Farmland Requisition System In China: View Of Efficiency And Fairness

Land is indispensable means of production in the development of human society.With the development of the society, land scarcity becomes obvious.In recent years,the problems caused by land concerned by the societyespecially with the huge demand for land,land expropriation issues become prominent. There fore, this paper focused on the study of land expropriation system.The existing land expropriation system still has some defects such as ill-defined public interest, low land expropriation compensation standard and these defects have gave rise to a series of social problems,led to social coflicts.The reasons of the above problems are because the balance point of the goals between efficiency and equity is not found.So, what kind of institutional arrangements can address the equilibrium of efficiency and equity constitute the main content of this paper.The main contents and ideas are as follows.Firstly, analysis of land expropriation institutional changes.By analyzing the institutional changes of land expropriation,it can be seen that although the system has been trying to balance the efficiency and equity objectives,but so far,the existing system still not be able to internalize external cost fully. There for, there are still a lot of problems.Secondly, Anlyze the problems of the existing land expropriationg system from the perspective of efficiency and equity.From an efficiency point of view,the drawbacks of the system are as follows, low compensation standard, poor management,delayed land development, inappropriated government intervention and moral hazard of stakeholders. From an equity point of view,the majority of the farmers whose land is expropriated by the government believe that the system is not fair.Because the existing land expropriation system lacks of considering the willingness of the farms; the existing land requisition system didn’t give farmers the right to participate; the income of the farmers decreased rather than increased;different compensation standard between the adjecent land.Thirdly,root cause analysis. The reasons of the above problems are due to the complex relationships between the central government, local government and farmers whosed land was expropriated and their behavior decisions.For the central government,the initiatives of trying to share the land revenue with local government,management loopholes in laws,inadequate supervision increase the operating costs;For the local governments,the incentive of the financial system,the changes of the power strcture between the central government and the local government,fiscal illusion of the local government,the interest objectives differences between the economic agents,the inertial performance guidance and the effect of the interest groups are the main reasons.For the farmers whose land were expropriated,lace of incentives,free rider,the presence of rentier group,the complex relationship between the farmers and local government,the way of revolt increase the transaction cost of land expropriation system.Forthly, discussion on the land expropriation compensation mechanism from the perspective of efficiency and equity.Based on the above analysis, this paper attempts to balancing efficiency and equity objectives by land expropriation compensation mechanism.Since land acquisition issues embodied in the issue of land compensation,by achiving the equilibrium between the efficiency and equity objectives frome the land expropiration compensaiton mechinism can also achive the goal of land expropriation system largely.Therefore,by building the monetary compensation model, and adding to the non-monetary compensation can achieve these goals. Theoretical studies show that when the proportion of land compensation is the specific value, the monetary compensation can internalize all external transaction costs. As single monetary compensation may not be able to meet the diversified fair demand of the farmers,therefore, in order to meet the equilibrium point, the settlements non-monetary compensation mechanism, such as leaving some land, sharing land dividends,training employment skills are needed.Finally, summarize the main points in this paper, and propose policy recommendation based on the macro level and micro-level, and then propose research prospects.