On Our Land Reserves And The Policy Options

Land reserve system is an innovative management system which originates in Western countries. Land is essential element for all social activities and urban development. "Shanghai-Land-Development-Center" which set up in 1996 is the sign of running of China's land reserve system. China's land reserve system is built on the agreement transformation of the right to land use, and its universal development is based on the real estate flouring as a pillar industry as well as land prices rising sharply about 2000.China's land reserve system has implemented and achieved certain effectiveness, but there are also a series of problems, such as the running models are not uniform, the nature of land reserve organization is ambiguous, the public function cannot be effectively played, the public objectives cannot be achieved, and even the land reservation becomes the governments' "wallet".This paper stands by the land reserve's public functions and objectives, using "market failure" theory, "government failure" theory, and "land supply and demand" theory with the practice of international experience in this field, drawing the following points: Firstly, China's land reserve should use the model of government-led. Secondly, China's land reserve should establish "market regulation" for its main function. Thirdly, the major goal of China's land reserve should be to control the land market, to promote urban development, and to promote the social welfare; Lastly, aiming at the missing of public function and objectives, the paper makes the policy suggestions.