Back
About RSIS
Introduction
Building the Foundations
Welcome Message
Board of Governors
Staff Profiles
Executive Deputy Chairman’s Office
Dean’s Office
Management
Distinguished Fellows
Faculty and Research
Associate Research Fellows, Senior Analysts and Research Analysts
Visiting Fellows
Adjunct Fellows
Administrative Staff
Honours and Awards for RSIS Staff and Students
RSIS Endowment Fund
Endowed Professorships
Career Opportunities
Getting to RSIS
Research
Research Centres
Centre for Multilateralism Studies (CMS)
Centre for Non-Traditional Security Studies (NTS Centre)
Centre of Excellence for National Security (CENS)
Institute of Defence and Strategic Studies (IDSS)
International Centre for Political Violence and Terrorism Research (ICPVTR)
Research Programmes
National Security Studies Programme (NSSP)
Social Cohesion Research Programme (SCRP)
Studies in Inter-Religious Relations in Plural Societies (SRP) Programme
Other Research
Future Issues and Technology Cluster
Research@RSIS
Science and Technology Studies Programme (STSP) (2017-2020)
Graduate Education
Graduate Programmes Office
Exchange Partners and Programmes
How to Apply
Financial Assistance
Meet the Admissions Team: Information Sessions and other events
RSIS Alumni
Outreach
Global Networks
About Global Networks
RSIS Alumni
International Programmes
About International Programmes
Asia-Pacific Programme for Senior Military Officers (APPSMO)
Asia-Pacific Programme for Senior National Security Officers (APPSNO)
International Conference on Cohesive Societies (ICCS)
International Strategy Forum-Asia (ISF-Asia)
Executive Education
About Executive Education
SRP Executive Programme
Terrorism Analyst Training Course (TATC)
Public Education
About Public Education
Publications
RSIS Publications
Annual Reviews
Books
Bulletins and Newsletters
RSIS Commentary Series
Counter Terrorist Trends and Analyses
Commemorative / Event Reports
Future Issues
IDSS Papers
Interreligious Relations
Monographs
NTS Insight
Policy Reports
Working Papers
External Publications
Authored Books
Journal Articles
Edited Books
Chapters in Edited Books
Policy Reports
Working Papers
Op-Eds
Glossary of Abbreviations
Policy-relevant Articles Given RSIS Award
RSIS Publications for the Year
External Publications for the Year
Media
News Releases
Speeches
Video/Audio Channel
Events
Contact Us
S. Rajaratnam School of International Studies Think Tank and Graduate School Ponder The Improbable Since 1966
Nanyang Technological University Nanyang Technological University
  • About RSIS
      IntroductionBuilding the FoundationsWelcome MessageBoard of GovernorsHonours and Awards for RSIS Staff and StudentsRSIS Endowment FundEndowed ProfessorshipsCareer OpportunitiesGetting to RSIS
      Staff ProfilesExecutive Deputy Chairman’s OfficeDean’s OfficeManagementDistinguished FellowsFaculty and ResearchAssociate Research Fellows, Senior Analysts and Research AnalystsVisiting FellowsAdjunct FellowsAdministrative Staff
  • Research
      Research CentresCentre for Multilateralism Studies (CMS)Centre for Non-Traditional Security Studies (NTS Centre)Centre of Excellence for National Security (CENS)Institute of Defence and Strategic Studies (IDSS)International Centre for Political Violence and Terrorism Research (ICPVTR)
      Research ProgrammesNational Security Studies Programme (NSSP)Social Cohesion Research Programme (SCRP)Studies in Inter-Religious Relations in Plural Societies (SRP) Programme
      Other ResearchFuture Issues and Technology ClusterResearch@RSISScience and Technology Studies Programme (STSP) (2017-2020)
  • Graduate Education
      Graduate Programmes OfficeExchange Partners and ProgrammesHow to ApplyFinancial AssistanceMeet the Admissions Team: Information Sessions and other eventsRSIS Alumni
  • Outreach
      Global NetworksAbout Global NetworksRSIS Alumni
      International ProgrammesAbout International ProgrammesAsia-Pacific Programme for Senior Military Officers (APPSMO)Asia-Pacific Programme for Senior National Security Officers (APPSNO)International Conference on Cohesive Societies (ICCS)International Strategy Forum-Asia (ISF-Asia)
      Executive EducationAbout Executive EducationSRP Executive ProgrammeTerrorism Analyst Training Course (TATC)
      Public EducationAbout Public Education
  • Publications
      RSIS PublicationsAnnual ReviewsBooksBulletins and NewslettersRSIS Commentary SeriesCounter Terrorist Trends and AnalysesCommemorative / Event ReportsFuture IssuesIDSS PapersInterreligious RelationsMonographsNTS InsightPolicy ReportsWorking Papers
      External PublicationsAuthored BooksJournal ArticlesEdited BooksChapters in Edited BooksPolicy ReportsWorking PapersOp-Eds
      Glossary of AbbreviationsPolicy-relevant Articles Given RSIS AwardRSIS Publications for the YearExternal Publications for the Year
  • Media
      News ReleasesSpeechesVideo/Audio Channel
  • Events
  • Contact Us
    • Connect with Us

      rsis.ntu
      rsis_ntu
      rsisntu
      rsisvideocast
      school/rsis-ntu
      rsis.sg
      rsissg
      RSIS
      RSS
      Subscribe to RSIS Publications
      Subscribe to RSIS Events

      Getting to RSIS

      Nanyang Technological University
      Block S4, Level B3,
      50 Nanyang Avenue,
      Singapore 639798

      Click here for direction to RSIS
Connect
Search
  • RSIS
  • Publication
  • RSIS Publications
  • CO12032 | China’s Food Security: Threats from Conflicts of Interest
  • Annual Reviews
  • Books
  • Bulletins and Newsletters
  • RSIS Commentary Series
  • Counter Terrorist Trends and Analyses
  • Commemorative / Event Reports
  • Future Issues
  • IDSS Papers
  • Interreligious Relations
  • Monographs
  • NTS Insight
  • Policy Reports
  • Working Papers

CO12032 | China’s Food Security: Threats from Conflicts of Interest
Zhang Hongzhou

22 February 2012

download pdf

Synopsis

Conflicts of interest among the central government, local governments and farmers are threatening China’s food security. The key to resolving them is to revive agriculture as a productive cash earner and contributor to the local economy.

Commentary

2011 WAS a good year for China where food security is concerned. The country’s grain output increased by 4.5 percent over the previous year – the eighth consecutive year that China managed to harvest more grain. With record grain production amounting to 570 million tonnes, Chinese officials claimed that enough grain has been produced to meet the country’s targeted output for 2020. However, as Chinese leaders acknowledged, the country’s future food security is far from assured. There are three threats to China’s future food security – depletion of natural resources; an aging rural labour force; and conflicts of interest among the central government, local governments and farmers.

Although China made tremendous progress in agricultural liberalisation, the central government still plays a key role in this sector. For historical and practical reasons, the local governments have significant autonomy over implementing agricultural policies and allocating funds. Furthermore, China’s agricultural sector is still dominated by small household farming, employing hundreds of millions of farmers. To safeguard China’s food security, the three key players – the central government, local governments and farmers – have to effectively work together to achieve this objective; yet, serious conflicts of interest exist among them.

Central government versus farmers

Since 1978, Chinese farmers have gone through a transformation. During Mao’s era they were merely considered instruments of the central government’s food security policy with little regard for their own economic interests. Now they have become independent economic entities motivated by profit.

China has a comparative advantage in labour-intensive agricultural products, such as fruits and vegetables. While the central government’s effort to promote grain production certainly contributes to China’s grain security, this comes at huge opportunity costs to the farmers as grain cultivation offers very low returns to them.

To address this serious conflict of interest, China eliminated agricultural taxes and increased support for the agricultural sector in 2004. Raising farmers’ incomes is now high on the government’s agenda. However, even with strong central government support, returns of grain cultivation are still much lower than that of fruits, vegetables and other non-grain plantation.

Central government versus local governments

While the central government is committed to ensuring grain security for the nation and promoting farmers’ incomes, the local governments show little interest in the agricultural sector. There are two major reasons. Firstly, agriculture does not help the local government’s promotion system. Promotion of local government officials is strongly based on merit, especially their contribution to economic growth. However, agriculture, particularly the grain sector, generates little employment for the local economy and its contribution to GDP growth is negligible.

Secondly, agriculture is no longer a contributor but a liability to the local government’s fiscal revenue. The local government officials’ economic welfare is tightly linked to the total amount of fiscal revenue they can collect. After the agricultural tax reform in 2004, agriculture no longer contributes to local governments’ fiscal revenue; instead, the local governments are required to contribute a large of portion of their fiscal revenue to support the agricultural sector, especially local grain production.

Local governments versus farmers

Conflicts between farmers and local government officials have existed throughout China for decades. In the past, it was due to heavy exploitations by the local governments of agriculture and farmers. The 1994 fiscal reforms had forced the heavily indebted local governments to turn over a large portion of their fiscal revenues to the central government. Facing severe fiscal constraints, the local governments reached out to the poor farmers in the form of illegitimate fees and charges. This has led to massive peasant protests throughout the country, and severely damaged farmers’ willingness to farm, which is partially responsible for the decrease of grain production in the early 2000s.

Since the abolition of agricultural taxes in 2004, local governments have found a new way to raise money – through land sales. Revenue from land sales is now the primary source of local governments’ fiscal revenue. However, land is often illegally seized by local governments with little or no compensation to farmers, which harms their legitimate rights.

Since the abolition of agricultural taxes, the central government has increased financial support for China’s agricultural sector. These supporting programmes are implemented by the local governments with money contributed both by the central and local administrations. Unfortunately, abuse and misallocation of the agricultural support funds by the local governments is very common, causing serious farmer dissatisfaction towards the local administrations.

Resolving the conflicts of interest

The key to resolving these conflicts of interest is to revive agriculture as a productive cash earner for the farmers and a positive contributor to local economy. However, given China’s WTO commitments and small household farming practice, increasing government support for the sector can only achieve limited success. A potential solution should start with redefining China’s policy on food security.

Considering the dramatic changes in diet and food preferences of the Chinese, China needs to replace the increasingly obsolete political promise of ensuring grain self-sufficiency with a grand food security concept that focuses on dynamic food self-sufficiency. It is in the long term interests of China and the world for China to adjust its agricultural plantation structures.

This can be achieved by reducing the land-intensive grain production, while promoting the cultivation of labour and capital-intensive foodstuffs, such as vegetables, fruits and aquatic products. At the same time, China can actively liberalise its agricultural trade, promoting export of non-grain foodstuff in exchange for grain imports.

About the Author

Zhang Hongzhou is a Senior Analyst with the China Programme at the S. Rajaratnam School of International Studies (RSIS), Nanyang Technological University where he obtained his MSc in International Political Economy. He previously studied at Harbin Institute of Technology in Heilongjiang, China. 

Categories: RSIS Commentary Series

Synopsis

Conflicts of interest among the central government, local governments and farmers are threatening China’s food security. The key to resolving them is to revive agriculture as a productive cash earner and contributor to the local economy.

Commentary

2011 WAS a good year for China where food security is concerned. The country’s grain output increased by 4.5 percent over the previous year – the eighth consecutive year that China managed to harvest more grain. With record grain production amounting to 570 million tonnes, Chinese officials claimed that enough grain has been produced to meet the country’s targeted output for 2020. However, as Chinese leaders acknowledged, the country’s future food security is far from assured. There are three threats to China’s future food security – depletion of natural resources; an aging rural labour force; and conflicts of interest among the central government, local governments and farmers.

Although China made tremendous progress in agricultural liberalisation, the central government still plays a key role in this sector. For historical and practical reasons, the local governments have significant autonomy over implementing agricultural policies and allocating funds. Furthermore, China’s agricultural sector is still dominated by small household farming, employing hundreds of millions of farmers. To safeguard China’s food security, the three key players – the central government, local governments and farmers – have to effectively work together to achieve this objective; yet, serious conflicts of interest exist among them.

Central government versus farmers

Since 1978, Chinese farmers have gone through a transformation. During Mao’s era they were merely considered instruments of the central government’s food security policy with little regard for their own economic interests. Now they have become independent economic entities motivated by profit.

China has a comparative advantage in labour-intensive agricultural products, such as fruits and vegetables. While the central government’s effort to promote grain production certainly contributes to China’s grain security, this comes at huge opportunity costs to the farmers as grain cultivation offers very low returns to them.

To address this serious conflict of interest, China eliminated agricultural taxes and increased support for the agricultural sector in 2004. Raising farmers’ incomes is now high on the government’s agenda. However, even with strong central government support, returns of grain cultivation are still much lower than that of fruits, vegetables and other non-grain plantation.

Central government versus local governments

While the central government is committed to ensuring grain security for the nation and promoting farmers’ incomes, the local governments show little interest in the agricultural sector. There are two major reasons. Firstly, agriculture does not help the local government’s promotion system. Promotion of local government officials is strongly based on merit, especially their contribution to economic growth. However, agriculture, particularly the grain sector, generates little employment for the local economy and its contribution to GDP growth is negligible.

Secondly, agriculture is no longer a contributor but a liability to the local government’s fiscal revenue. The local government officials’ economic welfare is tightly linked to the total amount of fiscal revenue they can collect. After the agricultural tax reform in 2004, agriculture no longer contributes to local governments’ fiscal revenue; instead, the local governments are required to contribute a large of portion of their fiscal revenue to support the agricultural sector, especially local grain production.

Local governments versus farmers

Conflicts between farmers and local government officials have existed throughout China for decades. In the past, it was due to heavy exploitations by the local governments of agriculture and farmers. The 1994 fiscal reforms had forced the heavily indebted local governments to turn over a large portion of their fiscal revenues to the central government. Facing severe fiscal constraints, the local governments reached out to the poor farmers in the form of illegitimate fees and charges. This has led to massive peasant protests throughout the country, and severely damaged farmers’ willingness to farm, which is partially responsible for the decrease of grain production in the early 2000s.

Since the abolition of agricultural taxes in 2004, local governments have found a new way to raise money – through land sales. Revenue from land sales is now the primary source of local governments’ fiscal revenue. However, land is often illegally seized by local governments with little or no compensation to farmers, which harms their legitimate rights.

Since the abolition of agricultural taxes, the central government has increased financial support for China’s agricultural sector. These supporting programmes are implemented by the local governments with money contributed both by the central and local administrations. Unfortunately, abuse and misallocation of the agricultural support funds by the local governments is very common, causing serious farmer dissatisfaction towards the local administrations.

Resolving the conflicts of interest

The key to resolving these conflicts of interest is to revive agriculture as a productive cash earner for the farmers and a positive contributor to local economy. However, given China’s WTO commitments and small household farming practice, increasing government support for the sector can only achieve limited success. A potential solution should start with redefining China’s policy on food security.

Considering the dramatic changes in diet and food preferences of the Chinese, China needs to replace the increasingly obsolete political promise of ensuring grain self-sufficiency with a grand food security concept that focuses on dynamic food self-sufficiency. It is in the long term interests of China and the world for China to adjust its agricultural plantation structures.

This can be achieved by reducing the land-intensive grain production, while promoting the cultivation of labour and capital-intensive foodstuffs, such as vegetables, fruits and aquatic products. At the same time, China can actively liberalise its agricultural trade, promoting export of non-grain foodstuff in exchange for grain imports.

About the Author

Zhang Hongzhou is a Senior Analyst with the China Programme at the S. Rajaratnam School of International Studies (RSIS), Nanyang Technological University where he obtained his MSc in International Political Economy. He previously studied at Harbin Institute of Technology in Heilongjiang, China. 

Categories: RSIS Commentary Series

Popular Links

About RSISResearch ProgrammesGraduate EducationPublicationsEventsAdmissionsCareersVideo/Audio ChannelRSIS Intranet

Connect with Us

rsis.ntu
rsis_ntu
rsisntu
rsisvideocast
school/rsis-ntu
rsis.sg
rsissg
RSIS
RSS
Subscribe to RSIS Publications
Subscribe to RSIS Events

Getting to RSIS

Nanyang Technological University
Block S4, Level B3,
50 Nanyang Avenue,
Singapore 639798

Click here for direction to RSIS

Get in Touch

    Copyright © S. Rajaratnam School of International Studies. All rights reserved.
    Privacy Statement / Terms of Use
    Help us improve

      Rate your experience with this website
      123456
      Not satisfiedVery satisfied
      What did you like?
      0/255 characters
      What can be improved?
      0/255 characters
      Your email
      Please enter a valid email.
      Thank you for your feedback.
      This site uses cookies to offer you a better browsing experience. By continuing, you are agreeing to the use of cookies on your device as described in our privacy policy. Learn more
      OK
      Latest Book
      more info