Transfer or retain land development right: The role of China’s IDB programme in supporting inclusive urbanisation

Abstract

This paper evaluates the popularly adopted recent land development programme under ‘increasing versus decreasing balance’ policy in China to boost inclusive development of the urban and rural in the face of rapid urbanisation. We distinguish two types of increasing versus decreasing balance land programmes based on the different ways they manage land development rights and offer qualitative and quantitative evidence of the programme effects on village development and household welfare. We show that both programmes provide rural households with better access to urban-equivalent services and spaces, while different approaches to managing land development rights play different roles in market access and household income. To promote more inclusive urbanisation, governments and rural collectives should balance short-term economic benefits and long-term development potential and adopt proper land management programmes according to their own conditions. Practical policies are suggested for China and other developing regions faced with land use pressures under inevitable urbanisation.