Little Interaction Between Urban And Township Enterprises

The rise of village and township enterprises (VThS) and the prosperity of small towns are two remarkable economic phenomena of rural economic development of China since the economic system reformation. They are also two major forces to promote the course of rural urbanization and industrialization. However, along with the continuing reformation, the disjunction between the small towns construction and VTES development stands Out. The urbanization of rural population lags far off behind the non-agriculturalization of rural population, which causes the problems in the rural economic development worsening increasingly. The limited income increase of farmers makes the rural market start-up difficult to carry out. The benefit decline aggravates the surplus of rural labor force. The heavy burdens of farmers aggravate the social conflicts in the countryside. To solve these problems, the combined development of VTES and small towns is necessary. In this article, the author anatomized the internal mechanism and essentials, explored the factors working on the mutual promotion between small towns construction and VTES development, and hereby presented some countermeasures and suggestions on setting up an effective mutual promotion system for the small towns construction and VTES development. The contents of this article can be summarized as follows: The first part, given as introduction, presents the problems and their backgrounds this article is studying. The frame and contents, thinking and methods, purpose and significance are also introduced in this part. The second part is a theoretical part. The connotations of several concepts such as industrialization, rural industrialization, urbanization and rural urbanization are discussed here. And the author expatiates the function mechanism of industrialization and urbanization, rural industrialization and rural urbanization, thereby demonstrates the fact that it is the objective law of industrialization and urbanization that makes the VTES and small towns represent the relationship of interacting and mutual promoting. The third part is about positive study. The author analyses the mutual promotion between small towns and VTES by studying their history of evolution. The analysis shows that the market mechanism is the dominant force in the mutual-promoting course, while the government mechanism is the function channel. The essential and connotation of the mutual promotion between small towns and VTES is a dynamic interactive course adapting to the level of social economy development. The forth part is a research about the problems and origins of the mutual promotion between small towns and VTES development. The author describes the phenomenon of non- urbanization during the course of VTES development, and points out the origins that result in the lag of small towns construction. The fifth part pmvidcs some countermeasures and suggestions on setting up an effective mutual promotion system for the small towns construction and VTES development. Based on the ad antageous and disadvantageous factors of Chinese rural economy development, and combined vith above analyses, countermeasures are brougjit forward to quicken the steps of small towns construction and accelerate the establishment of effective mutual promotion system for the small towns construction and VTES development.