The importance of accelerating rural reforms

Reform in China's rural areas and agriculture started in the late 1970s after decades of central planning. The resulting rapid growth in agricultural production provided a strong foundation for urban and industrial reforms. Strong agricultural growth continued even after the initial reform. Agricultural production growth increased at an average annual rate of nearly 4 percent and agricultural output value grew more than fourfold from 2000 to 2011, data from the World Bank shows.

According to China's National Bureau of Statistics figures, rural incomes increased by 162 percent from 2000 to 2010 and the rural-urban income disparity decreased by 5 percent. This progress is the result of the implementation of a series of policies to expedite rural transformation and boost rural incomes, especially for small farmers.

The government phased out the centuries-old agricultural tax and implemented a number of support policies aimed at boosting the production of staple crops and giving farmers greater access to improved inputs.