alcondition,suchassoil,irrigationandfarmyear.Thewayleftforbrigadeandteamcadreswastopunishpeasantsbystrugglingagainstthemormaltreatment.Butthebrigadeandteamcadresalsobelongedtomembersofproductionteams,theyandtheirfamilieslivedinthesamecommunitywiththeirsubordinatesaswell,sopunishingpeasantscouldalsomakethemselvesintrouble.Moreover,underthepropertyrightsstructureofthecommunesystem,therestofoutputwasnotbelongtothecommune,brigadeorevenproductionteam,buttothegovernmentsofhigherlevel.Thismadethesupervisors’effortunrelatedtoanyreward.Asaresult,eventhesupervisorhimselfhasnotenoughincentivetoworkandshirkhimselfsometimes.Inaword,undersuchconditionsofpoorsupervision,inwhichalltheworkwasdistributedequallyamongallmembersatthelowestlevel--productionteam,shirkingbecameeverymember’srationalchoiceandfurtherweakeningtheefficiencyofthesystem(Lin,1990).
　　De-collectivization
　　Topreventpeasantsfromslowdown,shrinkingandescapinginwork,andassurethesystemcouldkeeponmoving,thepartycollectedallproductiveequipmentsandforbidmembersinpeople’scommuneengaginginprivateproductionandbusinessontheonehand,andatsametimedeprivedpeasants’rightofmigratingfromcountrysidetocityorbetweendistrictsbymeansofhouseholdregistrationontheotherhand.Nevertheless,suchpolicieshadnoeffectonimprovingincentiveofpeasants,buttheyformedatleastpoliticalpressonverymemberofpeople’scommune,becauseitturnedoutthateveryone’sonlyroutineistostayinthecommuneandfinishone’stask.Withouttherighttoleaveorgetbetterthanothers,peasantscommonlychosetoworkwithlittleeffort,e.g.apassivemethod,toevadeproductiontasksassignedbyleader.Littleaccumulationandshirkingmadecountrysidewidelyfallintopoverty,rareruralregionhadgoodconditionstodevelopindustryortoimprovecommerce,infrastructureswentworse,productivitysankquickly.Themostseriouscrisisforagriculturalcollectivizationhappenedbetween1959and1961.GNPdecreasedfrom213.8billionYuanin1958to180.0billionYuanin1962,withanaverageannualreductionof15.1%ingrossindustrialproductionvalueandanaverageannualreductionof19.3%ingrossagriculturalproductionvaluefrom1958to1960.Owingtotheseriousshortageoffood,agreatfaminetookplaceinthewholecountryandatleast30millionresidentsdied(Tan,2000).Discontentwithsuchsystembrokeout,insomeareas,peasantsdidn’twanttoreliedsoheavilyonordersfromaboveandmadesolittleallowanceforlocalconditionsorlocalinitiative.TheseverecrisisforcedthePartytoadjusttheirpolicies.From1961on,communefunctionswerereducedtoadministrationandco-ordination,productionteamwasconfirmedasthebasicunitofaccounting,certainproductiondecisionmakingwasdelegatedtoproductionteams,whichwereallowedtoretainsomeincometoovercomeproblemsofegalitarianism;householdsagainallowedtohavesmallprivateplotsandsidelinesforplantingvegetables,andalimitedopeningmarketsfortransactionbetweenurbanandruralareas.However,theseadjustmentsdidn’tmeantochangethesystemofpeople’scommune,butonlytopreventpeasantsfromrebel.From1966to1976ChinasufferedthedisasterofCulturalRevolution,therewerelargeinstitutionalswingstookplaceinthisperiod,inwhichco-operativemovedfromsmalltolargeandfromteamtobrigadetocommuneagain,localfreemarkets,sidelinesandprivateplotswasprohibitedagain,andpoliticalfactorshadagreatinfluenceonproductiondecisions.
　　Inlate1970s,aftertheLeaderChairmanMaopassedaway,therequirementforimprovingagriculturalproductivitycamealive.Administratorsinprovincial-levelunitswithextensiveregionsoflowyieldsandconsequentlowstandardsoflivingbeganexperimentingwithnewformsoftenureandproduction.Toavoidfrontalconflictsofwidescopewithgovernment’spoliciesandthemainideology,agradualapproachwasadopted.Thefirststepofreformwastodividetheproductionteamintogroupsandtofixyieldquotasforeachgroup.Eachgroupsignedacontractwithproductionteam,thecontractualitemsincludedtheconditionsofusingland,laborers,farmtoolsanddraftanimals,theexpenditure,laborcontribution,rewardsforexcessivelaborcontributionandsoon.Aftercompletingthetasksassignedbytheproductionteam,theoutputcouldbedistributedamongworkgroupsaccordingtotheirlaborquotas.Andthen,thefurthersolutionwasputforward,namelythetypicalformoffixingquotascalled“all-roundcontract”,whichwasinitiatedbyafewbravepeasantsecretlyinFengyangcountyofAnhuiprovince.thiscontractregulated,householdwasallowedtocultivatedacertainparcelfarmlandinthegroup,ifgrainquotasassignedbythestateandthecollectiveaccumulationwereaccomplished,thehouseholdcouldownalltheresidualoutput.Inthelightofthecontract,peasantsweregivendirectlystimulationtoproduce.Theexperimentwasdeemedsuccessfulandpopular,anditsoonspreadtoalldistricts.
　　Atanotherside,politicalsituationwasappropriatewiththereformformbelow.IntheEleventhNationalPartyCongress,heldAugust12-18,1977proclaimedtheformalendoftheCulturalRevolution,blameditentirelyontheGangofFour,andreiteratedthatthefundamentaltaskofthepartyinthenewhistoricalperiodistobuildChinaintoamodern,powerfulsocialistcountrybytheendofthetwentiethcentury.ThereformerDengXiaopingwaselectedasvicechairmanandbacktopoliticalstageandsuggestedaseriesofreformplans,thoughmanycontradictionsstillwereapparent,changeofpolicywasregardedasnecessary.RehabilitationsofDeng’sassociatesandotherssympathetictothesereformplansweresteppedup.NotonlyweresomeofthosepurgedduringtheCulturalRevolutionreturnedtopower,butalsoindividualswhohadfallenfromfavorasearlyasthemid-1950swererehabilitated.Itwasatimeofincreasedpoliticalactivism.
　　InNovember1980,theCentralCommitteeofCommunistPartyofChinaissuedthedocumentSomeIssuesofFurtherReinforcingandImprovingtheResponsibilitySysteminAgriculturalProduction.ThisarticlemanifestthefirsttimethatthePartyacceptedtheproductionresponsibilitysystemsdevelopinginpractice.Inthedocumentfixedoutputquotasoffarmlandforeachgroupandresponsibilitycontractsinsomespecializedobligationswereindicated,atthesametime,thefixedoutputquotasforhouseholdwasalsoregardedaspositive.Undertheencouragementofgovernment’spolicyandrelatedsupportmeasures,plentyofproductionresponsibilitysystemsdevelopedveryrapidlyinruralareas.In1981,awidedeeperreformcalledfixingthecontributequoteforeachhousehold(baogandao

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