“Land Sales Hurting China’s Poor”

Well, duh. Still, Bloomberg has the latest:

Bulldozers razed Li Liguang’s farmhouse four years ago after officials in the Chinese city of Loudi told him the land was needed for a 30,000-seat stadium.

What Li, 28, says they didn’t tell him is that he would be paid a fraction of what his plot was worth and get stuck living in a cinder-block home, looking on as officials do what he never could: Grow rich off his family’s land.

It’s a reversal of one of the core principles of the Communist Revolution. Mao Zedong won the hearts of the masses by redistributing land from rich landlords to penniless peasants. Now, powerful local officials are snatching it back, sometimes violently, to make way for luxury apartment blocks, malls and sports complexes in a debt-fueled building binge.

City governments rely on land sales for much of their revenue because they have few sources of income such as property taxes. They’re increasingly seeking to cash in on real estate prices that have risen 140 percent since 1998 by appropriating land and flipping it to developers for huge profits.

There’s more to come. Some 60 million farmers will be uprooted over the next two decades as the urbanization that propelled China to the world’s second-largest economy gathers pace, according to an estimate by the Chinese Academy of Social Sciences in Beijing. In many cases, officials take land they don’t use, an August report from the academy said.

That was the final insult for Li. The rice and bean plot his family farmed for generations still lies empty, weeds sprouting from the red earth. Villagers are convinced that the city has sold it to developers, even though they can’t point to any documentation to prove it.

“They flattened the land and still haven’t used it,” says Li, a wiry man with short-cropped hair, sitting inside the hut he built in a garbage-strewn alleyway across a main road from the stadium. “They sold it for I don’t know how many millions of yuan.”

Officials in Loudi, located in central China in Mao’s home province of Hunan, wouldn’t answer questions about whether plots in Li’s village were sold or what they will be used for.

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Filed under forced demolition, housing demolition

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