The making of a ‘new Dubai’

In Tharparkar, south-east Pakistan, over 300 kilometres of roads are being constructed to facilitate access to a coalfield intended to provide power to an electricity-starved country. The new roads are often sold as harbingers of great change and signs of modernity. Industry and the sought-after prize of foreign direct investment are presented as being just around the corner. I was often told that Thar (Tharparkar) would become ‘a Dubai’, which represented an ultimate symbol of modernity. Scholars have argued that neoliberalism’s achievements are double: narrowing the window of political debate, while promising prospects without limit. In Tharparkar, the immediate roads effect has been increased land speculation, with little tangible improvements with regards to local employment. I argue that the ‘transition rhetoric’ being used by the state and the local political elite has no relation to the actual economic and political processes, except to veil interests of the elite groups. The material from Tharparker demonstrates that roads as symbols of ‘modernity’ can be used to deconstruct some of the contradictions at the heart of many modernization myths.

MARKETIZATION ALLOCATION, LAND PRICE, AND LOCAL GOVERNMENT LAND SPECULATION, CHINA

Land value appreciation in the urbanization process has triggered market speculation. The Land Bank System strengthens local governments’ ability to control land supply and distribution rights. Local governments are considered close stakeholders. Under the pressure of guaranteeing economic growth and promotion, local governments have increased their dependence on land finances. It is important for investors to understand the local governments’ behaviors, and draw up business strategies. This study aims to examine the influencing factors and formation mechanism of local government land hoarding. The research hypothesis was tested by collating provincial-level panel data of China from 2004 to 2015 and using dynamic panel data estimated by the Generalized Method of Moments (GMM). A significant positive correlation was found between residential land price and land hoarding area by local governments. Land speculation in the eastern region is also more pronounced than that in central and western regions. In addition, empirical studies have found a correlation between the degree of government intervention and local government land hoarding behavior. The higher the degree of government intervention, the less land sold through bid invitation, auction, and listing, which are linked to the corresponding hoarding land area.