Research On The Issue Of The Land-expropriated Peasants And The Benefit Mechanism Of The Local Government

In China, the land- expropriated peasants amount to 40,000,000 with an annual increase of 2,000,000. They have become the most disadvantaged and insignificant group, lacking in security and support. The issue of the land- expropriated peasants has been one of the most critical social, economic and political problems at present or even in the future.There are many causes to the problem of the land- expropriated peasants, such as the unavoidable occupation of the cultivated land in the process of industrialization and urbanization, unsound laws and regulations, and low compensation for the requisition of the land. However, the problem of the land- expropriated peasants is closely related to the benefit mechanism of the local government. In China, 70% of the land is expropriated by administrative authority of the government and the government is the main body in the whole process of land requisition. According to the typical calculation, if the market price for the land expropriated is 100%, then the profit can be roughly distributed as follows: 20%—30% to the local government, 40%- 50% to the enterprises, 25%—30% to the village organizations, but only 5%-10% to the peasants. The intermediate and the local government obtain the major part of the enormous value added of the land capital between the cost price and the sales price. It is estimated that the profit from the selling of the land countrywide has added up to 910 billion RMB in recent 3 years. In some cities, counties and districts, the income from land transaction has accounted for half of their financial revenue, some of which as extra- budgetary income is even larger than the financial revenue of the corresponding period. Any transfer of interests should only be based on the principle of free will and equality in value. No local government can expropriate the land and other means of subsistence from the peasants at an extremely low price with any tempting excuses in spite of a good intention. The government should foster market subject through developing market economy and' obtain scientific, rational and fair benefit through improving market mechanism. In the face of a large number of the land- expropriated peasants and a series of problems aroused, the local government must transfer the benefit mechanism and have courage to give up some unjust interests. It is profound trial and challenge to well treat the peasants, solve the problems of land requisition, carry out the scientific viewpoints of development, and build a people's- livelihood- ranking- first government.The peasants and the problems of the peasants are always the decisive factors for the rise and fall of China. In such a country like China, it is never too excessive to study and emphasize the problems of the peasants. The research on the land-expropriated peasants , who have made great contribution to Chinese modernization, has great significance in economy, politics and humanities.