Now that a new concept for developing rural areas has been put forward by the Chinese Communist Party Central Committee for reference in the formulation of the 11th Five-Year Plan (2006-10), a good opportunity to solve problems involving agriculture, the countryside and farmers has presented itself.

These challenges have long been a bottleneck in the country's modernization drive.

China's reform started from the countryside in the late 1970s when the contract system with remuneration linked to output unleashed pent-up energy among farmers, whose enthusiasm for production had long been shackled by the rigid people's commune system, a product of the planned economy.

But with the passage of time, the disparity between urban and rural areas has been widening owing to the existing social infrastructure that has favoured urban areas at the expense of the rural regions. At the same time, polarization of the rich and poor in rural areas is becoming more and more pronounced.

At present, backward infrastructure covering transportation, communications, tap water supply and irrigation systems is hindering rural development. This is compounded by poor cultural, educational and public hygiene systems. Also, farmers' income is distinctly lower than their urban peers, which drags down the consumption demand of the nation as a whole.

Domestic demand, the ultimate driving force that powers an economy, remains sluggish despite the high speed growth of the economy in recent years.

We enjoyed a golden period of growth in the 1980s when farmers' income rose steadily. At the time, this growth was faster than in the cities. This helped power rural consumption.

But farmers' income growth slowed in the 1990s, and the growth rate has been decelerating ever since.

In view of this, the strategy of powering economic development through domestic demand as it has actually been implemented is naturally not appropriate. Instead we have the formula of investment-powered growth. In my opinion, this is not resting on a solid and sustainable basis.

Taking all this into account, rural development has become a structural problem that directly affects the nation's economic development.

Think about the fast-growing cities that are leaving behind vast backward rural areas inhabited by a colossal population. Can we say that China ranks among the medium-level developed countries?

Social problems are becoming increasingly acute because the wealth gap between the rich and poor, and between urban and rural dwellers, is so incredible.

How can we tolerate the urban-rural disparity getting wider? It is high time we did something about it.

The concept of the construction of a new rural area is a general guideline that governs all aspects of social development. It is the embodiment of the idea of harmony-orientated development recently put forward by the central authorities.

The "new rural area" concept means developed production, higher wages, a more civilized society, clean and tidy villages, and democratic management.

In the past, exclusive pursuit of GDP goals gave rise to a situation in which the achievements of government leaders at various levels were gauged solely by GDP indicators. This, in turn, drove officials to strive for even better economic figures at any cost in the hope of being promoted or at least being more secure in their current post.

This could by no means be called "harmonious development" and only harms agricultural growth and farmers.

In future, financial support from governments at various levels will favour the countryside. This means rural areas will share a much larger portion of State cash. This is the so-called "industry feeding agriculture in return and the city helping power rural growth."

Some believe that once large numbers of farmers move into cities, rural problems will disappear. But this movement will lead to the creation of large numbers of shanty towns. This is nothing more than a shift of rural poverty to urban areas. This is a common occurrence in many developing countries whose urbanization drives have proceeded ours.

Megacities in these countries, instead of being centres of wealth and cultural activities, are somewhat centres of poverty and social unrest.

I have visited many developing countries. Some face serious social unrest and instability. Large numbers of poverty-stricken people either flock to cities or enter guerrilla-controlled zones.

In many cases, the crux of the matter lies in the lack of efficient management of the slum population.

When it is impossible to introduce a regular management system, abnormal or extreme means and management approaches are applied by the authorities. This is only detrimental to the introduction of democracy and the rule of law. These are lessons we could learn.

For our part, the concept of the construction of a new rural area is a way of addressing the past narrow and radical opinions concerning urbanization and rural development.

Increasing farmers' income is at the core of the concept of "new rural area construction." When their purses become bulging, they will buy more, helping shovel up the weak domestic demand.

Poor infrastructure will be a bottleneck to new rural area construction. The government is determined to earmark huge amounts of money to tackle this situation.

The improvement of public services such as education, healthcare and culture-related undertakings can also count on government support.

In addition, social security is an important aspect of the construction of new rural areas.

The vast majority of Chinese farmers are not covered by the social security umbrella to the same extent as their urban peers. The gradual introduction of the social security system in the countryside is bound to help promote the harmonious development of the rural areas.

(China Daily November 9, 2005)