Improving farming practice through localized land tenure reform: a study of the “Three Rights Separation Reform” implemented in a Shanghai suburb, China

Abstract

ABSTRACT Collective land rights reform in developing countries is promoted as a means of optimizing the use of land resources by clarifying property rights and encouraging land transfer. However, such mechanisms remain controversial, particularly as the overall cost – transaction, social, cultural – is often judged to be greater than the benefits obtained. In seeking to address whether this is always the case, this paper reports on a study of the “Three Rights Separation Reform” implemented in a Shanghai suburb, China. The paper argues that localized implementation of land rights reform can provided the context in which farmers feel more secure and have better expectations with respect to land rights, which can stimulate them to modernize and improve their farming practices. We argue that localized implementation, with a combination of top down regulations and bottom up practices, allied to both expert and tacit knowledges, effectively reduces the overall transaction cost and offers flexibility for the local community to find their own solutions under complex socio-economic conditions. We conclude by arguing that additional research and reforms are required to further reduce the transaction cost and enhance farmers’ long-term expectations and experience.