2021-10-11 15:27:57
Farmers of Xiaogang village take a group photo
Xiaogang village in the past
Xiaogang village in 2021
In 1978, 18 farmers in Xiaogang village, in east Anhui Province, signed a secret agreement to divide communally owned farmland into individual pieces called household contracts, thus inadvertently lighting the torch for China’s rural revolution. They promised that each household would deliver a full quota of grain to the state and to the commune, and keep whatever remained. Before 1978, Xiaogang was infamous for its poverty. Grain output increased to 90,000 kilograms in 1979, over six times as much as the previous year. The per capita income of Xiaogang climbed to 400 yuan from 22 yuan. Household Contract Responsibility System, starting from Xiaogang village, allows farming households to manage agricultural production on their own initiatives while the farmland remains in the ownership of the rural collective. It also enables farmers to use land through long-term contracts and keep the produce after paying taxes. It raised productivity and increased agricultural output, both of which were preconditions for nurturing the economic takeoff, and comprehensive industrialization and urbanization. The start of this system is widely accepted as a milestone in the economic opening up.