Abstract
One of the most dramatic changes in rural China in the post-Mao era has been the abrupt increases in peasant incomes and consumption since 1978. These were deliberately brought about by an overall reorientation in economic policy which aimed at improving peasant incentives, so as to boost farm output and ease the agricultural supply constraint on industrialization – the government's long-run goal. The new development strategy has already resulted in a considerable modification of the Soviet-style agriculture-industry dichotomy, in favour of the Chinese peasants.

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