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The 1999-2000: Analysis and Forecast of China's Rural Economic Situation, compiled and published jointly by the Rural Development Institute of the Chinese Academy of Social Sciences and the National Bureau of Statistics, presents a panoramic view of both the current development level and the future prospects of China’s rural economy.

The book, also known as the "annual green book,” offers important analysis of the current hot issues in the agricultural sector.

According to the book, the rural economy mainly proceeded on the right track in 1999. Agricultural added value reached 1.42 trillion Yuan, 2.8 percent more than 1998. The market supply of agricultural products remained adequate and farmers' income was increasing steadily. Meanwhile, township enterprises had seen rapid development.

Yet, there are unresolved problems hampering further growth, including the worsening financial environment of rural enterprises, decline of agri-products’ prices, insufficient input of money and materials, slow growth of farmers' earnings and a widening income gap between rural and urban areas. These problems are at the core of China's agricultural restructuring.

It is suggested that agricultural restructuring be aimed at upgrading agricultural efficiency and improve economic returns.

Agriculture should be readjusted to suit the needs of the reform and opening-up program, and sharpen the country's competitive edge in the international markets in order to grasp the opportunities and meet the challenges created by WTO entry. Furthermore, China must rationally use and protect agricultural resources to achieve sustainable development, the book says.

Experts say that a healthy agricultural market is important to the development rural economy. Both administrative and economic measures should be used to get rid of regional blockade and market divisions. A comprehensive circulation network should be established to speed up the progress of socialization.

The book forecasts that the agricultural sector will maintain development momentum in 2000. Although there will be some reduction in yields, profits will be higher. The market supply of agricultural products will be adequate, with prices rising. Rural enterprises will grow at a faster speed and farmers' incomes will rise at a higher rate.