1) The document outlines key opportunities and challenges for rural revitalization from global and Chinese perspectives based on a presentation by Shenggen Fan. 2) China has made great progress in rural development through policies like land reform and the Household Responsibility System but still faces challenges like poverty and stunting in rural areas. 3) Global experiences provide lessons for an integrated approach including improving rural services and connectivity, developing niche rural industries, and strengthening rural-urban linkages.

1. Shenggen Fan, June 2018
Shenggen Fan | Director General
International Food Policy Research Institute
Beijing, China | June 25, 2018
THE ROLE OF
RESEARCH IN
REVITALIZING
RURAL AREAS:
Global and Chinese
Perspectives
International Mega Programme – Lessons
to Learn, Chinese Academy of Agricultural
Sciences (CAAS)

2. Shenggen Fan, June 2018
Outline
Global experiences provide lessons for an integrated
approach to rural revitalization
Key research issues need to be addressed for rural
revitalization
China’s rural development policy led to great progress,
but challenges remain
Rural revitalization presents important opportunities

3. Shenggen Fan, June 2018 Source: Liu and Li 2017
Why rural revitalization at this time?
Rural areas are facing
major challenges
associated with
poverty, hunger, and
demographic shifts
(e.g. aging, migration)
World rural populations, 2015

4. Shenggen Fan, June 2018
Opportunities for rural revitalization are ahead
• Key opportunities to revitalize rural areas
– Technological advances for rural connectivity
– Growing markets in urban areas
• Rural revitalization can help balance major economies by generating demand within
the country and reducing reliance on exports to other countries
• Key issues to consider will include:
– Employment and livelihoods
– Environmental sustainability
– Territorial development connecting rural areas with intermediate cities/towns and large urban areas
– Infrastructure and connectivity
– Rural services

5. Shenggen Fan, June 2018
Land reform
Evolution of China’s rural development policy
From land reform to market liberalization (1)
1940s 1952
Collectivization
movement
1958
People’s
commune
1978
Household Responsibility
System (HRS)
1985
Gradual market
liberalization
2001
WTO accession
Land reform
• Equalization of land ownership
• Distribution of land to all rural
households
Collectivization movement
• Collective land ownership
• Initial increase in agricultural output
People’s commune
• Compulsory collectivization
• Productivity remained low due to free-riding & lack of supervision
• Grain yields grew by 2.2% annually BUT short food supply due to rapid
population growth
• Government prioritized heavy industry for rapid development
• Resulted in profound famine: 30 million extra deaths between 1959-1961

6. Shenggen Fan, June 2018
Land reform
Evolution of China’s rural development policy
From land reform to market liberalization (2)
1940s 1952
Collectivization
movement
1958
People’s
commune
1978
Household Responsibility
System (HRS)
1985
Gradual market
liberalization
2001
WTO accession
Household Responsibility System (HRS)
• Concentration on modernization & incentives to produce
• Contract cultivated land to households
• Significantly raised productivity
‒ Accounted for 40-50% of total increase in agricultural output
between 1978-1984
• Mass reduction in rural poverty from increased agricultural
production & equitable land distribution
Gradual market liberalization
• Phased out direct market interventions program in
almost all agricultural commodities
• Relaxed trade restrictions and market access
‒ Average import tariff for agricultural products
reduced from 42.2% in 1992 to 17% in 2004
• Joined WTO in 2001

7. Shenggen Fan, June 2018
Direct subsidy program
• Direct grain subsidy, Quality seed subsidy, Machinery subsidy, Aggregate
input subsidy
• Total amount of 4 major subsidies reached 164.3 billion yuan
(US $26.1 bill.) in 2012, accounting for 3.13% of agricultural GDP
• However, impact of subsidies moderate on farmer’s income and negligible
on grain production
Price intervention program
• Minimum procurement price for rice and wheat
• Temporary storage program for maize, soybean, and rapeseeds
Policy Reforms
• Adjusting food security target
• Enhancing production capacity and
sustainable agriculture
• Adjusting policy support system
• Integration of the primary, secondary
and third industries
• Deepening land property rights reform
to foster land consolidation
• Focus on rural revitalization
Shift from agricultural taxation to support
Key recent policy developments
2004
Direct subsidy &
price intervention programs
2006 2008
Temporary storage
program
2010
Policy reforms
2018
Focus on rural
revitalization

8. Shenggen Fan, June 2018
Total Factor Productivity, 1961-2003
Source: Fan et al., 2007
0
50
100
150
200
250
1961 1965 1969 1973 1977 1981 1985 1989 1993 1997 2001
Structural transformation & growth

9. Shenggen Fan, June 2018
Despite impressive progress, challenges remain in China,
especially in rural areas
0
20
40
60
80
100
1981 1987 1993 1999 2005 2010 2012
Population under poverty
(%, PPP$1.90/day)
National
Rural
Urban
12.1
3.4
0
10
20
30
40
1990 1995 2000 2005 2010
Rural Urban
Stunting in children <5 years, 1990-2010 (%)

10. Shenggen Fan, June 2018
Global experiences provide lessons for
an integrated approach to rural
revitalization

11. Shenggen Fan, June 2018
• Korea’s New Village Movement
‒ Improves infrastructure in rural area, bringing modernized facilities
such as irrigation systems, bridges and roads in rural communities
(Korean Ministry of Agriculture and Forestry 2012)
‒ Empowers villages, highlighting importance of self-governance and
cooperation
• Revitalizing rural areas in Japan
‒ Rural-urban linkages are key in addition to rural infrastructure projects
and direct payments
‒ Mandatory Social Long-Term Care Insurance provides services to
seniors based on physical and mental status (Muramatsu and Akiyama 2011)
Learning from others: East Asia
Improving living conditions of rural areas
Photo sources: CEFIA, Korea; MAFF, Japan

12. Shenggen Fan, June 2018
• Shifted product/price support to income support and direct
payments (1st Pillar)
– Further reforms linked payments to food safety,
environmental protection, and sustainable agriculture
• Set up special fund to support rural areas (2nd Pillar)
• New policies introduce better targeted, more equitable
safety net and strengthened rural development
– E.g. Green direct payments rewarding farmers for eco-
friendly practices, support for investments beneficial to the
environment and climate
Learning from others: European Union
Converting subsidies to rural development support
Source: European Commission

13. Shenggen Fan, June 2018
• Rural economic sectors increasingly capital-intensive, leading
to fewer jobs and skills mismatch
– Lack of investment in infrastructure, limited access to finance, training,
and education, rural youth/brain drain
• Identifying issues with Rural Prosperity Task Force and
proposing new investments
– US $1.5 trillion investment package, including broadband connectivity for
rural areas
• New technologies and work modalities can revitalize rural
areas
– E-commerce, telework offer business and development opportunities
Learning from others: United States
Keeping rural towns connected
Source: Duncan 2012

14. Shenggen Fan, June 2018
• Promoting accessible, rural-based initiatives to reduce
poverty, e.g.
– Organic rice farming, handicraft production, and rural tourism
• One Tambon One Product (OTOP)
– Government initiative to spark local product and provide alternative
incomes for poor farmers
• Community Work Accreditation Scheme (CWAS)
– Decentralizes decision making and supports sustainable agriculture by
building local capacity to develop development projects
• AND continued support to vulnerable communities through,
e.g. village health volunteers
Learning from others: Thailand
Developing niche products and empowering rural areas
Source: Moore and Donaldson, 2016; Kelly et al. 2012

15. Shenggen Fan, June 2018
Key research issues need to be addressed
for rural revitalization

16. Shenggen Fan, June 2018
Photos: Ageitec, IRRI, WEF
• Highlight evidence-based techs for health and the environment
– Yield enhancing technologies (e.g. Remote sensing, precision agriculture)
– Improved, climate-resilient varieties (e.g. New Rice for Africa “NERICA”)
– Nutrition-driven and nutrition-sensitive technologies (e.g. Biofortification)
• Scale up new multiple-win technologies
– Alternative proteins to reduce GHGs, environmental impact, health risks
– Big data and analytics to lower transaction costs, improve monitoring
– Blockchain-enabled traceability
• Support farmer-led innovations
– E.g. planting basins to conserve water and improve food safety
Need to consider impact on smallholders, children’s nutrition, jobs, etc.
How to promote interface between rural development,
agriculture, and environment?

17. Shenggen Fan, June 2018
• Improvements to rural services are key to better living standards
– Malaysia, the Philippines and Thailand’s rural investment in public health and education improved
life expectancy and infant survival rates
– Small cities and towns could act as bridges to bring education, health, information and
administrative services to remote villages
• Invest in rural areas for more attractive recreation and leisure
– Promote recreation and cultural industries, including tourism
– E.g. Swedish rural municipalities since 1980s relaxed regulations for building along lakes to attract
more rural residents
• Enhance agricultural and rural non-farm service sectors
– Rural non-farm sectors contribute to economic growth, household income diversification, rural
employment, and poverty alleviation
How to improve rural services and employment?
Source: Liu and Li 2017, World Bank 2017

18. Shenggen Fan, June 2018 Source: Fan and Graziano da Silva 2013, ADB 2009, UN Habitat 2016
• Strengthen rural-urban linkages
– Improve policy coordination between rural and urban areas
– Support efficient and inclusive rural-urban value chains
– Leverage towns and intermediate cities to facilitate socio-economic links
• Promote ICTs to improve value chains
– Mobile phones, internet tracking for better accuracy, comprehensiveness
– E.g. China’s G20 initiative: E-commerce connects rural farmers with supply
and demand information on agricultural produce and materials, and
consumer products
• Improve rural housing to be inclusive, affordable, and adequate
– New Urban Agenda highlights integrated housing policies spanning
continuum of rural to urban areas
How to enhance agricultural and rural engineering?

19. Shenggen Fan, June 2018
How to improve institutions and local governance?
• Support development and co-existence of different farming models
– Include cooperatives and family farms for efficiency-building competition
– Support institutional arrangements to promote mechanization e.g. cooperatives
– Improve extension activities for left-behind farmers
• Promote efficient, well-functioning land rental markets
– Solid legal framework for resource allocation promotes natural resource preservation (Ringler and Nkonya 2012)
• Integrate agriculture and rural development strategy, policy, and investment
– E.g. Changing Ministry of Agriculture to Ministry of Agriculture and Rural Affairs— including at
provincial and county levels
• Promote participatory local governance – bottom-up approach
– E.g. Xiaoguan village in China and Åre in Sweden demonstrated success of strong voice of local
committees or stakeholders in implementing revitalization initiatives (Li et al. 2016)

20. Shenggen Fan, June 2018
How to foster interdisciplinary research?
• Rural revitalization strategy places
increasing importance on how science
affects rural development
– Interdisciplinary research between natural
and social sciences is key
• Establish research programs that
integrate crop and economic models
– e.g. IMPACT model—partial equilibrium
multi-market model that joins natural
science (biology, climate, hydrology) with
health and economics
IMPACT Model
Source: Rosegrant et al. 2017

21. Shenggen Fan, June 2018
How to foster cooperation and mutual learning?
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