In 2003, forestland reform was first completed in Fujian, Jiangxi, Liaoning and Zhejiang provinces. In areas that have undergone reform, the output of mountain forests has markedly increased. For 10 years from the beginning of the reform until 2008, the volume of forestland resources in Hongtian Village has increased 23 percent, and its average annual per-capita forestry income has surpassed 3,000 yuan ($439.24). This is in sharp contrast to a decade ago, when villagers had no enthusiasm to cultivate hillside fields, plant trees or maintain forests, and only cut down trees at random.

At present, 40 percent of the country’s forestland that had been managed and operated by rural collectives are contracted to farming families, and farmers have been granted loans with mortgages for forest right certificates.

Reform of taxes and fees

In 2000, the Central Government began to reform taxes and fees levied in rural areas, with the guiding principle of strengthening input in the development of agriculture and rural areas and introducing a policy of granting direct subsidies to farmers.

By 2006, China had completely abolished its 2,600-year-old agriculture tax that farmers had to pay to cultivate land. This reform saves farmers a collective 133.5 billion yuan ($19.55 billion) every year.

Besides this, the government now also grants farmers direct subsidies, including those for growing grains, using fine varieties and purchasing farm tools and agricultural capital goods. By 2007, subsidies granted to farmers by the government had exceeded 60 billion yuan ($8.78 billion).

Besides exempting students in rural areas from tuition and miscellaneous fees, the government also grants cost-of-living subsidies to those from poor families.

At present, the government is carrying out a comprehensive reform focused on township departments, compulsory education in rural areas and the fiscal management system at county and town levels, aiming to adjust and improve the distribution structure of public fiscal input in urban and rural areas.

Grassroots Democracy

In February 1980, about 85 families in Hezhai Village in Guangxi Zhuang Autonomous Region elected by secret ballot the country’s first villagers’ committee, exercising villagers’ autonomy and self-governance.

Their example provided a new experience for rural governance after the rural reform. In December 1982, villagers’ committees, as autonomous organizations for people at the grassroots level in rural areas, were incorporated into China’s Constitution. In 1998, the Organic Law of Villagers’ Committees of the People’s Republic of China was promulgated. Since then, local governments have formulated implementation measures for the law, further defining procedures for elections and the operation of villagers’ committees.

According to the Ministry of Civil Affairs, by 2007, there had been more than 620,000 villagers’ committees in China’s rural areas, and 92 percent of the heads of villagers’ committees were elected. At present, the voting rate for farmers remains above 80 percent. Villagers’ meetings or congresses have been established in 85 percent of the country’s rural areas. Organizations for supervision such as villagers’ property management groups and villagers’ public supervision groups have been set up in 90 percent of the rural areas nationwide. With legal protection and farmers’ participation, villagers’ autonomy based on direct election has become a basic system at the grassroots level in rural areas.