System Constrain And Government Behavior

With 32 years of reform and opening up, China has promoted the urbanization process which accounts for 21% of the population of the world by arable land accounting for 7% of the world's,7% of the fresh water resources, and 4% of the oil resources, especially with speeding up of China's urbanization, upgrading of industrialization, forwarding of international,the absolute reduction of arable land is "shocking", The contradiction between rational use of land and effective protection of resources become worse, the conflict between government land acquisition and maintaining interests of the farmers become intense. Due to land issues is closely related to macro issues in China, it may be more helpful in finding an entry point and ideas to solve the problem by placing the research of land issue in a larger context of the macro. With the implement of 2009 economic stimulus policy, some areas and some sectors appear government-led investment overheating. One of the important reasons for that the Government has been able to lead to over-investment is that the local government has the right to control collocation of land resources and exercise of this right improperly.The stimulus system formed in the current macroeconomic environment and arrangement of political system distorted conduct objective function of the government, the local government aim to achieve maximum economic benefits and political interests, with the strongly impulse to pursuit of revenue growth and highlight the performance internally and the external examination pressure of economic development, namely "fall behind" "only GDP is held" of Performance Appraisal. The local government implements the strategy of city management through the allocation of land resources, area, timing, focus, industry. Because of the scarcity and non-renewable urban land resources, in the land market, through the monopoly ownership of land resources, the government influences land prices, intervene allocation approach, even for the pursuit of financial gain to take abnormal behavior in order to maximize the income, and thus lead to a lot of land problem.When abnormal behavior of a government frequently occurs, the system had neither made the establishment of government according to the system settings and gain the benefit of compliance to administration nor made the Government that fails to take Abnormal Behavior to be punished. This reverse stimulus role promotes the Government Abnormal Behavior become worse and worse in the process of land acquisition. This article assumes that problems in setting up of system are important reasons of the frequently occurring of government abnormal behavior. Using theory of public choice demonstrates that the intrinsic behavior motivation of Government as "economic man" to seek maximum benefits. If such behavior motives are not limited and constrained, its behavior results will lead to occurrence of government abnormal behaviors. As the system-makers, although the behavior of government constrained by the system, as time goes by, the Government may make an inefficient system which do not match with the actual development and that would bring weak sanction and government actions reverse stimulation, therefore this promoting behavior motivation of the government's "economic man" turning into misconducts. based on the direction incentive problems Macro-institutional environment and the lack of system constraint in micro-land institutional arrangements lead to government misconduct in the system operation, so a combination of both are the system reasons for misconduct of current government land expropriation.