Summary Currently, the stagnant growth of farmers' income and the widening income gap between urban and rural areas have attracted the attention of all parties to the "Three Rural Issues". The core of the "Three Rural Issues" is the problem of farmers, and this paper proposes that the key to solving the "Three Rural Issues" is to increase farmers' income and narrow the gap between urban and rural areas and between regions while maintaining the sustained and stable development of agriculture.

I. Strengthen the rural infrastructure, start the rural market, increase farmers' income

China is a country in transition from a planned economy to a market economy, basically urban and rural dual economy, urban and rural market isolation, the rural consumer conditions are not sufficient, the market is not fully developed. In the country's total population of 63.8%, the number of households accounted for two-thirds of the rural areas, and life-related infrastructure is still very backward, not only the power grid is old, unstable voltage, and high electricity prices, half of the farmers do not have piped water, greatly restricting the demand for modern consumer goods in the rural areas. 2000, the rural population per 100 residents of the color television, refrigerator, washing machine ownership of 48.7, respectively. 12.3, 28.6, the rural population per 100 residents, In 2000, the per capita net income of rural residents was RMB 2,253 yuan, 11.3% higher than the per capita income of urban residents in 1991, which was RMB 2,025 yuan. The prices of the above three major items in 2000 were only half of those in 1991 or even lower, but the number of items owned by rural residents in 2000 was only 71% of those of urban residents in 1991. In 2000, the price of the above three major items is only half or less than in 1991, but in 2000, the rural residents have only 71.1 percent, 25.3 percent, 35.5 percent of the 1991 urban residents. It can be seen that it is not the level of income, but the lack of infrastructure is the main reason for limiting the realization of the vast number of people in rural areas of the willingness to consume.

According to the National Bureau of Statistics Agricultural Research Team and the China Center for Economic Research at Peking University in December 1999 on the country's 18,796 farm households to do sample surveys and econometric analyses found that the rural electricity prices for every penny lower, the stimulus to the demand for color television sets is equivalent to the rural per capita net income increased by 370 yuan; the demand for refrigerators is equivalent to the rural per capita net income increased by 667 yuan; The demand for washing machines is equivalent to an increase in rural per capita net income of 909 yuan. If the rural residents and urban residents of the same electricity network and the same price, the installation of satellite television ground receiving pots in rural villages to achieve village television, build water towers to achieve village water, the rural areas will soon appear a consumption of household electrical appliances culmination of television sets, refrigerators, washing machines will no longer have a surplus of production capacity. Water, electricity and other life-related infrastructure problems solved, the rural areas will also spontaneously set off a kitchen revolution, toilet revolution and other improvements in the quality of life related to the construction of the climax of the many manufacturing industries existing excess production capacity to digest.

Additionally, infrastructure projects in rural areas, such as the construction of rural roads, rural power grids, the establishment of piped water supply systems and radio and television reception and transmission devices, etc., the scale of investment is generally small, the investment is more decentralized, compared with the main infrastructure projects for urban services, has a small investment, short construction period, quick results, economic and social benefits, the use of material inputs to domestic production, the direct impact on domestic demand, and the use of the material inputs to domestic production, and the use of the material inputs to domestic demand. Production is the main focus, and the direct stimulus effect on domestic demand is more obvious. This type of infrastructure construction is highly labor-intensive, mainly using cheap rural labor, so strengthening rural infrastructure construction can also create many employment opportunities in rural areas and directly increase farmers' income.

Speeding up the construction of rural infrastructure is actually an indispensable precondition for rural modernization. Any economy to achieve sustainable economic growth is inseparable from the coordinated development of urban and rural areas, the development of urban modernization to a certain stage will inevitably have to expand to the countryside, and good rural infrastructure is just the urban civilization to the rural extension of the bridge. The construction of rural infrastructure will help to promote rural modernization, help to narrow the development gap between urban and rural areas, and create the necessary conditions for the majority of rural residents to participate in the process of economic development and to share in the fruits of that development. The construction of rural infrastructure will benefit the rural economy and social undertakings in the long term, and the development of the rural economy can in turn expand the size of the national market, and continuously provide new space for national economic growth and raise the level of economic development.

By strengthening rural life-related infrastructure construction, the rural consumer market can be activated, the excess production capacity can be absorbed, the national economy out of the deflationary predicament, the national economy can be restored to healthy, rapid and sustained growth, so that the rural labor force may have the opportunity to continue to transfer to non-agricultural sectors for employment, and thus realize the sustained growth of farmers' incomes. Positive fiscal policy to accelerate the construction of rural infrastructure is to start domestic demand, eliminate excess production capacity of the most effective measures, but also to achieve the current rural labor force employment and rural industrial restructuring, increase farmers' income, solve the "three rural" problem of the first policy.

Second, deepen the reform of the circulation system of agricultural products, the development and improvement of the national unified market, narrowing the regional gap

China's development level of the disparity between the East, Central and Western China, how to continue to narrow the income gap with the development of the national economy, is China's solution to the new century, the "Three Rural" problem to overcome one of the difficulties, on this issue of the "Three Rural" problem, the development of the "Three Rural" problem. Overcome one of the difficulties, on this point, the establishment of a unified national market is the key.

According to the "factor price equilibrium theory" put forward by Nobel Prize-winning economist Samuelson, under the premise of no transaction costs, the factor endowment structure is different, comparative advantage of the different regions, if you can according to the comparative advantage of the decision of the industrial structure, and then, through the unified product market, inter-regional product exchange, then, each region is the key to the solution of the "three rural" problem in the new century. Product exchange, then, the income of laborers between the regions will converge with the economic development, a region's economic development, will become a driving force to pull the economic development of another region. Taking grain as an example, at present, the eastern region of China is relatively less populated than the central region, and the wage level is high; therefore, grain, a relatively land-intensive crop, does not have a comparative advantage in the eastern region. If there is a unified national market, when the eastern region with economic development, land and labor opportunity cost increases, food production will become more and more uneconomical, the eastern region will naturally reduce the proportion of food production, increase to the production of food has a comparative advantage in the central region of the purchase. Food market prices will rise accordingly, the central region to food production-based farmers will be able to get the benefits of increased income from increased food production, the eastern region's economic development will also become the central region's economic development, farmers to increase incomes of the pulling force. By the same token, when the eastern region is more developed, it will also increase the purchase of resource-intensive products in the western region with comparative advantages in resources, pushing up the price of such products, and becoming the pulling force for the economic development of the western region and the increase in farmers' income. In this way, the income gap between the East, the Middle East and the West will continue to narrow with the diffusion effect of economic development in the East. Therefore, to narrow the regional income gap, the first must establish a national unified product market.

Establishing and improving the national unified big market will also be conducive to the government's regulation of macroeconomic operation. Socialist market economy requires the market to play a fundamental role in the allocation of resources, the government will focus on economic work from participation and direct intervention in production and operation to cultivate the market, however, this in no way means that the government's ability to regulate the macro-economy has been weakened, on the contrary, through the protection of property rights for the farmers, the vitality of the market, to create for the farmers to save transaction costs, can carry out a fair competition economic environment, not only the government's macroeconomic regulation of economic operation, but also the government's role in the allocation of resources. The effectiveness of the government's macro-control of economic operation will be greatly improved, and the surface of the control is also greatly broadened. (1) For the government, it is only when the operation of the whole national economy relies more on the market mechanism that it will be possible to free itself from dealing with trivial matters of daily life and to focus on studying and solving some problems that really belong to the aspect of macroeconomic regulation. (2) Through the development of the market and the transformation of the economic operation mechanism, the government will mainly rely on a set of rules rather than a sum of money or approval to coordinate the economic operation, which will help to eradicate the bad habits of government officials such as accepting bribes and soliciting bribes that have been fostered by their participation in the micro-economic operation, so that they can focus their attention on macro-economic regulation and control. (3) After joining the WTO, China's agriculture is facing special challenges, the government directly provides protection and subsidies to agriculture, which violates the WTO rules and is difficult to work in practice. For farmers, it is much easier to ask for equality in front of the government's rules than to ask for equality in front of the government's planned distribution of goods. The government has much to do to reduce both transaction costs and risks in the marketplace.

First of all, as far as reducing the transaction costs of the market is concerned, the establishment and improvement of the hardware of market transactions, such as transportation, communication, financial and other systems, is one of the necessary conditions for the circulation of commodities and factors across regions. The one-time investment, externalities and economies of scale in the construction of these systems are large. In order to avoid market development being hampered by the lack of these hardware facilities, the government has the responsibility for direct investment and development in these areas, and can also open up and encourage private investment in these areas when necessary. In addition, on the surface, commodity trading is the transfer of commodities from one owner to another, while money flows in the opposite direction to commodities. However, the essence of commodity trading is the exchange of ownership, so commodity trading can only be carried out smoothly if ownership is clearly defined and the contract of trading is legally guaranteed. In reality, some local governments intervene in the circulation of grain and other bulk agricultural products from time to time, which is in fact a direct violation of the ownership of agricultural products produced by farmers, not only to make the cost of agricultural products in the transfer of surplus and shortages between regions greatly increased, but also to make changes in the industrial structure of the region and the realization of comparative advantages encountered great obstacles. Defining the ownership of various factors of production and commodities by law, and safeguarding the ownership and transaction contracts by law are also the unshirkable responsibilities of the government in developing the market and promoting the circulation of commodities and factors.

Secondly, the risks of the market are to a large extent caused by the blindness of production. The more adequate the information, the more accurate the production decisions will be and the less risky the market will be. Moreover, changes in the structure of consumption and demand can, to a large extent, be accurately predicted. However, the externalities of collecting and processing this information are large, i.e. on the one hand it is a large one-time investment, and on the other hand the resulting information can be shared among a large number of farmers at a marginal cost of supply of zero. It is obvious that it is not economically rational for each decentralized farmer to handle this information by himself, so the government should also play an active role in this regard, through radio, television and the Internet on a regular or irregular basis to release business forecasts to guide agricultural production, in order to reduce the risk of farmers' production and management.

Three, accelerate scientific and technological and institutional innovation, enhance competitiveness, to meet the challenge of accession to the WTO, to achieve sustained and stable development of agriculture

If China's economy in the next three decades to maintain rapid growth, the agricultural sector will produce two challenges: First, in the rural employment and the restructuring of agricultural production, China's agricultural sector can produce enough food to feed themselves; Second, in the economic growth of the At the same time, can we continue to improve the level of agricultural technology, introduce new products and improve the quality of existing varieties, so that agricultural restructuring can be accompanied by economic growth smoothly.

Based on historical experience and the basic theories of development economics, it is generally considered a remarkable achievement if the growth in food production can exceed population growth by one percentage point. If this is the goal, and assuming that the population reaches the level of 1.6 billion by 2030, then, from now to 2030, the average annual natural population growth rate will be 0.81 percent, and the target annual growth rate of food production should be 1.8 percent, so that food production in 2030 should be 70 percent higher than at present. In the case of a very small margin of increase in arable land, the key to whether China can produce so much more food in the future lies in whether yields can be continuously improved. There are two ways to increase yields: one is to increase agricultural inputs; the other is technological progress. But if the level of technology remains unchanged, the marginal productivity of increased factor inputs will decline, and the potential of this pathway is limited. Therefore, meeting the increased demand for food in China must rely mainly on the continuous improvement of the level of technology. In fact, the growth of world food production since this century has relied mainly on technological advances resulting in higher yields, China since the 1960s food production increases are also similarly dependent on this.

In 1991-1993, the author once led a research group on China's grain crop yields to improve the potential for large-scale empirical research in cities across the country. According to the survey, China's current rice, wheat and corn field maximum yield and the actual average yield of the difference between the field is about 1.5-3.5 times the actual level of yield, the gap represents the crop varieties can be tapped into the potential of the existing level of photosynthesis. This survey also found that if our government gives enough support to food research, half of the potential can be realized by improving crop varieties using traditional breeding methods.

China is the world's most populous country and food production is of special importance. Since the three natural disasters of 1959-1961, our government has paid special attention to scientific research on food, and in many ways it has been among the world's leading researchers. 1966, when the International Rice Research Institute (IRRI) developed a semi-dwarf variety of rice, marking the beginning of the Green Revolution, China developed and popularized similar varieties in 1964, and began to popularize the cultivation of hybrid rice in 1976, until the early 1990s, when China began to promote the cultivation of hybrid rice. rice, and until the early 1990s China remained the only country in the world to produce hybrid rice on a large scale. Therefore, as long as sufficient attention is paid to grain research and traditional breeding methods are used to exploit the potential between the existing maximum yield level and the actual yield level, it should be possible to achieve an annual increase in yield of 1.8% and realize the goal of a 70% increase in yield in 2030 compared with the current level. If we take into account the scientific and technological progress in the next few decades, especially, the use of biotechnology in breeding, as long as the government gives enough support to food research, our country will have the ability to produce enough food to feed itself.

Of course, reaching 100 percent food self-sufficiency is not the best option in terms of economic rationality. Food is arable land-intensive products, China is a country with scarce arable land, play a comparative advantage, the labor force is more used in the production of labor-intensive industrial products and crops, through the international trade in exchange for the right amount of arable land-intensive food products, which is more conducive to improving resource allocation and resource utilization efficiency. Accession to the WTO provides very convenient conditions for this.

In order to improve the added value of agricultural products and market competitiveness with imported agricultural products, the need to speed up the establishment of a modern market economy to adapt to the needs of the agricultural marketing system, China's agricultural production of comparative advantage into a competitive advantage in the market. In this regard, what the Government needs to do is to step in to organize the establishment and implementation of a system of standards for the quality, health and safety of agricultural products, and to set up a clear direction of effort for the vast number of farmers and agricultural product market operators. At present, farmers do not know the international market and foreign agricultural products quality standards, packaging requirements, sanitary and quarantine requirements, etc., this information to a large extent with the nature of public *** products or quasi-public *** products, even in foreign countries also belongs to the government departments responsible for the organization and implementation of the management of the duties, so it is not direct agricultural protection or subsidies, but also in line with the WTO rules. As long as the majority of farmers have a clear direction of efforts, coupled with the opportunities provided by the establishment of a unified national market, they will naturally be like the reform of the household contract responsibility system, win the battle to join the WTO, China's agricultural development to a new level.

In agricultural research to improve varieties and quality, in addition to improving our own capacity, we can also increase international cooperation in agriculture, the introduction of advanced agricultural technology and varieties from developed countries or regions. In this regard and China's Taiwan Province of the cooperation deserves special attention, the inadequacy of agricultural research in China's mainland region is precisely China's Taiwan Province of the strengths of the agricultural research system, cross-strait agricultural research system in this regard, there is a lot of room for cooperation. Taiwan's agriculture after the 1960s with the rapid development of Taiwan's economy, the agricultural sector also followed a major structural adjustment. The production of two major categories of traditional agricultural products, rice and sugarcane, has shrunk relatively and remained a net import, while the production of horticultural crops such as vegetables, fruits, flowers and aquaculture has increased substantially and maintained a certain degree of export competitiveness, relying on the outstanding achievements of the agricultural research department and the extension system, as well as the improvement of the quality of farmers. However, the competitiveness of labor-intensive agricultural products is now being gradually lost in Taiwan as the country's economy develops and labor prices continue to rise. After joining the WTO, mainland agriculture can cooperate with Taiwan in the division of labor and encourage Taiwanese farmers to invest in the mainland and transfer their varieties and technologies over to accelerate the modernization of agriculture on the mainland itself. This is beneficial to both Taiwan's farmers, the mainland's farmers, but also conducive to the peaceful reunification of the two sides of the Taiwan Strait.

Fourth, the development of labor-intensive small and medium-sized enterprises, creating employment opportunities, accelerating the adjustment of the employment structure of farmers

The prerequisite for the adjustment of the rural industrial structure and employment structure is the great development of non-agricultural industries, which can continue to create a large number of non-agricultural employment opportunities, continue to absorb the agricultural labor force into non-agricultural jobs, and continue to reduce the proportion and number of agricultural employment. The above mechanism is a prerequisite for the income of farmers to increase with China's economic development, therefore, the solution of the "three rural issues" also depends on the development of non-agricultural industries other than the "three rural issues". After joining the WTO, the government can no longer give a direct subsidy to an industry, the great development of non-agricultural industries must be these industries have strong market competitiveness, which requires that these industries in line with China's factor endowment determined by the comparative advantage. For a long time to come, China's comparative advantage will be labor-intensive industries.

In the discussion of meeting the challenges of joining the WTO, there is a widely spread belief in the domestic theoretical and practical sectors that China should focus on the development of capital-intensive, technologically sophisticated large enterprises, and only in this way will it have the strength to compete with foreign enterprises, or else the national industry will lose in the market competition. In fact, the competitiveness of a country's industry depends mainly on the cost of its products, the lower the cost of the industry will naturally be more competitive. The cost of an industry depends mainly on whether it utilizes the comparative advantage of the country, and the comparative advantage is determined by a country's factor endowment. China's current stage of the factor endowment is relatively abundant labor, capital is relatively scarce, therefore, have a comparative advantage of the industry and industry segments with labor-intensive characteristics. If we raise the country's efforts to develop capital-intensive enterprises, it is necessary to continue to artificially depress the price of capital, and to take all kinds of administrative measures to protect capital-intensive enterprises from market competition squeeze, the result of the socialist market economic system can not be completed, the development of the national economy will be all sorts of difficulties and "want to go too fast".

On the contrary, industries developed according to comparative advantages have strong market competitiveness because of their low costs, and therefore do not need special protection from the government. Because of the strong competitiveness of this industry, and therefore strong profitability, economic surplus, the rapid accumulation of capital, which led to the upgrading of the factor endowment structure, capital in China will gradually change from relative scarcity to relative affluence, and labor is increasingly appearing to be a scarcity of up. Changes in the structure of factor endowments will promote the upgrading of industrial structure, competitive industries are increasingly capital-intensive, technologically advanced features, China will be able to catch up with the developed countries in the way of "small steps forward".

The development of any industry and enterprise needs the support of a flexible financial market. China's current financial system has many problems, after joining the WTO, China's financial industry will soon be open to foreign investment, facing the competition will be very fierce, the financial sector reform can not be delayed. The current priorities in addition to solving the huge amount of non-performing loans of state-owned banks, to eliminate the problems of the capital market, the most important thing is to establish the direction of financial reform.

The function of the financial system mainly lies in the mobilization of funds and the allocation of funds, and the mobilization of funds is actually subordinate to the function of the allocation of funds, because the allocation of funds is good, the efficiency of the economy is high, the economy will be more than the surplus can be mobilized funds, and, the allocation of funds is good, the return on funds is high, the willingness to save will be high in the economic surplus to be used as an accumulation of a greater proportion of the economy, so that the allocation of funds is good, the high return on funds, the willingness to save will be high in the economic surplus used as an accumulation of more. Thus, the efficiency of capital mobilization is high. The efficiency of capital allocation depends on whether the most competitive industries and enterprises in the economy have access to the best financial services.

China's most competitive labor-intensive industries at this stage are dominated by small and medium-sized enterprises (SMEs), and ensuring the financing needs of these enterprises should be the main direction of China's current financial system reform. For small and medium-sized enterprises, the most appropriate financing is to small and medium-sized banks as the intermediary of indirect financing, which is the most lacking piece of China's financial system. This pattern does not change, the financial needs of small and medium-sized enterprises will be difficult to meet the obstacles to the development of small and medium-sized enterprises, the transfer of rural labor will not be very smooth, the speed will be slowed down, so the development of small and medium-sized banks, to solve the difficulties of small and medium-sized enterprises in financing, is China's financial system reform of the urgent need to solve the problem of the "three rural areas". The development of small and medium-sized banks to solve the financing difficulties of small and medium-sized enterprises is an urgent task in the reform of China's financial system.

After the 1990s, China's local small and medium-sized banks began to develop on the basis of the transformation of urban credit unions around the country, but at present the volume of business is still small, and the actual operation of the immaturity and standardization. Local small and medium-sized banks must be commercialized, not by the local government administrative control, so as to become the local government's second financial, dependent on the local government, or even become the local government deviated from the local reality and comparative advantage, blind investment tool. If that happens, not only will small and medium-sized banks, like the four major specialized banks, fail to become a convenient channel of financing for small and medium-sized enterprises, but they will also inevitably generate a large number of non-performing assets. In addition, the development of small and medium-sized banks requires a sound financial regulatory system to guard against possible moral risks. Small and medium-sized banks are not as small as they are; they need to be of a certain size in order to have the necessary ability to diversify market risks. Although small and medium-sized banks are local banks, attention should also be paid to the introduction of inter-bank competition mechanism to prevent inefficiency arising from artificial monopoly.

Small and medium-sized enterprises are mostly in the private economy, generally in the market competition and development, in the choice of technology is more in line with China's comparative advantage, the development of the private economy can create a large number of non-agricultural employment opportunities, is an important export of the transfer of rural labor force, and therefore important for the realization of the adjustment of the structure of the rural industry and employment. the most important rules of the WTO is non-discrimination and national treatment The most important rule of the WTO is the principle of non-discrimination and national treatment. After joining the WTO, we need to implement the principle of non-discrimination and national treatment for foreign investment enterprises and imported products, and in fact, it is imperative for us to implement the principle of non-discrimination and national treatment for our own private economy, and to open up all the investment areas open to foreign businessmen to our own private economy more thoroughly, and open up the investment areas that are not open to foreign businessmen to our own private economy. Some investment areas that are not open to foreign investors should also be opened up to our own private economy. Originally, regardless of whether we join the WTO or not, we should do this to our own private economy, due to a long history of insufficient liberation of ideas and institutional reform lagging behind the reasons and did not adjust in place in a timely manner. Industry entry restrictions have now become an important constraint on the development of China's private economy, the reality is that many of the investment areas have been opened up to foreign investment in the policy also still does not allow the private economy to enter the private economy in the financial and tax policies are still in an unequal position with foreign enterprises in the competition, and even compared with the state-owned enterprises in the system is still relatively easy to be discriminated against. Under the new circumstances, the development of the private economy, create employment opportunities, investment areas need to be fully open to the domestic private economy, to provide broad space for the development of small and medium-sized enterprises.

V. Conclusion

Since the reform of China's agricultural production development has been very good, agriculture, rural areas and farmers at the core of the problem is the problem of farmers, the key to solving the "Three Rural Issues" is to continue to increase the income of farmers, reduce the income gap between urban and rural areas, between regions. The restructuring of rural industries and employment is the fundamental way out for increasing farmers' incomes, resolving the "three rural issues" and modernizing agriculture and the rural economy. In order to accelerate the development of various undertakings in rural areas, to solve the problem of increasing farmers' incomes, and to open up the vast rural market, expand domestic demand, fundamentally alleviate the problem of a general overcapacity in the national economy, and to get out of the deflationary dilemma, accelerating the construction of infrastructure in the countryside is the correct policy choice. For quite a long time, China's farmers, especially in the central and western regions, the net income of the family is still to be mainly from agriculture, therefore, improve the efficiency of agricultural production and management is an important direction of efforts to increase farmers' income. We should respond to the opportunities and challenges brought by China's accession to the WTO for agriculture and agricultural products, deepen the reform of the circulation system of agricultural products, accelerate the cultivation of a unified national market, carry out the division of labor and cooperation between regions, give full play to the pulling effect of the economic development of the eastern region on the economic development of the central and western regions, and reduce the income disparity between the regions and between urban and rural areas. Accelerate scientific and technological innovation in agriculture and institutional innovation, rely on scientific and technological progress to increase agricultural output, improve the variety and quality of agricultural products, and continuously adjust the structure of agricultural production in accordance with the requirements of economic development. Relying on institutional reforms, we will foster modern marketing methods for agricultural products, formulate and implement extensive quality and hygiene standards for agricultural products with reference to international standards, provide farmers and agricultural product operators with a clear direction for their efforts, and increase the added value and market competitiveness of agricultural products. In order to promote the restructuring of rural industries and employment, it is also necessary to vigorously develop the development of labor-intensive industries in which China has a comparative advantage, and to strive to create non-agricultural employment opportunities and provide outlets for the transfer of rural labor. Through the development of the small and medium-sized banking system, the problem of financing difficulties for small and medium-sized enterprises and the private economy will be solved. To meet the challenges of WTO accession, we should first eliminate investment restrictions and policy discrimination against the domestic private economy, accelerate the development of the domestic private economy, and foster the private economy as an important channel for creating non-agricultural employment opportunities. The implementation of the above policy measures will enable China's agriculture, rural areas, farmers in the socialist market economy continue to burst into new vigor, and become an important force in the national economy to reach the medium level of development in the middle of this century.