A Study On The Capitalized Questions Of Collective Forest Property Rights

With the deepening of the reform of Collective Forest Property Rights system, the problem of its capitalized operation has gradually been put to the agenda. By means of a comprehensive manipulation of various analyzing methods of economics, the dissertation aims to engage in a systematic analysis on the issue of the capitalized operation of Collective Forest Property Rights from different perspectives.Besides the introduction and the conclusion, this dissertation is composed of six chapters in which the author's main arguments and conclusions are presented thoroughly.The capitalization of Collective Forest Property Rights is a process in which the rare, profitable equity assets of collective forest property rights which have definite ownership are scientifically calculated and its value is increased through the operation of element-marketing. Seen from the perspective of real entity, it is a process of cash accumulation or the value increase of equity capital. Seen from the perspective of ownership, it is a procedure of producing profits by means of capital circulation between different proprietors and operators. There are three types of capitalization of collective forest property rights: transfer, to become a shareholder, and mortgage. It is influenced and confined by social, economic and environmental factors. The capitalized operation of forest property rights can promote the development of forestry and can bring out and utilize the potential value of forest resources. Therefore, it is of great significance.The changes of Collective Forestry Property Rights System lead to the shifts in the division and integration of forestry property rights. Based on the reality, The author thinks that the clear definition of Collective Forestry Property Rights can be improved with the instruction of Forestry Law, Land Management Law, Land Contract Law, and Real Property Law. Firstly, based on the periodical achievements of forestry property rights reform, we should speed up the exploration, delimitation and license issue to deal with and solve forestry property rights disputes and further deepen the innovation of forestry property rights system. Secondly, we should continue to modify and perfect the legislation of forestry property rights to ensure the focus being put on the right of products disposition and the right of remuneration, thus to establish the long term mechanism of property rights arrangement and insist on the stabilization of property rights system. Thirdly, action should be taken to solve the conflict between the protection of property rights and limited forest cutting, and to carry out limited cutting according to the difference of geographical environments, districts and types of forestry so as to maintain the balance of forest resources. Lastly, by means of increasing public forest allowance, making continued subsidy legislation, a stimulating public welfare forest property rights system should be established.The assessment of collective forestry property rights is the basis of capitalized operation of collective forestry property rights. The assessment refers to the assessing of the objects value associated with the forestry property rights according to the technical standards and specific procedures by specialized appraisal institution. With regard to the labor value theory, utility value theory, the price of supply and demand theory, and land tax theory, there are three approaches to conduct the assessment: cost approach, market price approach and income approach. Due to the fact that collective forestry property rights assessment usually assumes the distinctive character of subjective judgment, a sound assessment requires the improvement of the proficiency of assessors, set up an honesty hierarchy mechanism to supervise the assessing process, and intensify the punishment towards false assessment, and increase credit assets of appraisal institution. What's more, in order to guarantee the validity of collective forestry property rights assessment, action should be taken to tackle the chaotic situation of administration, the absence of standardized assessing rules, the deficiency of the original file of forest resources, and the weakness in assessment consciousness.The transfer of collective forestry property rights is another way to realize the capitalization of collective forestry property rights. It means the direct transfer (legitimate trading) of the forestry ownership and forest ownership and forestry usufruct to other entities by means of bidding, auction and contracts, with no change of forestry utility and ownership. This transfer can be fulfilled in and out of some tangible property exchange market through selling, reciprocity, agreement transfer, bidding, auction, purchasing, and property transfer. The transfer of collective forestry property rights has the characteristics of geographic variation, sellers'markets, and the heterogeneity quality of the products and horizontal characteristics. The current problems lie in the following aspects as: the lack of efficient supply, the injustice of income distribution, the coexistence of trading risks and marketing risks. There are also the conflict that the benefits can be guaranteed in public trading while with fairly high trading costs, and the conflict of low government compensation for the purchasing and transfer of public welfare forest under the state's macro-control. Based on the above-mentioned problems, it is urgent to make up and perfect the corresponding regulations and law entries, enhance the propaganda of collective forestry property rights, increase effective supply, speed up the construction of forestry property rights exchange market, standardize the rules of forestry property rights assessment, ensure the fair distribution of transfer income, strengthen the government's supervision, reduce the trading risks and marketing risks, increase the government allowance for public welfare forest and compensation for land acquisition. Thus we can guarantee a healthy development of the transfer of collective forestry property rights.To become shareholders of collective forestry property rights is another approach to realize the capitalized operation of collective forestry property rights. Till now, this share holding process has covered two phases: 1981-1998, the initial specific stage and from 1998 till now, a new stage at present. Actually, those forest stock companies who acted according to the forest farmers'will, insisted on scientific management, and managed a continual operation of their business, have obtained great improvement and enhances in their business scale, yield and output value, technique level, economic profits and management mode from the beginning period till present. Similar to ordinary procedures of stock joint cooperation, the buying-in process of collective forestry property rights encountered a lot of problems and obstacles. Besides, owing to the unique features of forestry assets, it tends to be particularly difficult to deal with their own conflicts. As a result, effective measures must be taken to delimitate the property ownership of the stock assets, properly determine the value of equity, optimize institution framework, stimulate inflows of more external factors, and increase economic allowances and financial support to accelerate the harmonious development of the buying-in process of collective forestry property rights.Mortgage loan of collective forestry property rights is a third way to conduct the capitalized operation of collective forestry property rights. Forest farmers are able to receive financial assistance and circulation through mortgage in advance without the change of the forest property ownership. There are five modes to realize the mortgage of collective forestry property rights in real practice: direct loan with mortgage of the certificate of forest property rights; mortgage between financial institutions, insurance company, and farmers; financial institutions plus the credit platform of the government plus farmers; financial institutions plus the civilian insurance organizations plus farmers; finance institutions plus head enterprises plus farmers. At present, the credit market of the mortgage of collective forestry property rights is unbalanced, heavily restrained by inefficient credit supply, and sabotaged with defective service system. Accordingly, the government should take measures to provide more financial credit support by adjusting the quota of loan, increasing credit supply, enlarging government subsidy, guaranteeing the efficiency of mortgage law, and reducing financing cost. At the same time, the government should perfect the service system of the mortgage loan of collective forestry property rights by accelerating the circulation of forestry property ownership, developing forestry insurance business to extend guaranty modes, and improving policy environments.