The Property Rights Reform And Sustainable Management Of Collective-owned Forests In China

The concept of property rights is vital to Property rights economics and institutional economics. Making up for 60% of China's forested land, collective forests is an important component of China's forest resources and instrumental in China's economic development. Since the founding of People's Republic of China, its collective forest tenure system has undergone several changes and notable progress has been made; however, challenges still exist such as the defective tenure system, unregulated transfer of forest tenure as well as the conflicts between protecive management and commercial use.To better unveil forest tenure reform, understand its effectiveness and explore various ways to regulate the transfer of forest tenure rights, the author applies new institutional economics to analyze the course of forest tenure reform. Based on the participatory interview conducted in selected cases in Fujian, Jiangxi and Gansu provinces, the author studies the effectiveness of the reform using statistical and comparative analysis; drawing on the case studies in Tonggu county (Jiangxi province) and Anji county (Zhejiang province), the author analyzes the current operation of forest tenure trade centers, and applies SWOT analysis to examine the strengths and weaknesses of as well as the opportunities and threats facing the trading centers. Major conclusions are drawn up:1. The management of China's collective forests is categorized according to their investment and benefit sharing, mainly including household, stock-holding and joint venture management. Despite being the fundamental form, household management is not suited for intensive management and the economy of scale, which needs to be diversified by other patterns of management.2. China's collective forest tenure has undergone frequent changes over the past. In terms of ownership, it has evolved from farmers'complete ownership of both land and forests, to stepwise ownership and management of land and forest passing into the collectivity and at last to the separation of the ownership of land and forests, with farmers holding the ownership of forests.3. Remarkable effects have been achieved in collective forest tenure reform: the ownership of forests has been clarified, farmers'income has increased significantly, farmers'ensuthiasm in afforestation, silviculture and forest conservation and forest managment has risen, local ecological environment improved, conflicts over forest tenure reduced. But challenges still remain in some key aspects of forest mangment such as the conflict between harvesting and its relevant policy, forest management for the economy of acale, payments for forests of protective purpose, etc.4. The establishment of forest tenure trade center has provided a regulated platform of the transfer of tenure rights. It has protected farmer's rights and provided various convenient services for the farmers like valuation of forest resource assets, market information and forest insurance, which has regulated the transfer of forest tenure. However, the forest tenure trade center is also facing issues pending to be addressed, such as the identification of its legal status, improvement of professional knowledge and capacity of staff, which affects its long-term development.5. The collective forest tenure reform should be intensified to guarantee farmers as the principal in managing forest resources, protect rights of all stakeholders; to explore ways to empower farmers to harvest , multi-channel payment for ecological services, forest insurance and various parterns of collective forest management to improve benefits; and to improve legislation in this regard..6. Property right reform had significant effects on forest sustainable management. Although it protects farmer's benefit and improves their consciousness of protection and management of forest resources; it still produces negative impact on the achivement of sustainalbe forest management as the fragmentation of forests and forest management . Therefore policies needs to be improved to facilitate the development of forest management cooperatives to promote sustainable forest management.