Rural China: Transition and Development - Rural Credit and Finance
This report identifies and consolidates information on various issues that impact rural development in China. It assesses strategic options from the perspectives of efficiency, equitable development and growth. The report aims to assist government officials and World Bank staff to prioritize policy and institutional reforms and public investment decisions in the rural sector. It also aims to support the Government in defining rural reform priorities and programs for the Tenth Five-Year Plan.
The report states that China has achieved remarkable agricultural and rural industrial growth, reduced poverty levels and reversed some of its environmental and natural resource degradation. An inefficient rural fiscal system, however, hampers its rural development. The transformation of China into a more affluent, modem industrial economy depends on sharply increasing incomes and shifting a large part of the population out of agriculture. Township and village enterprises have contributed to China's rapid economic growth during the reform period. The report makes recommendations in the areas of:
- Reforming rural credit;
- Productivity-enhancing policies and investments;
- Research and extension to raise total factor productivity;
- Increasing foreign direct investment in agriculture;
- Resource development and production inputs;
- Improving resource use and allocation efficiency.
