Rmb Group Quotes

Between 1978 and 1983, the entire basis of the agricultural economy was changed by the adoption of the “household responsibility system.” The origins of this shift lay in a village in Anhui province, where a group of farmers got together in secret and signed an agreement to dissolve their collective and divide up their farmland into individual plots. This innovation rapidly spread, and the province’s party secretary, Wan Li, realized he was facing a powerful popular revolt against an immiserating system. Rather than crush it, he decided to promote this land-to-the-tiller reform. The party secretary of Sichuan province, Zhao Ziyang, made a similar decision. At the national level, the December 1978 party plenum that launched the reform era raised agricultural prices and gave a blessing to rural collectives experimenting with different ways of management, but it still condemned private farming. By 1980, however, Zhao Ziyang had become premier and Wan Li was vice premier in charge of agriculture policy. Together they rammed through a national policy to disband the communes and return to family farming. By the end of 1982 virtually all agricultural collectives were gone, and family farmers had been assigned rights to cultivate individual plots of land. The effect on agricultural output and farm incomes was spectacular. By 1984 grain output was over 400 million tons, a third higher than it had been just six years before; production of oilseeds and cotton sustained annual growth rates of 15 percent; and meat production was growing by 10 percent a year. Rural per capita income more than doubled between 1979 and 1984. Per capita cash savings by rural families rose from essentially zero in 1979 to 300 renminbi (Rmb) by 1989. Rapid gains in agricultural output and incomes continued throughout the 1980s, as farmers continued to diversify their crops and apply new technologies that increased yields. Use of chemical fertilizer, which had risen gradually in the 1970s, tripled between 1978 and 1990. So did the use of farm machinery, notably pumps, small tractors, and food processing equipment.3