The Impact of 1995 Floods on Mainland China`s Grain Production

Abstract

Since the establishment of the People`s Republic of China (PRC) in 1949, floods have been an intensifying problem as they have hit major grain-producing regions and seriously affected grain yields. In addition to climatic causes, man-made damage to the environment instigated by shortsighted policies has contributed to this serious problem. The situation has worsened with economic reform; irrigation systems are in serious disrepair and the infrastructure and conditions for agricultural production remain backward as investment has leaned to the industrial sector. As a result, natural disasters have come to determine whether there will be a bumper harvest. The 1995 floods have damaged a large portion of the crops, and it is anticipated that 1995 grain production will be relatively low. As a further consequence, since grain price and inflation are closely related in the mainland, the recent floods and decreased 1995 grain production will likely kindle another round of inflation.