Publication:
Securing Property Rights in Transition : Lessons from Implementation of China's Rural Land Contracting Law

Loading...
Thumbnail Image
Files in English
English PDF (214.69 KB)
782 downloads
English Text (111.99 KB)
161 downloads
Date
2007-12
ISSN
Published
2007-12
Author(s)
Jin, Songqing
Editor(s)
Abstract
This paper is motivated by the emphasis on secure property rights as a determinant of economic development in recent literature. The authors use village and household level information from about 800 villages throughout China to explore whether legal reform increased protection of land rights against unauthorized reallocation or expropriation with below-average compensation by the state. The analysis provides nation-wide evidence on a sensitive topic. The authors find positive impacts, equivalent to increasing land values by 30 percent, of reform even in the short term. Reform originated in villages where democratic election of leaders ensured a minimum level of accountability, pointing toward complementarity between good governance and legal reform. The paper explores the implications for situations where individuals and groups hold overlapping rights to land.
Link to Data Set
Citation
Jin, Songqing; Deininger, Klaus. 2007. Securing Property Rights in Transition : Lessons from Implementation of China's Rural Land Contracting Law. Policy Research Working Paper; No. 4447. © World Bank. http://hdl.handle.net/10986/7545 License: CC BY 3.0 IGO.
Associated URLs
Associated content
Report Series
Report Series
Other publications in this report series
  • Publication
    The Future of Poverty
    (Washington, DC: World Bank, 2025-07-15) Fajardo-Gonzalez, Johanna; Nguyen, Minh C.; Corral, Paul
    Climate change is increasingly acknowledged as a critical issue with far-reaching socioeconomic implications that extend well beyond environmental concerns. Among the most pressing challenges is its impact on global poverty. This paper projects the potential impacts of unmitigated climate change on global poverty rates between 2023 and 2050. Building on a study that provided a detailed analysis of how temperature changes affect economic productivity, this paper integrates those findings with binned data from 217 countries, sourced from the World Bank’s Poverty and Inequality Platform. By simulating poverty rates and the number of poor under two climate change scenarios, the paper uncovers some alarming trends. One of the primary findings is that the number of people living in extreme poverty worldwide could be nearly doubled due to climate change. In all scenarios, Sub-Saharan Africa is projected to bear the brunt, contributing the largest number of poor people, with estimates ranging between 40.5 million and 73.5 million by 2050. Another significant finding is the disproportionate impact of inequality on poverty. Even small increases in inequality can lead to substantial rises in poverty levels. For instance, if every country’s Gini coefficient increases by just 1 percent between 2022 and 2050, an additional 8.8 million people could be pushed below the international poverty line by 2050. In a more extreme scenario, where every country’s Gini coefficient increases by 10 percent between 2022 and 2050, the number of people falling into poverty could rise by an additional 148.8 million relative to the baseline scenario. These findings underscore the urgent need for comprehensive climate policies that not only mitigate environmental impacts but also address socioeconomic vulnerabilities.
  • Publication
    Exports, Labor Markets, and the Environment
    (Washington, DC: World Bank, 2025-07-14) Góes, Carlos; Conceição, Otavio; Lara Ibarra, Gabriel; Lopez-Acevedo, Gladys
    What is the environmental impact of exports? Focusing on 2000–20, this paper combines customs, administrative, and census microdata to estimate employment elasticities with respect to exports. The findings show that municipalities that faced increased exports experienced faster growth in formal employment. The elasticities were 0.25 on impact, peaked at 0.4, and remained positive and significant even 10 years after the shock, pointing to a long and protracted labor market adjustment. In the long run, informal employment responds negatively to export shocks. Using a granular taxonomy for economic activities based on their environmental impact, the paper documents that environmentally risky activities have a larger share of employment than environmentally sustainable ones, and that the relationship between these activities and exports is nuanced. Over the short run, environmentally risky employment responds more strongly to exports relative to environmentally sustainable employment. However, over the long run, this pattern reverses, as the impact of exports on environmentally sustainable employment is more persistent.
  • Publication
    The Macroeconomic Implications of Climate Change Impacts and Adaptation Options
    (Washington, DC: World Bank, 2025-05-29) Abalo, Kodzovi; Boehlert, Brent; Bui, Thanh; Burns, Andrew; Castillo, Diego; Chewpreecha, Unnada; Haider, Alexander; Hallegatte, Stephane; Jooste, Charl; McIsaac, Florent; Ruberl, Heather; Smet, Kim; Strzepek, Ken
    Estimating the macroeconomic implications of climate change impacts and adaptation options is a topic of intense research. This paper presents a framework in the World Bank's macrostructural model to assess climate-related damages. This approach has been used in many Country Climate and Development Reports, a World Bank diagnostic that identifies priorities to ensure continued development in spite of climate change and climate policy objectives. The methodology captures a set of impact channels through which climate change affects the economy by (1) connecting a set of biophysical models to the macroeconomic model and (2) exploring a set of development and climate scenarios. The paper summarizes the results for five countries, highlighting the sources and magnitudes of their vulnerability --- with estimated gross domestic product losses in 2050 exceeding 10 percent of gross domestic product in some countries and scenarios, although only a small set of impact channels is included. The paper also presents estimates of the macroeconomic gains from sector-level adaptation interventions, considering their upfront costs and avoided climate impacts and finding significant net gross domestic product gains from adaptation opportunities identified in the Country Climate and Development Reports. Finally, the paper discusses the limits of current modeling approaches, and their complementarity with empirical approaches based on historical data series. The integrated modeling approach proposed in this paper can inform policymakers as they make proactive decisions on climate change adaptation and resilience.
  • Publication
    The Asymmetric Bank Distress Amplifier of Recessions
    (Washington, DC: World Bank, 2025-07-11) Kim, Dohan
    One defining feature of financial crises, evident in U.S. and international data, is asymmetric bank distress—concentrated losses on a subset of banks. This paper proposes a model in which shocks to borrowers’ productivity dispersion lead to asymmetric bank losses. The framework exhibits a “bank distress amplifier,” exacerbating economic downturns by causing costly bank failures and raising uncertainty about the solvency of banks, thereby pushing banks to deleverage. Quantitative analysis shows that the bank distress amplifier doubles investment decline and increases the spread by 2.5 times during the Great Recession compared to a standard financial accelerator model. The mechanism helps explain how a seemingly small shock can sometimes trigger a large crisis.
  • Publication
    Impact of Heat Waves on Learning Outcomes and the Role of Conditional Cash Transfers
    (Washington, DC: World Bank, 2025-07-14) Miranda, Juan José; Contreras, Cesar
    This paper evaluates the impact of higher temperatures on learning outcomes in Peru. The results suggest that 1 degree above 20°C is equivalent to 7 and 6 percent of a standard deviation of what a student learns in a year for math and reading tests, respectively. These results hold true when the main specification is changed, splitting the sample, collapsing the data at school level, and using other climate specifications. The paper aims to improve understanding of how to deal with the impacts of climate change on learning outcomes in developing countries. The evidence suggests that conditional cash transfer programs can mitigate the negative effects of higher temperatures on students’ learning outcomes in math and reading.
Journal
Journal Volume
Journal Issue

Related items

Showing items related by metadata.

  • Publication
    Land Tenure for Social and Economic Inclusion in Yemen : Issues and Opportunities
    (Washington, DC, 2009-12-01) World Bank
    The report, Land Tenure for Social and Economic Inclusion in Yemen: Issues and Opportunities was completed in December 2009. The report addresses the problems of land ownership in Yemen and the various social and economic problems associated with the system of land ownership. Property rights under Yemeni Law are expressed both in custom and statute, but both are informed by shari a (Islamic law), which provides the basic property categories for land in Yemen. There are unfortunately no reliable official statistics for the amount of land within these categories, or how much arable land (a small percentage of total land area) falls within each. It is clear however that certain groups suffer from disadvantages in accessing land and land rights. Daughters are disadvantaged by shari a rules which limit their inheritance shares to only half that of a son. Youth, unable to inherit until the demise of their parents and lacking the capital to buy land, lack access to land and other employment opportunities, which endangers social stability. There are occupational castes (artisans) who are discriminated in land holdings and ethnic minorities, former slaves and immigrants from East Africa, who lack access to land, and especially land ownership, limiting them to the most menial labor. Amongst the recommendations the report addresses are; the law on state land and compulsory acquisition of land by the state are relatively recent and are in general in line with current best practices. There is however some fundamental problems in its legal delineation of state land. First and foremost, there is a need to provide a clearer distinction between state and communal land. In addition, it is clear that implementation of the law concerning state land is badly flawed, and that there are abuses in terms of uncompensated land takings and illegal appropriations of state lands for private purposes. The law concerning private ownership of land is satisfactory in most respects. Yemen has a long tradition of private ownership and land and rental markets. Those markets are clearly quite active, at least in areas where the economic basis for such market activity exists. The right of pre-emption in Yemeni law, a shari a institution, has been criticized by some commentators, but more recent scholarship recognizes its value. Waqf may offend the economic sensibilities of market economists in that waqf land is permanently held out of the land (sales) market, but it does move in rental markets and in the circumstances of Yemen it performs strong social functions. It supports important public functions and provides access to land for the poor but is increasingly negatively affected by weak supervision and corrupt practices. Tenancies are an important means of access to land in Yemen, especially for the poor, and their relatively stable terms stable terms under customary rules have historically provided a reasonable degree of tenure security. Post-land reform issues remain a problem in the southern governorates. Improving the system for recording of land rights has been a focus of law reform discussions in Yemen in recent years. Women are clearly disadvantaged by the terms of inheritance law, and even more greatly disadvantaged by the failure in practice to realize their limited rights under that law. The situation of disadvantaged ethnic groups deserves priority attention. Their lack of secure access to land, especially owned land, is a violation of the humanitarian values of Islam and condemns them to continuing poverty. There is growing competition for land. This is driven in some parts of the country by the development of new water technologies which have enabled larger- scale cultivation and created economic opportunities. It is clear that land dispute resolution mechanisms are not functioning well.
  • Publication
    Efficiency and Equity Impacts of Rural Land Rental Restrictions : Evidence from India
    (World Bank, Washington, DC, 2007-08) Jin, Songqing; Deininger, Klaus; Nagarajan, Hari K.
    Recognition of the potentially deleterious implications of inequality in opportunity originating in a skewed asset distribution has spawned considerable interest in land reforms. However, little attention has been devoted to fact that, in the longer term, the measures used to implement land reforms could negatively affect productivity. Use of state level data on rental restrictions, together with a nationally representative survey from India, suggests that, contrary to original intentions, rental restrictions negatively affect productivity and equity. The restrictions reduce the scope for efficiency-enhancing rental transactions that benefit poor producers. Simulations suggest that, by doubling the number of producers with access to land through rental, from about 15 million currently, liberalization of rental markets could have far-reaching impacts.
  • Publication
    Expanding Women's Access to Land and Housing in Urban Areas
    (World Bank, Washington, DC, 2014) Rakodi, Carole
    Evidence is mounting that secure property rights have positive effects for poor people in general and women in particular. The aim of this report is to review what is known about women s access to and control over land and real property in urban settings, identifying approaches to strengthening property rights that enhance women s agency, and sharing key lessons. Section two synthesizes the evidence on urban women s priorities with respect to land and housing; the factors that influence women s access to and control over land and secure tenure, including legal and institutional frameworks and social relationships, especially within the family; and what is known about the extent to which women have access to, control over and use of urban land and housing, and through what forms of tenure. In section three, recent reform of laws, policies and practices to meet the needs of poor people in urban areas, especially women, will be assessed. Section four provides a short discussion of some of the strategies, tactics and alliances that are being adopted to bring about legal reforms and to influence the content, design and implementation of programs in urban areas. The report draws on successive research projects by the author and her colleagues on land and housing markets and policies, urban livelihoods, and urban politics and governance in a variety of contexts, in particular Rakodi (2010).
  • Publication
    Land Fragmentation, Cropland Abandonment, and Land Market Operation in Albania
    (World Bank, Washington, DC, 2012-04) Savastano, Sara; Deininger, Klaus; Carletto, Calogero
    Albania's radical farmland distribution is credited with averting an economic crisis and social unrest during the transition. But many believe it led to a holding structure too fragmented to be efficient, and that public efforts to consolidate plots are needed to lay the foundation for greater rural productivity. This paper uses farm-level data from the 2005 Albania Living Standards Measurement Survey to explore this quantitatively. The analysis finds no support for the argument that fragmentation reduces productivity. However, producers fail to utilize about 10 percent of the country's productive land, and, in the majority of cases, this land has been idle for at least five years. Farmers quote inefficiently-small plots as the reason for this in few cases, casting doubt on the scope for land consolidation to solve this issue. Instead, the data are consistent with the notion of land market imperfections, which can be traced to gaps in the legal and policy framework, as well as inefficiencies in registry operations, leading to land abandonment on a large scale. To maintain the productive potential of Albania's rural economy and, if and when needed, the ability to conduct consolidation in a cost-effective and sustainable manner, it will be critical to complement the emphasis on consolidation with an effort to address those gaps and inefficiencies on a priority basis.
  • Publication
    China - Integrating Land Policy Reforms II : Strengthening Land Rights for Equitable Growth and Social Harmony
    (Washington, DC, 2007-06) World Bank
    This report evaluates the legal framework for rural land rights, the regulations of rural housing sites, the effects of land requisition on farmers who lose land, and some selected issues affecting urban land rights. The focus of this report is how to enhance property rights in a number of different contexts. The report makes a series of specific policy recommendations for rural agricultural land, rural housing land, to protect rights in the context of requisitions, and for urban land rights that include: strengthening farmers' rights over rural agricultural land, strengthening rights over rural housing land, improving requisition procedures and outcomes, and strengthening urban land use rights and administration.

Users also downloaded

Showing related downloaded files

  • Publication
    Business Ready 2024
    (Washington, DC: World Bank, 2024-10-03) World Bank
    Business Ready (B-READY) is a new World Bank Group corporate flagship report that evaluates the business and investment climate worldwide. It replaces and improves upon the Doing Business project. B-READY provides a comprehensive data set and description of the factors that strengthen the private sector, not only by advancing the interests of individual firms but also by elevating the interests of workers, consumers, potential new enterprises, and the natural environment. This 2024 report introduces a new analytical framework that benchmarks economies based on three pillars: Regulatory Framework, Public Services, and Operational Efficiency. The analysis centers on 10 topics essential for private sector development that correspond to various stages of the life cycle of a firm. The report also offers insights into three cross-cutting themes that are relevant for modern economies: digital adoption, environmental sustainability, and gender. B-READY draws on a robust data collection process that includes specially tailored expert questionnaires and firm-level surveys. The 2024 report, which covers 50 economies, serves as the first in a series that will expand in geographical coverage and refine its methodology over time, supporting reform advocacy, policy guidance, and further analysis and research.
  • Publication
    Classroom Assessment to Support Foundational Literacy
    (Washington, DC: World Bank, 2025-03-21) Luna-Bazaldua, Diego; Levin, Victoria; Liberman, Julia; Gala, Priyal Mukesh
    This document focuses primarily on how classroom assessment activities can measure students’ literacy skills as they progress along a learning trajectory towards reading fluently and with comprehension by the end of primary school grades. The document addresses considerations regarding the design and implementation of early grade reading classroom assessment, provides examples of assessment activities from a variety of countries and contexts, and discusses the importance of incorporating classroom assessment practices into teacher training and professional development opportunities for teachers. The structure of the document is as follows. The first section presents definitions and addresses basic questions on classroom assessment. Section 2 covers the intersection between assessment and early grade reading by discussing how learning assessment can measure early grade reading skills following the reading learning trajectory. Section 3 compares some of the most common early grade literacy assessment tools with respect to the early grade reading skills and developmental phases. Section 4 of the document addresses teacher training considerations in developing, scoring, and using early grade reading assessment. Additional issues in assessing reading skills in the classroom and using assessment results to improve teaching and learning are reviewed in section 5. Throughout the document, country cases are presented to demonstrate how assessment activities can be implemented in the classroom in different contexts.
  • Publication
    Argentina Country Climate and Development Report
    (World Bank, Washington, DC, 2022-11) World Bank Group
    The Argentina Country Climate and Development Report (CCDR) explores opportunities and identifies trade-offs for aligning Argentina’s growth and poverty reduction policies with its commitments on, and its ability to withstand, climate change. It assesses how the country can: reduce its vulnerability to climate shocks through targeted public and private investments and adequation of social protection. The report also shows how Argentina can seize the benefits of a global decarbonization path to sustain a more robust economic growth through further development of Argentina’s potential for renewable energy, energy efficiency actions, the lithium value chain, as well as climate-smart agriculture (and land use) options. Given Argentina’s context, this CCDR focuses on win-win policies and investments, which have large co-benefits or can contribute to raising the country’s growth while helping to adapt the economy, also considering how human capital actions can accompany a just transition.
  • Publication
    World Development Report 2006
    (Washington, DC, 2005) World Bank
    This year’s Word Development Report (WDR), the twenty-eighth, looks at the role of equity in the development process. It defines equity in terms of two basic principles. The first is equal opportunities: that a person’s chances in life should be determined by his or her talents and efforts, rather than by pre-determined circumstances such as race, gender, social or family background. The second principle is the avoidance of extreme deprivation in outcomes, particularly in health, education and consumption levels. This principle thus includes the objective of poverty reduction. The report’s main message is that, in the long run, the pursuit of equity and the pursuit of economic prosperity are complementary. In addition to detailed chapters exploring these and related issues, the Report contains selected data from the World Development Indicators 2005‹an appendix of economic and social data for over 200 countries. This Report offers practical insights for policymakers, executives, scholars, and all those with an interest in economic development.
  • Publication
    Global Economic Prospects, June 2024
    (Washington, DC: World Bank, 2024-06-11) World Bank
    After several years of negative shocks, global growth is expected to hold steady in 2024 and then edge up in the next couple of years, in part aided by cautious monetary policy easing as inflation gradually declines. However, economic prospects are envisaged to remain tepid, especially in the most vulnerable countries. Risks to the outlook, while more balanced, are still tilted to the downside, including the possibility of escalating geopolitical tensions, further trade fragmentation, and higher-for-longer interest rates. Natural disasters related to climate change could also hinder activity. Subdued growth prospects across many emerging market and developing economies and continued risks underscore the need for decisive policy action at the global and national levels. Global Economic Prospects is a World Bank Group Flagship Report that examines global economic developments and prospects, with a special focus on emerging market and developing economies, on a semiannual basis (in January and June). Each edition includes analytical pieces on topical policy challenges faced by these economies.