Rural industrialization in China: Approaches and results

Abstract

The rural areas are, in most provinces, in China dotted with hundreds of thousands of small rural industrial enterprises most of which serve very limited local markets. The units are usually small, and their technology primitive but appropriate. Many of the industries can be seen as scaled up and modernized village crafts, while others are scaled down versions of modern process industries. In a country like China, with surplus labour and a shortage of capital, they make a considerable contribution to economic development. At the same time, rural industry plays an important role in the social transformation of the Chinese countryside and contributes considerably to rectifying the imbalance between urban and rural areas. Rural industrialization may have a limited impact on the employment pattern, with an estimated 3 per cent of the total rural population of working age. However, another 2 per cent are engaged in the mass scientific network which is another significant component of the Chinese integrated approach of modernizing rural areas. Consequently, altogether 5 per cent of the rural population of working age are engaged in activities likely to have a strong impact not only on productivity but also on mental outlook and social organization.