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Livelihoods and Sustainable Pathways of Land Lost Farmers in China: a Study on Xingwen County

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Livelihoods and Sustainable Pathways of Land Lost Farmers in China: a Study on Xingwen County Livelihoods and Sustainable Pathways of Land Lost Farmers in China: A Study on Xingwen County SHEN Jun Thesis submitted as partial requirement for the conferral of Doctor of Management Supervisor: Professor Nelson Santos António, Professor Catedrático, ISCTE-IUL, Departamento de Marketing, Operações e Gestão Geral Co-supervisor: Professor TENG Ying, Full Professor, University of Electronic Science and Technology of China, School of Management and Economics January 2012 Livelihoods and Sustainable Pathways of Land Lost Farmers in China: A Study on Xingwen County SHEN Jun Spine – Livelihoods and Sustainable Pathways of Land Lost Farmers in China: A Study on Xingwen County SHEN Jun Thesis submitted as partial requirement for the conferral of Doctor of Management Supervisor: Professor Nelson Santos António, Professor Catedrático, ISCTE-IUL, Departamento de Marketing, Operações e Gestão Geral Co-supervisor: Professor TENG Ying, Full Professor, University of Electronic Science and Technology of China, School of Management and Economics January 2012 Abstract In process of China’s industrialization and urbanization, how to realize the sustainable livelihoods of land lost farmers has become an urgent problem in society transformation. The thesis constructs Land Lost Farmer Households’ Sustainable Livelihoods Framework; defines the sustainability of livelihood pathway from perspective of behavior pattern; studies their livelihood conditions and selection mechanism of livelihood pathways; and proposes suggestions for compensation policies for land expropriation. It concludes that the problems of policies included low standard of compensation, low coverage of social security, and lack of employment support, which led to relatively high dissatisfaction with policies and dependence on the government. For land lost farmers households, faced with land lost shocks, the asset-and-goal-based livelihood behavior is the most important factor to affect livelihood pathway and finally determine livelihood outcome. The livelihood assets base determines the capability to adjust livelihood behaviors, and the goals-oriented livelihood attitude determines the intention of adjusting behaviors. Because of the relatively good base of livelihood assets before land lost, the whole matching rate between assets and behaviors and income increased after land lost, showing the overall improvement of livelihood pathways’ sustainability, but the gap among households was widen and livelihood demands were different. Some suggestions are proposed as: to meet diversified demands of households by policy portfolio package to enhance base of livelihood assets; to fully exert the leverage function of policies to motivate active livelihood behaviors; and to optimize external livelihood environment to create more of employment or entrepreneurial opportunities for land lost labors. Key words: land lost farmers; livelihood behavior; sustainable livelihoods; pathway JEL Classification: J33 - Compensation Packages; Payment Methods; I31 - General Welfare; Living Standards Resumo No processo de industrialização e urbanização vivido nas últimas décadas na China, milhares de camponeses perderam as suas terras, o que fez com que o debate sobre a sustentabilidade de vida destas pessoas se transformasse num assunto urgente para a sociedade chinesa. Esta tese constrói um modelo de Sustentabilidade das Vidas dos Camponeses Expropriados; define a sustentabilidade da trajetória de vida tendo em consideração os seus comportamentos (adaptação entre o comportamento e os ativos disponíveis); estuda as vidas dos camponeses expropriados e a escolha da trajetória de vida utilizando dados provenientes de investigação no terreno, nomeadamente “Casos de Estudo”. Esta tese faz também sugestões para as políticas compensatórias da expropriação das terras. A tese conclui que os principais problemas das políticas atuais, são os seguintes: baixa compensação, pouca segurança, insuficiente apoio para obter novos empregos. Estes problemas provocam insatisfação nos expropriados. De acordo com as políticas de compensação, o comportamento baseado nos ativos e objetivos constitui um importante factor influenciador da trajetória de vida e dos resultados. Os ativos e os objectivos de vida determinam a capacidade e a intenção de ajustar os comportamentos. Contudo pequenas diferenças provocam grande diferenciação entre os diferentes tipos de famílias. A tese apresenta algumas sugestões para lidar com os problemas dos camponeses expropriados, por exemplo: aumentar a base dos ativos diversificando o portfólio; exercer plenamente a função de motivar comportamentos ativos de vida; optimizar a envolvente externa e proporcionar mais oportunidades de emprego, incluindo a criação de empresas. Palavras Chave: Camponeses expropriados; Comportamento de vida, Comportamento de vida sustentável. JEL Classification: J33 - Compensation Packages; Payment Methods; I31 - General Welfare; Living Standards Acknowledgements First of all, I would like to express my profound appreciation to my supervisors, Professor Nelson António and his wife, Professor Virginia Trigo. They are experts on Chinese issues as they once worked at Macao for a long time and they have kept academic cooperation with the School of Management and Economics, University of Electronic Science and Technology (UESTC) for a long time. By their encouragement, I have started my doctoral study since the winter of 2008. Therefore, I have got the chance to explore further on those aspects that I am interested in. During the process of this study, their amicability has touched me all the time especially when I was invited to taste delicious Atlantic fish barbeque and Portuguese wine at the beach located at the westernmost part of Europe. Secondly, I would like to show my deep thanks to Professor Teng Ying. She is my Chinese supervisor, Vice Dean of School of Management and Economics, UESTC. She gave me many helpful suggestions in my academic study. Thirdly, many thanks to professors and teachers from School of Management and Economics, UESTC: Professor Zeng Yong (Dean of School of Management and Economics, UESTC), Dr. Xiao Wen (Director of DBA ISCTE-UESTC Joint Education Program), Dr. Sun Ping (Deputy Director of DBA ISCTE-UESTC Joint Education Program), and all the professors who gave courses and guidance to me during my doctoral study. Owing to their understanding and support, all the study works could be finished. They were kind and generous to give their helping hands when they were needed. Also, I would like to express very special acknowledgements to the co-supervisor of my doctoral thesis, Dr. Ju Qingjiang (School of Management and Economics, UESTC). She helped me dealing with the statistical works on questionnaire. In addition, Ms. Shen Ruichen (School of Management and Economics, UESTC) did the proof reading on this thesis especially on English writing. Certainly, after daily work, this kind of reading is not enjoyable. Her kind help gave me invaluable confidence. I would like to express my appreciation to her. Last but not least, my family gave me much support in my study. My wife, Ms. Xiao Yuling always supports me to reach higher. She also encouraged me a lot on finishing this study. Contents Chapter 1: Introduction...........................................................................................................1 1.1 Background of the Research........................................................................................1 1.1.1 Land Utility to Farmers in Binary Household Registration System of China........1 1.1.2 The Emergence of Land Lost Farmers under Land Expropriation System............4 1.1.3 Livelihood Shocks Confronted by Land Lost Farmer Households .......................6 1.2 Main Research Work ...................................................................................................7 1.3 Theoretical Significance and Practical Value of the Research.......................................8 1.4 Limitations of the Research .........................................................................................9 Chapter 2: Literature Review................................................................................................11 2.1 Livelihoods of Land Lost Farmers in China...............................................................11 2.1.1 Compensation Policies for LLFs .......................................................................11 2.1.2 Livelihood Conditions and Suggestions.............................................................12 2.1.3 Livelihood Behaviors of LLFs...........................................................................13 2.2 Sustainable Livelihoods Approaches..........................................................................14 2.2.1 Livelihoods Approaches ....................................................................................14 2.2.2 Comparison of Sustainable Livelihoods Frameworks ........................................15 2.3 Application of Sustainable Livelihoods Framework...................................................21 2.4 Conclusions of Literature Review..............................................................................23 Chapter 3: Research Design and Methodology......................................................................25 3.1 Research Framework.................................................................................................25 3.1.1 Land Lost Farmer Households’ Sustainable Livelihoods Framework.................25
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