Opinion | Without land reform, China cannot meet its policy goal of urbanisation
Hu Shuli says the restrictions placed on farmers' rights to their own land can no longer be justified, and sets out steps necessary for an overhaul
The deaths of three farmers in Henan , Hubei and Sichuan - killed separately while protesting against the requisition of their land - have made the central government sit up. On May 13, the Ministry of Land and Resources warned officials to enforce the rule against illegal land grabs. Meanwhile, officials in Guangdong and Chongqing are working to create a market for land collectively owned by farmers.
There is an urgent need for land reform. The new leadership has earmarked urbanisation as a key policy goal, and it cannot proceed without an overhaul of China's outdated system of land rights.
With no right to trade or benefit from their land, rural residents who move to the city live precariously
China currently uses a dual rights system: all urban land is owned by the state, while rural land is collectively owned by farmers. But while farmers have a right to use their land, they have no right to sell or develop it.
Unsurprisingly, this system has created a host of problems. With no right to trade or benefit from their land, rural residents who move to the city live precariously, and hardly contribute to domestic demand. Such a system also breeds resentment, as residents are cut off from sharing the gains of rising land prices. Moreover, restricting the trade of such a key factor of production leads only to inefficiencies.
What this means is that while farmland becomes urbanised, farmers don't. Policymakers are aware of the problems. Premier Li Keqiang , for one, has repeatedly said urbanisation should cater to people's needs. Now the government has to act on its pledge.
China must urbanise if it is to become modern. And land ownership reform holds the key to successful urbanisation. This means easing restrictions on land development; it means reforming rules for land requisition, and standardising registration for land ownership to give farmers full rights to their land. This will allow land to be freely traded in the market.
First, land requisition reform. As early as a decade ago, the government said it planned to reduce the areas of land eligible for requisition, raise the compensation for requisitioned land and allow farmers to share in any asset gain. But progress has been hobbled by the complicated fiscal and financial relationship between the central and local governments.