Insight Gained from Beichuan

Gao Xiaomeng and Liu Hong

Chinese Economy, 1994, vol. 27, issue 3, 5-14

Abstract: In June 1983, the Sichuan provincial party committee's work conference on the Pengzhou mountain region passed a resolution stating: "Peasants in grain-scarce production brigades in mountainous areas who wish to pay cash in lieu of selling the requisite quotas of grain to the state may do so, without reducing the state grain purchase quota in the entire province. Observing the principle of no gains and no losses, state grain departments may accept such cash funds based on the price of grain in grain-producing areas, with which they will be able to buy the requisite quotas." (Hereinafter referred to as >i>digou>/i>â"cash for quota.") What was the basis for this policy? How did the peasants react to it? What impact did it have on the economic development of mountainous areas? In early November, we made an investigative trip to Beichuan county, the first area to carry out this policy. Our findings reveal that this resolution was a major breakthrough in the country's grain purchase and sale policy. It has had and will continue to have a far-reaching and positive effect on economic growth in Sichuan's mountain regions.

Date: 1994
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