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Excerpts From Chinese Premier Wen Jiabao's Speech on Rural Issues

Posted on: Friday, 20 January 2006, 18:00 CST

Chinese Premier Wen Jiabao has warned that land conflicts, unstable prices and backward conditions in China's farm sector are threatening the country's stability and its food supply. The following are "excerpts" from a speech by Premier Wen Jiabao at the National Rural Work Conference on 29 December 2005, carried in a report entitled: "Wen Jiabao: On a number of questions in current agricultural and rural work", by official Chinese news agency Xinhua (New China News Agency) on 19 January; subheadings as published:

Beijing, 19 January: The fifth plenary session of the 16th CCP [Chinese Communist Party] Central Committee put forward the task of building a new socialist countryside. This is of major historic and practical significance. China has in general entered the development stage of industry promoting agriculture and the towns leading forward the countryside, and we must meet the demands of the new stage of economic and social development and implement the guideline of industry repaying agriculture and the towns supporting the countryside. In the present stage, only by carrying out the strategy of all-round planning for urban and rural economic and social development can we truly optimize the economic structure and achieve all-round, coordinated, and sustainable development, enable the masses to enjoy together the fruits of economic and social development, and achieve on schedule the grand goal of comprehensively building a well-off society [xiaokang shehui] and modernization. Hence, building a new socialist countryside is related not only to agricultural and rural development and the peasants' enrichment but also to the state's lasting political stability and the nation's great rejuvenation. We must stand at the level of the overall picture and regard the building of a new socialist countryside as a major historic mission in the modernization process, and turn it into the common understanding and action of the whole party and society.

In building a new socialist countryside, we must act according to the demands for "developed production, affluent living standards, civilized rural style, clean and tidy villages, and democratic management" set out in the "Proposal" of the fifth plenary session of the 16th CCP Central Committee, and comprehensively promote economic, political, cultural, social, and party building in the rural areas. We must earnestly implement the series of party guidelines and policies for the rural areas, persist in the basic rural economic system, and persist in "giving more, taking less, and enlivening things," making particular efforts to "give more." Through the ceaseless efforts of the whole party and state, we should bring about relatively big enhancement in the level of the rural productive forces, a relatively marked improvement in rural living standards, a real strengthening of rural infrastructure construction, all-round development of all social undertakings in the rural areas, and continued promotion of the building of rural grassroots democracy. In the final analysis, we must truly ensure the peasants' democratic rights, and ensure that the peasants derive really tangible material interests. Building a new socialist countryside is an all-round goal and a long-term task; we must act in light of local conditions, proceed from reality, respect the peasants' aspirations, pay attention to practical results, and devote efforts to resolving the most urgent practical problems in the peasants' production and livelihood. Only thus can we ensure that the building of a new countryside will give the peasants tangible benefit and gain their support, and can the work proceed in a sound and steady way.

I will now give some views on current questions in work regarding the "three rural issues" [san nong: agriculture, peasants, and rural areas] that should arouse a high degree of attention.

I. On the question of rural infrastructure construction

China's urban and rural economic and social development has been very unbalanced for a long time now. The cities have developed very fast, while rural development has lagged behind. Considering the overall picture of economic and social development, it is essential to change this state of affairs. This demands that we bring about a big transformation, from ideological understanding to work arrangements, expand the scope of rural coverage by public finance, mobilize the input enthusiasm of all sectors, and vigorously strengthen rural infrastructure construction. This will not only improve infrastructure conditions in the rural areas and enhance the comprehensive production capacity of agriculture, but will also increase the peasants' job opportunities and income; this is a good thing that kills many birds with one stone, and we must regard this as the focal point in infrastructure construction in the next few years. We should strive during the 11th Five-year programme [FYP] to bring about a relatively marked change in rural production and livelihood conditions and the entire appearance of the rural areas. In this respect, we must take still greater strides in 2006.

First of all, fiscal-style construction funds must be biased towards the rural areas. The key lies in being determined to readjust the distribution pattern of peasant incomes, and in particular, to readjust the direction and structure of state construction funds and shift them more to supporting rural construction. This is a strategic measure in economic work in the next few years; it has a direct bearing on promoting rural economic and social development and on expanding domestic demand, and will also have a far-reaching impact on the state's long-term development. The increase in state fiscal funding for supporting agriculture in 2006 will be greater than last year, and the proportion of state bonds and budgeted construction funds for supporting the rural areas will be greater than last year; this includes a greater than last year total sum of funding for directly supporting improvement in rural production and livelihood conditions. All regions and departments, especially the basic industry and public services departments, must show more concern and support for the rural areas, gradually shift their work focus to the rural areas, invest more of their resources in the rural areas, and shift the focus of infrastructure construction to the rural areas. When drawing up development programmes, arranging construction projects, and increasing fund input, it is necessary to be biased towards the rural areas. Places where the conditions are right should take somewhat bigger strides. All departments must cooperate with each other, intensify the coordination and consolidation of support-agriculture funds, improve the efficiency of their use, and concentrate forces to do good things. Financial institutions of all types must readjust their credit input structure, truly improve financial services, and strengthen support for the "three rural issues."

Second, we must attach importance to giving play to the role of the cities in leading forward the rural areas. The original intention of having the cities manage the counties was in order to bring into play the lead-forward effect of the cities and promote coordinated urban and rural development. As a result of construction in recent years, the cities' economic and financial strength has been greatly increased, infrastructure construction has very greatly improved, and the appearance of the cities has been transformed. We must realize, however, that the gap between the cities and rural areas is markedly widening. In the future, all large and medium- sized cities must earnestly carry out their duty to lead and help the counties, draw up all-round urban and rural development programmes, step up the input of city-level fiscal construction funds in the city outskirts and counties and townships, and increase the extension of public infrastructure facilities to the rural areas; at the same time the relevant city units and enterprises must be organized to help the rural areas, and the radiation and lead- forward role of the cities for the rural areas must be strengthened, forming a situation of coordinated urban and rural development and common prosperity.

Third, we must give full play to the role of the peasants and all sectors of society. In strengthening rural infrastructure construction, we must fully mobilize the enthusiasm of the peasant masses and guide them to display the spirit of relying on their own efforts and working hard with arduous effort, and improve their production and livelihood conditions through their own hard work. At the same time, state finance should provide encouragement in various ways such as direct subsidy funds, subsidizing materials, or "substituting rewards for subsidy," and guide the peasants to input their labour in public facilities that will directly benefit them. We must speed up the establishment of an incentive mechanism for participation by the whole of society, and encourage social forces of all kinds to take part in rural infrastructure construction.

II. On questions of comprehensive rural reforms

Comprehensively abolish agricultural tax in 2006; it was not at all easy to reach today's stage in the rural tax-fee reform, but the task of consolidating its fruits is still more arduous. The all- round promotion of comprehensive rural reforms with the main contents being township and town organs, rural compulsory education, and county and township financial reforms is an urgent task for consolidating the fruits of the rural tax-fee reform, and also contains the key to resolving a whole series of deep-seated contradictions in the rural areas. We must absolutely not think that following the abolition of agricultural tax, the problem of the peasants' burdens has been resolved. If the reforms are not thorough, we may face two kinds of grim situations: In one, all kinds of indiscriminate collection of fees and apportionments and imposition of fines stage a comeback, and the peasants' burdens rebound back; in the other, the grassroots organizations can hardly operate normally and are unable to carry out their proper duties. To prevent this problem, it is essential to unswervingly press forward the comprehensive rural reforms. Only by vigorously pushing forward the township and town organ reforms, being resolved to change their functions, streamline the organs and staff, speed up the consolidation of undertakings and units, make proper arrangements for streaming the staff, and resolve in system and mechanism the problem of certain links in the rural superstructure being unsuited to the economic foundation can we finally get out of the vicious circle of the "Huang Zongxi Principle." Compared with abolishing agricultural tax, this is a more arduous task of still more far- reaching significance.

I want to say some more about the question of reforming the township and town organs. The starting point and objective in promoting the reform of the township and town organs is in order to change the functions of the township and town governments, and strengthen social management and public services; in the final analysis, it is in order to give better play to government functions and provide better service for the "three rural issues." Far from being weakened, the duties that the township and town organs should carry out and the services that they should provide should be gradually strengthened. Reform of the township and town organs should be carried out in accordance with the general demand of "unifying thinking, having a clear idea of the orientation, being unswerving, promoting the work in orderly fashion, being active and steady, and first doing it at trial points," and we must ensure that the organ establishment is only reduced, and not increased, and ensure social stability. We must devote efforts to grasp work in three aspects at the trial points for township and town organ reform:

-- First, grasp the work of changing functions. Make efforts to build a service style and legal system-style government. In line with the principle of getting some things done and leaving others undone, we should appropriately readjust township and town functions in economic management, truly shift their work focus from specific matters such as directly bringing in business and funds, production operations, and urging planting and harvest to providing guidance by example to the peasant households and all categories of main economic bodies, providing policy services, and creating a development environment. At the same time, it is necessary to improve the level of social management and public services. In accordance with the principle of governance according to law, they should propagate and implement well party and state policies and laws, regulate their own behaviour, ensure the peasants' legitimate rights, uphold rural social order, and consolidate the party's governing basis in the rural areas.

-- Second, grasp the consolidation and reform of undertakings and units. The key is to rationally distinguish public welfare-style undertakings and operational activities, and exercise management according to category. Public welfare-style undertakings should have their service functions strengthened, and their expenses should mainly be guaranteed by fiscal resources; for operational-style undertakings, it is necessary to intensify their self-development capability, and have them gradually advance towards the market. Through consolidating the existing undertakings, stations, and centres, we should enhance the usage efficiency of service resources, and succeed in both lightening the peasants' burdens and strengthening capacity to serve agriculture.

-- Third, make proper arrangements for the streaming of staff. This is an important link and also a difficult problem in the reform of the township and town organs. On the basis of strictly fixing the establishment and posts, with the provincial-level governments drawing up policy, schemes, and operational procedure in a unified way, we should select and employ the best and organize competition for posts in line with the principle of openness, fairness, and justice, and strictly prohibit underhand dealings. We should actively explore a variety of streaming methods, help those staff who are streamed to get reemployment, and appropriately resolve their practical problems.

The party committees and government at all levels must attach great importance to the comprehensive rural reforms, with the principal leading comrades personally tackling the work. The departments concerned must get a good grasp of summing up experiences of trial points, continually perfect the schemes, and carry forward the reforms in depth. At the same time, we must also continue to promote reforms of the rural financial setup, the grain circulation system, and the land requisitioning system, to provide the system guarantees for rural economic and social development.

III. On the grain question

Grain has always been the basis of economic development, social stability, and the state's ability to stand on its own feet, and there can be no mistakes in this at any time. In view of continual annual declines in grain production in recent years and tension in the grain supply-demand relationship, in the past two years the central authorities have tabled a whole series of more direct and effective support policy measures. The main ones are, we have put into effect "three reductions and waivers and three subsidies," and strengthened support for the grain-producing regions; at the same time we have resolutely promoted reforms of the grain circulation system, and comprehensively opened up the grain procurement market. Practice has proven that these reforms and policies are correct and play a notable role. A major turnaround has been achieved in grain production, which has played a major role in preventing inflation, ensuring living standards, and maintaining social stability, creating favourable conditions for achieving the macro regulation and control objectives.

We must soberly realize, however, that the present foundation of grain production is not sound. There has still been a certain shortfall between grain production and demand in the past two years, and we have had to tap into several score billion jin of reserves each year. Judging by future long-term trends, the contradictions of increasing population, reduced farmland area, and shortage of water resources will become more and more conspicuous, it will become more and more difficult to increase grain output, and the task of maintaining long-term grain supply-demand balance will be extremely arduous. If problems in grain emerge, these are problems of the overall picture, which will affect steady and rapid economic development and social stability. We must get a handle on two points in the grain question: First, basically basing our efforts on internal assurance of grain supply is the guideline to which we must always adhere; second, making efforts to maintain tight balance in grain supply and demand is an objective of macro regulation and control. If grain production is too low, grain security will be threatened. If grain supply exceeds demand, this will cause the grain price to fall, affecting peasant incomes and the steady development of grain production. Maintaining tight balance of grain supply and demand is not an easy matter; the most fundamental thing is to strengthen the building of comprehensive grain production capacity and strengthen the building of the state grain reserve system, succeeding in a combination of stored grain in the localities and in the granaries. At the same time we must also be good at keeping a handle on regulating import and export and the timing and intensity of grain exports and imports, and strengthen and improve regulation and control of the grain market.

There are a number of unfavourable factors for grain production in 2006. The market price is the main factor stimulating the peasants' enthusiasm for growing grain, but it is very difficult to maintain stable grain prices or get a slight upward rebound. Due to the increased prices of agricultural production materials, the returns on grain production have fallen somewhat, directly affecting the peasants' enthusiasm for growing grain. Land for construction is still taking up 4 million mu of farmland each year, moreover this is all good land, and the leeway for increasing the sown area of grain is becoming ever smaller. The continual increase in grain production in the past two years was in general very largely related to the weather, but weather conditions for 2006 are hard to predict, and grain production may fall if there are natural disasters. In addition, due to two successive years of bumper harvest, some localities have relaxed grain production in varying degrees. All these problems merit our attention. There are two keys to promoting stability and development in grain production: The first is, we must implement the strictest farmland protection system, truly protect well the basic farmland, stabilize the sown area of grain, strengthen farmland water conservancy construction, vigorously promote the progress of science and technology, and continually enhance the comprehensive grain production capacity; second, we must earnestly implement the various policy measures for supporting grain production, maintain rational grain price levels, protect the interests of the grain-growing peasants, and mobilize their enthusiasm for growing grain.

IV. On the land question

Strengthening management of the land is a key link that must be consistently grasped in the reform and development process. This bears on agricultural development and rural stability, and also on the sustainable progress of industrialization and urbanization. We absolutely cannot make historic mistakes on the land question.

We must unwaveringly adhere to the basic land management system. China's reforms started with the rural areas, and the rural reforms started with land contracting. Land contracting mobilized the enthusiasm of the hundreds of millions of peasants and promoted the prosperity of the rural economy and the entire economy. Contract land is not only an important production material for the peasants but is also the most basic guarantee of their livelihood. The two- level management setup based on household contract operations and combining unity and division has wide-ranging suitability and surging vitality, and helps and does not hamper the progress of agricultural modernization. On the basis of household contract operations, we can guide the peasants to enter the market through methods such as industrialized operations, and gradually expand the scale of operations on the land on the basis of voluntary, legal, and compensated transfer of land operation rights. This is a graduated process that cannot be forcefully carried out regardless of the conditions. Stabilizing the basic rural operational system and protecting the peasants' land contract rights and interests is a basic party policy for the rural areas, a regulation in the state constitution, and a guideline that must be upheld for a long time.

We must strictly control construction land. A great deal of farmland has been transferred to non-agricultural purposes in recent years; this has not only provided land resources for industrial and urban development but also raised large amounts of funds for urban construction through land requisitioning and leasing. This is an important reason why urban construction has been able to develop rapidly in some localities. However, this has also been at he cost of rather low compensation for the peasants and the sacrifice of a great deal of good land. If we fail to clearly perceive this point, we will blindly enclose and occupy farmland, causing swelling in the scale of investment and unbalanced investment structure, and also causing large numbers of peasants to lose their land, resulting in serious problems for the sustainable development and stability of the rural economy and the entire economy. Hence, we have launched the use of two "sluicegates" - land and credit - in macro regulation and control; the land sluicegate plays the role of removing the firewood from under the cauldron in curbing overheated investment in some regions and trades; it controls blind and excessively rapid growth of investment, and also protects the most precious land resources, with outstanding results. We must also realize, however, that the pressure for an investment rebound in fixed assets remains very great at present; some places are still strongly impulsive in occupying and using land, and the task of protecting farmland, especially basic farmland, remains extremely arduous. It must be pointed out in particular that the illegal requisitioning and occupation of the peasants' land in certain localities without giving the peasants reasonable economic compensation and livelihood resettlement triggers mass incidents in the rural areas, and this remains a conspicuous problem affecting rural and indeed social stability. It is essential to arouse a high degree of attention to this on the part of the party committees and government at all levels. We must adhere for a long time to the strictest land management system, strictly control the amount of land taken up by construction, and strictly carry out the system of balance between occupying and compensating for farmland; in addition we must absolutely not go in for balancing accounts and area, and must maintain balance of area and production capacity.

We must strengthen land management according to law, whether for land contracting or transfer, or land requisitioning, we have already have relatively complete laws and regulations. We must make full use of the means of law to manage the land, and truly ensure the peasants' land asset rights and interests.

V. On the peasant labourer question

Peasant labourers have become an important component part of China's production workers, and are an important driving force in industrialization, urbanization, and modernization. The question of how to treat them is not a small matter but a major affair that bears on the overall picture and the long term.

In recent years the central authorities have achieved a certain degree of success from tabling a series of policy measures for improving the environment for peasant labourers entering the towns to labour and protecting their rights and interests, and so on. However, the problems of low wages of peasant labourers, their wages being subject to deductions or arrears, poor labouring conditions, few public services for them, and lack of basic social security remain very conspicuous. These problems exist not only in large and medium-sized cities but are also very prominent in some small cities and towns and even in enterprises in townships and villages. All regions and departments must truly get a good grasp of the peasant labourer problem as a major affair with a bearing on the overall picture of reform, development, and stability, and persist in five principles in resolving this problem: First, treat them fairly and equally without discrimination; second, strengthen management and perfect the services; third, make all-round plans and provide rational guidance; fourth, act in light of local conditions and provide guidance according to category; fifth, base our efforts on the present and take account of the long term. At present we must focus on tackling the following tasks:

First, get a good grasp of resolving the peasant labourers' problems of low wages and wage arrears. This is the problem that the peasant labourers reflect most strongly. We must establish a peasant labourer wage payment insurance system, to ensure that their wages are paid on time and in full. We must rationally set and improve their wage level, and strictly enforce the minimum wage system. Second, regulate the peasant labourers' labour management according to law. All units hiring peasant labourers must draw up and implement their labour contracts according to law, and respect and uphold their legitimate rights and interests. In particular, they must ensure the peasant labourers' work safety and health rights. Third, do a good job of peasant labourer employment services and training. We must sort out and abolish discriminatory regulations and unreasonable limitations directed at peasant labourers, and truly treat them as equals without discrimination. Strengthen vocational and skills training for peasant labourers, and enhance the peasants' ability to switch trades and to adapt to going away to work. Fourth, actively and steadily resolve the peasant labourers' social security problem. This problem is relatively complicated, and we must persist in providing guidance according to category and advancing at a steady pace, giving priority to resolving industrial injury insurance and security for treatment of major illnesses. Fifth, properly provide public services and social management for the peasant labourers; in particular, we must ensure that their children receive compulsory education on an equal footing. Sixth, put the mechanism for ensuring the rights and interests of peasant labourers on a sound basis. Labour and insurance and the departments concerned must intensify law enforcement for safeguarding the peasant labourers' rights and interests, and earnestly receive and deal with reports and complaints from them and carry out timely investigation and handling. Uphold the basic rural operational system, and ensure the peasant labourers' land contract rights and interests. Seventh, stimulate the rural labour forces to switch to other employment either on the spot or close by. Put into effect a combination of rural labour forces moving elsewhere to work and switching to other trades on the spot; we must both actively guide the peasants to enter the cities to labour, and also vigorously develop township and town enterprises and county seat economy, and expand the local; switching of employment by rural labour forces. We must encourage all regions to proceed from reality and explore ways of stimulating surplus rural labour forces to move around in a rational and orderly fashion.

VI. On questions of developing social undertakings in the rural areas

For a long time we have had the problem of one long and one short leg in economic and social development. And the leg of rural social development is still shorter. The development of social undertakings in the rural areas such as education and public health lags behind, and there is a serious lack of public services; these are the weakest links in rural development and are also problems that the peasants reflect most strongly. We have adopted many measures in the past two years in rural education and public health, with very great effects, but the problems remain conspicuous. Speeding up the development of social undertakings in the rural areas is extremely urgent and important for enhancing the quality of life and comprehensive quality of the peasants and achieving social fairness and justice.

We must strengthen rural public services from many aspects, and boost input in rural social undertakings such as education and health. The government at all levels must earnestly implement the State Council regulations on mainly using in the rural areas the annual increases in spending on education, public health, culture, and so on, and promote equality of treatment in services such as compulsory education and basic public health. Peasants' children at every stage of compulsory education should be able to go to school, and every peasant suffering illness should be able to get treatment - these are the objectives that we should strive to achieve. Beginning in 2006, we should spend two years in achieving completely free miscellaneous expenses for all students attending compulsory education stages throughout the whole country, and continue to provide free textbooks and subsidized boarding expenses for students from poor families. In 2006 we will also intensify promotion of trial-point work in the new-style rural cooperative medical system, bring about a relatively big increase in the standard of central and local fiscal subsidies for peasants participating in the cooperative medical system, expand the scope of trial-point counties in the cooperative medical system, and strive to basically introduce this system throughout the whole of rural China by 2008. At the same time, we must attach importance to rational allocation of education and public health resources between cities and countryside. We must perfect the teacher exchange system, and draw up relevant policies and measures, to guide and encourage city teachers and people with teaching qualifications to go and teach in rural middle and primary schools. We must encourage urban doctors to go and serve the rural areas.

All the above questions are prominent problems facing work on the "three rural issues," and are also major questions bearing on the overall picture. If these are resolved well, fast and good development will occur in agriculture and the rural areas, and there will be a good basis for our entire economic and social development. The central authorities' major guidelines for rural work have now been set, and policy measures are being continually tabled. The key to whether these can achieve the predicted results lies in unifying thinking, strengthening leadership, and vigorously tackling implementation. All regions and departments must fully understand the important significance of work on the "three rural issues" for the overall picture, and earnestly regard resolving problems of the "three rural issues" as the most important of all work. Leading cadres must regularly go to the rural areas to carry out all-round and thorough investigation and study, to truly get a handle on the actual situation in the rural areas, get to know the peasants' aspirations and demands, and earnestly look into drawing up and implementing specific measures for promoting rural development.

Resolving problems in the "three rural issues" is very difficult and the task is arduous, but we are also facing a rare historic opportunity. Under the correct leadership of the CCP Central Committee with Comrade Hu Jintao as general secretary, we must persist in taking Deng Xiaoping Theory and the important thinking on "Three representations" as our guide, comprehensively implement the scientific development concept, and, in the spirit of being highly responsible to the party and people, earnestly strengthen our sense of responsibility and mission, seek truth and be pragmatic, clear the way to forge ahead, do sound work, and give impetus to coordinated urban and rural economic and social development, making still greater contributions to building a new socialist countryside.

Source: BBC Monitoring Asia Pacific

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