“Second generation” problems associated with economic reform in the pastoral region of China

Pinpoints how economic and social development in the strategically important pastoral region of China poses many unique problems, in particular the future livelihood of the minorities who have inhabited the vast pastoral expanses of north and north‐west China for millennia, which is being threatened by degradation of the rangelands. Outlines the development issues confronting the pastoral region, and examines the impact on the region of two specific nationwide reforms ‐ the introduction of the household production responsibility system and the fiscal reforms of the early 1980s. Shows that both these generally beneficial reforms have created major “second generation” problems in pastoral areas. Identifies the principal reason for these undesirable outcomes as the divergence between national and local policy objectives.