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Saturday, June 24, 2006

China ready to grant farming cooperatives legal status

This is similar to the collective farming economy before the reform. With a lot of issues in rural China, more and more Chinese, especially farmers realize the agricultural reform is a failure and the root of almost all of the rural troubles.

The "distributing of the land to individual families" policy never works well in China. It is totally different than what both Chinese and western media said at the begining of the reform due to the color of the socilism of the farming cooperatives. The fact is Xiaogang Village that was used as an example of the agriculture reform is still very very poor even Chinese government allocated a lot financial resources comparing with some relic farming cooperatives.

Since China has only 7% of world's arable land, but has 22% of the world population. Each rural Chinese family has only a small piece of land for farming after the reform. The individual family are vulnerable in any mishaps and has nothing for reinvestment for its future.

The farming cooperatives are different. Families are teamed together. They can help each if some have trouble and bigger piece of land is more suitable for modern farming and also farming cooperatives can have more collective savings for investments that can give them a more promising future.

Some examples of the sucessful farming cooperatives:
Nanjie Village in Henan province
Huaxi Village in Jiangsu province
Hancunhe Village in Beijing

Some pictures of those relic and rich farming cooperatives in China:
Nanjie Village in Henan Province
Huaxi Village in Jiangsu Province
Hancunhe Village in Beijing

With the inspiration of those successful farming cooperatives, the collective economy finally come back again!


Cooperatives founded by farmers will soon enjoy legal status as Chinese legislators gathered Saturday to discuss a draft law to better protect farmers' business interests.

"How to help rural household better combat natural and market risks in business operation and connect small and sporadic household businesses with domestic and international markets are major issues in facilitating agricultural and rural economic development," said Li Chunting, member of the National People's Congress (NPC) Standing Committee.

The draft law on farmers' professional cooperatives was presented to the legislators for the first deliberation, as household business, major backbone of China's rural economy, has become ever vulnerable when facing more and more competitive market.

Currently, China has no law or administrative regulations defining the legal status of rural cooperatives, which in turn fail to obtain government registration to guarantee their daily operation.

Source: Xinhua

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