A Research On The Growth Of Peasant's Income

After the duty system of contract for farmland with homologous rent charge had been put completely into practice, with the system vicissitude potential being full released, the rising rate of peasant's net income has been gradually glided down. But the GDP has maintained a high rate of rising. The peasant's income growth deviated seriously from the growth of national economy. This kind of deviation performances mainly as the relative income of peasant increasing at low speed, even at a negative speed, We call this deviation as "the growth problem of peasant's income". The problem has another performance that the disparity of city/countryside inhabitant's average income expands gradually. The relative index has increased from 1.86 in 1985 to 3.23 in 2003. If the disparity becomes extremely large, the GDP durable growth, the improvement of peasant's living condition, and the stability in our country couldn't maintain.The peasant's income includes profit from agricultural production and management, wages, profit from wealth and the trans-payment from the Government. The last two plus together accounts only about five percent. So we study the problem from two aspects, one is the growth of agriculture production; the other is the increasing of wages. The only essential factor peasants owned which can obtain incomes from the market is labor force, so the fundamental method of resolving the problem is to improve the labor productivity. If the agricultural labor productivity has become very high, the income from agriculture production per peasant can increase greatly, and/or saving labor force which can be sold out to make money.For our country has already existed surplus labor force, the importance of creating more jobs become greater. A research disclosed that enlarging service business is a valid method to creat new employment and accelerating urbanization can promote the service business in turn. But the level of the service business and the level of urbanization in our country are still very low, there are great potential to heighten these levels. The productivity of agriculture labour force's and the transfer of surplus rural labor force are mutual terms, they also can promote each other. Without transfer of surplus rural labor force, the agriculture scale couldn't enlarge, the productivity of agriculture labor couldn't increase. If the productivity hasn't increased, even if all surplus labor were employed, the net income of professional peasant couldn't increase significantly.To resolve the growth problem of peasant's income, we now can do some works:(1) Creating a good policy system, from which the income growth can benefit.(2) Guiding peasants to establish industrial organization to enhance the division level of labour force and specialization.(3) Adding investment to agriculture, in order to improve the producing condition and enhance the technical level.(4) Accelerating the urbanization progress, hastening the service industry greatly, creating more and more new jobs to absorb surplus rural labor force.