| Jilin province is a major production area. The development of grain economy plays an important part in its national economy. Developing grain economy is the premise to vitalizing the old industry base. My graduate thesis for MBA is based on the background of the policies of vitalizing northeastern old industry base and enhancing the reform of grain circulating market. And the thesis topic is about the grain economy in Jilin with the hope of doing something good to the economic development of Jilin.From the practical situation of Jilin grain economy, the major problems are: large quantity of grain output, unreasonable structure, low grain price, difficulty in selling grain and decrease of peasants' income, huge expenditure on grain stocking for the national grain safety. Furthermore, in order to carry out the grain protective-price purchasing policy, grain enterprise made loss because of sale difficulty.The reasons for Jilin grain economy are:Firstly, grain production is a weak-situation industry with low benefit. Grain commodity lacks demand elasticity. Minor change in output may cause great change in grain price and peasants'income. In major grain production area, harvest might not be a good news. Increasing output might not result in income raise. Whereas drop in production might not be unfortunate, it might cause price rising. Secondly, in order to maintain the national grain safety ad guarantee enough grain for billions of population, on the arrangement of macro-control and utilizing market adjustment, the state stresses the grain's social character and considers less about its economic character, which results in the former superior to the latter, considering more about its social benefit and less about its economic benefit. The stable grain supply is a political task. The "Rice Bag"of Jilin is not only for herself, but for other grain producing areas. Selling areas need not store any grain. They will allocate and transport grain from Jilin province when they are lack of grain. Jilin bears all the wastage and costs of the storing for the selling areas. Meanwhile, the competition in the grain circulation field is limited. The national grain circulation system and state-owned grain enterprises become typical two market forces. The demand and supply of grain and the market price cannot be reflected and transmitted actually for the market forces have distorted the price, demand and supply. The grain price system is greatly restricted by the administration and cannot reflect the actual change of supply and demand.Thirdly, grain enterprises are operated poorly and the price mechanism can not be put into full effect, the supervision from government authority is not powerful enough. These make great loss in grain enterprises.Fourthly, from the view of protecting the peasants' enthusiasm to plant grain, the state issues grain risk fund policy. A part of the fund is from local government. The more the output is, the more the matching fund is put in. In recent years, with several successive harvest years, Jilin finance is heavily burdened.Fifthly, Jilin is located on the "Golden Corn Belt". The corn output is great. It is not realistic to plant vegetables and other cash crops in the field. And the peasants are not sure about planting soybean and rice too. In the past corn is the most important grain ration of Jilin peasants. The corn output accounts for more than 80 percent of Jilin gross grain output. This thought rooted in the mind of peasants deeply, which results in severe grain structural contradiction in Jilin.Solutions for solving Jilin grain economy probles:Firstly, when talking about increase of peasants' income, it should be focused on short-term factors and the income increase from some emergency measures, but on the long-term factors. The slow income increase reflects the deep contradiction in China's economic society. The root of the problem is the choice of economic and social policies. In stead of using administrative decree to solve grain problem, the state... |
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