found that the solidarity formula was not suited to the realities of the second half of 1980s.

Agricultural reform in Cambodia started in early 1989 with new legislation aimed at restoring property ownership rights, including the right to inherit property and build on privately owned land. By the end of 1989, fully collectivized farms disappeared, and private and family-based production became the primary form of agricultural production. As for the prices of agricultural products, price liberalization was permitted for farm surpluses after supplying to the government at below-market prices. This regulation was abolished in 1992 and the price was liberalized completely.

## China

In order to give farmers incentives and to increase agricultural production, a “Household Responsibility System” was introduced. Under this system, farmers can sell surplus products at the market price, which is higher than the official buying price. The introduction of the household responsibility system brought big changes to the rural economy. Agricultural production increased and the structure of Chinese agriculture changed toward one suitable for the commodity production system. Labor productivity also improved. During the period of 1984-1991, agricultural reform gradually proceeded, with more emphasis on the market. But the slowness of reform resulted in stagnant production during this period. It should be noted that the success in rural areas promoted the development of township and village enterprises, which absorbed excess labor and accelerated the commodity economy in rural areas.

## Laos

Agricultural reform started at the end of 1988 with the government policy “the family farming,” undertaken after analyzing the successes (increase of rice and livestock production and some infrastructure buildup) and failures (underutilization of land, low productivity and so on) of the agricultural policies of the past twelve years. The state had given the right to the farmers to use the lands which can be inherited by their relatives. The farmers can even transfer them to any other person in return for some reasonable compensation. This policy was further strengthened in 1992 to authorize property rights on land. By early 1989 all farming cooperatives were dissolved, and all land was given back to the former owners to carry out their own production.

## Mongolia

Contrary to other countries analyzed in this report, Mongolia has a smaller proportion of agriculture in the economy with approximately 30 percent of labor force and 20 percent of GDP. Main reform measure in agricultural sector is the privatization, which is reviewed in another section of this report. Because of the nomadic nature of animal husbandry in Mongolia, land for agriculture has not been privatized.

## V ietnam

In 1981, a product responsibility system was introduced in the agricultural sector. In this system, farmers rent farmland from a cooperative and are required to supply a certain level of production. The surplus was left to farmers' discretion; they also got incentives to increase the production. The prices of agricultural products were also raised, up to five times. This reform produced good results for a while but the remaining control spoiled the incentives of farmers and agricultural production stagnated. The reform in 1988 gave more autonomy to