People's Daily: My question is about agriculture, rural areas and farmers. I have noticed that in your report on the government's work, you said these three issues remain top priorities in all your work. And you have proposed specific measures to address these issues, including abolishing agricultural taxes by the end of next year. What do you think is the fundamental solution to these problems and the long-term plan?

Wen: Thank you. Your question has reminded me of remarks made by Nobel laureate economist Theodore Schultz. He said most of the people in the world are poor. So if we knew the economics of the poor, we would know much of the economics that really matter. Most of the world's poor people earn their living from agriculture. So if we knew the economics of agriculture, we would know much of the economics of being poor.

I am no economist, but I am deeply aware of the paramount importance of agriculture, rural areas and farmers in China. Without moderate prosperity in the countryside, there will be no moderate prosperity for the whole country. Without modernization in the countryside, there will be no modernization for the whole country.

I do have a long-term plan for rural reform and development. It has two phases. In the first phase, we introduced the basic economic system of a family contract responsibility system, which in essence was to give greater autonomy to the farmers in production and management. As a result, it has liberalized productivity in the countryside.

In the second phase, we should make industry nurture agriculture and cities support the countryside. We should give more to, take less from and liberalize the countryside. I believe we have entered the second phase now. We must accomplish four jobs for the second phase. One is to promote rural reforms with rural tax and administrative fee reforms as the central task.

Second, we should improve productivity in the countryside by building water conservancy projects and promoting wider applications of agriculture-related science and technology.

Third, we should develop education, science, technology, culture and other social undertakings in the countryside.

Fourth, we should promote primary-level democracy by ways of self-governance among villagers, direct elections at the village level and greater transparency in government affairs at the county and township levels.