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Governments block fair expropriation rule

(China Daily)
Updated: 2009-12-23 07:55

In the process of rebuilding the property expropriation regulation, the chief obstacles come from local authorities that are one of the greatest beneficiaries of demolition and reconstruction, says an article in the Changjiang Daily. Excerpts:

The property expropriation regulation is being rebuilt after five scholars from Peking University wrote an open letter to the central leadership. But the process will encounter many obstacles, with local authorities being one of the most prominent.

It is not hard to understand why. Transfer of land use rights has been one of the greatest sources of revenue for local governments. Hence, they think that expropriating and demolishing more old houses to build new ones is a potent way of economic development. Despite contrary pressure from the public, the higher authorities and the media, they have continued to travel this path of development.

But it would be unfair to blame local governments alone for the situation we are in today. There are many examples of local governments giving up this practice to pursue real social progress. So it is necessary to analyze the other obstacles.

Our present land ownership system is one such hurdle. In the name of the State, which is the legal owner of all land, a government has the right to take back lots from people even if they have built houses on them. This is the ultimate logic for demolition.

The judicial system is another obstacle. Most of the disputes between residents and real estate developers are centered on the amount of compensation offered for expropriating land or a building. But such cases cannot be filed in court, placing the onus of the last judgment on the administrative branch. The reason is simple: A person cannot seek justice through the judiciary if the local government believes the compensation is reasonable. And since local governments can make profits through the process they almost always offer lower amounts as compensation.

Another obstacle is the vague definition of public interest. Public interest is considered the sole reason for forced expropriation and demolition of property. But the concept is not clearly defined in our laws and regulations.

The list of obstacles is longer. But we expect the rebuilding of the regulation to come up with satisfactory results, which would grant adequate compensation to people whose houses are to be demolished and prevent violence and suicide.

(China Daily 12/23/2009 page9)