A body of opinion holds that agricultural restructuring demands expansion of the size of production, which, in turn, requires breaking up existing county boundaries and ushering in trans-county economic operations. This kind of thought is reminiscent of the fantasies that ran wild in the late 1950s, which maintained that a mere change in production relationship would automatically elevate productivity.
The county economy section of this year's No 1 document issued by the Central Committee of the Communist Party of China said a clear "No" to this whimsical idea. The central authorities' judgment is grounded on experiences accumulated over the years.
Take Jilin Province in Northeast China as an example. The province has lent significant financial support to the development of the county economy, which the provincial authorities regard as the key to the province's economic progress. The counties have come under direct jurisdiction of the provincial government in terms of financial matters, bypassing municipal or prefectural authorities. Much power was delegated to the counties last year, helping give a free rein to county-level decision-makers. As a result, the development of the county economy in the province outpaced provincial economic growth as a whole for the first time in history.
Cases in other provinces also justify development of the county economy, proving that it is the most effective way to boost farmers' income, promote rural economic strength and upgrade rural economic structure. It is also a way to raise rural productivity, and ensure the supply of high-quality and diverse farm produce. It also serves to maintain social stability and bring about effective administration of rural society.
Why does the county economy play such an important role?
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