1
From 1958 to 1978, as the result of the slow development of
enterprises run by the communes, the ability to absorb rural surplus labour
was very limited. In 1978, the total number of workers in enterprises run
by the communes accounted for only 9% of the rural labour force. From
the 80’s, township and village enterprises rose in large numbers. The
ability to absorb surplus workers increased greatly. In 1998, there were
125.37 million workers serving township and village enterprises,
representing 27% of China’s entire work force and over 50% of surplus
labour in rural areas. It provides significant relief to the employment
situation.
Township and village enterprises bring steady jobs and regular
income for the vast surplus rural labour. It also eases the impact of
massive migration on economic development and social order in cities.
Reference:
2
Falling growth in job creation by township and village enterprises
A national special working committee on township and village enterprises was recently
held. It was pointed out that the ability of township and village enterprises to absorb rural
workers had been falling year after year. This means that the system could no longer meet the
needs of the rural population for secure employment and higher income.
According to statistics, township and village enterprises employed 125 million rural
labourers in 1998. In 1999, 127 million were recorded, representing an increase of 2 million
over the previous year. In 2000, the figure rose to 128 million, representing an increase of 1
million over the previous year. The figure for 2001 can be expected to be roughly the same
as that for the previous year. The problem of rural
people not having sufficient employment and slow income growth thus becomes more
critical. It is a far cry from the target of the Tenth Five-Year Plan
period for 2.5 million people to be given jobs annually on the
average.
Reference:
1.
Based on Source 1, what are the effects of the development of township and
village enterprises on society and the nation’s economy?
Answer for reference: Township and village enterprises provide steady jobs
and income. The pressure from rural labour flocking to cities is therefore
reduced.As a result, there is less negative impact on economic development
and social order.
3
2.
Based on Sources 1 and 2, do you think township and village enterprises can
solve the problem of surplus rural labour? Try and explain your view.
Answer for reference: There was fast development of township and
village enterprises in the eighties to absorb surplus rural workers.
In
1998, they accounted for more than 50% of rural surplus labour. However,
the rate of rural surplus workers absorbed by township and village
enterprises began to drop from 1998 onwards. Insufficient jobs and slowing
down of income growth for the rural population has become evident.
4
The development of township and village enterprises
Township and village enterprises (TVEs) developed on the foundation of rural
craft and the processing of agricultural products. Starting from 1978, TVEs
suddenly bloomed. They are now a pillar of the rural economy. In 1987, the total
output of TVEs outran for the first time the total agricultural output. In 1990, TVEs
earned US$13 billion in foreign currency, representing 23.8% of China’s total foreign
currency earning of that year.
In 1999, China had more than 20.71 million TVEs, with 127.04 million
employees and generating 2,500 billion yuan in added value, which made up more
than 60 percent of the social added value of the rural areas. In 2000, the added value
of China’s township enterprises stood at 2,720 billion yuan in added value, or a 9.14
percent increase over the previous year. The net income per capita of the rural
population rose from 134 yuan in 1978 to 2,210 yuan in 1999.
Their fields of business include manufacturing, agriculture, traffic and
transport, construction, commerce and catering services. As for products,
they range from rural commodities, articles for daily use, food products,
agricultural processing products to light industrial products. Many of these
products have been launched in the international market and TVEs are
nowadays an important source of Chinese export.
Reference:
5
Reference:《小平說：甚麼是社會主義》，廣州出版社，1996。
4.
Does the small boat on the left in Source 4 show the strengths or weaknesses of
TVEs? Explain your answer briefly.
Answer for reference: Strengths – Not much capital is required because of
its small scale. Therefore, there is more flexibility in development.
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5.
Do the cartoon in Source 4 and the contents of Source 3 match?
answer.
Explain your
Answer for reference: They match. After several years of development, the
TVEs mentioned in Source 4 are now of some scale and their products are
being exported to earn foreign currency. This tallies with the information
in Source 3 that TVEs have developed rapidly. For example, Source 3
Says “China had more than 20.71 million TVEs, with 127.04 million
employees and generating 2,500 billion yuan in added value, which made
up more than 60 percent of the social added value of the rural areas. …
Many of these products have been launched in the international market and
TVEs are nowadays an important source of Chinese export.”
7
Township and village enterprise (TVE) is the collective term for non agricultural
enterprises outside of state enterprises run by rural villages. During the period of the
people’s communes, industries or small enterprises run by communes or production
brigades were called “commune / brigade-run enterprises”.
After the
disintegration of the people’s communes, commune or brigade-run enterprises were
transformed into TVEs and have become the main stay of rural enterprises. Since
then, various forms of enterprises run by villages and individuals have emerged. In
March 1984, “township and village enterprise” became the collective term for all
theses rural enterprises.
TVEs can be described as a product of the rural market economy. They are
not regulated by government investment plans or production projections. They
are freely set up with the support of bank facilities or collective or individual
capital. Small in scale, they utilize old equipment and rely on low technology
and local resources. They take advantage of favourable conditions and develop.
In particular, they absorb surplus workers in rural villages.
Nevertheless, TVEs face the following limitations too.
 There is a certain degree of “blindness” in the development of TVEs.
 TVEs compete with large enterprises in the urban areas for
capital, raw material and energy. Some of these important
resources flow to TVEs operating in lower efficiency. As a
result, resources may be wasted.
 Since government is unable to regulate them fully,
environmental
pollution,
poor
working
conditions etc have emerged.