A model of planning by contract: Integrating comprehensive state planning, freedom of contract, public participation and fidelity

Abstract

This paper explains the history and problems of the traditional plan-market dichotomy and characterises and defends an ideal type model of 'planning by contract'. As illustrated by a discussion of a real-world shadow of the model adopted in Hong Kong, which has been duplicated in China under the 'land use rights reform', this model avoids the extant problem of the idea of 'planning by contract' by combining comprehensive government planning backed by public participation with development based on market forces. This combination is novel not only because it is in line with both a theory of communicative planning and innovation and a social contract based on private property in both positive and normative terms, but also because it invokes the concepts of fidelity and love omitted by most public interest theses on planning.