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Relocated users would retain the bulk of the capital gains involved, as an incentive to move. Price signals from regularized black market transactions should also be allowed to guide the process. Elsewhere, occupied sites should be leased or rented at levels no lower than the prices of comparable suburban, serviced sites, and again be subject to the market test provided by emerging implicit and explicit rents and prices. Residential users of land should be Page xvii incorporated into a system of rental reform, aimed at full cost recovery, as expeditiously as possible, following the recommendations of the earlier Bank report on housing reforms, and discussed further below.

Mission members, some of whom participated in only one mission, included: Andrew Hamer (EA2EH), task manager; Alain Bertaud (INURD); Paul Stott (RMC); Nena Manley (LEGEA); David Dowall, Peter Fong, Daniel Lam, and Youxuan Zhu (Consultants); as well as local consultants Wang Yukun, Ren Zhiyuan, and Sun Chongwu. The report was prepared by Hamer and produced by Meredith Dearborn (EA2DR), who also provided valuable editing assistance. The team's work would have been impossible to accomplish without the help of over 100 Chinese colleagues, working within central agencies and in the cities of Shanghai, Guangzhou, Chengdu, Hangzhou, Fuzhou, and Shenzhen.

In some cities, including Guangzhou and Shanghai, this message has been accepted in principle. Page xiv Towards a Comprehensive Urban Land Systems Reform Strategy To achieve these sector goals, a multifaceted strategy is needed to enable urban land use rights to be obtained and exchanged on commercial terms. Government must craft a plan that (a) allows for the expansion of land price reforms, in place of administered allocation practices; (b) develops a legal framework that reintroduces the full range of property rights, with the coordinated registration of all property rights related to a single parcel of land, in a manner consistent with best international practices, and transparency in both the mechanisms and rules for property dispute resolution; (c) institutes a local planning framework that helps extend serviced land development in an affordable manner, while promoting infill development, upgrading, and redevelopment in core areas of cities; (d) creates land-based revenue generation mechanisms that provide a return to a very valuable state asset, while requiring identifiable beneficiaries of government investments in local infrastructure to pay a fair share of the costs of construction and maintenance; and (e) provides adequate incentives and guidelines that give high priority to historic preservation objectives and ensure that land-related environmental degradation is first contained and then reversed.

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