Chinese Premier Wen Jiabao said at the Summer Davos forum in Tianjin that problems arising from demolition and resettlement are related to China’s fiscal taxation system, which allows regional governments to cash in from collective land acquisition. Regional governments acquire land at a low price and sell it a price many times higher. Shen Kui, a law professor at Peking University, said lawmakers plan to legalize collective land acquisition and compensation. Since last year, cases of farmers burning themselves to protest forced demolition have prompted some scholars, including Shen, to appeal to the lawmaking body to consider the legitimacy of the demolition regulations. Shen said many local governments believe that to bulldoze villages is in accord with public interest. "To overcome the biggest obstacle, we need the central government’s political courage," China.org.cn quoted Shen as saying.
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