Agricultural productivity variation between regions and locales within regions arose in Mainland China during the period, 1953-1979. This study examines the extent of this phenomenon and the reasons behind its emergence. To measure productivity variation, the aggregate productivity index method, which incorporates labour, land, irrigated area, and fertilizer inputs and grain output, was employed.
Local variations require careful examination because certain local characteristics are closely correlated with agricultural performance. For example, labour redundancy in the northeastern region, and high multiple cropping, which reduces the quality of land, in Kwangtung, Kiangsu, Chekiang and Fukien, may account for the low productivity indices in these areas. Moreover, the much discussed ecological damage found in the southeastern region and in Hunan and Hupei, and the salinization of the areas surrounding the Hai and Huai River are not serious enough to damage the quality of land in these regions.
After eliminating Liaoning, Kirin, Kwangtung, Kiangsu, Chekiang and Fukien, we derived the average index for the remaining provinces, 75% (1953=100). This longterm reduction in productivity is an exceptional case in world agricultural production, and confirms the findings of Professor Anthony Tang.
We attribute this 25% regression to the national establishment of the commune system in 1958. We believe that the commune system reduced farmer’s incentives and is the basis for China’s poor agricultural productivity index. The year 1958 was also cited as the year when agricultural productivity began to evidence a declining trend by Professor Tang. The recent agricultural policies implemented since the resurgence of Deng Hsiao-Ping set in motion a partial return to individual farming under the guise of the “po-chan-tao-hu” and po-kan-tao-hu” systems. The experimental success of these new measures further supports our conclusion.
