Villages Problems: The Formation Of The Survival And Transformation Of Economic Analysis

Urban village is a special phenomenon during the fast urbanization in ourcountry. As the reform and opening to the outside as well as the quick developmentand spread, the former village in the combination between urban and rural area hasgradually been totally or partly embraced by the building districts. However, urbanvillage, which has become the separated island in the city, is greatly different from theoriginal city in architecture scenery, constitution of population, features of economy,administration, lifestyle and so on.The coming 20 years is the key period for China's social and economicdevelopment. Promoting the urbanization and harmonizing the relations betweenurban and rural area is a strategically long-time task. As one of the most seriousproblems in China's urbanization process, urban village is greatly related with thespeed and quality of urbanization, scientific and centralized use of land resource,frame adjustment of urban industry, urban ecology and modernization. The solution ofurban village will decide whether the competition capability of a city can beenimproved, whether a city can realize the sustainable development, whether China'surbanization can be smoothly brought forward to, which will influence the building ofharmonious city and society. Thus the problem of urban village and its renewing is animportant problem. Many scholars on sociology, geography, urban planning,economics have made a lot of studies from the view of society, economics andinstitution.The long-time duality system in the planning economy of our country is the mainsystematic reason. Economy and institution are the basic factors that lead to the space,economical and social features. From the formation of micro course of urban village,it's due to interest. So the improving process is the adjustment process amongrepresentatives of different interests.This paper studies the problem in such a background that China advocated thescientific development routine, building up harmonious society in the process of fasturbanization and constitution reformation. This paper deeply studies the formingprocess of urban village, which is due to mechanism of interest game, and discoversthe economical and institutional reason of its formation. It analyzes the needs and realdifficulties and rebuilds the economical, social and environmental goals in the publicpolicy making process of renewing urban village in the frame of city sustainabledevelopment. It studies how the government can achieve the distribution of resource in the market economy as well as the harmony between justice and efficiency. It putsforward to some methods to solve the urban village problem, control the sequentialappearance of urban village, realize the city sustainable development and explore thescientific theory and feasible improvement routines, which are all the importantquestions this paper has studied.This paper has studied the problems of the forming, remaining and reformning ofurban village through economics:1. It systematically concludes the research results of foreign urbanization theory andurban village (including the definition and features, forming mechanism,classification and reforming patterns), illustrates the great meaning of studyingthis problem and points out the start of studying the problem through economics.2. It deeply explores the forming routine and changing mechanism by the institutionvariance theory and rights theory in new institutional economics. From threetimes of playing games between the government and villagers, the forming ofurban village is a process of dynamic game of different bodies.3. Analyzing the serious institutional non-equilibrium state in the forming processof urban village by "Supply-Demand" model, the unbalance of supply-demand inthe game between government and villagers, lack of institution supply or surplusis the reason of institutional non-equilibrium. The institution of dual system andlegal adjustment of land use gives farmers the weak position in the distribution ofinterests in urban development. The increase of land value in urban village makevillagers fight for their interests in abnormal ways. The co-existence of marketand government failure has brought some short-term interests as well as the"question village" that blocks the development of urbanization and city economy.It illustrates and analyzes the need to improve urban village by urbanization anddevelopment of city. It also concludes three kinds of difficulties in the practice ofimproving urban village: the source of fund for improvement, the choice betweengovernment interference and market system, housing problem of floatingpopulation. It induces the economic, social and environmental goals for publicpolicy of improvement planning through concluding current policies in the frameof city sustainable development. It clarifies the limit of the market andgovernment function in the process of improvement by principle of publiceconomics. It also puts forwards to the basic thoughts and measures to preventthe failure of urban village improvement. 4. Improvement of urban village is the process for adjustment of interests. Thispaper applies game theory to build up a dynamic model of urban villageimprovement to analyze the game principle of the related bodies. It concludesthree modes for urban village improvement by analyzing game equilibrium andadjusting the model comparing with the actions government usually takes atpresent time. It pays more attention to government controllable variance and itsmutual relations and makes a case study of urban village in Hangzhou to examthe economic feasibility and how the government decides to change the statedvariance.5. Taking Hangzhou as an example, it put forwards to a new method forclassification of urban village that combines the districts and improvement forms.It generally compares the three typical improvement modes through the gameequilibrium analysis.6. Aiming at one of the objects, the housing problem of floating population, thispaper put forwards to the optimal controlling method in the precondition thaturban village is still kept as the cheap-renting houses. The writer considers thatthe study on solution of housing of floating population is the key direction andfield of urban village in future.7. The paper advances several institutions for improvement of urban village basedon justice and efficiency. It is country collectivity land and common economicorganization system, employment and social security system, innovative thoughtsand public policy suggestions for public participation.