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Innovations on Market System Ensuring Poverty Alleviation and Production and Income Increase

Song Ze;National Academy of Economic Strategy, CASS;  
Although it is almost impossible to eliminate volatility in agricultural market, there is absolute possibility to reduce the repeatedlyappeared sharp fluctuations even in the case of small-scale production without vision, as long as we grasp essentials and know rules behind them. From this perspective, it is unreasonable to blame peasants for their blindness and small scale in production, both of which have been held responsible for dramatic falls and rises, improper regulation and control as well as loss in agricultural product market. What the smallholders need most is the key information that can guide them in practice and is of value for reference. Therefore, there is an urgent need to innovating the foundational market system and optimizing the allocation of resources for poverty alleviation in a scientific, tactic and cost-effective manner. In market regulation and control aiming for securing peasants with increases in production and income, attention paid to passive follow-up management should be transferred into active guidance service beforehand, so that market information service system and information release system will be established on the basis of big data index. In realizing such a shift towards marketization comes a revolution on China's agricultural production, circulation system and the way of regulation, which will bring huge benefi ts to national economy and people's livelihood as well as tremendous effectiveness to poverty alleviation.
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