Resource information
This paper addresses the issue of land security and sustainability. The paper tackles the assumption that, in the case of China, giving farmers more secure land rights would undermine the function of land as a social safety net and, as a consequence, not be sustainable or command broad support.The report draws on data from three provinces, one of which had adopted a policy to increase security of tenure in advance of the others. It finds that greater tenure security, especially if combined with transferability of land, had a positive impact on agricultural investment and, within the time frame considered, led neither to an increase in inequality of land distribution nor a reduction in households’ ability to cope with exogenous shocks. Household support for more secure property rights is increased by their access to other insurance mechanisms, suggesting some role of land as a safety net. At the same time, past exposure to this type of land right has a much larger impact quantitatively, suggesting that a large part of the resistance to changed property rights arrangements disappears as household familiarity with such rights increases.The paper concludes that implementation of a policy that gradually increases tenure security as well as the transferability of land will yield economic benefits without obvious negative social consequence. Such a policy would be a logical extension of the initiatives started with the adoption of the household responsibility system and geared towards advancing economic development in China’s rural areas.
