ADB Technical Assistance Project TA 7036-PRC Package 2: Jiangxi Development Strategy Jiangxi Rural Development Strategy Project Consulting Team Team leader: Wu Guobao © 2010 Asian Development Bank All rights reserved. Published 2010. Printed in the People's Republic of China The views expressed in this book are those of the authors and do not necessarily reflect the views and policies of the Asian Development Bank or its Board of Governors or the governments they represent. The Asian Development Bank does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use. Use of the term “country” does not imply any judgment by the authors or the Asian Development Bank as to the legal or other status of any territorial entity. Contents Acknowledgements ....................................................................................v Contributors ...............................................................................................vi Abbreviations ........................................................................................... viii Executive Summary................................................................................... 1 I. Introduction ........................................................................................... 15 1. Context of the Study ........................................................................... 15 2. Objectives and Scope of the Study .................................................... 20 3. Approaches and Methodologies ......................................................... 20 II. Current Status of Rural Development in Jiangxi .............................. 23 1. Current Status of Rural Economic Development in Jiangxi................ 23 2. Rural Physical Infrastructure and Village Renovation ........................ 55 3. The Status Quo of the Rural Public Service System .......................... 61 4. The Status Quo of Grassroots Organizations..................................... 69 5. Current Situations of Environmental Protection in Rural Jiangxi........ 84 6. Overall Assessment of the Rural Development in Jiangxi.................. 93 III. Comparative Advantages and Disadvantage Facing to the Rural Economic Development in Jiangxi........................................................119 1. Locational Conditions and Macro Economic Environments ..............119 2. Comparative Advantages, Constraints and Potentials ..................... 129 IV. Strategies Proposed for Rural Development in Jiangxi Province 153 1. Overall Strategic Goals for Rural Development in Jiangxi by 2020.. 153 2. Strategy for Income Growth of Rural Residents in Jiangxi ............... 154 3. Strategy for Rural Industries Development in Jiangxi....................... 160 4. Strategy for Rural Public Services Development.............................. 165 5. Strategy for Rural Environment Protection ....................................... 165 6. Strategy for Rural Governance......................................................... 165 V. Recommendations............................................................................. 167 1. Organizational Innovations............................................................... 167 2. Institutional Innovation and Improvement......................................... 169 3. Financing Innovations ...................................................................... 171 4. Institutional Innovations Required for Scientific and Technological Supports ............................................................................................... 173 5. Infrastructure Construction and Management .................................. 174 6. Policy Suggestions ........................................................................... 174 Appendix: International Experiences for Jiangxi Rural Development Strategy................................................................................................... 183 1. Land Tenure Policies for Optimising Agricultural Production............ 183 2. Processing and Logistics of Agricultural Products............................ 193 3. Financial Services to Agriculture ...................................................... 195 4. Quality and Safety of Agricultural and Food Products...................... 197 5. Promotion of Quality and High Value-added Products ..................... 208 6. Towards A Comprehensive Approach to Rural Development Planning ..............................................................................................................211 7. Enhancing the Capacity and Efficiency of R&D, Extension and Information Services............................................................................. 218 8. Enhancing Public Participation......................................................... 221 9. Farmer Cooperatives........................................................................ 231 References.............................................................................................. 239 Acknowledgements Jiangxi Rural Development Strategy is one of the two packages in ADB TA 7036-PRC: Provincial Development Strategies for Selected Provinces in the Central Region. It is financed by the Asian Development Bank (ADB). The consulting firm, Rural Development Institute at the Chinese Academy of Social Sciences, formed a team composed of national and international experts to implement the project. Per request of Jiangxi provincial government, the Jiangxi development strategy study focused on the research of rural development in the context of rural-urban coordinated development. The team has made comprehensive and in-depth analysis on the comparative advantages and disadvantages, potentials and constraints for rural development in Jiangxi based on the overall and 10 subject studies. The 10 subject studies are: (i) rural industries development; (ii) agricultural product standard and safety; (iii) rural land property right reform; (iv) rural infrastructure development; (v) rural logistics development, (vi) rural environment and ecology; (vii) rural public services; (viii) rural grassroots governance and organizational reforms; (ix) rural vocational training; and (x) institutional innovation and reforms. Overall and sector specific strategic goals and approaches are proposed for the rural development in Jiangxi Province by 2020. The team has also made recommendations on the required institutional innovations and policy changes to guarantee and support the realization of the proposed strategies for rural development. The TA was incepted in Nanchang, the capital city of Jiangxi Province in November 2008. Senior officers from Jiangxi provincial government, the Department of International Cooperation at the Ministry of Finance, Jiangxi provincial Department of Finance, and ADB PRC Resident Mission, have been keeping concerns about and providing guidance and advice for the TA implementation. The concerned government departments at provincial, prefecture and county level in Jiangxi Province provided helpful advice and assistance in the process of consultations and field visits. Participants who attended the Inception Workshop, Mid-Term Report Review Workshop and Final Report Review Workshop made important contributions to the preparation and revision of the main report and sub-reports. The consulting team would like to extend sincere thanks to al of them for their strong supports and valuable contributions. Team leader: WU Guobao Contributors Asian Development Bank Kanokpan Lao-Araya Economist ZHUANG Jian Senior Economics Officer GAN Mei Assistant Project Analyst TA Project Executive Agency MAO Zuxun Director of the TA Project Management Office, Deputy Director General, Jiangxi Department of Finance ZHANG Sheng Project officer, Division director, Jiangxi Department of Finance FANG Hua Project officer, Division director, Jiangxi Department of Finance ZENG Wenquan Project officer, Division director, Jiangxi Department of Finance SU Changping Project officer Deputy division director, Jiangxi Department of Finance TA Consulting Team WU Guobao Team leader, professor of Rural Development Institute, Chinese Academy of Social Sciences LI Zhou Environmental protection specialist, deputy director and professor, Rural Development Institute, Chinese Academy of Social Sciences DU Zhixiong, Rural industry development specialist, professor of Rural Development Institute, Chinese Academy of Social Sciences JIANG Jingfa Rural governance and public service specialist, vice president and professor of Jiangxi University of Finance and Economics MO Rong Rural vocational training specialist, Deputy Director and professor of Institute for Labor vi Sciences, Ministry of Human Resources and Social Protection CHEN Yunjuan Rural logistics expert, professor of Nanchang University ZHANG Liguo Agricultural standard and safety specialist, professor of Jiangxi University of Finance and Economics YANG Feng Rural land property expert, professor of Jiangxi University of Finance and Economics LUO Xiandong Rural infrastructure expert, associate professor of the Center for Finance Studies at Jiangxi Department of Finance Sylvie Dideron International expert for rural industry development Tim Zachernuk International expert for rural governance Independent Experts SU Ming Independent Finance and Taxation Expert, Deputy Director and Professor of the Institute for Finance Science, Ministry of Finance LI Wanping Independent Finance and Taxation Expert, Professor