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FY 2007/2008 Research Topic: 4-28
Organizational Restructuring under Market Transition in Post-Reform Rural China: A Study on the Role of Intermediate Organizations


In China the rural reform process in the 1980s, which led to the decollectivization of agricultural production, succeeded in stimulating farmers’ incentives for production. However, as marketization has penetrated deep into rural areas, the absence of intermediate organizations between individual producers and the market, which supply farmers with economic services at every stage of agricultural production, such as the provision of input goods like fertilizers and pesticides, extension services, market facilities and so on, has become a serious problem.

On the other hand, after the dismantling of people’s communes, it has been state policy to promote the growth of “Two-tier management system,” or (Shuanceng jingying tizhi) in Chinese, under which household farming constitute the lower tier, while township authorities are supposed to function as intermediate organizations. In reality, the rural public sector undersupplies such economic services for farmers and it is often reported that recently non-government sectors such as agricultural cooperatives and agribusiness firms have replaced it.

The central government has high expectations on the series of organizational reforms as one of the breakthroughs in the so-called “Three rural issues” (Sannong wenti) in Chinese, referring to the low productivity of agriculture, desolation of villages and poverty of farmers.

In this research project, the author will analyze the mechanism for the generation of this new type of non governmental intermediate organization and its impact on farming households through an economic method, based on primary data and information collected from a field survey in rural China.


Members of the Research Project


The results of the study will be published in Ajia Keizai (Japanese) in 2008.