The Institutional Restraints And Institutional Innovations Of Chinese Farmers' Income Growth

Since the economic reforms and open-door policies began in the late 1970s, Chinese national economy has made astonishing progress. At the same time, comprehensive national strength has been enhanced greatly and the people's living standard has been improved considerably. However, the countryside, which is the headstream of the economic reforms, has become the focus of people all over the world recently. The discussion of the issues of farmers, countryside and agriculture can be heard from time to time. The society has paid the unprecedented attention to the issues. Actually, the issues are the permanent subjects of Chinese social economic development. The Communist Party of China and the State Council always think high of the issues and take them as the most important jobs. The farmers'income increases very slowly, which is the key problem of the issues of farmers, countryside and agriculture. The experts and scholars put forward all kinds of suggestions to solve the problem of the farmers'income. The author wants to find out the institutional restraints of farmers'income and solve the problem through institutional innovation. And all that should be based on the foundation of what the predecessors'studies.The paper consists of five parts. The first part is introduction, which puts forward the problem that the paper will discuss.The second part of the paper introduces the present situations of the farmers'income. Most importantly, the average level of the farmers'income is very low. The income disparity between city and countryside is wider and wider. The part also introduces the necessity to increase the farmers'income. It's the requirement of realization of modernization and construction of the socialist new countryside. It's also the requirement of keeping the national economy grow constantly, fast and soundly. And it is the requirement of the well-off society and the socialist harmonious society.The third part of the paper introduces the fundamental theory of the institution and the institutional restraint. This part also analyses the institutional factors of the farmers'low income. First of all, it is the long-term divisional dual household residential system between city and countryside. Secondly, it is the unclear property right of the farmland system. Thirdly, it is the different public goods supply system between city and countryside.The fourth part of the paper introduces the related knowledge of the innovation and the institutional innovation. Then it proposes that the problem of the farmers'income should be solved by the way of institutional innovation. Firstly, we must advance the household residential system reform steadily. Secondly, we must explore farmland system that adapts to the new situation positively. Thirdly, we must change the public goods supply system completely.The fifth of the paper is the concise conclusion. It emphasizes the important role of the institutional innovation in the course of the farmers'income growth. It also points out the difficulty and the importance of the issues of farmers, countryside and agriculture.