BEIJING, March 30 -- 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?

    It should be kept in mind that counties in China is by no means merely a geographical concept. It involves economics, politics and culture in a grass-roots administrative unit, the history of which traces back several thousand years. A unique "county civilization" has evolved over the centuries on this basis.

    An ancient Chinese saying points out that "Dialect varies every 1,000 li (500 kilometres) and customs change every 100." This best summarizes county civilization. Counties became the most important link in ancient China's administrative chain, which ran from the imperial court at the very top, through provincial and prefectural levels, down to the county. This was regarded as an extremely efficient administrative structure in past centuries.

    Although county civilization is heavily tinted with the attributes of traditional agrarian society, and many of these may be phased out in the course of modern agricultural and industrial progress, county civilization will not disappear easily. The county economy cannot be said to be non-essential. On the contrary, it will increasingly assert itself in the long-term.

    Three factors explain why.

    First, the majority of the Chinese population resides in counties. Second, the better part of the rural labour force is employed in counties. Third, farmers' incomes come chiefly from counties.

    All this determines that counties have the biggest consumption potential, which is vital to powering the future economic development of the nation.

    It follows that counties hold the key to the eventual settlement of big issues of agriculture, farmers and the countryside, and will be the decisive factor for the success and failure of the nation's drive to bring about a new socialist countryside.

    Vice-Premier Hui Liangyu, who is in charge of agriculture work, recently observed: "Where the county economy develops fast, farmers' income grows fast, the look of the countryside changes fast and the gap between urban and rural areas narrows fast." His words best summarize the vital importance of the county economy.

    In addition to benefiting agriculture, the farmers and the countryside directly, the county economy has the potential to help the State transfer industries from big cities to counties and townships.

    The pre-condition to this is quickened pace of investment and reform of the financial management system. Technical upgrades in township enterprises are also called for in order to increase competitiveness.

    If the economic strength of townships is improved, they will become a strong magnet to attract and assimilate surplus rural labour. When the economies of the counties studding all parts of China become powerful and developed, the employment and demographic pressures bearing down on the nation will be largely relieved, and the gap between urban and rural areas will be shortened or even bridged. A situation marked by social stability and balanced economic development would then be ushered in.

    In addition, development of county economy is bound to lead to higher management, skills and ethics requirements on the part of county-level or township-level cadres. This, in turn, would help develop the numerous qualified personnel badly needed for the nation's future development.

    In the general context of developing the county economy, a mechanism that makes it compulsory for civil servants be sent to grass-roots areas to work in rotation should be introduced urgently. This could provide a solution to the reform of the current personnel system.

    Now that the central authorities have made the development of the county economy a strategic imperative, all sectors and people concerned should concentrate their efforts on this grand undertaking.

    The author is a researcher with the China Foundation for International and Strategic Studies.

    (Source: China Daily)