yuan xiao: making land fly

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MAKING LAND FLY YUAN XIAO, PHD NOVEMBER 14, 2016 Land Quota Markets and Growth Management in Chinese Urbanization

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Page 1: Yuan Xiao: Making Land Fly

MAKING LAND FLY

YUAN XIAO, PHD

NOVEMBER 14, 2016

Land Quota Markets and Growth Management in Chinese Urbanization

Page 2: Yuan Xiao: Making Land Fly

I. INTRODUCTION: NEW PHENOMENON

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Page 3: Yuan Xiao: Making Land Fly

1 DENSIFICATION OF RURAL SETTLEMENTS

I. Introduction

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2 RECLAMATION OF RESIDENTIAL LAND FOR FARMING

I. Introduction

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3 TRADING OF “LAND QUOTAS” ON THE MARKET

Source: http://news.ifeng.com/gundong/detail_2011_07/29/8035871_0.shtml

I. Introduction

Page 6: Yuan Xiao: Making Land Fly

4. WIDESPREAD PRACTICE AND INTENSE CONTROVERSIES

Source: http://www.travelchinaguide.com/map/

•  29 out of 31 provinces in mainland China run similar programs •  Chongqing Municipality: 670,000 households resettled (2008 – 2013)

•  Controversial: à efficient or distorting? à pro-peasant or hurting peasants?

I. Introduction

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TAKE A STEP BACK Why study growth management? Why study China?

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II. THE RESEARCH

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1. RESEARCH QUESTIONS As a new institution, how were the land quota markets formed? What are the impacts of land quota markets?

II. The Research

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2. LITERATURE REVIEW

Revisiting urban spatial economics Extending fiscal federalism/socialism Learning from theory of property rights evolution Bridging studies of location-based land politics

II. The Research

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3. RESEARCH DESIGN AND DATA COLLECTION

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II. The Research

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III. INSTITUTIONAL EVOLUTION: CENTRAL CONTROL AND LOCAL RESPONSES

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Page 13: Yuan Xiao: Making Land Fly

URBAN LAND

RURAL LAND

LAND MARKETS, PROPERTY RIGHTS, AND PUBLIC FINANCE IN CHINA

•  Partial marketization

peasants à government à urban land users

Leasing public land Land taking

Non market-based: government uses

command and control

Market-based: government leases land

use rights

•  Local Governments Leverage Land Conversion to Finance Infrastructure

peasants à government à urban land users

Page 14: Yuan Xiao: Making Land Fly

1. DEVELOPMENT VS. PRESERVATION

Local Land Bureau

Municipal Government

Ministry of Land and Resources

Preserve Land! (farmland protection + social stability)

Develop Land! (fiscal revenues + economic growth)

Land Conversion Quota System

III. Institutional Revolution

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Urban Expansion with Official Quota Constraint

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è Shortage of Quotas

Top-down Allocation of Quotas

Page 17: Yuan Xiao: Making Land Fly

2 LOCAL RESPONSE: QUOTA CREATION THROUGH RESIDENTIAL LAND CONSOLIDATION

III. Institutional Revolution

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LAND USE CHANGES AT VILLAGE LEVEL

Source: Replication of Figure 7 in Yang 2011, How to Build a New Socialist Countryside. (Unpublished manuscript)

Before

Page 19: Yuan Xiao: Making Land Fly

LAND USE CHANGES AT VILLAGE LEVEL

Source: Replication of Figure 7 in Yang 2011, How to Build a New Socialist Countryside. (Unpublished manuscript)

After

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SPATIAL SCHEME OF QUOTA MARKETS

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3. CIRCUMVENT CENTRAL CONTROL

Local Land Bureau

Municipal Government

Ministry of Land and Resources

Preserve Land! (farmland protection + social stability)

Develop Land! (fiscal revenues + economic growth)

Land Conversion Quota System

Land Quota Markets

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IV. IMPLICATIONS

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Page 23: Yuan Xiao: Making Land Fly

IV. IMPLICATIONS 1.  New Spatial Logics and Urbanization Pattern 2.  Mixed Welfare Impact on Peasants depending on

Location

3.  Reinforce the Dominance of the Municipality over Counties

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1(a) New Spatial Logics: “De-spatialization” and “Re-spatialization”

IV. IMPLICATIONS

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•  Same price of quota regardless of generation location

•  Remoteness, rather than proximity increases the likelihood of land consolidation

•  The most rural areas get densified first

1(a) New Spatial Logics: “De-spatialization” and “Re-spatialization”

IV. IMPLICATIONS

Page 26: Yuan Xiao: Making Land Fly

URBAN EXPANSION WITH LOCAL QUOTA CREATION AND TRADING

Villages in deep rural areas are affected    

IV. Implications

1(b) New Spatial Pattern of Urbanization

Page 27: Yuan Xiao: Making Land Fly

DISTRIBUTION OF QUOTA GENERATION PROJECTS BY DEVELOPMENT ZONES IN CHENGDU

LOCATION(Development

Zones)

JURISDICTIONS (district/county)

NO. OF PROJECTS

SIZE OF QUOTA

GENERATED (MU)

NO. OF PEOPLE

DISPLACED

Total 20 735 ���(100%)

361,888.83(100%)

1,389,522(100%)

1st 6 urban 16(2.2%)

11,437.61(3.2%)

57,545(4.1%)

2nd 6 suburban 244(33.2%)

120,991.98(33.4%)

533,852(38.4%)

3rd 8 rural 475(64.6%)

229,459.24(63.4%)

79,8125(57.5%)

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DISTRIBUTION OF QUOTA GENERATION PROJECTS BY COUNTY IN CHENGDU

Densification Deep in the Countryside

Page 29: Yuan Xiao: Making Land Fly

Two Types of Peasants Affected

on urban fringe (quota use projects)

(-) more land taken, more peasants displaced

RURAL SUBURBAN URBAN

in deep rural area (quota generation projects) (+) better housing conditions, better infrastructure and services (-) lifestyle adjustment, impact on mode of production

2 Mixed Impact on Peasants, depending on Location IV. IMPLICATIONS

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IV. IMPLICATIONS

Distribution of Official Quotas

3 Reinforcing the Dominance of Municipality over Counties

Distribution of New Quotas

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Summary of Findings

•  Flying land: rural densification for urban expansion •  Outgoing of land resources from rural to urban areas •  Mixed welfare impact on peasants, depending on

location •  “Municipality-managing-counties” structure

unsuitable for the urbanization era •  Reinforcing dominance of big cities over small cities

in land resources distribution

Page 32: Yuan Xiao: Making Land Fly

Thank you! Yuan Xiao

[email protected]

[email protected]