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The emerging land-related unrest in China poses a pressing challenge on
the legitimacy of the government. Through the perspective of good
governance, the paper examines the role of land in government financing and its
economic and political cost, as well as the erosion of government's credibility
and its negative impact on private and collective property rights. The paper
emphasizes the recent upward trend in land-related unrest as a consequence
of abuses by local governments on land-source revenues. Our special concern
rests on the institution of collective property which is slowly emerging from
the shadow of the former state property in the course of economic transition.
Collective property right could be a useful legal and economic institution but
must receive political support to exist alongside with private property.
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