ABSTRACT
In the six years after Household Responsibility System reform in 1978, China had achieved fast development in agriculture. From 1978 to 1984, the grain production stepped up onto a new stage and has established what is later called the equilibrium between the supply and demand for grain. At the same time, the income of farmers increased rapidly, and the gap between urban and rural areas greatly narrowed. The situation was great. As our country has always attached an importance to grain production, the settlement of the grain problem made the government feel much more at ease. The government directed the market-oriented reform to take place in the cities in 1985, and our economy has since experienced fast economic growth for more than 20 consecutive years. Statistics show that from 1978 to 2003, our gross domestic product (GDP) had an average growth rate of 9.4 percent, which was the fastest growth rate in the world at that time-an achievement beyond anyone's expectations.
