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The Economic Depression in the Rural Area
Date: 3/13/2006 3:23:04 PM Sender: Chengji Deng

                                         By Chengji Deng 10/17/05

                    The Economic Depression in the Rural Area
  
       In the eighties last century, the government started to deregulate the grain market and give the peasants more freedom in moving and starting business. The rising output and productivity led to the increasing income for the peasants. And the flourishing countryside underpinned the economic prosperity in the eighties.
       Entering into the nineties, however, the government stepped up its control on the flow of peasants into the urban areas. In cities, the police detained the people who didn’t have a city resident ID and sent them back to the countryside. Millions of peasants were deprived of the right of making a living in and unable to remit money to their families living in the countryside. Making things worse, the local Chinese Communist Party government collected exorbitant taxes and levies on the peasants to feed the greedy and corrupt officials. The peasants were left living in poverty, which severely lowered the sales in the countryside of the merchandise produced by the businesses in the urban areas.





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