Life in the Chinese countryside

Introduction

It is often said that one cannot understand China without understanding the peasants - indeed of China's present 1.3 billion citizens, they account for around 8-900 million. In the 50 years since the founding of the People's Republic, peasants lives have changed enormously, and advances have been made in terms of standards of living, particularly following the economic reforms of 1978. Peasants income has increased along with the growth of the economy, but at a rate much slower than that of the urban population. The difference in raw income is presently around 1:2.5, but if public expenditure on hospitals, schools, roads, and pensions etc. is taken into account, this rises to 1:6, and is the widest city-countryside poverty gap in the world.

Founding of the People's Republic

Until the founding of the People's Republic, land outside the cities was controlled by a feudal system, and around 10% of the richest peasants owning 70-80% of the land, which they rented out to the vast majority of landless peasants who were landless or short of land. After the founding of the New China, land reform distributed the land equally among the peasant population, and ownership of their own land motivated the peasants and encouraged agricultural development. However, differing levels of ability in both farming and commerce among peasants naturally led to an increasing poverty gap, and the buying and selling of land reappeared. In order to prevent 'polarization', in 1952 the government began the establishment of agricultural cooperatives; from 1955 these were managed centrally, and profits distributed according to hours worked rather than individual ability to work the land. These reforms saw the peasants lose ownership and control of their land, and caused much damage to the economy. From 1958 the government began reorganizing the peasants into large-scale 'People's communes' across the entire country. Under this system, everything produced belonged to the commune, including any excess produced, eliminating differences in wealth. However the result of this was the crippling of the economy and years of famine and hardship for the peasants themselves.

Policy of 'Openness and Reform' (1978)

The sweeping economic reforms of 1978 dismantled the 'People's commune' system, replacing it with 'household responsibility' system. The system of collective ownership, central management, and mass labour gave way to one of collective ownership and private peasant management. The peasants regained the right to use the land as they pleased, but ownership remained with the state, prohibiting buying and selling of land, but leaving peasants worried that future policy changes could mean giving up the land they presently held.

Economic reforms soon brought about clear improvements in rural life. 30 years of cooperatives and People's communes increased the average income in the countryside from 50 yuan in 1949 to 123 yuan in 1979. Less than 20 years of economic reform increased this figure by a factor of 16, reaching 2162 yuan by 1998. That by the end of 1998, for every hundred rural residents there were 96 televisions, 32 tape recorders, 112 electric fans, and 23 washing machines, gives a clear indication of improvement in living conditions.

Even so, the income divide between rural and urban regions not only remained, but continued to widen. In 1949, the ratio of rural to urban average income was 1:2, and by 1998 1:2.5. But if this ratio is adjusted to include public expenditure on hospitals, schools, roads, and pensions, this rises to 1:6, meaning China presently has the widest city-countryside poverty gap in the world.

Urbanization

Because of the low population density in the countryside, only in population centers such as townships and cities is it possible to develop the service sector of the economy, and establish school, hospitals, etc. Hence encouraging the development of townships is essential to the improvement of rural standard of living.

The reforms of 1978 caused agriculture to lose its comparative advantage, and encouraged the rapid growth of township enterprises. By 2001 these contributed almost 3000 billion yuan to China's GDP, almost 140 times that of 1978.

Township enterprises are one of the driving forces behind urbanization. As clusters of factories are built and develop, they encourage the development of the service industry, and the improvement of basic infrastructure. Township enterprises and settlements have a symbiotic relationship and naturally develop together. From 1978 to 2000, the number of townships increased from 2176 to over 20 000, cities from 190 to 663, clearly indicative of rapid urbanization. By 1995, 15% of the rural population lived in such townships.

Conclusion

From 1949 to the beginning of the 21st century, the countryside has seen many reforms, and peasants lives have changed dramatically. The traditional system of land ownership gave way to People's communes, which themselves were replaced by the household responsibility system.

Increased production and income led to tangible improvements in rural life, and at last brought the peasants out of absolute poverty. At the same time, the growth of township enterprises and migration to towns and cities has brought peasants new choices, and new hopes for the future.

Although economic reform has brought many benefits, it has also created new problems. The divide between rich and poor has hugely increased, and rural areas still lag far behind the cities. The hukou registration system [which identifies every Chinese citizen as being urban or rural, and gives corresponding benefits] still exists, meaning peasants have not yet been granted equality with those living in the cities.

Together with the growth of township enterprises, the building of the service sector of the economy, and the construction of new townships, the countryside is undergoing slow-paced urbanization. This is a crucial stage in the modernization of the Chinese countryside.