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But the community responsibility system provided the institutional scaffolding that made the expansion of trade possible.
Since decollectivisation and the introduction of Deng's "household-contract responsibility system", rural land has been held by individual families.
Quietly encouraged by Wan (who may have authorised Fengyang's initial move), the "household responsibility system" covered 90% of Anhui's villages by the end of the year.
First came the "contract responsibility system": state firms, once they had produced for the plan, could sell their surplus on the open market.
Eventually, in 1981, the party gave its explicit blessing to the "household responsibility system", as it called this once sacrilegious approach to farming.
China's leaders also hope to spur ailing state enterprises -- one third of them are losing money -- and preserve the household responsibility system that allows individual farming.
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The Anhui villagers became famous and the new "household-responsibility system" pushed up yields and incomes.
If banks pursue current compensation policies — what might be described as the "no-responsibility" system, given the trouble we're in — that's fine.
The explanation is that the household-responsibility system gives farmers a right to the income produced by their allotted land, but it does not give them clear title to it this remains vested in the collective.
Restored to Beijing in 1973, he was named Minister of Railways, then provincial party leader of Anhui province, where he instituted the household-responsibility system in which communal land was divided up among individual farmers.
As Kate Xiao Zhou argues in a recent book, these developments were spontaneous and explosive, once China's 700m farmers realised it was no longer in the government's power to control them*.After 1978, as collective farming was abandoned or, as the government would say, as China adopted "the household-responsibility system"—farm incomes soared.
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