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Under the guidance of the spirit of the Sixteenth National Congress of the Communist Party of China, the localities and departments, in accordance with the requirements of the Central Committee of the CPC, made greater efforts in solving the problems of rural areas, peasants and agriculture ("three agriculture-related" problems), resisted the serious impact of SARS, overcame the serious influence of frequent occurrence of various natural disasters, and realized the steady adjustment of agricultural structure, the steady development of rural economy, steady progress of the reform of rural areas, steady increase of peasants' income, and the stability of the rural society in the year of 2003. At the same time, we shall keep a sober mind that there still exist many conflicts and problems in the development of agriculture and rural areas, especially the difficulty in increasing peasants' income. The pace of increase of the per capita net income of peasants of the whole country has been slow for several consecutive years, the increase rate of the income of peasants of the major food production areas is lower than the average level of the whole country, the income of some pure peasant households has not been increased or even has declined, and the income gap between urban residents and rural residents has been expanding. If the income of peasants can not be increased in the long run, not only the increase of living standard of peasants, but also the food production and agricultural product supply will be affected; not only the development of the economic development of the rural areas, but also the increase of the whole national economy will be hindered; not only the social advancement of the rural areas, but also the realization of the objective of all-around construction a well-off society is concerned; and the problem is not only a significant economic issue but also a significant political one. The whole party must, from the perspective of implementing the important thought of "Three Represents" and of achieving, maintaining, and developing the fundamental interests of the mass peasants, further enhance the sense of urgency and the initiative in the work of increasing peasants' income. The difficulty in increasing peasants' income at the present phase is a realistic reflection of the profound change of the internal and external environment of agriculture and rural areas, and it's also a concentrated reflection of various deep conflicts accumulated for a long time in respect of the urban-rural dual structure. Against the background that the restrictions on the market of agricultural products are strengthened and the sources of peasants' income are diversified, we must have a new line of thought to promote the increase of peasants' income, take comprehensive measures and have a great change in terms of development strategy, economic system, policies and measures, and work mechanisms. The overall requirements with respect to the work of increasing peasants' income at the present time and for the near future are as follows: the party committees and governments at various levels shall earnestly implement the spirit of the Sixteenth National Congress of the Communist Party of China and the Third Plenary Session of the Sixteenth Central Committee of the Communist Party of China, firmly establish scientific ideas of development, comply with the requirements of the overall plan of economic and social development of urban and rural areas, stick to the principles of "granting more, collecting less, and enhancing flexibility", adjust the structure of agriculture, increase jobs for peasants, accelerate the advancement of science and technology, deepen the reform of rural areas, increase inputs for agriculture, reinforce support and protection of agriculture, strive to achieve relatively fast increase of peasants' income, and change as soon as possible the expansion tendency in the gap between the income of urban residents and rural residents. I. EFFORTS SHALL BE CONCENTRATED ON SUPPORTING THE DEVELOPMENT OF FOOD INDUSTRY OF THE MAJOR FOOD PRODUCTION AREAS, AND TO PROMOTE THE INCREASE OF THE FOOD-PRODUCING PEASANTS' INCOME (1) The building of food production capacity of the major food production areas shall be strengthened. At the present time, the problem is especially prominent that the efficacy of food production is low and it's difficult to increase the peasants' income of the major food production areas, powerful and effective measures must be taken to solve this problem. The key point of increase of peasants' income will be caught if the problem of increasing the income of food-producing peasants is solved; the fundamental base for food production will be enhanced if the initiative of the peasants to produce food is motivated; and the food conditions of the whole country will be stabilized if the food production capacity of the major food production areas is protected and enhanced. As of 2004, the state will implement projects of high-quality food industry, in which some large food-producing counties and state-owned farms that have the necessary foundation and potential will be selected to construct a group of state bases of high-quality and special food with concentrated strength. Support shall be granted to the major food production areas, especially food production areas in the middle part of China, to construct basic farmland with guaranteed yield notwithstanding drought or water-logging and with stable and high yield. The scale of fertile soil projects shall be expanded, thus to enhance the quality of the tillable land. More efforts shall be made in the projects of proliferation of good varieties and of prevention of plant diseases and insect pests for major types of food, the capacity of technology integration shall be strengthened, and support shall be granted by priority to the major food production areas in spreading a group of good varieties and advanced applicable technologies that have significant influence. Centering on the basic construction of farmland, the construction of small-and medium-scale irrigation facilities shall be accelerated, the effective irrigation area of farmland shall be expanded, and the capacity of lightening water-logging and fighting droughts shall be enhanced. The level of agricultural mechanization shall be improved, and subsidies shall be granted for the purchase and replacement of large agricultural machines by individual peasants, employees of farms, agricultural machinery specialists, and agricultural machinery service organizations directly engaging in agricultural production. (2) Support shall be given to the major food production areas to carry out food transformation and processing. The major food production areas shall, relying on their advantages in food production, promote the increase of peasants' income and development of regional economy, and shall expand and strengthen the food industry according to the market demands. The abundant feedstuff resources of the major food production areas shall be fully utilized to actively develop stock raising industry in agricultural areas, such methods as small loans, interest subsidies, and insurance services shall be employed to support the peasants and enterprises to purchase good varieties of domestic animals and fowls and to proliferate those good varieties, thus to drive the appreciation of food value through development of breeding industry. The layout of agricultural product processing industry shall be directed to be reasonable in accordance with the requirements of the industrial policies of the state, the major food production areas shall be supported to develop the agricultural products processing industry of which the major raw materials are food, and the emphasis shall be put on the development of deep processing. The state shall, through such measures as interest subsidies for technology reform loans, investment and shareholding, and tax policies, etc., support the major food production areas to establish and reconstruct a group of large agricultural products processing enterprises, seed selling enterprises, and agricultural scientific and technological enterprises. (3) Inputs into the major food production areas shall be increased. The existing agricultural fixed assets investment, agricultural comprehensive development fund, and land reclamation fund, etc., shall be used in a relatively concentrated manner and with priority being put on the major food production areas. The agricultural comprehensive development fund shall continue to be increased and the increased part shall be mostly used in the major food production areas. New fund sources shall be found out in order to earnestly support the major food production areas to boost the economy and increase the peasants' income. As of 2004, a certain portion of the assignment fee of state-owned land shall be fixed to support the land development for agriculture, to construct high-standard basic farmland, and to improve the capacity of comprehensive food production. The food production capacity of the major marketing areas and the producing-marketing areas shall also be strengthened. The relationship between the producing areas and marketing areas shall be made closer. Where the operators of food marketing areas go to food production areas to establish food production bases, storage facilities and processing enterprises, they shall enjoy the relevant support policies of the state for the major food production areas. Where the food enterprises of food production areas go to the marketing areas to establish storage and processing facilities and to explore food market, the governments of the marketing areas shall give support and implement necessary preferential policies for them. II. THE AGRICULTURE STRUCTURE SHALL BE FURTHER ADJUSTED TO EXPLORE THE INCOME-INCREASING POTENTIAL WITHIN THE AGRICULTURE INDUSTRY (4) The quality safety level of agricultural products shall be fully increased. In the recent years, the structural adjustment of agriculture has moved forward in a relatively large pace, the direction is correct and the achievements are notable, and the adjustment shall continue to be promoted firmly. Under the premise of protecting and improving the comprehensive food production capacity and in accordance with the requirements of being high-yield, high-quality, high-efficiency, environment-oriented, and safe, the ways of refinery, intensification, and industrialization shall be adopted to broaden the width and deepen the depth of agriculture development, and to keep exploring the room for efficiency and income increase for agriculture. The implementation of the planning of regional layout of advantageous agricultural products shall be accelerated, the comparative advantages of the localities shall be brought into full play, and the regional layout of agriculture shall continue to be adjusted. The construction of the agricultural product market and the service systems such as processing layout, technology spreading, and quality safety inspection, etc., shall all start from and be conducive to the formation of advantageous industrial bands. Fund scale shall be increased in 2004 to expand the scope of subsidies granted in the food advantageous areas of wheat and soybeans. Agricultural standardization shall be further strengthened and the construction of model areas of agricultural standardization shall be carried out. The systems of inspection and testing, safety monitoring, and quality certification of agricultural products shall be further improved, the system of registration of the origin mark of agricultural products shall be promoted, the pilot compulsory product certification of new agricultural products shall be carried out, and the production and supply of such high-quality agricultural products as non-harming food, green food, and organic food, etc., shall be expanded. The construction of animal epidemic prevention system shall be strengthened, the projects of urgent prevention and treatment of animal epidemics in the key regions shall be carried out, rural areas shall be encouraged to establish communities of animal and fowl breeding, and the pilot reform of the administration system of veterinarians shall be initiated in 2004. The implementation of the system of separation of statutory inspection and business inspection shall be accelerated, items of statutory inspection shall be reduced and financial subsidies shall be granted, the charging standard of business inspection shall be controlled and the regulation thereof shall be strengthened. (5) The development of industrialized operation of agriculture shall be accelerated. The finance authorities at various levels shall arrange for special fund to support the development of agricultural industrialization, and inputs into leading enterprises shall be increased considerably. Financial interest subsidies may be provided with respect to the technology reform loans granted to the qualified leading enterprises. Financial subsidies may be granted to the leading enterprises that provide training and sales services to rural households, as well as those develop and introduce new varieties and new technologies, carry out base construction and pollution treatment, etc. Conditions shall be created to improve the policies on value-added tax on agricultural product processing. Support in terms of revenue, taxation, and finance, etc., shall be given equally to the leading enterprises that, regardless of their types of ownership and operation, can motivate the rural households and establish reasonable interest-connected mechanism with the peasants, and can bring actual benefits to the peasants. (6) Agricultural scientific research and technology promotion shall be strengthened. Focusing on strengthening of the innovation capacity, reserve capacity and transformation capacity of the agricultural science and technology of China, the system of agricultural science and technology shall be reformed, and the budgetary inputs into agricultural science and technology shall be increased considerably. Fund shall continue to be arranged for introducing foreign advanced agricultural scientific and technological achievements. The fund for transformation of agricultural scientific and technological achievements shall be increased. Support shall be given to testing and wide demonstration and promotion of existing scientific and technological achievements. Enterprises shall be guided and promoted to be the subjects of innovations of agricultural technology, various kinds of agricultural enterprises and private agricultural science and technology organizations shall be allowed to apply for using the fund of the state in connection with the development, introduction and promotion of agricultural science and technology. The reform of the system of spreading agricultural science and technology shall be deepened, thus to accelerate the formation of an agricultural technology spreading system in which the state spreading institutions and the spreading institutions of other types of ownership jointly develop and complete each other with their respective advantages. The role of agricultural science and technology model fields, science and technology parks, leading enterprises and peasant professional cooperative organizations in the spreading of science and technology shall be brought into active play. Cross-regional and professional new agricultural science and technology spreading service organizations that conform with the agricultural industrial bands shall be established. Agricultural universities and colleges shall be supported to participate in the research and spreading of agricultural technology. III. THE SECONDARY AND TERTIARY INDUSTRIES SHALL BE DEVELOPED IN RURAL AREAS TO EXPAND THE CHANNELS FOR INCREASING PEASANTS' INCOME (7) The reform and adjustment of township enterprises shall be promoted. Developing township enterprises is an important approach to fully utilize the various resources and productive elements of the rural areas and to fully develop the rural economy and increase job opportunities within the rural areas. It's imperative to satisfy the requirements of the change of market demand, the upgrade of industrial structure, and the change of growth method, to adjust the development strategies and modes of township enterprises, to accelerate technological advancement, to accelerate innovations in respect of system and mechanism, and to develop with emphasis the agricultural products processing industry, service industry and labor intensified enterprises. More support shall be given to the technical reform of township enterprises of relatively large scale, thus to promote the upgrade of products and the optimization of industry. Rural collective enterprises shall be guided to be transformed into enterprises of combined ownership such as joint stock enterprises or shareholding cooperative enterprises, and where conditions permit, the township enterprises shall be encouraged to establish the modern enterprise system. Rural small and medium enterprises play a notable role in increasing job opportunities for peasants. Therefore, so long as they meet the standards for safe production and requirements for environmental protection, and are conducive to reasonable utilization of resources, they shall be allowed to exist and develop. The relevant departments shall, on the basis of the new development of township enterprises, strengthen the investigation and research, and draw up directive opinions on promoting the reform and development of township enterprises as soon as possible. (8) Great efforts shall be made in the development of the non-public sector such as individual and private businesses in the rural areas. Rural individual businesses and private enterprises may enter such industries and fields as infrastructures, public utilities, etc., the entry to which is not prohibited by any law or regulation. Support shall be given to rural individual businesses and private enterprises in terms of taxation, investment and financing, utilization of resources, and personnel policies, etc. Moving vendors of rural areas that operate legally shall be exempted from industry and commerce registration and the relevant taxes and fees, unless the state has otherwise provisions. (9) The economy of small towns shall be prospered. The building of small towns shall be combined with the improvement of county economy, development of township enterprises, promotion of industrialized operation of agriculture, and resettlement of immigrants, thus to guide more peasants to enter small towns, to gradually form a favorable interactive mechanism of industrial development, population concentration, and market expansion, and to enhance the capacity of small towns to attract rural population and drive the development of rural areas. The fixed asset investment of the state shall continue to support the building of small towns, and financial institutions shall be guided to support the development of small towns in accordance with the laws of market economy. The construction of key fishing areas and ports, forests, and farms shall be combined with the development of small towns. Where the conditions permit, the localities shall accelerate the construction of villages and the handling of environmental problems. IV. THE EMPLOYMENT ENVIRONMENT FOR PEASANTS COMING TO CITY SHALL BE IMPROVED TO INCREASE THEIR INCOME FROM JOBS OUTSIDE RURAL AREAS (10) The legitimate rights and interests of the peasants coming to cities to work shall be guaranteed. Discriminatory provisions and unreasonable charges against peasants coming to cities to work shall be further sorted out and eliminated; various formalities for peasants to work in different regions and to come to cities to work shall be simplified, and it shall be prohibited to levy in disguised form any unreasonable charges on the peasants coming to cities to work and on their employers. The peasants coming to city to work have become an important part of industrial workers, and they have created wealth and provided revenue for the cities. The city governments shall earnestly include into the normal budget the fund for the vocational training, children education, labor security, and other service and management for the peasants coming to cities to work, the policies shall be improved if such practice has already been implemented, and the practice shall be implemented as soon as possible if it has not been implemented yet. The state has already had definite policies in respect of such issues as timely payment of salaries of the peasants coming cities to work, improvement of work conditions, and solutions to children education, etc., and the localities and relevant departments shall take more effective measures, designate the leading departments, allocate the administration responsibility, and strengthen the supervision and inspection. The relevant laws and regulations shall be perfected, and the various rights and interests of the peasants coming to cities to work shall be guaranteed according to law. The reform of the registered residence system in large and medium cities shall be promoted, and the conditions shall be eased for peasants to come to cities to work and live. (11) The vocational skill training for rural labors shall be strengthened. This is an important basic work to improve the employable capacity of the peasants and to increase the industrial competitiveness of China, and the localities and relevant departments shall lay great stress on it. The contents of the training shall be arranged according to the demand of the market and the enterprises and the requirements for basic skills of the practitioners of different industries and trades, target training shall be employed, and the pertinency and applicability of the training shall be improved. All circles of the society shall be motivated to participate in carrying out vocational skill training for peasants, and various educational and training institutions and employers shall be encouraged to carry out vocational skill training for peasants. The treasuries at various levels shall arrange special fund for vocational skill training for peasants. In order to enhance the efficiency of the use of the training fund and the effects of the training, the peasants shall be allowed to select by themselves the training institutions, contents, and time, and the government shall grant certain amount of allowances and subsidies to the peasants receiving the training. Such wrongful practice as compelling peasants to participate in fee-based training and vocational qualification certification shall be prevented and corrected. V. THE ROLE OF MARKET MECHANISM SHALL BE BROUGHT INTO PLAY TO ACTIVATE THE CIRCULATION OF AGRICULTURAL PRODUCTS (12) Subjects selling agricultural products shall be fostered. The development of various kinds of professional cooperative organizations of agricultural products, purchasers and sellers with large demands, and peasant brokers shall be encouraged. The legislation relating to professional cooperative organizations of peasants shall be actively promoted. As of 2004, the central and local governments shall arrange special fund to support professional cooperative organizations of peasants to carry out information, technology, training, quality standard and certification, marketing, and other services. Where the relevant financial institutions support professional cooperative organizations of peasants to establish bases of standardized production, to set up storage facilities and processing enterprises, and to purchase equipment for transport and sale of agricultural products, the treasuries may grant certain amount of interest subsidies. The reform of supply and marketing cooperatives shall be deepened, and the role of those cooperatives shall be brought into play to drive the peasants to enter the market. The development of chain operation, supermarkets, and distribution of agricultural products shall be accelerated, and where conditions permit, the localities are encouraged to reconstruct urban market place of agricultural products into supermarkets, and leading agricultural enterprises are encouraged to establish supermarkets of agricultural products in the cities and to extend the networks to urban areas gradually. The construction of wholesale markets in the production and marketing areas shall be further strengthened, and conditions shall be created to develop the modern logistic industry. The administration of the market of agricultural productive materials shall be strengthened, and the relevant departments shall guarantee adequate supply of goods and basically stable price, and shall severely punish such acts as producing and selling forged and substandard agricultural productive materials, etc., that impair the interests of the peasants. The transport and sale of fresh and living agricultural products shall be supported and high-efficiency green channels shall be established all over the country, and the localities shall, on the basis of their respective actualities, further improve the circulation environment for agricultural products. (13) The export of advantageous agricultural products shall be expanded. The policies and measures of China with respect to the export of advantageous agricultural products shall be further improved. Fund for foreign trade development shall be biased to the export of agricultural products, and shall be mainly used to support the enterprises to develop new products and new technologies, to pioneer international markets, and to participate in international certification, etc., and be used to support export-oriented production bases. Agricultural product export processing enterprises shall be encouraged and guided to enter the export processing trade zones. The construction of non-epidemic zones of garden products shall be launched without delay. The policy-oriented credit insurance system for export of agricultural products shall be perfected. The relevant department shall closely track and monitor and promptly report developments of market supply and demand, policies and regulations, epidemic situations, and inspection and quarantine standards, etc., and provide information services to agricultural product export enterprises. Negotiation with foreign countries shall be strengthened, and bilateral agreements on inspection and quarantine and preferential trade shall be concluded with key market counties and regions, thus to create a favorable environment for the export of agricultural products of China. It is imperative to adapt to the new situations of the international trade of agricultural products, and to accelerate the establishment of trade and commodity associations in respect of such key export agricultural products as poultry and meat, vegetables, and fruits, etc. VI. THE INFRASTRUCTURE CONSTRUCTION OF RURAL AREAS SHALL BE STRENGTHENED TO CREATE CONDITIONS TO INCREASE PEASANTS' INCOME (14) Inputs into the development of rural areas and agriculture shall continue to be increased. In order to strengthen the construction of agricultural infrastructures and to solve the "three agriculture-related" problems, the distribution structure of national income and the finance expenditure structure must be further adjusted. The governments at various levels shall arrange and execute budgetary expenditures for agriculture and rural areas according to law, strictly carry out the budget, and establish and improve the mechanism of stable increase of agriculture-supporting fund. In accordance with the requirements of unified planning, definite division of work, and overall arrangements, the existing agriculture-supporting investments shall be consolidated, the finance strength shall be concentrated, stress shall be laid on the key points, and the efficiency of fund use shall be enhanced. Various kinds of economic levers, such as taxation, interest subsidies, and allowances, etc., shall be actively employed to encourage and guide social capital to be invested in agriculture and rural areas. The localities and relevant departments shall take as their key work the development of public undertakings in rural areas, and implement the policies and provisions ensuring that the newly increased public undertaking fund in respect of education, sanitation, and culture, shall be mainly used in rural areas, and shall carry our special inspection over the implementation every year hereafter. (15) The infrastructural construction of agriculture and rural areas shall be further strengthened. The proportion of the state fixed asset investment used in agriculture and rural areas shall be kept stable and be increased gradually. The investment structure with respect to agriculture and rural areas shall be appropriately adjusted to increases the inputs to support the adjustment of agriculture structure and the construction of small and medium infrastructures in rural areas. The "six small projects", namely water-saving irritation, drinking water for human and animals, village roads, rural marsh gas, rural water and electricity, and grass land fence, etc., has played a positive role in improving the living and production conditions for the peasants, creating job opportunities and increasing peasants' income, therefore, the investment made in those projects shall be further increased, the contents of construction shall be enriched and the scope of construction shall be enlarged. The localities shall, on the basis of their respective actualities and characteristics, carry out construction of various kinds of small facilities, such as collection of rainwater, treatment of rivers and ditches, irrigation in husbandry areas, treatment of small drainage areas, improvement of water and latrines, and straw gasification, etc. Management systems and operation systems in respect of the infrastructural construction in rural areas shall be innovated and improved. Efforts shall continue to be made in environmental construction, and such environmental projects as protection of natural forests, restoration of forest and grass land from farmland, and protection of wetland, etc., shall be planned as a whole, the measures shall be adjusted to local conditions, the achievements shall be consolidated, and stress shall be laid on the actual effects. VII. REFORM OF RURAL AREAS SHALL BE DEEPENED TO PROVIDE INSTITUTIONAL GUARANTEE FOR INCREASING THE INCOME AND REDUCING THE BURDEN OF PEASANTS (16) The reform of land requisition system shall be accelerated. The governments at various levels shall earnestly implement the strictest farmland protection system, stick to the principles of guaranteeing the rights and interests of peasants and controlling the scale of land requisition, strictly abide by the authority and procedures for examination and approval of occupation of land for non-agriculture purposes, and strictly execute the overall planning of land utilization. Public land and commercial land shall be strictly distinguished, and the power of land requisition of the government and the scope of requisition shall be clearly demarcated. The land requisition procedures and compensation mechanisms shall be perfected, the compensation standard be increased, the distribution method be improved, and the peasants losing land shall be appropriately resettled and social security shall be provided to them. Approaches and methods shall be actively explored for collective land for non-agriculture construction to enter the market. (17) The reform of food circulation system shall be deepened. As of 2004, the state shall fully open the purchase and sell market of food, and apply multi-channel purchase and sale. The relevant departments shall lose no time in sorting out and modifying the policies and regulations that are against the free circulation of food. The reform of state-owned food purchase and sale enterprises shall be accelerated, the operation mechanism of the enterprises shall be changed, spot markets and futures markets of food shall be perfected, regional blockades shall be strictly prohibited, cooperation between the production and marketing areas shall be enhanced, storage layouts shall be optimized, and food market administration and macro-adjustment and-control shall be strengthened. At the present time, the major food production areas shall see to bring into play the role of state-owned and state-holding food purchase and sale enterprises as the main channels of food circulation. The system of direct subsidies for peasants shall be established in order to protect the interest of food-producing peasants. In 2004, the state will set aside some fund from the food venture fund to mainly use in the direct subsidies for the food-producing peasants of the major food production areas. Other areas shall also grant direct subsidies to the food-producing peasants of the major food production counties (cities) of their respective provinces (autonomous regions, and municipalities). Implementing measures that are convenient for operation and supervision shall be formulated in accordance with the principle of motivating the enthusiasm of peasants for food production, and it shall be ensured that the subsidies are really delivered to the peasants. (18) The reform of collection of taxes and fees in rural areas shall be continued. The achievements of the reform shall be consolidated and developed, and the burden of taxes and fees on peasants shall be further reduced, thus to create conditions for the unification of tax systems of urban and rural areas. In 2004, the rate of agriculture taxes shall be lowered by one percent as a whole, and the agricultural specialty taxes, except that for tobacco leaf, shall be abolished. The coastal economically advanced areas shall bear by themselves the local revenue losses resulted from the lowering of tax rate, and the major food production areas and the middle and western areas may solve the problem through transfer payment by the central treasury. Where conditions permit, the localities may further lower the rate of agriculture taxes or even exempt agriculture taxes. The localities shall give actual benefits to the peasants through reducing the taxes of each household in strict accordance to the proportion of rate reduction; it shall be ensured that the fund of transfer payment at various levels is used for the specific purpose and is allocated in a timely manner. The taxable areas that have been reduced as a result of legal requisition shall be verified and reduced according to the facts. The supporting reform shall be accelerated, the supervision and administration of the burden of peasants shall continue to be strengthened, rebound of peasants' burden shall be prevented, and the achievements of the reform of collection of taxes and fees of rural areas shall be consolidated. The number of the personnel supported by township and village agencies and treasuries shall be further reduced, the organizational systems of towns and villages shall be adjusted in an active and stable manner, where conditions permit, villages may be combined, and it is advocated that cadres hold positions in villages and towns other than those where they are located. The layout of schools and the team of teachers in rural areas shall be optimized. The agriculture-related administrative charges shall be further checked and regulated. The achievements made in the regulating of issuing newspapers and periodicals by taking advantages of powers shall be consolidated. Effective approaches shall be actively explored to settle rural debts. And measures for the administration of collection of agriculture taxes shall be formulated as soon as possible. (19) The financial system in rural areas shall be reformed and innovated. The reform and innovation of financial system of rural areas shall be accelerated on the basis of the actualities of the rural areas and the needs of the peasants, and according to the requirements of being conducive to increasing the loans granted to rural households and enterprises and to improving the financial services in rural areas. Mechanisms in which financial institutions serve the rural communities shall be established, and it shall be made clear the obligation of the financial institutions within the counties to serve for solving the "three agriculture-related" problems. The rate of interest fluctuation of loans in rural areas shall be increased. The policies relating to postal savings shall be further improved, and the reform of rural credit cooperatives shall be strengthened, thus to solve the problem of outflow of the fund of rural areas. The agricultural banks and other commercial banks shall create new financial products and ways of service, and expand the channels of agriculture-supporting credit and loans. The agriculture development banks and other policy-oriented banks shall adjust their functions and reasonably divide their work, thus to expand the scope of services provided to agriculture and rural areas. It is imperative to summarize the experience gained from the pilot reforms of rural credit cooperatives, and to create conditions to carry out the reform all over the country gradually. Small credit loans and joint guarantee loans for rural households shall continue to be expanded. Where conditions permit, the localities are encouraged to, under the premise of strict control and effective prevention of financial risks and through absorbing social and foreign capital, actively establish financial organizations of various kinds of ownership systems that directly serve "agriculture, peasants and rural areas". The relevant departments shall, aiming at the actualities of rural households and the small and medium enterprises of rural areas, study and present various kinds of methods for guarantee, and explore such forms of guarantee as chattel mortgage, pledge of warehouse receipts, and pledge of rights and interests, etc. Various kinds of credit guarantee institutions funded by the government shall be encouraged to actively explore and carry out guarantee services that are compatible with the characteristics of rural areas, and where conditions permit, the localities may establish agriculture guarantee institutions, and the existing commercial guarantee institutions shall be encouraged to carry out guarantee services in rural areas. The establishment of policy-oriented agriculture insurance system shall be accelerated, some products and areas shall be selected for pilot implementation, and where conditions permit, the localities may grant certain amount of insurance premium subsidies to the rural households that procure planting and breeding insurance. VIII. EFFORTS SHALL CONTINUE TO BE MADE IN THE WORK OF POVERTY ALLEVIATION THROUGH DEVELOPMENT TO SOLVE THE DIFFICULTIES SUFFERED BY THE POOR POPULATION IN PRODUCTION AND LIVING AND THE POPULATION SUFFERING DISASTERS IN RURAL AREAS (20) The mechanism of poverty alleviation through development shall be perfected. The communist party committees and governments at various levels shall make greater efforts in poverty alleviation through development, strengthen the system of responsibility for poverty alleviation through development, and enhance the effects of poverty alleviation. The state will continue to increase inputs into poverty allocation fund in 2004. It is imperative to, on the basis of careful summarizing of experience and finding out of the true data, take more pertinent poverty alleviation measures and ensure such measures are implemented for every village and rural household with respect to the population that still suffer from inadequate clothing and food. With respect to the population with special difficulties as a result of lose of working capacity, social relief shall be granted and the standard of relief shall be increased appropriately. With respect to the poor population of the areas without the basic conditions for survival, environmental immigration and poverty alleviation through change of residence shall be carried out in an active and stable way. With respect to the poor population with low income, the focus shall be put on improving the production and living conditions, the development of industries with special characteristics, opening of new channels to increase income, and reducing and preventing the events of suffering poverty again after alleviation. The mechanisms of input for poverty alleviation shall be perfected, fund management shall be strengthened, efficiency of utilization shall be increased, the systems of public summons, public announcement, accounting report shall be employed with respect to the use of poverty alleviation fund, supervision and auditing shall be made strict, and timely and adequate fulfillment of fund shall be ensured thus to really benefit the poor households. (21) The production and living of the rural households in disaster areas and those having difficulties shall be arranged carefully. Many places suffered serious natural disasters in 2003, and some peasants encountered serious difficulties in their farming work and living. The communist party committees and governments at various levels shall earnestly assume their responsibilities, organize cadres to go to the disaster and poor areas to make investigation and verify the disaster situations, shall grant relief fund and materials to the households in a timely manner, reduce and exempt the relevant taxes and fees pursuant to the provisions, and organize and lead the people of the disaster areas to carry out farming work for self-relief. Where conditions permit, the localities shall explore to establish the system of minimum living assurance. The policies shall be implemented that agriculture reclamation enterprises shall procure basic old age insurance for their employees. IX. THE LEADERSHIP OF THE COMMUNITY PARTY OVER THE PROMOTION OF INCREASE OF PEASANTS' INCOME SHALL BE STRENGTHENED, AND IT SHALL BE ENSURED THAT THE POLICIES ON INCOME INCREASE ARE TRULY IMPLEMENTED (22) It shall be taken as the most significant key point of work of the whole party to solve the problems of agriculture, rural areas, and peasants. All the comrades, especially the leaders and cadres at various levels, shall always lay stress on the fundamental status of agriculture, on the strict protection of farmland and the protection and increase of the comprehensive food production capacity, on the safeguard of the interest of the major food production areas and food-producing peasants, and on the increase of income of the peasants, especially the food-producing peasants. With respect to the "three agriculture-related" problems, not only the leaders at lower levels, but also the leaders of the party and governments shall take charge of the work in person, the leaders at the prefecture and county levels shall put their emphasis of work on agriculture and rural areas. It is imperative to establish scientific idea of development and correct idea of achievements made during the tenure, to take the increase of peasants' income as a crucial matter that concerns the whole work and place it on a more prominent position. It is imperative to change the work style, to go to the basic level and the mass, to implement various measures for increase of income, to produce ideas and methods, to do actual work and provide more services to increase peasants' income, to get rid of exaggeration and facial work, and to take the work of increasing peasants' income as an important standard for evaluating the work achievements. The training of rural basic-level cadres shall be strengthened, to enhance their sense of tenet and the ideas of legal system and policy, to make closer their relationship with peasants, and to increase their consciousness and ability to lead the peasants to increase income. All the industries and trades shall establish the idea of the whole situation and contribute efforts to increase peasants' income, and thus form a favorable environment in the society that is conducive to increasing peasants' income. It is imperative to stimulate the initiatives of the peasants to carry out strenuous work, to constantly strive to become stronger, and to walk on the road of wealth through hard work. At the same time, in accordance with the arrangements and requirements of the Central Committee of the CPC, it is imperative to strengthen the basic-level organizational construction, the construction of spiritual civilization, and the construction of democracy and legal system of the rural areas, to do a good job in other work of the rural areas, thus to provide powerful organizational guarantee, intellectual support, and stable social environment for the work of increasing peasants' income. It bears great significance and there is still a long way to go to do a good job in the work of agriculture and rural areas in the new phase and to strive to increase peasants' income. We shall closely unite around the Central Committee of the Party with comrade Hu Jintao as the Secretary General, hold high the banner of Deng Xiaoping theory, earnestly carry out the important thoughts of "Three Represents", build firm confidence, do our best to pioneer, and make new contributions to the all-around building of a well-off society. |
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