The Paradoxes of Land Resources Allocation’s Game Playing: From Zhoukou Grave Events

Abstract

China’s urbanization is transforming from land-oriented development to people-oriented development, but undeniably, the optimal allocation of land resources is still a core issue for the future of China’s urbanization development. Cities are also facing many problems related to land resource allocation, some of which have become topics of much discussion. This paper first discusses the Henan Dig Graves Movement, one of the prominent topics from 2012. The core issue involves the game playing between urban construction and the protection of cultivated land resources. Next, the local government’s dilemma in the allocation of land resources is explored through the example of Zhoukou. In Zhoukou, the marginal revenue from land resources used for urban construction far outweighs the marginal revenue from land resources used for other construction. Because construction land is controlled by the central government, it is difficult to obtain sufficient external compensation for the local government. Lastly, using a case study of the Common Agriculture Policy that addresses some of these land issues, two solutions are proposed for regional development. The first solution is to prepare for the establishment of regional land resource allocation and coordination mechanisms, formulate the external compensation standard of internal effects, and promote balance of regional development while improving the overall benefits. The second is to seize the opportunity of system reforms, promote the development of system innovation, and improve the benefit of land resources on farmland.