The Reform of the Rural-Urban Dualism
Li Yining(Guanghua School of Management, Peking University,Beijing 100871, China)
The two pillars of socialist plan economy are the State-Owned-Enterprise (SOE) system and the urban-rural dualism. Although the SOE system reform has been progressed significantly in the last three decades since China initiated reform and open-door policy, the urban-rural dualism remained. The Household Farming-land Responsibility System in rural area has been a significant institutional innovation in early of 1980s, but it is confined within the inherited system of urban-rural division. Currently, it is important to initiate a comprehensive reform on urban-rural dualism to perfect socialist market economic system, to enhance urbanization, to further develop agriculture, to reduce the income gap between urban and rural residents by increasing rural residents' earnings. The article suggests that the Chinese economy will grow sustainably and healthily once the reform of urban-rural dualism has been succeeded definitively.