China to stimulate farmers incomes

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As the financial crisis worsens and western consumers keep a firm grip on their shrinking wallets developing countries, like China, have to count on domestic consumption to sustain their economic growth.

Ruralresidentsmakeup56percentofChina'spopulation,
andtheyarethefocusofthegovernment'splanstoboost
internalspendingandlending.Buthigherspendingdemands
moremoneyinthepocketfirst.

Rural residents make up 56 percent of China's population, and they are the focus of the government's plans to boost internal spending and lending. But higher spending demands more money in the pocket first.

Henan province, the bread basket of China. Each year, rural lands here yield 10 percent of the country's total grain output. But high production doesn't bring wealth, due to the declining world grain price.