China’s industrialization, urbanization, marketization industrialization, urbanization, marketization develops and China becomes more open to the develops and China becomes more open to the outside world, the Chinese government has been outside world, the Chinese government has been adjusting its agricultural policies.adjusting its agricultural policies.

Deng Xiaoping :” Agriculture development depends Deng Xiaoping :” Agriculture development depends first, on policy and second, on science. first, on policy and second, on science.

Agricultural policy includes:Agricultural policy includes: Land policyLand policy ：： 250 million households replaced more than 250 million households replaced more than

4million production teams and became the major force behind 4million production teams and became the major force behind agricultural production and management agricultural production and management

Distribution policyDistribution policy ：： complete marketization of agricultural complete marketization of agricultural products and materialsproducts and materials

Trade policyTrade policy ：： improved market accessimproved market access

Taxation policy: agricultural tax has been abolishedTaxation policy: agricultural tax has been abolished

Subsidy policySubsidy policy ：： 140.6billion yuan in 2011140.6billion yuan in 2011

Investment policyInvestment policy ：： agricultural investment accounts for 9% agricultural investment accounts for 9% of the fiscal expenditureof the fiscal expenditure

Agricultural policy documentsAgricultural policy documents CPC or the government issues the CPC or the government issues the

documents, which is efficient and time-documents, which is efficient and time-saving, e.g. the well-known No.1 Document.saving, e.g. the well-known No.1 Document.

Policies proved to be mature and approved Policies proved to be mature and approved by relevant parties can become national by relevant parties can become national regulations (passed by the State Council and regulations (passed by the State Council and signed by the Premier) or laws(passed by signed by the Premier) or laws(passed by the NPC and signed by the President).the NPC and signed by the President).

Administrative and local rulesAdministrative and local rules

What helped in the agricultural What helped in the agricultural policy formulation?policy formulation?

Creative practices at the grassroots level and explorationCreative practices at the grassroots level and exploration

Pilot projects and top-level design of the reformPilot projects and top-level design of the reform

Researches and investigations by officials at all levelsResearches and investigations by officials at all levels

Suggestions from the intellectual elitesSuggestions from the intellectual elites

Foreign experiences and international norms: dozens of Foreign experiences and international norms: dozens of laws and regulations including the laws and regulations including the Law on Agriculture Law on Agriculture have have been consolidated since China’s WTO entry. been consolidated since China’s WTO entry.

What factors need to be What factors need to be considered? considered?

Balance long-term goals and Balance long-term goals and immediate needsimmediate needs

Balance the market mechanism and Balance the market mechanism and the role of governmentthe role of government

Balance inclusiveness and Balance inclusiveness and exclusivenessexclusiveness

What are the challenges?What are the challenges?

How to continue to increase farmers’ income: How to continue to increase farmers’ income: urban and rural income ratio reached 3.13:1 in urban and rural income ratio reached 3.13:1 in 20112011

How to expand agricultural operations: improve How to expand agricultural operations: improve the land institution to balance farmers’ rights and the land institution to balance farmers’ rights and interests and efficiencyinterests and efficiency

How to slow down the decrease of the self-How to slow down the decrease of the self-sufficiency ratio of agricultural production: 98% in sufficiency ratio of agricultural production: 98% in 2001 and 91% in 2011. 2001 and 91% in 2011.

Experiences and lessonsExperiences and lessons

Prioritize agricultural developmentPrioritize agricultural development Create incentives for producersCreate incentives for producers Create favorable public policyCreate favorable public policy Gradually realize marketization and Gradually realize marketization and

trade-liberalizationtrade-liberalization

Thank youThank you