Interest distribution in the process of coordination of urban and rural construction land in China

Since the onset of rapid economic development and urbanization, China’s land resources—rather than capital, technology and human resources—have become the lead limiting factor in constraining economic growth. Coordination of urban and rural construction land (CURCL) can be a very effective means for reducing conflicts between economic development and land protection. This research examines the roles of stakeholders involved in the CURCL process. The reasons why the interests of legitimated stakeholders were encroached upon are analyzed and countermeasures to protect the interests of legitimated stakeholders are proposed. Ambiguously defined property rights for owners of rural construction land, unclear conceptions of the public interest, and overlap of power and interest among multiple levels of authority are the reasons why legitimated stakeholders’ interests were encroached upon. Legitimizing construction land ownership clearly, better defining the multiple conceptions of public interest, opening up express channels for expression of the public interest, and clarifying governments’ functions in land interest adjustment are the countermeasures to protect the interests of legitimated stakeholders.

► We examine roles of key stakeholders involved with urban and rural construction land in China.
► Agricultural protection measures notwithstanding, farmers’ interests frequently are neglected.
► Local governments seek to maximize profits at the expense of public interests.
► Profit maximization is inherent to private enterprises.
► Government roles and express channel for farmers are important for fair interest distribution.