"Local suburbs should take the nation's lead in realizing a high quality lifestyle and modernization. The next 10 to 20 years will be the most important period for suburban development," said Liu Yungeng, the city's deputy Party secretary, adding that this follows central government's requirements.

Increasing the income of farmers is still one of the most important tasks in suburban development, officials said.

By 2010, the municipal government plans to reduce farm laborers from 700,000 to 250,000. Extra farm laborers will be shifted to factory work with higher salaries.

In the past, farmers would receive a lump-sum payment when land was taken by the government for industrial development. But their future was always uncertain as they struggled to find a new job in the workplace.

Now the government will leave a certain amount of land to farmers and allow them to share in proceeds from land used for industrial development. Farmers were also encouraged to rent their houses.

"In this way, farmers can enjoy stable and long-term profit from the land," said Vice Mayor Hu Yanzhao.

The government also expanded the social security system in the suburbs. About 374,000 farmers received coverage since the policy was implemented last October. They plan to cover 500,000 farmers by the end of this year.

(Shanghai Daily August 31, 2004)