ture, to the extent that minimum production quotas continue to be established, and must still be met (Huang, 1990, p. 90). These quotas are designed to insure that basic food supplies continue to be available for Chinese cities. Under the responsibility system, however, each Chinese farm family is granted a small plot, which they are permitted to cultivate for their own benefit. The primary responsibility of each farm family continues to be the fulfillment of its commune production quota. Once the family quota is met, however, all production from family plots may be sold on the open market, at prices established by the market (Manatoo, 1990, pp. 63-79).
The goal of the responsibility system is an increase in incentive for farm families, which, it is hoped, will be translated into an overall increase in agricultural productivity in the PRC. During the 14 years of the plan, it has been well received by farm families, and overall agricultural production has increased significantly. Unfortunately, significant prices increases also occurred in the open ma
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