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China unveils plans to develop rural economy

Jonathan Watts

Chongqing (CHINA): China on Tuesday unveiled ambitious plans to help the 800 million people living in the countryside catch up economically with people in the cities.

More rural investment and agricultural subsidies and improved social services are the main planks of a policy to create a ``new socialist countryside'', which President Hu Jintao says is a priority.

According to the World Bank, the policy is a significant shift away from the previous focus on economic development. Greater weight will be given to the redistribution of resources and a rebalancing of income.

The policy was drawn up at the end of December as part of the Government's five-year economic plan, but the details were made public only on Tuesday.

``Constructing a new socialist countryside is an important historic task in the process of China's modernisation,'' says the policy. ``The only way to ensure sustainable development of the national economy and continuous expansion of domestic demand is to develop the rural economy and help farmers to become more affluent.''

It aims to modernise the countryside, which has fallen behind in China's race to expand. From this year until 2010, the Government promises sustained increases in farmers' incomes, and faster development of public services.

- Guardian Newspapers Limited 2006

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