Study On Welfare Loss And Compensation Mechanism Of Landless Farmers

Urbanization is the route that all the developing countries must take to become developed countries. To modernize the country, we need to take the road of industrialization and urbanization, which necessarily requires the national economy industry structure makes a shift from agriculture oriented to industry and services oriented. However, industrialization and urbanization must occupy a lot of farmland. In recent years, with the rapid development of urbanization and industrialization, the demand for construction land is increasing in cities, so that a lot of suburban rural land is expropriated. During the process of land confiscation, it brings the farmers out of their land, which makes them become landless farmers.Land is the lifeblood of farmers, the most basic protection of their lives, the basis for maintaining stability in rural areas. Land is not only the main means of farmers living, but also the main way for famers to invest and accumulate wealth and intergenerational transfer of wealth. Farmers lost the basic means of production as soon as they lost their land. Due to our long-term urban-rural split system, the deficiencies in our current land system and the quality of the farmers themselves and so on, the majority of landless peasants became the "Three noes" and "Six losses". The "Three noes" means "no land to farm, no employment and no social security". The "Six losses" means "loss of land, loss of job, loss of house, loss of security, loss of education and loss of identity". At present, according to incomplete statistics, there are about50million landless peasants.At present stage, the life and production problems of landless farmers is becoming increasingly prominent, which has seriously affected social stability in urban and rural economic development. This is not only an economic problem, but also a social problem and a political problem. Therefore, the way to solve the problem of landless farmers properly, especially their social security, has attracted widespread attention, and has become a major responsibility and an important issue to solve for all levels of government in the new situation.The core problem of landless farmers is their welfare losses and gains compensation in the process of land transference. Welfare compensation and gains distribution are not only related to national policy, but also related to the level of local economic development. Because of this, the Third Plenary Session of the Chinese Communist Party eighteen and No.1Central Document in2014has showed that "speeding up the revision of relevant laws and regulations to protect farmers to fair share the value-added benefits of land, changing the remedies for landless farmers, giving reasonable protection of house, social security and employment training expect compensating the expropriated collective land for farmers, ensuring the long-term benefits of landless farmers by suiting the local conditions. In the context of regional distribution and the large differences of Chinese urbanization, what are the welfare loss differences for landless farmers in different regions and what are the influencing factors? Optimizing the current compensation mechanisms on the basis of those questions has important significance and value.Based on this, this paper will analyze the welfare loss of landless farmers in eastern, central and western regions from the perspective of welfare economics, and carries on the empirical analysis based on social survey data to landless farmers in eastern, central and western regions. It analyzes the landless farmers’ welfare loss in the process of urbanization and its affecting factors by using the latent variable model from the seven aspects of the losses of income, living conditions and community environment, social security, develop space, psychological, rights and fair compensation. We want to provide research-based and policy recommendations for the establishment of metrics and compensation mechanisms for farmers’ welfare loss in the process of urbanization. This paper includes the following contents:Chapter1is the introduction. This part mainly talked about the background, purpose and meaning of the writing, and then introduce the research ideas, the main contents, the main methods and the research framework. At last, it points out the innovations, and definite the related concepts in this thesis.Chapter2is the literature review and theoretical basis, including the main research on the present situation and the problems of welfare loss and compensation mechanism for landless farmers; the literature review and evaluation of landless farmers at home and abroad; some related welfare loss measurement theories for landless farmers like utilitarian utility welfare theory, objectivism welfare theory, Amartya Sen’s capabilities and the ability of welfare theory; some related compensation mechanism design theory for landless farmers like Hicks compensation theory and equity theory. It makes the theoretical foundation for further study.Chapter3is investing the current situation of landless farmers and the causes in the process of urbanization, which mainly chose the landless farmers in suburban cities in seven provinces as field survey sample. The seven provinces are Guangdong Province and Zhejiang Province in eastern China, Hubei Province and Jiangxi Province in center and Chongqing Province, Sichuan Province and Shaanxi Province in western China. From the aspects of economic situation, living conditions and living environment, social security, development spaces, psychological conditions to analyze Chinese landless farmers welfare losses in the process of urbanization. It found that the income of landless farmers’family has a certain decline and the structure has changed; landless farmers’ living conditions has improved, but the living environment has destroyed in varying degrees; landless farmers’social security situation is not optimistic; the development space is limited; landless farmers’psychological conditions has lost a lot. Then this part analyzes the characteristics of landless farmers in the process of urbanization. They are mainly concentrated in the suburbs of the city, have low cultural level of education and skills, vary income sources and difficult situation. At last, it analyzes the causes of the problems, including institution factors (policy and institutional factor; legal factor and the existing land requisition system factor), the government factors (interest oriented and self deficiency), landless farmers own factors, passive of landless farmers and other factors. This chapter lays the foundation of improvement suggestions for landless farmers’ welfare, which are put forward behind.Chapter4is the welfare index structure of landless farmers, mainly based on Amartya Sen and Martha Janus Baum’s capability theory. It established a welfare index system of landless farmers on the basis of Chapter3, including7secondary indexes and49level three indexes. The7level two indexes are economic income index, social security index, living conditions index, living environment index, development spaces index, land acquisition process rights index and psychological index. Then it introduces the welfare index measurement methods on the basis of methodology.Chapter5is the empirical analysis of landless farmers’welfare loss difference and influencing factors of urbanization in different areas. First, this chapter analyzes the current situation and characteristics of urbanization in eastern, central and western China. It also analyzes the regional differences among those areas in the process of urbanization. As a background, it constructed the measurement model of landless farmers’welfare loss, it analyzed the model fit index, and took model identification, model checking, model updating and operation. According to the model results in different regions, it analyzed the landless farmers’welfare losses and its influence factors in eastern, central and western China and regional differences.Chapter6has designed the compensation mechanism for landless farmers’welfare. First, this chapter has put forward five principles. Based on this, this chapter deeply explores the methods, standards and procedures for landless farmers in China from the comparative perspective of international. It mainly explores the applicability of monetary-based combined compensation, market-based compensation standard and development model of program. It gamely analyzes the procedures and efficiency of collective land compensation. Then, it further analyzes the connotation, composition and substitution of landless farmers’ social security compensation in the combined compensation. Finally, it takes ecological compensation as an example to analyzes the legal mechanisms for landless farmers’welfare from the perspective of the main multi-marketization.Chapter7is the political recommendations for landless farmers’welfare compensation mechanism in different areas. It mainly analyzes the typical compensation mechanism in eastern, central and western China. Then it pointed out the differences in those areas and put forward political recommendations based on the empirical results. For example, compared to the eastern area, the central and western China needs more specific land requisition system to establish the protection mechanisms for landless farmers; the central and western China need to improve land requisition compensation policy to build a fair compensation mechanism for landless farmers; the central and western China more need to build and improve social security system for landless farmers. Expect that, the eastern and central China more need to establish non-material compensation mechanism for landless peasants in the capacity framework.On the basis of practical ability theory, combined with the survey data, combined used of normative and empirical research methods, and associated with the analysis of the static and dynamic, this paper possible innovation in the following three aspects. First, the theoretical innovation. The studies in the past mainly researched the economic welfare of landless farmers, less involved in the non-economic benefits. It has not yet clearly researched the various influence factors of farmers’welfare path. Also, it has not completely established the theoretical framework of multidimensional welfare for landless farmers. This paper mainly uses the ability of Sen’s framework to select the factors of landless farmers’welfare loss and systematically constructs a theoretical model to analyze the relationship between welfare and the influencing factors and the relationship between the factors. This paper established a complete system of theoretical framework to analyze the problems of landless farmers’welfare losses. Second, the perspective of innovation. This article analyzes landless farmers’ welfare losses and compensation mechanism in different regions from the perspective of urbanization, which is as same as the reform ideas that were put forward in the Third Plenary Session of the Chinese Communist Party eighteen. Third, the innovation of research method. The studies on the action and effect path of landless farmers’ welfare losses mostly based on principal component analysis, factor analysis, regression analysis method, and fuzzy mathematics method, little based on latent variable model. This paper will use the latent variable model to measure each factor’s effect on landless farmers’welfare losses.