Page added on March 5, 2009
China will increase spending on agricultural production by 20% this year amid warnings that climate change could spark a future food crisis .
The government’s spending pledge also included extra money for renewable energy and improved power efficiency, but these environmental benefits were outweighed by moves to boost overall domestic consumption and a likely emphasis on intensive agriculture.
The short-term aim is to ease the impact of the economic crisis on rural dwellers, who account for more than half of the 1.3bn population. This group is considered a potential source of social instability because the average rural income is just a third that of the city. Wen said grain prices would be increased as an incentive for farmers to produce more.
Many Chinese people can remember the famines of the early 1960s which killed tens of millions of people.
Lei Ming, an environmental economist at Peking University said the extra spending on agriculture was a precautionary step. “The impact of climate change on food production is uncertain. It may go up, but it is also possible that we will face massive food shortages. To avoid such a risk, we need to prepare ourselves. I think that’s one of the reasons the government is increasing the agriculture budget.”
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