Township economy deserves attention in industrialization

07/03/2003
China Daily

China should develop the economy of its townships and counties in its pursuit of industrialization, urged a signed article in the Economic Daily titled "The strategic choice of township economy in industrialization" on July 1.

Industrialization is a process by which a country moves from being an agricultural economy to an industrialized one. The process is usually accompanied by a influx of surplus rural workers into industrial sectors in the cities, which helps modernize both urban and rural areas as a result.

As an important part and basic unit of the national economy, the township economy is set to have a certain impact on China's industrialization.

However, China's township economy is still heavily characterized by agriculture, the article said.

For example, more than 70 percent of the country's 1.3 billion population still live in the numerous township areas, leading a rural way of life.

So, in the push towards industrialization, how to upgrade the township economy is poised to be a challenge for China, the article said.

The township economy is a comprehensive economic entity, including agriculture, industry, the service sector, construction and so on.

In this light, when industrialization is being pushed, the township economy should focus on providing laborers, markets, products and other production factors in the industrialization and urbanization process. It should embark on a set of reforms, such as adjustment of its industrial and employment structures.

The development of township industry has long been restrained by backward technology and shortages of funding. Such a situation could be exacerbated as the flow of economic resources to cities has been speeding up since China joined the World Trade Organization in December 2001.

Under such circumstances, small counties and townships will need to remap their industrial structure to build up their economy.

The most realistic way to develop township industry is to foster labor-intensive sectors since townships have abundant agricultural resources.

When fostering township industries, equal importance should be paid to modernizing rural areas, the article stressed.

As the rural population declines, it becomes possible to reorganize the currently prevalent small-scale farming operations on the basis of economies of scale, thus improving farming efficiency.

In addition, the current way of life in rural areas can be upgraded in line with the modernization drive, the article suggested.

Urban civilization is not only a privilege of urban residents but should be enjoyed by rural people as well.