Transcript van Dijk-747-747_pptx

Formalization of land and water rights
combinations to deal with climate
change in the rural & urban areas in
China
Meine Pieter van Dijk Professor of urban management at ISS of
Erasmus University Rotterdam in the Netherlands
Presentation at a the World Bank conference on Land and Poverty
on March 20-24, 2017, Individual Papers; Format: Oral
Presentation; Regional Classification: East Asia & Pacific Key words
paper: drought policies, policy reforms, improved governance,
decentralization, stakeholder involvement, land titling; water
titling; market mechanisms; China; Australia
Overview: climate change requires adaptation
in rural and urban areas
• Australia has been going through these institutional changes
and uses a combination of planning & allowing water
markets
• In rural areas more drought requires reform of land and
water policies, this requires titling of land and water rights
• In the urban areas too much agricultural land is converted in
China and this process could also benefit from titling land
rights & discussing water rights, as demonstrated by the
experiments in Chengdu
Structure of the presentation: line of the
paper
• Two slides on climate change
• Theoretical framework: categories of land and water
entitlements
• Research in rural China
• Reforms in Australia
• Research in urban China
• Adaptation in urban areas
• Conclusions
Paragraph title
Content
Categories of water and land entitlements (Green,
2003): Handbook of water economics
Category of entitlement (Green)
Description (Van Dijk)
Open access
Without control leads to over use
Common property
Only group members can use it, but not allowed
to trade
State property
Water used by state bodies or by individuals
under usufructory entitlements, this is China
Limited individual ownership
entitlements
Granted by the state, but can be sold, inherited.
This is UK model of Anglo-Saxon property rights
Unrestricted individual ownership
entitlements
Based on: entitlements to land in particular are
the natural law. Any restriction or limitation is
considered an infringement of their rights. The
US libertarian view of property rights
Limits of existing legal systems
• Green adds: when no more water the doctrine of prior appropriation (first
in time, first in right) is problematic reform is necessary
• In Anglo-Saxon system rights to abstract water may exceed the drought
flows. Hence in Australia reforms of water sector needed
• Lessons from functioning water market according to Kiem (2013: 1619):
a. Water reforms have continued the process of unbundling of water from
the land, to create a water market of tradeable and saleable water
b. Reforms were based on the faith in markets that would lead to water
being allocated to its most valuable use
c. However, the functioning of the system was not always easy
Climate change & available water resources in
rural China, the case of the Yunnan province
• Climate change has an impact on rainfall: run offs
may increase & become more erratic, causing
problems of overflowing or drought
• In Yunnan province the effects seems to be more
frequent & longer droughts!
• Key words paper: climate change policies, climate
change adaptation, farmers livelihood strategies,
emerging governance structures, policy changes,
necessary reforms (with dr. Hao Li)
Strengthen market force in resource allocation: create
water markets in China, but
• The use of market mechanisms is still at a nascent stage
• Adoption of market mechanisms & involving stakeholders in
decision making are a trend in China's drought policies
• However, only small parts of the climate change policies are
implemented based on market agents & stakeholders input
• The creation of water market should be considered: although
China promotes water pricing, water trading can hardly be
found in places without big water infrastructure & without
titling!
Need in rural areas to define land and water
rights
• In a period of climate change (in China this often
means droughts) it is important water not to do injury
to others to define land and water rights
• In the Netherlands private land, but Water boards
determine the level of ground water & allow
landowners to pump only limited quantities per day
• In many countries the principle to use his own water
as not to do injury to others has been replaced by
administrative law when water became scarce
• Eastern US continued with English riparian law, in
western states irrigation is important and the riparian
law could not be applied for downstream users
Reforms in water sector in Australia
• Our (unpublished) paper takes the lessons learned from
Australia's reaction to the Big dry to analyse current drought
policies in China
• Australia had the ''Big Dry'' or ''Millennium Drought'' from
1997 to 2009
• The Australian experience is special since a lot of attention is
paid to assuring the necessary environmental flows
• The Australian government would receive 50% of water
savings from infrastructure subsidies in the form of water
entitlements
Essential characteristics of the Australian approach were used
as a framework for our analysis of the Chinese situation:
• Policy reforms are necessary at different levels of government and
should integrate agricultural and environmental concerns
• Improved governance is necessary: vertical integration (integration
between different levels of government) & horizontal integration:
• The implementation of the drought policy can only be achieved if all
stakeholders are continuously involved (horizontal integration)
• Farm level practices need to be changed, which is often difficult
• One has to move from a crisis management approach to a pro-active
and strategic risk management approach
• Titling land & water rights is important: limit distortions & introduce
incentives to allow market mechanisms to do part of the job
Some characteristics of the Australian approach
are not yet relevant in the Chinese context:
• We have left out the role of the 2007 Australian water law
and the comprehensive river basin plan announced in it as
an instrument for achieving integration and for determining
sustainable water diversion levels (SDL)
• We have not focussed on environmental consequences of
droughts & the need for managing environmental flows, nor
• do we observe a similar process of 'unbundling' land and
water rights in China (Kiem, 2013: 1619) to allow trading
Other lessons from Australia
• Wei et al. (2011) study the interaction between water policies, agricultural
policies, irrigation practices and drought management in Australia
• They analyse how well farmers are prepared to less water for irrigation: the
role of the local actors cannot be underestimated!
• Farmers' practices, attitudes and capacity to manage their assets during
prolonged droughts determine the impact
• Introducing water markets also caused adjustment problems because
farmers sometimes bought too much water or at the wrong moment (Hung
et al. 2014). Finally
• the use of soil moisture measuring tools & the formulation of sustainable
water diversion levels were major improvements at the farm level;
examples of that kind of research are given in Zhang and Voon Phin Keong
(eds, 2013)
Urban: changing land use rights in China, towards a real market
for user rights? Laura Kamsma & Meine Pieter van Dijk,
Washington: World Bank conference on land and poverty 2014
• Land is an important tool for both rural (agricultural) and urban
development
• Rapid growing urban population and economic growth result in high
demand for land 2025 estimation: 64% of population living in cities
• Absence of a clear system of transfer rights for rural land has led to a
widening urban-rural gap and inefficient land use
• Acquisition of too much land for urban purposes: 200,000 ha per year
concerning 2 million farmers
• Farmers do not receive (equal) compensation for their land
Reason for land acquisition: cash strapped local governments
are not allowed directly to raise money from capital markets
• Municipalities generate high revenue by acquiring the land at low
cost, and leasing out the acquired land at a higher price
• ‘face’ (status) is very important, mayors are judged on their ambitious
plans
• Insufficient implementation of policies and control on local level fuels
illegal practices
• Lack of transparency leads to not compensating farmers properly
Possible solutions
• Changes in rural land-use law create possibility to transfer user rights
(policy documents 2008 & 2009)
• Indefinite length of land-use rights contract will stimulate long-term
investment and stimulate trade in land markets
• More transparent system where compensations and payments are known
to everybody
• Experimenting with land titling in a more participatory approach:
experiments in Chengdu
Important changes in land transfers
• Focus on systematic participatory land titling & a
registration system for all land & buildings
• Farmers were permitted to trade their village
construction land directly to interested parties
• Villagers were allowed to trade user land rights using
a district trading platform, giving
• Access to market-driven, deliberate land trade system
for non-agricultural purpose land
• Last, villagers were not forced to leave their land
behind when leaving the countryside
Implications of Chengdu experiment
This meant allowing a more equitable & market driven urban expansion
through the Chengdu land tenure experiment (Deininger et al. 2013) &
more scope for agricultural upscaling because:
1. Farmers have titles
2. They can transfer these titles
3. The process is more clear & transparent & reversible
Lessons from the Chengdu experience
• Land titling as a participatory process may work
• This gave titles to the farmers & a cadastre to the city
• Trading platform was established to facilitate the transactions
• Suspending the hukou system provided equal rights to urban and
rural inhabitants and made the land market function
• It made migration of labor (from rural to urban) possible
The Chengdu experiment is of great
importance for other Chinese cities
• Land titling as a participatory process may work if land titling at the
grassroots level takes place with the involvement of villagers
• The process will bring more transparency and information to land
markets
• Stretching the bundle of rights creates more land transfer possibilities
and increases the efficiency of the land market
• There is a need for inspection/control of lower levels of governments
by an independent authority taking into account national level
standards and specific local circumstances
Conclusions
• Public inputs in a participation process do not mean all the farmer wishes will be
honoured. However,
• it is important to engage in a dialogue with the public and to convince them of
the necessity of certain changes
• At the same time officials should listen whether the wishes & objections of the
residents make sense and could be taken into account and lead to a different
approach of the issue
• There is a need for stronger contract rights to enhance tenure security, a lesson
from Chengdu
• There is a need to streamline administrative procedures & to assure that farmers
benefit more from urban land acquisition
Formalization of land and water rights
combinations
• Experiences in rural and urban areas point to the importance of the
formalization of land and water rights combinations
• In rural areas titling creates conditions for water trading, in particular
unbundling of land and water rights
• In urban areas titling is necessary for urban climate change
adaptation strategies such as (Xiao Liang & Van Dijk, different years):
a. Decentralized waste water treatment
b. Rain water harvesting
c. Separating grey and brown water
Papers available on www.academia.edu,
or on www.researchgate.net
• Li H, Gupta J, Van Dijk MP (2013) China’s drought strategies in rural areas
along the Lancang River. Water Policy 15(1):1-18.
• Li H, Van Dijk MP (2012) Climate change and farmers response in rural
China. International Journal of Water 6(3/4):290-309.
• Van Dijk, M. P. (2013) Climate change and sustainable development in
China, policies for mitigation and reactions of farmers in the Yunan
province. In: Zhang J. & Voon Phin Keong (eds, 2013). Enterprise
anthropology: applied research and case studies. Beijing: CASS,
• Liang, X. and Van Dijk, M. P. (2012). Centralized waste water treatment in
Beijing economically & financially feasible. In: Water reuse & recycle, May,
pp. 48-53.
• Liang, X. and Van Dijk, M. P. (2012).Cost benefit analysis of centralized
waste water reuse systems. In: Journal of Benefit-Cost Analysis, Vol. 3 (3)
Article 5 doi: 10.1515/2152-2812.1060,
• Liang, X. and Van Dijk, M. P. (2012). Beijing, managing water for the eco city
of the future. In: International Journal of Water, Vol. 6, Nos. 3/4, pp. 270290