Analysis On The Rational Allocation Of Rural Land From The View Of Economics Of Institution

Based on three basic theories about the allocation of natural sources, focusing on the rational allocation of rural land, from the view of economics of institution, this essay analyses how the institution of rural land functions in optimizing the allocation of rural land, and tries to set up an evaluation system to measure the rationality of allocation of rural land. Reference to the research findings home and abroad, based on the survey of the current situation of rural land in China, this essay demonstrates the problems in the current allocation of rural land, analyses their causes, and tries to put forward the goals and principles to optimize the allocation of rural land, as to perfect the mechanism of allocation of rural land and to promote the efficiency of utilization of rural land. This essay consists of two parts, including seven chapters.The first part of this essay outlines the background of this research and the basic theories of allocation of natural resource, it covers the first three chapters.The first chapter introduces the background of this research and states briefly its four motivations, research approaches, its theoretical and practical significance and the possible innovation. This chapter focuses on the development of home and abroad research on the institution of rural land and allocation of rural land. And in this chapter the writer points out that rural land is the key issue relevant to the morale of the public, and the perfecting and innovation of institution of rural land is the premise to promote the efficiency of allocation.In the second chapter the author reviews systematically the theories of allocation of natural source, which are the eternal theme of economics. To begin with, some relevant concepts in this research are interpreted, and then a comparison is made among the allocation of natural resource theory of Marxism, that of neo-classical economics, and that of neo-economics of institution, subsequently these theories' respective practical significance in allocation of natural source, are pointed out, as well as their respective limitation.In the third chapter, an evaluation system, from the view of economics of institution, is constructed to measure the rationality of allocation of land. Firstly, it is illustrated that it is the variety of rural land that determines the necessity to allocate the rural land rationally; and then all sorts of ways of allocating and utilizing rural land are discussed,thus to illustrate the necessity of diversification of rural land allocation; after the defining of three concepts in allocation of rural land, all kinds of factors, which influence the allocation of rural land, are explored. Finally, based on the theory of economics of institution, an evaluation system is constructed to measure the rationality of allocation of land.The second part of this essay mainly presents the surveys of the current situation of rural land allocation and utilization in China. It covers four chapters, from Chapter 4 to Chapter 7.In Chapter 4, the author reviews the development of institution of rural land and gives comments on the achievements of rural land reforms of all previous periods since the foundation of New China. In brief in this chapter, the author analyzes the motivation of rural land reforms, the cost of rural land reforms, the characteristics of two main rural reforms, and the Pareto effect of reforms of institution of rural land allocation. Also a comparison is made here, in causes, cost, and performance of rural land reform, among Land Reform, Cooperation Movement, People's Community Movement, and the Household Contract Responsibility System Reform, and a conclusion is also made, from this comparison, that the performance of any institution of rural land results from both institutional and non-institutional environment.Chapter 5 centers about the survey of allocation of rural land in the household contract responsibility system. Through the investigation on the authority to make contracts of rural land, the writer analyzes all factors which influence the rural land adjustment; and based on the survey on the move of rural land, the writer finds out the causes that hinder fluent conversion of rural land; also, through the investigation on the stability of property right of rural land, the writer makes the conclusion that the instability of property right of rural land has directly a negative impact on the farmers' investment.In Chapter 6, three problems existing in the allocation of rural land in China are discussed. Firstly, the scarcity of rural land in China is not fully recognized; secondly, the coordination is poor among the three parts involved in allocation of rural land, and the planning rural land allocation does not inosculate with market one; finally the inconsistency between justice of rural land allocation and efficiency is getting intensified.The irrationality in allocation of rural land in China brings on the following negativeimpacts: firstly, the amount of rural land is fast detracting; secondly, broad acres of farmland are being smashed into small patches since past 20 years, as makes against promoting productivity; thirdly, the allocation of rural land is economically inefficient; fourthly, rural land is badly deteriorating and becoming ecologically inefficient; fifthly, the irrationality of rural allocation has left plenty of farmland uncultivated and also bring on a series of social problems such as " sanwu farmers" (farmers without land, jobs, or social security). Meanwhile, it is argued that the above problems and their negative impacts are attributed to all kinds of factors, including institutional and non-institutional.As for optimization of rural land allocation in China, in Chapter 7, three aims of optimization are put forward, as well as some principles of optimization, of which the core is the efficiency priority and sustainable utilization. Also, in this chapter, it is proposed that the allocation of rural land can be technologically improved through some key measures such as zoning (zoning rural land according to its ecological characteristics, and planting a certain grain on a large scale). Institutionally, the optimization of rural land allocation can be promoted by strengthening macro-control, market mechanism and institutional innovation.Possible innovations in this research:Firstly, based on three basic theories about the allocation of natural sources, going along this thread "the objects of allocation-ways of allocation-regulating of allocation", reference to the theory of new economics of institution, the writer has constructed an evaluation system to measure the rationality of allocation of land, and made the conclusion that the main body of allocation of rural land consists of three principal parts: the macro one, medium one and micro one; and that the tendency is diversification of rural land allocation.Secondly, a judgement is passed on the three main reforms of rural land institution and their respective performance. It is supposed that the integration of inductive adjustment of rural land institution and compulsory adjustment of rural land institution is propitious to implementation of new institution, economization of cost of new institution, and optimization of allocation of rural land. Meanwhile it is pointed out that its efficiency or tensility has been fading away since the household contract responsibility system was implemented in China more than 20 years ago, and the graph of agricultural developmentand its net profits shows many " converse U valley". As a result, it is urgent to innovate the institution of rural land, as to solve the problems in the development of agriculture in China.Thirdly, the survey of present situation of allocation of rural land shows that the large-scale adjustment to rural land is a key factor that brings on instability of property right of farmland, the owners or users of rural land should enjoy the authority to make small-scale adjustment while the government and its agency ought to do nothing but to supervise and regulate that.Fourthly, the attribution analysis on the irrationality of allocation of rural land in China demonstrates that the deficiencies in the rural land institution, the quality and quantity of rural land, main bodies involved in allocation, and the informal laws constitute the internal and external factors that restrict interactively the rational allocation of rural land in China.Fifthly, it is conceived that an alert mechanism be introduced to allocation of rural land, turning the alert mechanism only on farmland into one on all rural land. In particular, an alert mechanism on the dynamic balance of overall farmland in Xian'an District, Xianning city, in this research, is set up and put to the test.Finally, a brand - new security system, based on monetization of rural land in countryside, is also constructed in this essay, which changes practicality security into cash security, and changes individual security of farmers into a combinative one including government, collective and individual, thus to improve fluent conversion of rural land and flow of farmers, and to promote the harmonious development of the whole society.