This paper aims to discuss how the local government and local community improve the living conditions of rural residents in the era of market economy development and new rural policy in China. The discussion is based on research conducted at Shehong prefecture in Sichuan province in March and September 2006. The findings of our research are as follows: the number of projects subsided by national or local finance increased, but it is mandatory for rural applicants to cover operating cost. As project funds are collected directly from residents at each time, it has become more important for community leaders to be able to negotiate interests within a community and to motivate villagers to fund a project. As a result, the leaders try to achieve their goals in diverse ways, for example, offering villagers more social occasions and reviving the tradition of "mutual aid etc". Local governments also attempt to motivate residents, by helping them to adjust to market economy and increase their income. Moreover, as the local governments are losing power to mobilize people, the former try to use various communicating ways to encourage the latter's involvement in living environment improvement projects.
The Strategies for Improving the Living Conditions of Residents in Rural China in the Era of Market Economy Development and New Policy: A Case of Shehong Prefecture in Sichuan Province Number 2006-21 17 pages long
