The transformation of the operating mechanisms in Chinese agriculture

At the end of 1978, the economic reform in agriculture in the People's Republic of China began. As the sector at that time involved 80 per cent of the population and provided more than one‐third of net national income, the changes had a strong impact on the development of China as a whole. This article will, first, give an overview of the operating mechanisms in agriculture prior to the reform. Second, the effects of the reform in agriculture on production, resource allocation and income distribution will be briefly discussed. Third, present problems which substantially impair the further development of agriculture will be examined and finally possible countermeasures will also be referred to.