Social Sciences in China (Chinese Edition)

No.7, 2013

Accelerating New Urbanization: Figuring out Some Important Institutional Reforms and Policy Suggestions

(Abstract)

China Finance 40 Forum Research Group

China has huge potential for urbanization, which is the powerful drive and strategic choice of promoting sustained socio-economic development and deepening reforms in the next stage of development. The key to promoting new urbanization consists in handling properly the boundaries between the government and the market, preventing the rapid rise of real estate price, increasing the land supply for construction, establishing a sustained and market-oriented financing mechanism, and achieving the urbanization of people. For this purpose, we suggest a package of supporting reforms be facilitated or coordinated, including achieving a requisition-compensation balance of construction land across the country in accordance with land equivalent and increasing land supply, transforming the protectionist and highly self-sufficient view of food security and deepening agricultural opening up; reforming the fiscal and taxation system and establishing a rational system of administrative and financial power for municipal governments; establishing an effective  supervision and restraint mechanism for the moderate leverage of urban governments; bringing into play the role of financial market; and an overall consideration of social security and public services of landless farmers.