China - Land policy reform for sustainable economic and social development : an integrated framework for action

 68930 China: Land Policy Reform for Sustainable Economic and Social Development An Integrated Framework for Action December 19, 2005 This Report was prepared jointly by the task teams from the Development Research Center under the State Council and the World Bank based on research activities conducted in the year of 2005. Messrs. Li Jiange and Jiang Xingsan provided general guidance and overall supervision to the research activities. The task team from the Chinese side was led by Mr. Han Jun, comprising Messrs. Liu Shouying, Ye Jianping, Zhou Feizou, and Wang Xiaoying. The task team from the World Bank side was led by Mr. Li Guo, comprising Messrs. Paul Munro-Faure, Jon Lindsay, John Bruce, and Malcolm Childress, and Xilin Zheng. Peer reviewers for the report were Frank Byamugisha, Shuilin Wang, Klaus Deininger, and Chengri Ding. This report is an output of the China Integrating Land Policy Reforms, a World Bank’s analytic and advisory activity. The task teams would like to express their sincere thanks to DFID and FAO for their financial support and great assistance extended to the research project.  China: Land Policy Reform for Sustainable Economic and Social Development China: Land Policy Reform for Sustainable Economic and Social Development An Integrated Framework for Action Executive Summary i I. Introduction 1 II. China’s evolving land policy framework: achievements and continuing challenges 4 A. The persisting duality of rural and urban land tenure systems, and the State’s 5 monopoly of the primary market for urban land B. Unfair requisition and compensation practices 9 C. Weak land rights of farmers 13 D. Over-reliance by local governments on revenue from land transfers and land- 15 related financing E. Difficulties in reducing the rate of farmland conversion 17 III. A closer look at the challenges: the findings of three provincial reports 19 A. Land issues in Zhejiang and Shaanxi: contrasts and commonalities 19 B. Guangdong and the innovative use of collective construction land: opportunities 27 and risks IV. Moving forward 30 A. An integrated approach to improved land policy 30 B. Policy vision 30 C. Proposed long-term objectives and interim actions 31 Objective 1: Clarify, secure and broaden the rights of landholders and promote 32 greater equivalence of rights over land within different contexts Objective 2: Ensure fair treatment and adequate compensation for compulsory 38 acquisition Objective 3: Promote more efficient use of farm land and urban land 43 Objective 4: Enhance the role of land as a sustainable foundation for local 44 government finances Objective 5: Rationalise the institutional framework for land 47 Objective 6: Strengthen the legal framework and rule of law for land 48 Objective 7: Build capacities for land administration 51 Objective 8: Strengthen protection of the environment 52 Objective 9: Create an adequate knowledge base through piloting and research 52 Appendices: Guides to relevant international practice and experience A. Intersections of land policy: land and banking crises B. Millennial challenges for mortgages in transition economies C. Reducing farm mortgage risks D. What is “just