This preview shows pages 1–3. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
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)...
View Full Document
- Fall '10