Study On The Impact Of Agricultural Development Based On Institutional Evolutionary Of The Relationship Between Agriculture And Industry In China

The industrialization is a developing course of breakthrough change in which a series of the essential production function have changed from rudimentary to the advanced continuously. Development economics thinks that, industrialization is an elementary form and essence of modernization. That indicates the industrialization has included manufacturing industry, agriculture and service trade, and even of informationization and new type of industrialization. The agricultural country or developing country have to pass the course of industrialization and realizes the economic development (city and countryside). The industrialization is an impassable historical stage in developing course.The relationship between agriculture and industuries marks a political economic category which is the comprehensive reflection that includes a serie of key elements and institutions coordinating, mutuallying promote or restricting each other in the course of a developing country to developed. The relationship between agriculture and industuries is not merely shown as the economic relation between agriculture and non-agricultural industry, and embody a globality institutional arrangment and changes strategy that adopted for the goal of realizing socio-economic development by a country.So, the essence of the relationship between agriculture and industuries is the association of the multiple relation of economy and society, government and market, agriculture (including "3-agri. ") and non-agricultural industries. It is significant that the study because the agriculture is an unusual industry of which development has determined the course of industrialized smooth or hiccup, even successes and failures of a country. It has a basic function that agriculture contributes in aspects of products, key elements, the markets and foreign currency of starts and develops to industrialization, and without the support of agriculture, there are no setting-up and development of industry. Ubiquitous pressure policies have twisted the economic relation between state and peasants, city and rural and caused the partiality development to the industry and city. That is contrary to developed country characteristically. In the Chinese industrialized process for over 50 years that began in 1953, the relationship gradual progress between agriculture and industries had a partiality characteristic of with tendency to industry and city. This tendency fixed in the direction of funds flows which always points to industry and city from agriculture and rural areas, and has to accelerate after entering 21st century in China, although there are different institution mechanisms in the developed stages. That brings the greatest challenge to Chinese agriculture development that we can learn the institution inducements origin background from the phenomenon.It had obvious phased characteristics in the course of gradual progress of the relationship between agriculture and industry in China. During the planned economy stage of 1952-1978, the institutional arrangements of the"three carriages"adopted the by the country, those of SMPMG (state monopoly for purchase and marketing of grain), AC&PC (the agricultural co-operation and the people's commune), RHRS (the rural household registration system), had twisted the market law of supply and demand by policies of high tax rate in agricultural products and scissors-difference in price between industrial products and agricultural ones. The country had sets up the complete industrial system depends on this kind of primitive accumulation way.During the stage from 1978 to the beginning of 21st century when of the stage of system reform from commodity economy to market economy, the country had followed the old system of agri-discriminate by reason of system design of the"Pareto improvement"and bring on lots of questions as lopsided development of industry and agriculture, widened disparity of income in urban and rural areas and, queried on the Political Legitimacy of the government. In the year of 2004, the"two trends"theory brings numerous innovations in the aspects of policy and theory. The determination of strategy of"the industry returns nurturing to the agriculture, the city supports the countryside", have advanced the relation switcher in agriculture and industry.The third stage of the Chinese relationship gradual progress between agriculture and industuries signed the era of the first year of institution transition. Face "institutional legacy" and new challenge of globalization, there are several urgent problems must be solved in China as: The being widened disparity in urban and rural areas; the more serious of agricultural fund outflows from the rural; the fragile agricultural infrastructure and, the social concern takes place more frequently etc. More than one institutional innovations should be adopted to: Reform the institution of property right in agricultural cultivated land; reform the routing path of the modern agricultural development ,especially deals in agricultural technological progress and its extension; reform the policy approaches with agriculture supporting in government's finance and, reform the development patterns of urban and rural harmonious with the"people foremost"etc. According to western economics logic, the source of the economic growth is come down to labour, capital and technological progress and the combination of the factors efficiency of resource distribution in displays of the macroscopical economy. This is not the only one of the technological relation (people and thing), but also social or institutional ones (people and people) or system that arrange. The effective institutional innovation and its association will lead to the fact that development. It could be expected that Chinese agriculture development will depend on technological progress and its extension, and regard the quality safety of agricultural products, the multi-function agriculture development and the sustainable agriculture as the focal points. But all expects would be nuder a same prerequisite: the institutional changes tend to improving steadily.