Township and village enterprises
Also called: TVEs · Topic: Comparative Development: India, China and Pakistan · NCERT: Class 11, Ch 8 "Comparative Development Experiences of India and its Neighbours"
Meaning
Township and village enterprises (TVEs) were Chinese firms owned and run by local collectives, meaning township or village bodies. In the second phase of China's reforms, which focused on industry, TVEs and private firms were allowed to produce goods. Rising farm incomes from household plots created demand and savings in rural areas, and TVEs grew quickly as a result. They created non-farm jobs in villages and built support for further reforms.
Example
In the 1980s, a village body in China could set up a small factory making bricks, tools or clothes, using local workers and local farm savings. Thousands of such units made up the rural industry boom that followed the farm reforms.
Don't confuse with
- State-owned enterprises (SOEs): These are owned by the state and are China's version of India's public sector enterprises. In the reforms, SOEs were made to face competition. TVEs were owned by local collectives.
- Private firms: These are owned by individuals. TVEs were owned collectively by a township or village.
Related concepts
- Chinese economic reforms of 1978
- Household allocation of commune land
- Dual pricing
- Decentralised planning