11.3 China - 11.3 China B. People's Communes Dismantled...

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11.3 China B. People’s Communes Dismantled “Production Responsibility Systems” Assign contracts w/ individual households Return to family farming But laws against this Spreading of family farming not result of pol bandwagoning like during Mao years This time: consequence of dramatic econ success, effectiveness of raising ag production Ea. Household would sign a contract w/ local group that owned the land (i.e. township, commune) that stipulated they be provided with certain amount of inputs, in return deliver a certain amount of grain, if you deliver more, there will be a bonus, can take bonus or take extra goods and do what you want with it or market it C. Markets As shift away from syst in which state buys everything and sell everything in state stores Prob: est. prices Govt purchase some of goods at prices Free markets permissible in rural China Get politics out of econ life in rural China Take away govt function that communes had monopolized in Mao years Reest govt units for loc level that were not ppl’s communes
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11.3 China - 11.3 China B. People's Communes Dismantled...

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