ABSTRACT
Agriculture was characterized by low productivity, having virtually exhausted all possibilities of increase within the traditional technology. To ease the population pressure on the land and to develop the economy, the government had to give top priority to the development of agriculture. China's new leaders were aware of the important role of agriculture in the economy. The land reform affected agricultural efficiency and production in various ways. By 1957, the collectivization of China's agriculture was almost complete. The strategy of unbalanced growth in favor of industry during the First Five-Year Plan was based on the assumption that agriculture, once socialized, would generate enough investable surplus not only for its own needs but also for supporting industrial investment. The small industry campaign aimed at establishing small, labor-intensive plants in the countryside to help agriculture and light industry. In addition to the rural industries, the government encouraged the construction of a large number of irrigation projects by the agricultural collectives in 1957-1958.
