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Habitat International 34 (2010) 135–144

Contents lists available at ScienceDirect

Habitat International
journal homepage: www.elsevier.com/locate/habitatint

Urban villages under China’s rapid urbanization: Unregulated assets


and transitional neighbourhoods
Yuting Liu a, *, Shenjing He b, Fulong Wu c, Chris Webster c
a
School of Architecture, State Key Laboratory of Subtropical Building Science, South China University of Technology, 381 Wushan Road, Guangzhou 510641, China
b
Department of Urban and Regional Planning, Sun Yat-Sen University, Guangzhou 510275, China
c
School of City and Regional Planning, Cardiff University, Cardiff CF10 3WA, UK

a b s t r a c t

Keywords: China’s rapid urbanization, characterized by large-scale rural–urban migration and radial expansion of
Urban village urban built-up areas, produces a new type of urban neighbourhood, namely the ‘‘urban village’’
Urbanization (chengzhongcun). This paper considers the urban village as a community of interest for urbanized
Transitional neighbourhood
villagers, a migrant settlement with low-rent housing, and an urban self-organized grassroots unit,
China
respectively related to the ambiguous property rights, an informal rental market, and the vacuum of state
regulation. The urban village is therefore viewed as an unregulated asset despite its unruliness and
disorder. Meanwhile, the formation and dynamics of the urban village are understood from the
perspectives of land use transformation and property rights redistribution, with an additional emphasis
on the succession of traditional social norms and networks. In this sense, the urban village can be seen as
a transitional neighbourhood, characterized by unstable land rights and a mixture of rural and urban
society. Drawing from the empirical data of 11 urban villages from six large Chinese cities, this paper
presents the general characteristics of urban villages. This study points out that the vacuum of state
regulation in the urban village makes possible a means of subsistence for landless villagers and provides
low-cost residential space for migrants. The transformation of the urban village under state regulation
would produce complicated results.
Ó 2009 Elsevier Ltd. All rights reserved.

Introduction ‘‘new urbanism’’ (Krieger & Lennertz, 1991). A number of principles


as integral elements of the urban village concept were advocated,
China’s urban village (also known as the village in the city or including a mix of land uses, a variety of tenures, a high develop-
chengzhongcun in Chinese) is quite different from the western ment density, a strong sense of place, a pedestrian-friendly envi-
planning concept of the ‘‘urban village’’, which refers to a village- ronment, maximum potential self-sufficiency and a high degree of
style neighbourhood in the urban context of western countries. The community involvement in its design and management (Aldous,
term urban village was coined by Taylor (1973), and was promoted 1992; Murray, 2004; Shostak, 1997). Despite criticism of the urban
by the Urban Villagers Forum (UVF). As a response to the bland and village concept (Biddulph, 2003; Brindley, 2003; Tait, 2003), it has
monotonous developments of the 1960s, 1970s and 1980s, the UVF been widely recognized as a valuable way to encourage social
developed the ‘‘urban village’’ as a concept of an urban settlement interaction, to provide a balanced community, and to unravel the
which is small and of neighbourhood size, combines residential complexities of urban sustainability from a systemic point of view,
with work, retail and leisure units, aims to be self-sustaining, mixes i.e. the relationships between the needs of the people, environ-
different social and economic groups, has efficient transport, and is mental impact and urban governance (Landman, 2004).
well designed and managed (Aldous, 1995). The concept was also China’s urban villages are developed from rural settlements and
developed in parallel with similar notions in the US such as ‘‘transit become transitional neighbourhoods under rapid urbanization. The
orientated development’’, ‘‘pedestrian pockets’’ (Calthorpe, 1993; urban village is called chengzhongcun in Chinese, literally ‘‘village
Kelbaugh, 1989) and ‘‘Transitional neighbourhood development’’ or encircled by the city’’. The rapid expansion of Chinese cities has been
encroaching into surrounding villages since the 1990s. In many cases,
although villagers lose their farmland due to land requisition by the
* Corresponding author. Tel.: þ86 136 62522702.
city government, they maintain property rights over their own houses
E-mail addresses: ytliu@scut.edu.cn (Y. Liu), heshenj@mail.sysu.edu.cn (S. He), and their housing plots (zhaijidi) within the village settlement.
wuf@cardiff.ac.uk (F. Wu), webster@cardiff.ac.uk (C. Webster). Because their rights are not alienable, they cannot capitalize their

0197-3975/$ – see front matter Ó 2009 Elsevier Ltd. All rights reserved.
doi:10.1016/j.habitatint.2009.08.003
136 Y. Liu et al. / Habitat International 34 (2010) 135–144

assets through land or housing sale, so they redevelop their housing at the city on the one hand substantially increases the income of local
high densities. Village housing, typically low quality and high-density landless farmers, thus easing economic pressure on them from land
with many closely packed apartment blocks of 2–8 floors, is rented out deprivation and unemployment. On the other, the urban village
to migrant workers and also some urban residents. Without planning provides low-rent housing and low-cost living space for rural
and development control, and stimulated by rental income, every migrants and also for some urban residents, reducing the cost of
villager tries to build a house as high and big as possible. Construction living in the city. The existence of the urban village to some extent
has already lost the aesthetic significance of individual differences, and alleviates urban poverty. In this paper, the urban village will be
the harmonious habitat of the traditional Chinese village no longer considered as a community of interest for urbanized villagers,
exists. Urban villages become concrete forests up to 20 m in height, a migrant settlement with low-rent housing, and an urban self-
with a radius of several kilometres. They are not produced by devel- organized grassroots unit, respectively related to ambiguous
opers or the village collective, but are built by individual villager property rights, an informal rental market and a vacuum of state
households. The urban village is characterized overall by narrow roads, regulation. Furthermore, the dynamics of the urban village are
face-to-face buildings, a thin strip of sky, and inner streets packed with examined from the perspective of land use transformation and
shops, grocery stores and service outlets. Despite its well-known property rights redistribution, with an additional emphasis on the
unruliness and disorder, in a sense the urban village in China shares succession of traditional culture, social norms and social networks
some similarities with the western concept, such as pedestrianisation, within the village. In this sense, the urban village is viewed as an
accessibility, self-containment, mixed land use, neighbourhood unregulated asset and a transitional neighbourhood. Drawing from
interaction, etc. recent fieldwork in 11 urban villages in six large Chinese cities, the
Due to their crowded and cluttered material landscape, paper summarizes the general characteristics of urban villages. This
unhealthy living environment, and the resulting security and social study also discusses the future transformation of the urban village.
problems, urban villages in Chinese cities are widely condemned by
the media, the government and even academia. They are usually Understanding China’s urban village: ‘‘unregulated’’ asset
associated with unsuitable land use, poor housing construction,
severe infrastructure deficiencies, intensified social disorder and Overview on China’s urban village
deteriorated urban environment (Zhang, Zhao, & Tian, 2003). From
the perspective of migrant settlements, existing studies have The urban village is a special phenomenon emerging in China’s
provided a basic understanding of urban villages (Liu & Wu, 2006b; political and economic transition. Urban villages are quite different
Wang, 2000, 2006; Wu, 2002, 2004; Zhang, 2001). For instance, from the village-style of neighbourhoods in western cities or
Zhang (2001) examined the social networks in migrant settlement squatter areas in some developing countries (Smart, 1985). They
based on migrants’ place of origin. To summarize the typology of may also be distinguished from some rural migrant settlements in
poverty concentration in China, Liu and Wu (2006b) viewed urban some Chinese cities (Gu & Liu, 2002; Ma & Xiang, 1998), such as
villages as one of three types of urban poverty neighbourhoods. To ‘‘Zhejiang Village’’, a large-scale migrant settlement in suburban
study the housing problem for migrants under market transition, Beijing with the prominent characteristics of folk-based handicraft
Wu (2002, 2004) and Wang (2000, 2006) examined the housing economy (Chan et al., 2003; Fan & Taubmann, 2002).
and settlement patterns of migrant households. While some urban villages still keep a small amount of agri-
In fact, the urban village also plays a positive role in China’s cultural land, the majority of the land in the urban village is non-
rapid urban development. A few studies have started to pay agricultural and is mainly for residential land use. After losing their
attention to the positive effects of the urban village. For instance, farmland, villagers maintain property rights over their own houses
Yan and Wei (2004) point out that as a shelter for low-income and their housing plots within the collective land tenure system. To
floating population the urban village should be allowed to exist for capitalize their assets, they redevelop their housing at high densi-
a long time. Based on the case study of Guangzhou and Dongguan, ties. Without planning or design, and stimulated by rental income,
Zhang et al. (2003) and Chan, Yao, and Zhao (2003) signify the every house is rebuilt or renovated, resulting in high-density,
important role that the urban village has played in housing the narrow building distance, and poor ventilation and lighting.
temporary population from the perspective of self-help housing Housing quality and structure vary according to local villagers’
strategy. Zhang (2001) further argues that the urban village not economic capacity and the location of the village. The height of
only provides cheap accommodation for low-income migrants to buildings ranges from 2 to 8 floors. The ground floor of a house with
live in cities, but also puts less pressure on the government to a good location is most often used for commerce. Buildings higher
develop a costly program to house migrant labourers during the than 4 floors are mostly considered as illegal constructions by the
rural to urban transformation. Although these studies have city government.
addressed some important issues relevant to the urban village, they In the urban village, inner streets are packed with shops, grocery
fail to examine the nature of the urban village as a transitional stores and various service outlets. Except for few elderly clubs and
neighbourhood and its dynamics, and ignore the differences ancestral temples, there is no public space. Pipelines and drainage
between different types of urban villages. systems are poorly constructed. Waste water flows over the ground,
Through exploring the nature and the functions of the urban and garbage can be seen everywhere. All of these have resulted in
village, this study focuses on assessing its positive effects. The an unhealthy living environment. Meanwhile, inhabitants in urban
urban village is a special phenomenon and social form produced in village are diverse. Lacking efficient management, urban villages
the Chinese context, and is a transitional neighbourhood produced become hotbeds of crime. Because of these negative impacts, the
by rapid urbanization. While recognized that there are physical and urban village is condemned as a problematic area by the govern-
social problems accompanying neighbourhood transition, it is also ment, the media and even some scholars.
believed that the urban village eases the pressure of socio- Behind its negative image, the positive effects of the urban
economic development and urban poverty. The urban village is village should be recognized. The formation of the urban village is
a major type of settlement for both local landless farmers and a process of transformation from rural village to urban community.
migrants (most of them are rural migrants), which are two groups Within this transformation, the urban village is gradually becoming
with high urban poverty incidence (He, Liu, Webster, & Wu, 2009; Li an urban settlement for migrants, as a result of huge demand for
& Sato, 2006; Liu & Wu, 2006a). The existence of urban villages in inexpensive migrant housing and the rent-seeking behaviour of
Y. Liu et al. / Habitat International 34 (2010) 135–144 137

landless villagers. However, its socio-economic structure is mainly households in urban villages, housing rent contributes a large
dominated by local villagers and the village collective. The village- proportion of their family income.
based organization is the main regulating body of the newly formed After being deprived of their farmland, villagers have to seek
urban community (Fig. 1). survival and development opportunities. Possessing limited human
capital and skills, they are inevitably marginalized in the urban
The community of interest for urbanized villagers labour market. Struggling to cope with the laid-off and the unem-
ployment problems of urban residents, city governments have
China has seen three waves of urban expansion, during the failed to make additional efforts to solve the employment problem
1980s, around 1992 and in 2003, which are called the three rounds of landless villagers. Villagers’ retained property rights together
of Chinese ‘‘enclosure’’ movements. As urban sprawl invades with housing demand from migrants provide landless villagers
farmland, farmers lose the most important resource on which they with a temporary survival strategy. Household livelihoods and the
have lived for generations. According to statistical data, urban collective economy in the urban village are centred on property
sprawl has resulted in more than 40 million farmers losing their leasing businesses. Although the marginal position of landless
farmland, while this number is getting larger and larger at an villagers in the urban labour market has not changed, their
increasing rate of 2 million per year (Gao, 2004). After losing their economic status is not marginal. They earn much more money than
farmland, these people are not offered reasonable compensation or many urban residents.
employment opportunities to maintain their lives in the city. Lack
of entitlement to social security also becomes a great threat to the Migrant settlement with low-rent housing
future lives of these farmers, particularly elderly farmers. Handi-
caps for landless farmers’ employment come from the limitations of In many Chinese cities, urban villages have become migrants’
their education levels and skills, as well as lack of information and settlements. In Guangzhou, the majority of 3 million migrants are
social networks. In sum, the dramatic urban expansion movement actually accommodated in urban villages (Xie, 2005). The relaxa-
has pushed millions of farmers into fierce market competition for tion of the hukou system together with the reform of the urban
which they are not ready, while reasonable compensation and welfare system and the employment system has further loosened
necessary support have not been provided, and a social security the restriction on labour mobility between regions and sectors
system for them has not yet been developed. (Solinger, 1999). Attracted by more employment opportunities and
Due to the lack of government intervention and regulation, better living conditions, a huge number of rural labourers has
informal markets spontaneously form in urban villages. Although migrated into urban areas to seek employment and make a living.
most of the farmland is requisitioned by the city construction, According to the fifth national population census, 88.4 million
a certain amount of land is left for the collective, and the villagers people had migrated from rural to urban areas by the end of 2000
also have the use rights of their housing plots. Due to the (Fan, 2004; NBSC, 2002). A large number of migrants flow into the
tremendous housing demand from the large number of migrants cities, producing a huge demand for housing, especially for low-
and also from some urban residents, the potential rent value of rent housing, which imposes great pressure on the urban housing
their housing plots increases substantially, so, coupled with the market.
comparatively low-cost of housing construction, most villagers Since housing construction was limited under the centrally
launch a vigorous campaign of housing construction. The livelihood planned economy, a huge housing demand remains, although
of villagers has changed from ‘‘growing grain’’ to ‘‘growing house’’. large-scale real estate development has been carried out. Moreover,
Meanwhile, the collective economy has also changed from agri- since low-rent urban housing can only produce little margin, it is
cultural production or township and village enterprises (TVEs) to less attractive to real estate developers and relies heavily on
a land and housing rental economy. Using compensation funds government subsidies. However, since the marketization and
from land requisition, collective properties are built on the retained commodification of housing has transformed the primary housing
land (liuyongdi) and rented to individuals or enterprises. In many provider from the government to the market (developer), the city
urban villages, shareholding companies are established to manage government makes little effort to provide low-rent housing.
the collective economy. Generally, the main source of landless Although the policy of affordable housing was launched several
villagers’ household income can be divided into three parts: years ago, the city government has a lack of enthusiasm for
housing rent, stock dividends from the collective economy, and implementing low margin housing construction. Furthermore, no
a small amount of working salary. For the vast majority of social housing policies take housing demand from migrants into

Villages Urban villages


1. Collective land (semi-
1. Collective land
2. Collective economy
private) Urban communities
2. Collective economy 1. Stated-owned land
(contracted farming
(collective rental) and 2. Stated economy and
and private poultry)
private economy (private Market economy
3. Rural traditional
rental) 3. Civil culture and
culture and social
3. Mixed culture and urbanism
network
traditional social norms 4. Community committee
4. Villagers’
4. Urban self-organized
committee
grassroots unit

Fig. 1. The plural characteristics of urban village.


138 Y. Liu et al. / Habitat International 34 (2010) 135–144

account (Sato, 2006; Solinger, 1999). Because of the shortage of The joint-stock company of the urban village is not simply an
low-rent housing, the imbalance between temporary housing enterprise. In addition to its corporate management structure and
demand and supply occurs. Against this background, the urban functions (mainly real estate development and property rental), it
village has played a positive role in providing a large number of also sets up some non-profit institutions to provide social services.
low-rent houses for migrants and some urban residents. In some urban villages, joint-stock companies are also responsible
Entitled to the rights to unlimited use of their housing plots for the construction of village schools, clubs for the elderly, and
under the collective land ownership framework, local villagers some other public facilities. Overall, due to the inherent common
constantly undertake housing reconstruction and renovation to interest and the relationship of mutual trust between joint-stock
meet the great housing demand from migrants. Except for a few companies and villagers, the former become self-organized grass-
self-occupied houses, the majority of houses are constructed at very roots units that effectively implement community management. In
low-cost. The average rent of urban village housing is usually much comparison, party organizations and villagers’ committees tend to
cheaper (around 16 RMB Yuan per square metre monthly in be subordinate or supportive management organizations.
Guangzhou according to our survey) than that of the whole city The urban village, as a transitional community from the rural
(around 32 RMB Yuan per square metre monthly in Guangzhou in village to the urban neighbourhood, has a management mode that
2007) (Zheng, 2009). The low-rent housing attracts a large number is also transitional. Generally, the management of the urban village
of migrants to rent rooms in urban villages. Meanwhile, the includes the regulation of land use and building construction,
concentration of migrants creates demands for services, thus healthcare, public security, environmental restoration, housing
stimulating the formation of low-end business services targeting rental, small business, social services, and so on. Joint-stock
migrants themselves and other low-income population. The companies and villagers’ committees, as well as sub-district offices
extremely high population density results in a shortage of public and some district government departments, together are in charge
facilities and the congestion of public space. Many better-off local of all these management affairs. In general, urban village-based
villagers have moved out these villages. In some cases, the village organizations undertake most of the management responsibility.
collective builds ‘‘villagers’ apartments’’ with better housing quality Cooperation and conflicts arise between urban villages and urban
exclusively for local villagers. Over time, the number of migrants government departments. When the vested interests of the urban
increases more and more, and comes to greatly exceed the number villages, e.g. control over housing construction, are affected,
of local residents. It is not uncommon for a whole urban village to conflicts occur.
become a migrant enclave. The major economic source of the urban village is from family
As a semi-urbanized community, the urban village usually and collective property rental. Meanwhile, rental income also
functions as the springboard for migrants to be gradually integrated provides reliable social security for villagers. Social welfare provi-
into urban society. In fact, urban villages share the city gov- sion in urban villages primarily relies on the collective economy,
ernment’s responsibility to provide migrants with housing, and which includes basic living security, healthcare insurance, security
make it possible for the city to take advantage of cheap and flexible of life for the elderly, and other forms of social welfare. The social
labour without bearing the extra costs associated with labour security services provided by the village collective are timely and
relocation and without risking social instability. As a result, the necessarily alleviate the burden of pressure on the city government
process of urbanization occurring in the reform period has been to take care of landless farmers.
relatively cheap and painless for the government (Zhang, 2004). In
this sense, the urban village has positive functions not only in terms Dynamics: China’s urban villages as transitional
of accommodating the large number of rural migrants, but also neighbourhoods
through absorbing areas of potential social instability.
Land use transformation and the absence of state regulation
The urban self-organized grassroots unit
In China, rural land, which comprises farmland and rural built-
Few of China’s urban communities are governed and managed up land (i.e. settlements for villagers), is owned by the village
by their own organizations. Most of them lack social cohesion and collective. In order to minimize the total amount of land requisition
a sense of belonging. The urban village not only remains a strong compensation and social burden, the city government makes rapid
collective economy, but also inherits the village-style of self-orga- urban expansion possible through bypassing the village settlement
nization and social and cultural traditions. Urban villages’ and only requisitioning the farmland. Therefore, farmland is con-
economic, social and cultural independence makes them self- verted to urban construction land and owned by the state, while
organized grassroots units without the intervention and regulation the rural settlement retains its collective ownership. As the process
of the state. One might assume that, along with the urbanization of urban expansion continues, the remaining rural settlements are
process, the units of organization in the urban village, such as party soon encompassed by urban territory, forming a distinctive land-
organization, villagers’ committee, and economic organization scape of urban villages (Zhang et al., 2003). Fundamentally, the land
(mainly in the form of the joint-stock company), which are requisition institution of the city government creates islands of
respectively responsible for the political, social and economic urban villages in the city (He et al., 2009).
affairs of villages, should have gone through radical changes. But in Located within the urban built-up area, while retaining collec-
fact, the urban village retains its ‘‘village unit’’ organization and tive land ownership and lacking urban regulation, the urban village
management model. Remaining a collective organization, and possesses the characteristics of both urban and rural societies. The
highly dependent on collective land and other resources, the joint- peculiar characteristics of the urban village are directly related to
stock company acts as the management body of most urban the dichotomy of the rural–urban land system and rapid urban
villages. The joint-stock company controls almost all resources and sprawl. Since the costs of either requisitioning village settlements
power in the urban village, and takes responsibility for everything, or redeveloping urban villages are huge, the city government is not
such as land and housing management, shareholders’ dividends, motivated to requisition or redevelop them, which directly results
regulating private housing construction, electricity and water in an increasing number of urban villages. Recently, Shenzhen,
supply, public utilities and villagers’ social welfare, villagers’ Guangzhou and other cities promulgated a policy of ‘‘the retained
employment, social order and public health. land’’ (liuyongdi), which requires a compulsory amount of land to
Y. Liu et al. / Habitat International 34 (2010) 135–144 139

be saved for village collectives for commercial/construction government avoids regulatory costs and social responsibility, while
development during land requisition. On the one hand, this policy giving up some profits (such as land transfer money, rental tax,
protects villagers’ interests by providing a means of survival and etc.). As a result, the village collective become a self-organized unit
development; on the other hand, it reduces the difficulty of farm- taking care of its own interests, and carrying out the duties for
land requisition to meet the rapidly increasing demand for urban which the city government should be responsible. However, lacking
construction land. support from a wide range of public sectors, the self-organized
After losing their farmland, landless farmers lose their rural management in the urban village is not very efficient. This has led
identities as they no longer partake in agricultural activities. On the to various social problems in urban villages.
other hand, they remain villagers and are not completely entitled to The generation of the urban village actually involves various
official urban identities and the associated benefits. A gap between property rights transactions and negotiations between different
the two institutional systems has emerged and resulted in the interest groups. Accommodating a large number of migrants and
rural–urban mixed characteristics of the urban village. Although characterized by unplanned construction, the urban village is
villagers no longer engage in any agricultural activities, they still comparable to squatter areas in other developing countries.
retain their special identities as villagers of the urban village. The Although there are many differences between squatter areas and
status of villager is important for them, because it means that they urban villages, the formation and evolution of both types of
can retain the ownership of land and gain profit from it (Li, 2004). settlement are full of complex transactions and ambiguous rules. In
The collective ownership of rural land offers every villager an equal a study on the squatter property market in Hong Kong, Smart
right to use land for building houses. The joint-stock company or (1985) argued that the toleration policy by the government created
the villagers’ committee is the representative body that exercises ‘‘informal regulation’’ or a ‘‘vacuum of regulation’’, and enabled an
the collective ownership of rural land. Land for housing is allocated informal property market to emerge in the squatter area. In this
to every local household free of charge or for a nominal fee. context, grassroots processes make possible squatter structure
Furthermore, villagers’ rights to constantly use the land are valid as transactions in the absence of state support. Similarly, Zhang et al.
long as their membership (defined by a local hukou) in the village (2003) illustrated how the urban village offers a source of self-help
remains (Zhang et al., 2003). housing to accommodate migrants in the absence of government
The special rural–urban mixed characteristics create a vacuum help. Although housing transactions do not exist in the urban
of state regulation in the urban village, and the vacuum in turn village, various transactions of property rights in the vacuum of
makes room for the performance of market forces. Although the state regulation do happen.
urban village is physically within the urban built-up area, its First of all, when the city government requisitions farmland by
construction and management are separate from the rest of the paying a certain amount of compensation fee to villagers, a trans-
city. High-density construction in urban villages is technically action of use rights of the farmland occurs, although the villagers
illegal but the government has to acquiesce under certain circum- are involuntarily involved in the transaction. Lacking the capital to
stances, because government administration in the urban village is compensate and relocate these villagers, the city government
less effective. For instance, housing rental is the major income allows the landless farmers to retain their collectively owned
source for villagers in many urban villages, while these activities property rights to housing land in the village. As such, the state
are less regulated than in the formal urban housing rental market. regulation in these villages is less effective or absent due to the
Nevertheless, an informal rental market has developed in the different forms of land ownership. Free from state regulation on
absence of state regulation, although it is characterized by a dis- housing construction, local villagers densely build up lots of houses
torted and unstable nature. In the urban village, most houses are on their collectively owned land. The local villagers take advantage
rented out mainly based on a bilateral (written or even verbal) of the ‘‘vacuum of state regulation’’ by building as many houses as
agreement between landlords and tenants (Zhang et al., 2003). possible. Through renting housing, they make possible transactions
Population density in the urban village is also much higher than in of use rights/economic rights to housing in the urban village and
any other places in the city. In Nanjing, a village of 8 hectares can harvest windfall profits from the transactions. As the urban village
accommodate more than 6000 migrants (according to our survey). grows, the cost of redevelopment becomes higher and higher.
In the Pearl River Delta, to which millions of rural migrants are Therefore, the city government has to be particularly cautious as to
attracted, the population density in the urban village is even higher. the issue of urban village redevelopment, and under some
A 10 m2 room could accommodate four or even more adults (Li, circumstances postpones redevelopment plans. To a great extent,
2004). The rental market in the urban village is also very unstable, the acquiescence and toleration policy by the state further
due to the high mobility of migrants and the risks of being rede- encourages the development of urban villages.
veloped by the city government. Without proper regulation and
planning, the urban village inevitably becomes unruly and chaotic, The succession of traditional social norms and networks
and even becomes a hotbed for illegal transactions and crimes.
Despite its distorted characteristics, the development of a rental Considering the differences between the urban community and
market in urban villages is prosperous as long as the demand for the village, we need to identify not only the regulation system and
inexpensive housing by migrants continues. land use, but also more importantly the traditional social norms
and networks of the village. The urban village not only represents
Property rights redistribution and fuzzy property rights a unique physical form (building, infrastructure, etc.) and economic
pattern (land use, economic behaviour), but also a particular type of
Since the urban village is considered an urban community, the social norms and networks (customs, values, behaviour patterns,
city government is supposed to be responsible for providing social relations). As long as its original place-based and kinship-
management and infrastructure. However, in urban villages, the based social relations have not been broken, the urban village
city government on the one hand acquiesces in the fuzzy property remains a special type of community in the city, and a traditional
rights from which villagers and the collective benefit, while on the patriarchal community rather than a modern community based on
other, the city government avoids its responsibility for public utility contract (Xie, 2005).
and social welfare provision under these fuzzy property rights. In It is conventionally recognized that the end of the village and
other words, by implicitly acknowledging fuzzy property rights, the the end of peasantry coincide, along with the process of
140 Y. Liu et al. / Habitat International 34 (2010) 135–144

de-agriculturalization, industrialization or change in hukou status and has a lower level of urbanization, so therefore it has the
(urbanization). In fact, the demise of the village lifestyle and village smallest number of urban villages.
social networks is more difficult and slower than changes in The survey covers 11 urban villages in both inner city and peri-
farmers’ hukou status and occupation. The transformation from urban areas, and includes both local villagers, rural migrants and
village to urban community is not simply a process of de-agri- some urban residents. Two villages were selected in each city. Since
culturalization and industrialization, or the change from rural urban villages exist only in the peri-urban areas of Harbin, only one
hukou to urban hukou. More importantly, it is a process of re- village was selected. This is a survey of a purposive sample of urban
defining property rights and restructuring social networks (Li, villages in 6 representative cities. In each urban village, the local
2004). The village and the city have their own sets of social norms cadre was interviewed to obtain basic information about the
and cultural traditions respectively. They are very different and village. Households were selected based on their address, with
even mutually exclusive. Therefore, the end of the village involves a fixed interval. In this way, we not only cover local households, but
a subversive social change. However, the transformation does not also rural migrants. Questionnaires were distributed to household
occur smoothly, and the original village social norms and cultural heads. Questions include socio-economic information pertaining to
traditions often remain for a long time. The urban village provides household heads and their household, including hukou status,
an interim space where modern urban identity and traditional rural income and expenditure, education, occupation, housing status,
identity coexist. and so on. On average, 75 questionnaires were distributed in each
Evolving from the rural village, the urban village retains tradi- village, yielding 796 valid cases in total.
tional kinship-based and place-based social networks. Based on
existing traditional social norms and networks with family ties,
Overall characteristics
local attachments, local customs, caste groups and social strata,
most villagers do not take part in the modern urban division of
According to their location, the 11 urban villages could be
labour. Instead, they form a petty rentier class organized according
classified into two groups: inner city and peri-urban. Table 2 shows
to traditional village social norms and traditions. The urban village
the overall characteristics of urban villages. First, the areas of the
remains a traditional society based on primary relationships, which
urban villages range from 0.5 to 3.6 km2. The area of an urban
is quite different from urban society based on contractual rela-
village does not depend on its location but on the built-up area of
tionships. Villages and work-unit communities under the centrally
the original village. Second, building heights in the urban villages
planned system are characterized by strong affinity and social
range from 2 floors to 8 floors. There is little difference across the 6
cohesion. To some extent, they can be seen as grassroots organi-
cities, but building heights are very different between inner city
zation units with closely inter-related individual interests. Urban
villages and peri-urban villages. Generally, the highest building in
communities under the market economy, however, often function
inner city villages could be up to 8 floors, while the highest is only 4
purely as a living space, lacking a sense of attachment and social
floors in peri-urban villages. Higher demand for low-rent housing
cohesion. The urban village is a transitional neighbourhood trans-
in the inner city is the primary reason for this difference. Third,
forming from traditional village society to urban society, and thus
there is a higher percentage of rural migrants in inner city urban
possessing the features of both societies.
village. In most cases, the number of rural migrants in inner city
China’s traditional culture advocates etiquette, harmony and
villages is 3–6 times that of local residents, while the number in
friendship, and considers family, relatives and friends as the
peri-urban villages is only 2–3 times that of local residents.
primary basis of social networks, thus achieving social cohesion
Accordingly, population density is different in the two groups. In
and a sense of attachment. Historically, associations based on place
inner city villages, population density is over 6000 persons/km2; in
of origin (tongxiang hui) and assembly halls (huiguan) were the
contrast, population density in peri-urban villages is mostly below
basic forms of social organization (Zhang, 2001). Under the modern
5000 persons/km2.
market economy, however, economic interest becomes the main
factor maintaining social networks. Lacking close social connection
and traditional values, it is difficult for individuals to generate Collective economy and grassroots organization
a sense of belonging and social cohesion, even though they are
spatially concentrated. Nevertheless, the migrant settlement in the Since the 1990s, rapid urban expansion has invaded suburban
city, i.e. the urban village, resembles the traditional forms of social villages in the six cities. A great amount of farmland has been
organization. This raises the importance of understanding villagers, requisitioned by the city government. There have been two results
families and their social relations in the urban village. Therefore, from land requisition. One is that the collectively owned farmland
this study not only focuses on the physical form and population has been completely confiscated by the city government, while only
composition of the urban village, but also tries to understand the housing plots were left for local villagers. The other is that while
succession and transformation of social norms and social networks. most collective farmland was transformed into state ownership,
a small quantity was left for the village collective, i.e. the so-called
Profiling urban villages: a case study of 6 Chinese cities liuyongdi, and the housing land still belongs to local villagers (see

Data collection
Table 1
Urban villages in six large cities in China.
From December 2006 to June 2007, we conducted a large-scale
household survey in 11 urban villages in 6 large Chinese cities. The Number of Land area Proportion in city Local villagers
urban villages (km2) Built-up areas(%) (thousands)
six cities are distributed in the coastal, central and northwest,
Guangzhou 138 89 25.7 380
northeast, and southwest regions respectively, including Guangz-
Kunming 288 28 15.6 220
hou, Nanjing, Wuhan, Xi’an, Harbin and Kunming. As provincial Nanjing 71 67 28.6 100
capitals, all of these 6 cities are undergoing rapid urbanization and Wuhan 147 55 25.0 360
urban expansion, and attracting a large number of rural migrants. Xi’an 72 15 7.9% 90
Against this background, many urban villages have emerged in Harbin 43 – – 80

these cities (see Table 1). In comparison, Harbin is less developed Source: Household survey in six large Chinese cities, 2006-2007.
Y. Liu et al. / Habitat International 34 (2010) 135–144 141

Table 2
Overall characteristics of urban villages in six cities.

Villages Location Area Building Local residents Rural Population density


(kilometres) height (thousands) migrants (thousand
(levels) (thousands) persons/
square kilometres)
Guangzhou Sanyuanli Inner city 3.6 3–7 9.0 40.0 13.6
Beiting Peri-urban area 0.6 2–4 4.1 1.7 9.7
Kunming Yuchilu Inner city 3.0 4–6 2.9 16.5 6.5
Gangtou Peri-urban area 1.5 2–4 3.4 5.0 5.6
Nanjing Tengzi Inner city 1.5 2–6 2.0 7.5 6.3
Suojie Peri-urban area 2.5 2–4 3.6 8.0 4.6
Wuhan Tuanjie Inner city 2.5 4–8 5.0 11.0 6.4
Tanghu Peri-urban area 3.0 2–4 3.6 10.0 4.5
Xi’an Renyi Inner city 0.5 2–6 0.8 3.0 7.6
Nanhe Peri-urban area 0.8 2–4 1.2 2.2 4.3
Harbin Hadatun Peri-urban area 2.0 1–3 4.0 6.0 5.0

Source: Household survey in six large Chinese cities, 2006-2007.

Table 3). The result of the land requisition process mainly depends person in the 11 surveyed urban villages (see Table 4). The amount
on the demand for construction land and the village’s location. of cash compensation varies according to time, purpose and loca-
Inner city villages, which generally experience appreciation of land tion of land requisition, as well as local income level. In addition, for
values, often manage to obtain liuyongdi through negotiation with those villages established a shareholding company, local villagers
the city government. became shareholders and were offered stock shares according to
For those urban villages still possessing collective land, the their length of service in the village before the land requisition.
village collective was converted into a joint-stock company, Villagers can receive an annual dividend based on their stock shares
running small town and village enterprises (TVEs) or managing and the scale of the collective economy, ranging from 2100 Yuan to
rental businesses. The joint-stock company, as a grassroots orga- 38,900 Yuan per person in different villages (see Table 4).
nization, provides some social security and benefits to villagers. Besides dividends from the collective entity, most villagers have
Nevertheless, these are only temporary strategies for the village built their own houses for rent. Driven by great profits, most
collective and for villagers, because the city government can easily households in villages have built at least one house for rent. In
take over property rights by redeveloping the urban village. For different cities and different locations in the city, housing rentals
those urban villages without retained collective land and no differ, ranging from 8 to 16 Yuan per square metre. Considering the
collective enterprise, there is no need to develop a joint-stock different number of rooms for rent, the annual rental income also
company. In these cases, the village committee is in charge of the varies significantly in different villages, ranging from 2000 to
management duties. In many urban villages, villagers’ hukou has 30,000 Yuan per capita (see Table 4). Housing rental has become
transformed from rural to urban, and the villagers’ committee was the main income source for most villagers. Some of them even
accordingly converted into a residents’ committee. Elected by local make a windfall profit from their petty rental businesses. Their
villagers, the residents’ committee thus acts as a grassroots orga- income is much higher than the average level of local urban
nization, taking care of social affairs in urban villages, including the residents.
built environment, civil affairs, social order, family planning (birth Social welfare for local villagers also varies in the 11 surveyed
control), etc. The residents’ committee is supposed to represent the villages. For some villages such as Gangtou and Tuanjie, the village
interests of and be supervised by local villagers. collective paid the start-up costs for a comprehensive social security
insurance package for each villager. After that, villagers were
Local villagers’ income and social welfare required to pay for themselves. For most urban villages, the majority
of local villagers have participated in pension insurance and
Land and housing rental has become the major income source healthcare insurance schemes with a subsidy from the village
for village collectives and villagers. Most villagers affected by land collective. Those villagers not covered by social security schemes are
requisition were offered an urban hukou, and they received a lump offered a monthly healthcare subsidy. Elderly villagers who are not
sum cash compensation ranging from 8000 to 35,000 Yuan per covered by a pension insurance scheme are also offered a monthly

Table 3
Collective economy and grassroots organization of urban villages in six cities.

Villages Location Land use Collective economy Management organization


organization
Guangzhou Sanyuanli Inner city Housing plots and collective property Joint-stock company Residents’ committee
Beiting Outer city Housing plots – Residents’ committee
Kunming Yuchilu Inner city Housing plots and collective property Joint-stock company Residents’ committee
Gangtou Outer city Housing plots – Residents’ committee
Nanjing Tengzi Inner city Housing plots and collective property Joint-stock company Residents’ committee
Suojie Outer city Housing plots – Residents’ committee
Wuhan Tuanjie Inner city Housing plots and collective property Joint-stock company Residents’ committee
Tanghu Outer city Housing plots and collective property Joint-stock company Residents’ committee
Xi’an Renyi Inner city Housing plots – Residents’ committee
Nanhe Outer city Housing plots and collective property Joint-stock company Residents’ committee
Harbin hadatun Outer city Housing plots and collective property – Residents’ committee

Source: Household survey in six large Chinese cities, 2006-2007.


142 Y. Liu et al. / Habitat International 34 (2010) 135–144

Table 4
Income and welfare of urban village’s local households in six cities.

Villages A lump sum cash A dividend per Capita Private housing Rent Average A comprehensive social
compensation per capita from village collective (Yuan) per capita (Yuan) rent(Yuan/m2) security insurance package
Guangzhou Sanyuanli – 38900 8900 16 Partially
Beiting 20000 – 2000 10 Partially
Kunming Yuchilu 8000 2100 6000 15 Partially
Gangtou 35000 – 3000 8 Yes
Nanjing Tengzi 15000 6000 25000 12 No
Suojie 30000 – 10000 10 No
Wuhan Tuanjie – 15000 30000 15 Yes
Tanghu 20000 – 12000 12 Partially
Xi’an Renyi 25000 – 10000 12 Partially
Nanhe 10000 9600 4000 8 No
Harbin Hadatun 30000 – 2000 8 No

Source: Household survey in six large Chinese cities, 2006-2007.

pension from the village collective. Only in a few villages do villagers and local villagers consume the largest. Living space per capita for
have to pay for the social security insurance package themselves. rural migrant households is only 14.56 m2, and rooms per capita is
Some villagers also chose to quit the insurance scheme initially only 0.62, contrasting with the figures of 43.58 m2 and 1.2
offered or arranged by the collective. In general, villagers in urban respectively for local villagers.
villages are better off, compared with their situation before land In addition, households in peri-urban areas had similar housing
requisition. However, their future is uncertain, especially when conditions to those in the inner city. The housing facilities indexes
their cash compensation has been used up, their housing land has of the two groups of households are 2.48 and 2.711 respectively.
been requisitioned, and they are not covered by social security Housing conditions for rural migrant households are worse off
insurance. compared with the other two groups. The housing facilities index of
rural migrants is only 1.98, while the figure is 3.6 for local villagers
Characteristics of inhabitants in urban villages: descriptive analysis and 3.07 for other urban residents. Only a small number of
surveyed households are unsatisfied with the housing conditions
The overall characteristics of inhabitants in urban villages will and living environment.
be analysed below. In addition, inhabitants in urban villages are
further categorized into three groups by their hukou status,
Discussion and conclusion
respectively local villagers, rural migrants and other urban
residents.
Urban villages are the products of China’s rapid urbanization
First, the average household size in urban villages is 2.88
process since the 1990s. In the urban village, where rules are
persons, which is smaller than the average level of 2.95 persons in
unclear and ambiguous, an unruly and unstable space is inevi-
the Chinese city (NBSC, 2006). Most inhabitants in urban villages
tably emerging, in terms of unplanned and disordered housing
are rural migrants. Compared with local villagers, Table 5 shows
construction, and a distorted housing rental market. First, the
that the average household size of rural migrants is much smaller.
plural characteristics of the urban village are the result of the
This is because many rural migrants moved to the city on their own,
dichotomy of the rural–urban land system and excessive urban
leaving their family at home.
sprawl. The institution of land requisition creates the isolation of
Second, inhabitants’ occupations are mainly self-employed/
the urban village, in terms of physical forms and institutional
small business owner, manual worker/social service worker, and
arrangements. Second, the generation of the urban village actually
informal jobs, which respectively take up 29.2%, 24.6% and 23.7%. In
involves various property rights transactions and negotiation
contrast with the inner city villages, the concentration of lower
between different interests groups under uncertain rules. The
occupational status in peri-urban areas is much more obvious. In
formation of the urban village witnesses how different interest
turn, lower occupational status in peri-urban areas led to their
groups (the city government, the village collective and local
lower monthly income, 1494.86 Yuan, in contrast with 1908.89
villagers) secure their own interests through negotiation and
Yuan in inner city areas. In addition, local villagers generally have
conflicts. The city government on the one hand acquiesces in the
lower occupational status than the other two groups, and so their
existence of fuzzy property rights to allow villagers and the
monthly income is also lower. In fact, the reported monthly income
collective to make profits; on the other hand, the city government
of local villagers was only salary income, not including other income
avoids its responsibility for management and social welfare
sources, such as housing rent. About half of them do not have or do
provision under these fuzzy property rights. Third, the traditional
not want to take formal jobs, because almost all local villagers
social norms and social networks in urban villages do not vanish
manage to make a living from rental businesses. In contrast, urban
immediately after urbanization. The urban village is still a tradi-
residents in the urban village have higher occupational status, and
tional society based on primary relationships, which is quite
their monthly income was also higher than the average level.
different from modern urban society based on contractual rela-
Third, the average housing space in urban villages is smaller
tionships. As transitional neighbourhoods from rural society to
than the Chinese city average. In the total sample, average living
urban society, urban villages are undergoing multiple trans-
space per capita is 22.6 m2, which is much lower than the 26.1 m2
formations in terms of the identity of villagers, social relations,
for the Chinese city as a whole (NBSC, 2006). Furthermore, the
mode of organization and management.
housing space in the inner city is much less than in the peri-urban
areas. Table 5 shows that living space per capita in the inner city
was 20.4 m2, and rooms per capita were 0.71, in contrast to 1
Housing facilities index (a constructed index scaled 0–8 based on the presence
24.44 m2 and 0.82 respectively in peri-urban areas. Contrasting the of private bathroom, private kitchen, private shower bath, bottled gas, piped-in gas,
three groups, rural migrants consume the smallest housing space, air conditioner, heating and internet).
Y. Liu et al. / Habitat International 34 (2010) 135–144 143

Table 5
Socio-economic characteristics and housing status of residents in urban villages by location and hukou status.

Total Inner city Peri-urban area Local villagers Rural migrants Urban residents

Mean % (N) Mean % (N) Mean % (N) Mean % (N) Mean % (N) Mean % (N)
Household size 2.88 2.89 2.87 3.82 2.58 2.94

Household head’s
Occupation
Manager/director 5.90 (47) 7.50 (27) 4.59 (20) 1.79 (2) 5.34 (22) 8.46 (23)
Professional/civil 8.67 (69) 11.94 (43) 5.96 (26) 7.14 (8) 8.01 (33) 10.29 (28)
servant
Skilled worker/ 7.91 (63) 10.00 (36) 6.19 (27) 2.68 (3) 7.52 (31) 10.66 (29)
technician
Self-employer/small 29.15 (232) 26.94 (97) 30.96 (135) 17.86 (20) 38.59 (159) 19.49 (53)
business owner
Manual worker/social 24.62 (196) 21.94 (79) 26.83 (117) 17.86 (20) 29.61 (122) 19.85 (54)
service worker
Informal job and others 23.74 (189) 21.67 (78) 25.47 (111) 52.68 (59) 10.92 (45) 31.25 (85)

Household head’s 1682.34 1908.89 1494.86 1352.85 1649.59 1867.51


income monthly
Living space per capita 22.61 20.40 24.44 43.58 14.56 26.27
Rooms per capita 0.77 0.71 0.82 1.20 0.62 0.84
Housing facilities index 2.58 2.71 2.48 3.60 1.98 3.07
Valid N (listwise) 796 360 436 112 412 272

Source: Household survey in six large Chinese cities, 2006-2007.

Despite associated social problems, the urban village has illegal construction has created an informal and distorted housing
a positive effect on suspending and calming social conflicts under rental market. In addition, due to the lack of planning and regula-
rapid urbanization, by providing a survival strategy for local land- tion, the urban village has produced a negative image in the city.
less farmers and inexpensive shelter for migrant workers. First, the Nevertheless, under China’s rapid urbanization, the urban village
urban village is considered as the community of interest for local has played a positive role and has undertaken some responsibilities
villagers. Landless farmers become one of the most vulnerable that are supposed to be shouldered by city governments. To a great
groups in the city. To cope with rights deprivation, landless farmers extent, urban villages solve the problems of an unbalanced housing
develop a bottom-up anti-poverty strategy by building and renting market and the mismatch between housing supply and demand in
houses to migrant workers in the urban village. Landless farmers many Chinese cities.
take advantage of their de facto rights over the collectively owned To fully understand the urban village, we must focus not only on
land to make a living through renting houses. Second, urban its physical form, but also, more importantly, understand its
villages are considered as enclaves for rural migrants. As another integration into urban society from the various aspects of social
vulnerable group in the city having difficulties in getting formal and relations, organization, and management. The vacuum of state
stable jobs (Smith, 2000), rural migrants generally have a compar- regulation in the urban village provides a means of subsistence for
atively low socio-economic profile. Meanwhile, their housing landless villagers and low-cost housing for migrants. The trans-
demand is totally ignored by the city government. In this context, formation of the urban village under state regulation would be
the urban village has played an important role in providing a large complicated. To transform the urban village into the urban
number of low-rent houses for migrants. Urban villages act as community, demolition and reconstruction would not be workable,
springboards for migrants to be gradually integrated into the urban because this would fail to integrate local villagers into urban society.
society. Third, the urban village not only remains a strong collective Meanwhile, how to solve the housing problem for rural migrants is
economy, but also inherits village-style organization and social another important issue. To redevelop urban villages, two impor-
cultural traditions. These allow urban villages to become self- tant points need to be recognized. First, the problems in urban
organized grassroots units while state intervention and regulation villages should not be exaggerated. The urban village has played
are lacking. The inherent common interests and relationship of a large part in easing the pressure of urbanization, and should
mutual trusted between the village collective and villagers enable therefore be allowed a moderate tolerance of its existing problems.
the former to implement effective economic management and The rising problems of social order and governance are the costs
community governance. that have to be paid for rapid urbanization. In order to reduce these
The case study of 11 urban villages in 6 large Chinese cities costs, the key is to promote and guide the existing self-organized
confirms the above research findings. At the same time, the case grassroots units in the urban village. Second, the forces of the
study also shows some differences among various urban villages. In market should be fully recognized and introduced to solve the
contrast with urban villages in peri-urban areas, those in the inner problems of the urban village. The generation of the urban village is
city are characterized by higher population and building density, partially the product of the burgeoning market economy, so it is
higher socio-economic status and poorer housing status. The appropriate to allow the adoption of market rules to guide the
comparisons between local villagers, rural migrants and urban redevelopment of the urban village, and also to reduce the difficulty
residents also show distinct features. The group of local villagers and cost of resolving existing problems.
consumes the best housing conditions, and has the highest income;
rural migrants have worse living conditions; and urban residents in Acknowledgement
urban villages are characterized by higher socio-economic status.
Essentially, the urban village should not be blamed for creating This research is supported by the National Natural Science
an urban pathology, but should be considered as a special form of Foundation of China (50808082 and 40801061, China), and an ESRC
neighbourhood. In urban villages, the existence of widespread grant (RES-167-25-0005, UK).
144 Y. Liu et al. / Habitat International 34 (2010) 135–144

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