China would also do well to address property rights: unlike in the U.S., the state owns all the land. Since the late 1990s, city dwellers have been permitted to own their apartments (the land beneath buildings is leased from the state), but farmers are allowed only so-called land-use rights to work and live on land that is owned by local agricultural collectives and held in the state’s name. Many city residents have made a killing as property values soared in recent years. Not so farmers, who can’t sell or mortgage their land rights. Financially strapped cities, which can’t afford to pay
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