China's last people's commune

Here in Zhoujiazhuang, China's last people's commune, all the land and labor is owned by the township. Such obsolete terms as "work points or scores" and "grain rations", used during the planned economy era, are still very much a part of the village life in Zhoujiazhuang.

Other people's communes moved to the household contract responsibility system as early as 24 years ago, where production and management rights were transferred to farmers under long-term contracts. The farmers till the land and keep all profits earned from the sale of their crops, but pay an annual fee or tax to the government.

Figures for the 2005 fiscal year show that the per capita net income of Zhoujiazhuang villagers was 5,018 yuan (US$632), almost 52 percent higher than the national average of 3,255 yuan (US$412).

While the figures might be in favor of Zhoujiazhuang's collective economy, Lei Zongkui, Party secretary of the township, is fully cognizant of the challenges ahead. "We must do everything possible to boost people's incentive to work," Lei said, adding that he still supports the collective economy despite the inherent problems.