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Decentralisation and Local Accumulation: Relevance of China's Experience

D. N.
Economic and Political Weekly
Vol. 36, No. 28 (Jul. 14-20, 2001), pp. 2619-2621
Stable URL: http://www.jstor.org/stable/4410852
Page Count: 3
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Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
Decentralisation and Local Accumulation: Relevance of China's Experience
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Abstract

In China the phase of rapid growth was based on agriculture and other on-farm production which both reduced rural poverty and provided surpluses for industrial investment. But agriculture quickly came up against the barrier of diminishing returns - in the absence of technological change - and capital began to be diverted to other, more profitable investment activities. How has this drain of savings from rural to urban areas been reversed?

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