Urban Politics And Land Ownership

(starting a new day, a responsible way of life, a healthy life =)
Damon, you can do it!)
i drink a lot of a lot of water everyday….

Neo-Liberalism land market in China, a case study of development of Mo'ganshan District, Shanghai

Neo Liberalism
everything's priced, everything's commodity, no government intervention
sooo…optimize the value of everything? at least two parties r both happy
(they also assume, land market will put the best function in its best-fit location, such as the offices in the middle of the city, then the residential further aways, bcoz location is so important that u need to occupy the most accessible center of the city with the functions generates the most money)

(so how does it work in China?)
Planned economoy:
China doesn't have a land market before the 1978, all the land are owned by the government and freely allocated to different Government Departments, those land are neither transferrable or tradable. So the city look quite simple, blocks of self-efficient campus (actually it's not bad)

Market economy:
Shanghai started free market after the 1990s, they phased out the factories in the city, left behind lots of vacant lands and abandoned factories. Meantime, land could be acquired by the local governments by paying a certain amount of fees to the former owners. (so they got lots of former industrial lands). To build new things on those land, they start to sell it to private developers (mostly from oversees or HK) in this new land market (they can either sell it or negotiate a price under some kinda contracts), anyways, just to transform the industrial land into other uses, such as offices, residential, recreational, teritary industries, creative, cultural industries and so on.

Moganshan District in the 2000s:
2nd industries phased out, abondoned buildings; several remaining small running factories, and residential areas. Local government (i dunno whether they pay the factory owners to acquire the land or not) sell the land to a HK developer; meantime a small factory started to sub-lease its space to art galleries, artists just for rent (government doesn't care u sub-lease ur factory to who, too many things to care abt, they dont have the time).

1st conflict in Moganshan District - land vacant for 5 yrs from 2002-2007
the HK developer wanna demonlish all the buildings and start new constructions, but cannot: 2 reasons
1. five buildings are listed as historical ones, u gotta conserve, increase development cost, the former plan need to be revised
2. Chun'ming factory refuse to move, they got money from sub-leasing the space, they got fame from its residence artists, it is said they r owned by a powerful National Textile Corp which has connections with the gvt

2nd conflict - still vacant right now 2007-2009
HK developer negotiate with Chun'ming, agree to pay for 5 yrs then it will move on 2007
anyways, on 2007, chun'ming still refused to move (i dunno the details why), but they r obviously making more money from sub leasing their already famous M50 factorie, there r some reasons (my guess)
1. Shanghai' government wanna sth Internationally famous, and also it's teritary industry not 2nd industry anymore, since it's going on well, branding the city, why not support it?
2. Chun'ming's back-door connection with governments?
3. the owner said it still got the land title documents, they cannot phase him out - local district screwed up, they didn't clean the title thing but sell the land they dont own

ok, anyways, there r some lessons we could learn from this story
1. a market doesn't mean u can optimize its value of the land - it's vacant for more than 5 yrs, for god's sake! (it doesn't optimize the land value for the public, it does benefit one party at least - here is the local government)
2. a market just a tool, a way to trade things, whether u can make the best use of it depends on who's using it, who's interest u'r serving
3. contract doesn't seem to work well in China, (1) HK developer with district gvt - they bought the land which doesn't belong to the gov (2) HK developer with Chun'ming - chun'ming break the contract! (i dunno whether anyone cares). So be careful if u'r doing business in Shanghai, they dont usually keep their words if they got connections with the govt
4. govt still rules in this case, they got underlying powers
5. it doesn't matter what kinda contract u'r making, matter who u r making the contract with and the context u'r making it. here: (1) context: China, govt got underlying power; (2) who: Chun'ming textiile, district gvt

ok, i know point 5 seems weak, but the lib is going to close and i gotta run
guys hav a nice day =) i'm moving out my apt to a new one tomor

Unless otherwise stated, the content of this page is licensed under Creative Commons Attribution-ShareAlike 3.0 License