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Remove the Dual Structure Barriers of Rural Land through Institutional Arrangements and Establish the Institutional Framework for the Marketization of Rural Collective Land Designated for Business-related Construction Projects(No.21, 2018)


By Zhang Yunhua, Research Department of Rural Economy, DRC

Research report No.21, 2018 (Total 5296) 2018-1-23

Abstract: In rural areas, remarkable results have been achieved in the marketization of rural collective land designated for business-related construction projects, in terms of same rights and same price for land of different ownership, activation of assets, allocation of resources, joint sharing of revenue, reduction of land-use costs and smoothening of conflicts spawned by land acquisition and demolition. Some institutional arrangements need to be fleshed out such as the inappropriate systematic integration between rural collective land designated for business-related construction projects and land acquisition, the improper taxation policy on the proceeds from land marketization, the difficulty of mortgage financing of collective land for construction purpose, the limited classification on land for construction projects, uncertainties relating to the property rights disposal after the land use right becomes due, and the imbalanced proceeds for land marketization between different villages. The reform of rural land system needs to further remove the barriers imposed by the dual urban-rural land system through proper institutional arrangements, construct a unified market transaction system, establish an equitable platform for the marketization of collective land and land acquisition and formulate the tax policy for the marketization of rural collective land designated for business-related construction projects. Besides, efforts need to be made to further improve the mortgage financing means and supporting systems, expand the types of land for marketization, formulate guidelines for land disposal after land use right becomes due and establish a regional overall planning mechanism according to local conditions.

Key words: rural collective land for construction use, land marketization; dual urban-rural land system