On China's Investment Mechanism For Agricultural Integrated Development In New Period

Agricultural problem is one of the most important and difficult problems faced by most countries in the world to be solved. Agricultural integrated development (AID) is the effective and far reaching measure for accelerating agricultural development, especially for China with so much population and so limited agricultural natural resources after newly entering into WTO. AID will play a more and more important role because the main contents of AID are consistant with the so-called "Green Boxes Policies" within WTO framework.Perfect investment mechanism is the precondition for solving problems of input shortage, unreasonable structure and inefficiency of investment. Here, the author try to do an overall and comprehensive research on collecting historical materials on China's AID, especially on collecting data of China's present AID policies and its effects. Furthermore,here, the author takes Hengshui City of Hebei Province, one of the target areas for AID with plenty reliable data as the example to study the problems related to AID. For the first time, the nature of public goods in 3 categories of AID programs (land management programs, agricultural high-tech extension programs and rural diversified business programs) is analyzed according to the famous theory of public goods. AID programs are classified into three types as the following: a) agricultural pure public goods; b) agricultural transitory public goods; c) agricultural public goods near to private goods. The measures for effectively and efficiently supplying all of these agricultural public goods are identified. The theory of double-cycle movement of AID founds is formulated on analyses oncycling of funds for AID. Furthermore, management measures for effectively managing AID funds are illustrated. The agricultural investment mechanisms of developed countries with market economic systems such as Japan, USA and France are compared to get usable implications to China. So, here, two conclusions are reached for the first time: a) the overall framework for government oriented AID investment mechanism, especially for land management programs and agricultural high-tech extension programs; b) the overall framework for market oriented AID investment mechanism, especially for rural diversified business programs. Finally, some policy recommendations and suggestions for solving the problems in present AID investment mechanism are listed.