This report is about integrated landpolicy reform in context of rapid urbanization in China.Over the past thirty years, China has undergone a profoundeconomic and social transformation as it moves towards amarket-oriented economy. Land issues are implicated in thisongoing transformation in numerous ways. The allocation andsecurity of land rights are key factors in China'squest for economic growth and social stability. Land usechoices influence the shape and sustainability ofChina's rapidly growing cities, as well as the futureprospects of its agriculture. Revenue generated from landplays a critical role in local government finances andaffects the relationship between different levels ofgovernment. And increasingly, the growth and stability ofthe financial sector are linked to land-based transactionsand financing arrangements. For the last four years, theDevelopment Research Center of the State Council (DRC) andthe World Bank have been working together to develop adeeper understanding of the role of land policy in China,and to identify options for moving forward on keyland-related problems and opportunities. The spectaculargrowth of cities has been one of the most prominent featuresof China's recent history. From 1980 to 2005, the urbanpopulation grew from 19.4 percent to 43.0 percent. Urbangrowth has also been spatially dramatic, with theaccelerating lateral expansion of cities resulting in therapid conversion of agricultural land. The urban-ruralinterface defines an arena that is ideal for examining thecomplex interplay of all of China's most pressing landissues, including those of special relevance to theagricultural sector.
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