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China’s Agriculture and Food Economy in the 21 st Century

China’s Agriculture and Food Economy in the 21 st Century. Opening Remarks Scott Rozelle, UC Davis. Transformation Path (all countries in the world). Percent of Pop’n in Ag. Sector. Source: World Development Report, 2000. Income per Capita. Transformation Path.

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China’s Agriculture and Food Economy in the 21 st Century

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  1. China’s Agriculture and Food Economy in the 21st Century Opening Remarks Scott Rozelle, UC Davis

  2. Transformation Path (all countries in the world) Percent of Pop’n in Ag. Sector Source: World Development Report, 2000 Income per Capita

  3. Transformation Path When countries are poor (like China in the past) … in the early stages of development: Food Security is important … -- new technology -- irrigation, etcetera -- incentives to farmers Percent of Pop’n in Ag. Sector Income per Capita

  4. Transformation Path Development: if a country is successful in developing, it will necessarily move along this rural-urban transformation path (like China is doing now!) Percent of Pop’n in Ag. Sector Income per Capita

  5. Policies to directly support this process are clear (though not easy) • Create Jobs • Create Welcome Environment in Cities • Raise Human Capital of Farmers • EDUCATION, EDUCATION, EDUCATION [plus health and training]

  6. Role of Agriculture Raise income Affects food security Also: decrease inequality / decrease poverty Why? every household in China has land and is a farmer Mechanization Substitute for ag labor Raise labor productivity New Technology/Investment Increase output / unit of land Raise technical efficiency Cultivate Land Rental Mkts Increase land quantity Raise labor productivity Commodity Markets Increase specialization Raise allocative efficiency

  7. I. Create new environment for rural development: -- Fiscal Policy -- Marketing Environment Domestic Mkts International Trade -- New Partnerships, FPAs -- Protect Environment Human capital; Breakdown barriers; Improve business environment; -- rural businesses -- generally Ultimate Goal MODERNIZATION PROCESS Urbanization; Industrialization Shift from farm to off farm through off farm labor mkts [5] COMMUNITY DEVELOPMENT Objective: Improve rural incomes Keep MODERNIZATION going! Provide Minimum Living Standard Food security II. Invest in ag/rural resources Cultivated Land Manage quantity Enhance w/ Technology Invest in Water and Other Credit Our Goal

  8. Welcome! • Looking forward to an interesting meeting, stimulating discussion and warm fellowship

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