Agricultural policy formulation in China Ye Xingqing (Research Department of Rural Economy,Research Office of the State Council)

A miracle—agricultural development in China

Why China’s agriculture succeeded? China’s economic success is closely related to its agricultural success which is the result of policy success. China’s economic success is closely related to its agricultural success which is the result of policy success. For more than three decades, as China’s industrialization, urbanization, marketization develops and China becomes more open to the outside world, the Chinese government has been adjusting its agricultural policies. For more than three decades, as China’s industrialization, urbanization, marketization develops and China becomes more open to the outside world, the Chinese government has been adjusting its agricultural policies. Deng Xiaoping :” Agriculture development depends first, on policy and second, on science. Deng Xiaoping :” Agriculture development depends first, on policy and second, on science.

Agricultural policy includes: Land policy ： 250 million households replaced more than 4million production teams and became the major force behind agricultural production and management Land policy ： 250 million households replaced more than 4million production teams and became the major force behind agricultural production and management Distribution policy ： complete marketization of agricultural products and materials Distribution policy ： complete marketization of agricultural products and materials Trade policy ： improved market access Trade policy ： improved market access Taxation policy: agricultural tax has been abolished Taxation policy: agricultural tax has been abolished Subsidy policy ： 140.6billion yuan in 2011 Subsidy policy ： 140.6billion yuan in 2011 Investment policy ： agricultural investment accounts for 9% of the fiscal expenditure Investment policy ： agricultural investment accounts for 9% of the fiscal expenditure

Agricultural policy documents CPC or the government issues the documents, which is efficient and time- saving, e.g. the well-known No.1 Document. CPC or the government issues the documents, which is efficient and time- saving, e.g. the well-known No.1 Document. Policies proved to be mature and approved by relevant parties can become national regulations (passed by the State Council and signed by the Premier) or laws(passed by the NPC and signed by the President). Policies proved to be mature and approved by relevant parties can become national regulations (passed by the State Council and signed by the Premier) or laws(passed by the NPC and signed by the President). Administrative and local rules Administrative and local rules

What helped in the agricultural policy formulation? Creative practices at the grassroots level and exploration Creative practices at the grassroots level and exploration Pilot projects and top-level design of the reform Pilot projects and top-level design of the reform Researches and investigations by officials at all levels Researches and investigations by officials at all levels Suggestions from the intellectual elites Suggestions from the intellectual elites Foreign experiences and international norms: dozens of laws and regulations including the Law on Agriculture have been consolidated since China’s WTO entry. Foreign experiences and international norms: dozens of laws and regulations including the Law on Agriculture have been consolidated since China’s WTO entry.

What factors need to be considered? Balance long-term goals and immediate needs Balance long-term goals and immediate needs Balance the market mechanism and the role of government Balance the market mechanism and the role of government Balance inclusiveness and exclusiveness Balance inclusiveness and exclusiveness

What are the challenges? How to continue to increase farmers’ income: urban and rural income ratio reached 3.13:1 in 2011 How to continue to increase farmers’ income: urban and rural income ratio reached 3.13:1 in 2011 How to expand agricultural operations: improve the land institution to balance farmers’ rights and interests and efficiency How to expand agricultural operations: improve the land institution to balance farmers’ rights and interests and efficiency How to slow down the decrease of the self- sufficiency ratio of agricultural production: 98% in 2001 and 91% in How to slow down the decrease of the self- sufficiency ratio of agricultural production: 98% in 2001 and 91% in 2011.

Experiences and lessons Prioritize agricultural development Prioritize agricultural development Create incentives for producers Create incentives for producers Create favorable public policy Create favorable public policy Gradually realize marketization and trade-liberalization Gradually realize marketization and trade-liberalization

Thank you