Agriculture transition in China: Experiences and Lessons Learned

Abstract

Agricultural development since the beginning of the reform era has played a vital role in China’s economic transition. First the rural reforms instituted during the household responsibility system period significantly improved agricultural output and productivity while simultaneously lifting hundreds of millions of farmers out of absolute poverty. Secondly, the massive labor flow from rural to urban areas due both to increases in agricultural productivity and systemic policy reforms associated with labor mobility also resulted in significant economic growth. This shift in the workforce is a major factor in explaining China’s success with respect to both industrialization and urbanization. Thirdly, agricultural development, including increases in gross output as well as improved production efficiency, has enabled China to respond effectively to the challenge of feeding 1/5 of the world’s population while relying on only 7% of the world’s arable land. This article summarizes the history of China’s agricultural transition, reviews its major achievements, and analyzes lessons learned.