Let rural capital flow

Recently, the State Council issued the guidance on carrying out the pilot Project of the Management right of Rural contracted Land and the Mortgage loan of Farmers' Housing property Rights (hereinafter referred to as "opinions"). For thoroughly implementing the spirit of the 18th CPC National Congress and the third and fourth Plenary sessions of the 18th CPC Central Committee, giving farmers usufruct to contracted land, invigorating rural land assets, and exploring ways to increase farmers' property income. It is of great practical significance and far-reaching historical significance.

Due to the urgent need to improve the relevant laws, different from the free sale and mortgage of commercial housing for urban residents, rural residents can not buy and sell and mortgage freely through market-oriented behavior, which greatly hinders the capitalization of the property of rural residents. it is not conducive to the increase of property income of rural residents. Before the right of management is divided, the ownership of rural land and the right of contract can not be mortgaged legally.

After years of investigation and visit, Peruvian economist Hernando Soto and his colleagues have made an amazing discovery: not only are the citizens of developing countries not short of funds, but their real estate is worth 9.3 trillion US dollars. The developing countries, which account for 4% of the world's population, do not have nothing. What they lack is the process and ability to express ownership and create capital. In the absence of these most basic expressions of ownership, it has always been impossible to create enough capital to make the capitalist system work. This rigid "capital" lacks formal legal documents to prove that it is unable to mortgage assets and maximize the value of their land in investment. If these dead capital can be proved by formal legal documents and become living capital, the national wealth will be greatly increased.

De Soto's research on capitalist countries gives us a great inspiration. For China's rural areas, among the three elements of labor, land and capital, capital is the most scarce. Smith pointed out in the Wealth of Nations that the development of agriculture and the prosperity of rural areas in Western Europe at that time benefited from the return of urban capital. From the perspective of the reality of our country, it will take time for capital to flow back spontaneously from the city to the countryside. If the rural land (including rural homestead) can be "capitalized", coupled with the abundant rural labor force, it will play an inestimable role in promoting the development of rural areas in our country. The so-called "capitalization" of land is to transform the immobile "asset" form of land into the mobile "capital" form.

At present, a major problem facing China's development is still the existence of dual economy, that is, the coexistence of underdeveloped rural economy and developed urban economy. In order to solve this problem, efforts to achieve urbanization has become the only choice. However, urbanization is a natural historical process that can not be separated from industrialization. Inviting farmers to go upstairs is not urbanization. Urbanization is human urbanization rather than material urbanization. Urbanization must be supported by the sustainable development of industry. Where people go, where the money comes from and how the industry grows is still a big problem. In essence, urbanization is an one-dimensional behavior, that is, people and property from rural areas continue to concentrate to the city. This kind of behavior, which has never stopped since the reform and opening up, can be said to be a major factor leading to the decline of rural areas in some places, resulting in a series of social problems in rural areas.

To solve a series of problems caused by the dual economy, we need the back-feeding of the urban economy to the rural economy, and the return of people, property and goods, especially the return of capital. If urban capital is to flow back to the countryside, there must be corresponding trading products in the countryside. Under the condition of market economy, the premise of commodity trading is the clarity of commodity property rights. If the property right of a commodity is not clear, it is difficult to reach a transaction, or even if a transaction is reached, it can not really reflect the actual value of the commodity. Rural land and rural residents' homestead can not be traded as commodities all the time, but as far as rural residents are concerned, their contracted land and homestead should be the biggest assets of families. The introduction of this "opinion" is to allow the capitalization of the largest assets of these two parts, especially to make it clear that the right to the use of homestead as a part of farmers' housing property rights is extremely crucial and the most controversial in the past. it is clear that it is of great significance and promoting role in invigorating farmers' assets.

The significance of allowing "two rights" mortgage and giving "two rights" financing function lies in: first, it is beneficial to expand the channels through which farmers can use capital, give farmers more property rights, deepen rural financial reform and innovation, effectively invigorate rural resources, funds and assets, and increase capital investment in medium-and long-term and large-scale operation of agricultural production, so as to provide experience and model for steadily promoting the reform of rural land system. Promote the increase of farmers' income and accelerate the development of agricultural modernization Second, it is conducive to the return of social capital to rural areas, which is of historic significance for activating and innovating rural areas. The historical significance of this "opinion" will be no less than the implementation of the contract responsibility system with output linked to output at that time, its sustainable development of China's economy, the sustainable promotion of the construction of a new countryside, the continuous weakening of the dual economy, and the final realization of urban-rural integration, and even the reshaping of the foundation of Chinese traditional culture and local civilization is of great significance.