Corporatism and Agricultural Reform China Reforming the agricultural sector began immediately after Deng Xiaoping assumed leadership of China 1979. A massive de-collectivization programme the early 1980s freed peasants to engage independent household farming through the so-called family joint-working contracting (jiating lianchan chengbaozhi). Under this arable land owned by the state was distributed or contracted out to every peasant household which could support itself and earn extra income from farming. This system worked well the beginning. Agricultural production increased drastically comparison with the collectivization period from 1949. By 1990, China had changed from a food-deficient country to a food-surplus one. However, the hard fact was that peasant income did not, by and large, increase with the rise production. State planners found that as society adapted from central planning to a market economy under Deng's reform programme, the small producers and farming households could not cope with the ever-changing conditions of the big market. Chinese peasants lagged far behind terms of economies of scale, usage of technology, marketing methods and integration of production processes as found modern agricultural sectors elsewhere. The peasants also fell prey to the big businesses and enterprises that dominated the market. As a consequence, both the transaction and production costs for their produce were high, causing their final income to not amount to much. Therefore, some peasants believed it would be to their advantage to join hands and form associations and co-operatives to help organize their agricultural production, and thereby increase economies of scale. The local officials also applauded this idea, seeing it as one means to promote the integration of agriculture (nongye chanyehua), i.e., to integrate the family joint-working contracting system, which the Chinese authorities vowed would remain unchanged, with modern agricultural practices. Corporatist organizations had formed various industrial sectors soon after the launch of the economic reforms 1978. (1) However, it was not until the mid-1990s that agricultural associations and co-operatives were established. According to statistics released by the Ministry of Agriculture, there were over 1.4 million peasant co-operative organizations by 2003. The number of peasant households joining these organizations accounted for about four per cent of the total number of peasants nationwide. In Beijing, the percentage of agricultural produce sold through the specialist co-operative associations continues to increase. In 2003, 80 per cent of the milk came from the cooperatives, as well as 46 per cent of the vegetables and 40 per cent of the fruit. Assuming identical conditions and scales of farming, the income of the peasants the crop growing sector who joined the associations was 35 per cent higher than those who did not join. In the animal husbandry sector, the income was 40 per cent higher. There is an increasingly strong call, voiced from within and without the Government for the enactment of a Co-operatives Law to guide formation of the co-ops. (2) In corporatist parlance, these organizations are variants of corporatism operating at the meso-or sectoral level. Philippe C. Schmitter, defines the corporatism concept, or more correctly, state-or authoritarian-corporatism, as a system of interest representation in which the constituent units are organized into a limited number of singular, compulsory, non-competitive, hierarchically ordered and functionally differentiated categories, recognized or licensed (if not created) by the state and granted a deliberate representational monopoly within their respective categories exchange for observing certain controls on their selection of leaders and articulation of demands and supports. …
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