Fuzzy Approaches to Industrial Land Conversion in Weak Institutional Environment

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Currently, the maximum tenure of industrial land use in China is 50 years, which far exceeds the manufacturing life cycle. In the absence of an effective exit mechanism and serious supervision, a large number of manufactories are waiting for land value-added income or illegal sublease for commercial use rather than returning the land-use rights for urban redevelopment. As one of the urban central areas in Shanghai, Hongkou District is facing a serious challenge on land scarcity and impending speculative inflows during the critical period of rapid transition. The objective of this research is to explore fuzzy approach to industrial land conversion in weak institutional environment, eventually strengthening the initiative of land-use cycling of the governments for a better adaption to the changing demand in the future. So the research mainly consists of two parts. (1) Find bottlenecks. After deep investigation and analysis on the causes which restrict land users’ access to land transfer, the findings reveal that profit mechanism, no alternative policy for land-use change, low compensation, low costs of illegal behaviour and high rate of planned non-profitable land on these industrial land blocks are the main bottlenecks. (2) Break bottlenecks. The following fuzzy governance approaches are discussed: fuzzy profit distribution mechanism, fuzzy exit mode, priority compensation, trans-regional land supply and combination of regular review and public supervision, as well as their application value and feasibilities.
Book of proceedings: Annual AESOP Congress, Definite Space – Fuzzy Responsibility, Prague, 13-16th July, 2015
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