Grassland in China:Grassland in China:Caught between state and Caught between state and

privateprivate

Peter HoPeter Ho

Centre for Development StudiesCentre for Development Studies

University of GroningenUniversity of Groningen

Definitions of propertyDefinitions of property

“ “ A social relation to settle competing A social relation to settle competing claims between individuals and groups claims between individuals and groups of individuals in respect to resources” of individuals in respect to resources” (Ciriacy-Wantrup and Bishop)(Ciriacy-Wantrup and Bishop)

“ “A bundle of rights”: such as use A bundle of rights”: such as use right, sub- and topsoil rights, part-time right, sub- and topsoil rights, part-time right, usufruct, right of overpath, right, usufruct, right of overpath, management right, access right management right, access right (Demsetz)(Demsetz)

Types of property regimesTypes of property regimes

State propertyState property Private propertyPrivate property Common propertyCommon property

State propertyState property

Expensive to effectExpensive to effect Limited reach of the Limited reach of the statestate Who guards the Who guards the guardians?guardians?

Privatize and leave to the Privatize and leave to the market?market?

High High TTransaction costs ransaction costs (information, contracting and (information, contracting and enforcement)enforcement) UUncertain future perspectivesncertain future perspectives LLarge non-monetary costs arge non-monetary costs involvedinvolved IIrreversible side-effects rreversible side-effects PPossibleossible

Call it “Call it “TULIPTULIP””

Common Property =Common Property =Prisoner’s Dilemma or Tragedy of CommonsPrisoner’s Dilemma or Tragedy of Commons

Confess Remainsilent

Confess Nocooperation

I get‘suckered’

Remainsilent

You get‘suckered’,while I free-ride

Fullcooperation

Hardin,(1968) ‘Tragedy of the Commons’, Science 162: 1243-48

Prisoner’s DilemmaPrisoner’s Dilemma

Confess Remainsilent

Confess Nocooperation

I get‘suckered’

Remainsilent

You get‘suckered’,while I free-ride

Fullcooperation

Prisoner’s DilemmaPrisoner’s Dilemma

Confess Remainsilent

Confess Nocooperation

I get‘suckered’

Remainsilent

You get‘suckered’,while I free-ride

Fullcooperation

Prisoner’s DilemmaPrisoner’s Dilemma

Confess Remainsilent

Confess Nocooperation

I get‘suckered’

Remainsilent

You get‘suckered’,while I free-ride

Fullcooperation

Criticism on Prisoner’s Criticism on Prisoner’s DilemmaDilemma

Individuals not isolatedIndividuals not isolated Possibility of repeated decisions Possibility of repeated decisions through consultationthrough consultation Non-cooperation not dominant Non-cooperation not dominant strategystrategy

Featues of common Featues of common propertyproperty

‘‘Rules on rules’Rules on rules’ Operational rulesOperational rules

– BoundaryBoundary– AllocationAllocation– MembershipMembership– InputInput– PenaltyPenalty

See: Bromley in P. Ho (ed.),See: Bromley in P. Ho (ed.), Developmental Dilemmas: Land Developmental Dilemmas: Land Reform and Institutional Change in ChinaReform and Institutional Change in China, (Routledge, 2005), (Routledge, 2005)

Grassland property rights: A Grassland property rights: A case-studycase-study

Ningxia, Yanchi CountyNingxia, Yanchi County Since mid-1980s experiments with Since mid-1980s experiments with

common property regimescommon property regimes BAMIP rules presentBAMIP rules present Erosion and desertification continues...Erosion and desertification continues...

Map of the common property

Encroaching desertEncroaching desert

Licquorice: blessing or curse?Licquorice: blessing or curse?

Obstacles for grassland Obstacles for grassland reformreform

Definition state propertyDefinition state property Definition collective propertyDefinition collective property Customary and historical claimsCustomary and historical claims

Collective ownershipCollective ownership

People’sCommune

ProductionBrigade

ProductionTeam = Originalowner

AdministrativeVillage

Township

Natural Village/Villagers’ Group =New owner?

1950s-mid 1980s1950s-mid 1980s Since mid 1980s Since mid 1980s

Collective property Collective property questionsquestions

What is the collective (jiti jingji What is the collective (jiti jingji zuzhi)? the former team or the zuzhi)? the former team or the brigade?brigade?

Can the collective adequately Can the collective adequately represent the interests of its represent the interests of its members?members?

State ownershipState ownership

National level

Provincial level

Prefectural/municipal level

County level

Local state

Central state Central state

1949-19981949-1998 Since Since 19981998

Dual confusion over state Dual confusion over state landland

What is the level of the state?What is the level of the state? ““All forest, grassland and All forest, grassland and

wasteland is owned by the state, wasteland is owned by the state, unless proven collective…”unless proven collective…”

Customary law?Customary law?

Customary law according to Motion is Customary law according to Motion is ““unwritten law established by long unwritten law established by long

usage” (usage” (Pocket Law LexiconPocket Law Lexicon, London, , London, 1951)1951)

Defined in Britain as so long that “the Defined in Britain as so long that “the memory of man runneth not to the memory of man runneth not to the

contrary”, a limit fixed at the accession contrary”, a limit fixed at the accession of Richard I in 1189of Richard I in 1189

Customary lawCustomary law

Constitution states: “All forest, Constitution states: “All forest, grassland and wasteland is owned grassland and wasteland is owned by the state, by the state, unlessunless proven proven collectively owned…”collectively owned…”

Historical: all land claims before Historical: all land claims before 1950 are invalid (Land 1950 are invalid (Land Administration Law)Administration Law)

Grassland claims by Grassland claims by (semi)nomadic pastoralists(semi)nomadic pastoralists

Historical claimsHistorical claims

Colonists’ settlements Colonists’ settlements (Heilongjiang)(Heilongjiang)

Tuigeng huanlin: Triple Tuigeng huanlin: Triple problemproblem

A critical moment has A critical moment has come...come...

Current problemsCurrent problems Desertification, deforestation and land salinization Desertification, deforestation and land salinization

affected 83.2 mio. ha or 60% of China’s total arable areaaffected 83.2 mio. ha or 60% of China’s total arable area Average land per capita less than 0.08 ha (against 0.18 Average land per capita less than 0.08 ha (against 0.18

ha in 1949)ha in 1949) Rural poverty and livelihoodRural poverty and livelihood

To shift to extensive, yet, modernized animal To shift to extensive, yet, modernized animal husbandry sector property rights question needs husbandry sector property rights question needs

to be resolvedto be resolved

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