Keynote Speaker: Prof. James Riddell (University of Wisconsin)
Discussants: He Guangwen, Shi Hongxiu, Zeng Yanchu, Li Renqing, Mi Xiaoxiong

Prof. James Riddell pointed out that the problem of development is equivalent of the problem of how to establish sophisticated property system in backward countries. He suggested three points:

Firstly, the usage of assets should be decided by the property owner. Institution derives from the culture and social system endogenously of a society.  Property rights should be compatible with local custom. What is needed is not the property system itself but an agriculture sector which is compatible with local economy, society and environment.

Secondly, property rights are decentralized and independent in modern economy. One sophisticated property right can be disassembled, such as the right of development, the right of land and the right of tree etc. All these aspects can be exchanged independently. Prof. Riddell emphasized the importance of exchange especially because exchange is the purpose of property system. The exchange between agricultural sector and industrial sector produce new production and expand the production-possibility frontier.

Lastly, the change of usage of land is a process that is never static and the exploration of land is never static. So it is hard to predict the evolution of land system.

October 15th, 2010