Bamboo sector reforms and the local economy of Linan County, Zhejiang Province, Peopleʹs Republic of China

The impact of county-level bamboo sector reforms on bamboo contributions to the county economy is examined by using aggregate county data and simple analytical methods. The role of the contributions of bamboo to the different income groups is evaluated on the basis of data, for 1987 and 1997, from 46 households and by using Gini coefficients, relative and absolute inequality weights, and movements of households through different income groups. Fresh bamboo shoot (FBS) production increased from US$0.1 million in 1983 to US$29 million in 1996. Allocation of labor and capital reached near optimal by the end of the first phase of forestland reforms in 1987. Industrial reforms could affect land allocation through price incentives. Market reforms had a much higher impact through price incentives on land allocation. Bamboo contributions have benefited poor as well as rich groups, and these contributions have moved many households from the poorer to the richer classes. Bamboo sector reforms have reduced the inequality in bamboo land and bamboo income but the share of bamboo income in the total income inequality has increased. The local governments should recognize these outcomes and the basic differences in the production of different bamboo products to design future reforms.