Home · Weather · Forum · Learning Chinese · Jobs · Shopping
Search This Site
China | International | Business | Government | Environment | Olympics/Sports | Travel/Living in China | Culture/Entertainment | Books & Magazines | Health
Home / Government / Opinion Tools: Save | Print | E-mail | Most Read
Farmers' income growth
Adjust font size:

A bumper harvest and rising food prices should, in theory, help narrow the income gap between the urban and rural population. Yet, a 7-percent increase in farmers' net income this year will not be enough to stop that gap from widening.

Policymakers who are fixated on high inflation should devote more efforts to speed up income growth for farmers.

The agricultural authorities announced recently that China would produce more than 500 billion kg of grain in 2007, the fourth consecutive year of yield growth. Meanwhile, food prices have soared 18.2 percent, driving the nation's consumer price index to an 11 year-high of 6.9 percent in November.

Under such circumstances, it is natural to expect a handsome rise in farmers' income. But the agricultural authorities' forecast put farmers' annual per-capita net income growth at only 7 percent.

Such an increase, in itself, continues the momentum of income growth for farmers. Net income among the rural population rose by more than 6 percent in each of the past three years, a record since 1985.

Nevertheless, it falls further behind income growth for urban residents as the later keeps picking up steam. After seeing an increase of 10.4 percent in real terms after adjusting for inflation last year, urban per capita disposable income surged 13.2 percent in the first three quarters this year.

The gap in the income growth rates has led a yawning wealth disparity between urban and rural population. The income of urban residents in 2006 was 3.28 times that of rural ones, up from 3.22 in 2005 and 3. 21 in 2004. It is a pity that in such a year of bumper harvests and price gains for farm produce, the urban-rural income gap has not been narrowed.

The bitter fact highlights the complexity and urgency of the task to raise farmers' income.

At the annual central rural work conference, the authorities made it a major task to facilitate a sustained income growth for farmers next year.

However, given the priority the government has attached to fighting serious inflation, policymakers will have to weigh very carefully the benefit of higher grain prices for farmers against the necessity to rein in overall price hikes.

To raise farmers' real net income, on one hand, the government may need to provide more fiscal support to better cushion poor urban families against higher food prices. On the other hand, it should also take measures to prevent production costs for farming from rising too fast.

(China Daily December 26, 2007)

Tools: Save | Print | E-mail | Most Read

Username   Password   Anonymous
China Archives
Related >>
- Top priorities of rural development in 2008
- Rural development, farmer income growth stressed
Most Viewed >>
-China works to limit snow-related chaos
-No effort spared, President Hu says
-Chinese Servicemen to Wear New Uniforms
-New commander for PLA Hong Kong Garrison appointed
-Farmers' income growth
Questions and Answers More
Q: What kind of law is there in place to protect pandas?
A: In order to put the protection of giant pandas and other wildlife under the law, the Chinese government put the protection of rare animals and plants into the Constitution.
Useful Info
- Who's Who in China's Leadership
- State Structure
- China's Political System
- China's Legislative System
- China's Judicial System
- Mapping out 11th Five-Year Guidelines
- Chinese Embassies
- International Department, Central Committee of CPC
- State Organs Work Committee of CPC
- United Front Work Department, Central Committee of CPC
SiteMap | About Us | RSS | Newsletter | Feedback

Copyright © All Rights Reserved E-mail: Tel: 86-10-88828000 京ICP证 040089号