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Week 5-1 Rural Reform (2)

Week 5-1 Rural Reform (2) - services at the end of the...

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The Side Effects/Problems of Reform Slow Growth of Agricultural Production The efficient use of extensive technology requires large acreage and less labor. But, the decollectivization caused the increase of the relatively small size of individual farms. The communal facilities fell in disrepair. (e.g. irrigation systems not well maintained) Because of intensive and predatory management of the farm land, the fertility of the soil declined.
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The Side Effects/Problems of Reform Rural Public Service Decreased People’s Commune that was important in health care and education in rural areas Collapsed About 80% of the rural population was covered by cooperative health
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Unformatted text preview: services at the end of the 1970s. Collapsed • Dural Price System – The government purchased grain from farmers at a lower price than real market price to maintain urban economy stable. – The prices farmers had to pay for inputs such as fertilizer and farm machinery went up faster. – Decreasing incentives to grow grain The Side Effects/Problems of Reform • Local Officials – Significant reduction of power and authority under the HRS system – New Central-Local Fiscal Relations (“Eating in separate kitchen”) – Seeking their own profits brought about institutional corruption. (e.g. illegal taxation)...
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