shi nan. central government's role in planning

Changing Role of the Chinese Central Governmentin Urban and Rural Planning

SHI, Nan2011-12-08

Moscow Urban Forum

Structure of the Presentation

Decentralization: Factors

Centralization: Factors

Debates

Conclusion

Decentralization: A Historical Evolution

1950s 1980s 2000s

City plan deals with the spatial/physical aspect of economic

plan, together as the foundation of

political system

City planning challenged by both market forces

and departmental interests, marginized

from political arena of the central government

City planning employed by the central

government for macro economic control,

challenged by intergovernmental

competition of local authorities

EP

CP ESDP

ESDP

CP

CP CLUP

Industries

Housing

Infrastructures

Land-use

www.planning.org.cn 中国城市规划学会 Urban Planning Society of China

Capital Division of Power

Enabling legislation Statutory Plan National Ministry

The Constitution

Urban and Rural Planning Act

Land Administration Act

Economic & Social Development Plan (ESDP)• Economic & social

Development• development priority zone planCity Plan (CP)• Human habitat• Land use

Comprehensive Land Use Plan (CLUP)• national territory• preservation of arable lands

National Development and Reform Commission (NDRC)

Ministry of Housing and Urban-Rural Development(MOHURD)

Ministry of Land and Resources(MLR)

The inauguration of Authority of Land and Resource in 1980s

ESDP’s Shift to spatial dimension in 1990s


Decentralization: Fiscal

• Taxation system reform in 1994– Streamline the taxes based on governmental

responsibilities and establish stable fiscal relationship between government levels

– Taxes for central government, Taxes for local government, and Taxes shared by both

– Tax return and transfer payments– Unbalanced fiscal revenue for local government– Deficit covered by immense land leasing, resulted in

planning failure


Fiscal Expenditures & Transfer Payments

1980 1981 1982 1982 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 20050

5000

10000

15000

20000

25000

30000

35000

40000

全国财政支出中央财政支出地方财政支出转移支付

Based on Wenzheng: THE GOVERNANCE DIVISION BETWEEN THE CENTRAL AND LOCAL GOVERNMENTS,2008

National Expenditure Central GovernmentExpenditure

Local GovernmentExpenditure

Transfer Payment


Fiscal Revenue in Billion

1980 1981 1982 1982 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 20050

5000

10000

15000

20000

25000

30000

35000

全国财政收入中央财政收入地方财政收入

Based on Wenzheng: THE GOVERNANCE DIVISION BETWEEN THE CENTRAL AND LOCAL GOVERNMENTS,2008

• Local debts totaled 2.79 trillion in the 18 provinces, among which 1.04 trillion Yuan or nearly 60 percent was generated in 2009.

• The local debt expanded to 7.38 trillion at the end of 2009, and has perhaps well exceeded 8 trillion by the end of May 2010.

National Revenue Central Revenue Local Revenue


• Local government has to depend on land leasing to pay off the local debts.

Fiscal Revenue from Land Leasing

• 700 billion in 2006, 1,300 billion in 2007, 960 billion in 2008, 1,590 billion in 2009

• National audit office (based on survey of 40 cites): 674.81 billion, 20.1% of total land leasing revenue in 11 cities have not been included in city budget.

City 2007 2008 2009Hangzhou 64.6 31.2 105.4

Shanghai 80.3 38.2 104.3Beijing 43.8 50.3 928Tianjin 38.8 43.9 73.2

Guangzhou 32.3 12.2 48.9

Ningbo 5.2 6.8 48.8Chongqing 31.4 11.7 44.0

Wuhan 26.7 8.1 36.1Foshan 21.6 6.8 33.2

Chengdu 39.6 6.6 32.4

Top 10 cities in land revenue

China Real Estate Databank

Billion Yuan


By-effects of Taxation Reform

Taxation reform

Unbalanced local finance

Land leasing spree

City plan sabotaged

Abnormal physical development


Decentralization: Public Participation

EnterprisesParticipantsMarket experiencesinvestment

GovernmentOrganizerPolicy resourcesIncentive & catalyst

PlannerParticipant

Professionalism

CitizenParticipantsSocial awareness

CityPlanning

1950s 1980s 1990s

politician

planner

politician

Entrepreneur

Entrepreneurpolitician

planner


Centralization: Regional Planning

• Cooperation cross the Taiwan Straits

• Regional infrastructure• Urban/rural integration


West Bank of Taiwan Straits

• Pivot for the national economy

• Center for manufacture, energy, grain production, etc.

• Revitalization of traditional industrial bases

• Regional infrastructureCentral China

http://www.fjsen.com/images/attachement/jpg/site2/20091204/001aa02cbc4d0c8285e401.jpg

http://www.fjsen.com/images/attachement/jpg/site2/20091204/001aa02cbc4d0c8285e401.jpg

Centralization: Supervising System• Covers:

– All Provincial capital cities

– All Sub-provincial level cities

– All National Historic Cities except Municipalities

2006 (6 cities) Nanjing, Hangzhou, Zhengzhou, Xi’an, Kunming, Guilin

2007 (12 cities) Shijiazhuang, Taiyuan, Shenyang, Dalian, Xining, Lanzhou, Wuhan, Changsha, Guiyang, Nanning, Fuzhou, Xiamen

2008 (17 cities) Hohhot, Changchun, Harbin, Hefei, Nanchang, Jinan, Qingdao, Suzhou, Ningbo, Guangzhou, Shenzhen, Haikou , Chengdu, Chongqing, Lhasa, Yinchuan, Urumqi

2009 (17 cities) Handan, Baoding, Datong, Jilin, Daqing, Wuxi, Xuzhou, Changzhou, Zibo, Tai’an, Kaifeng, Luoyang, Anyang, Xiangfan, Jinzhou, Zhuhai, Liuzhou


Cities with Planning Supervisor

Major Aspects of Supervision• City master plan:

– formulated, adjusted and submitted for approval within the statutory jurisdiction and procedures;

– in conformity to requirements of the provincial urban system plan;

• Secondary plans: in conformity to the compulsory requirements of city master plan;

• Planning permit: in conformity with statutory procedures and compulsory requirement of the city master plan

• Green space, water area, infrastructures, historic preservation etc.

• Implementation of historic preservation plan


Centralization: Plan Approval

• In 1980s, 38 city plans approved by the State Council

• In 1990s, “plans for cities with over 500 thousands non-agricultural population should be approved by the central government” (86 cities).

• In 2000s, 20 more cities added to the list, Joint meeting chaired by MOC(Now MOHURD) with other 14 National Ministries, Checklists and requirements for plans…



106 Cities Subject to State Council Approval

In 1980s (38 Cities )

In 1990s (48 Cities added )

In 2000s (20 Cities added )

• Planning area• Objectives/aims• City nature/identities• City size: population, land• Requirements from upper level

plans• Layout/spatial structure• Traffic and transportation• Environmental and ecological

concerns• Infrastructures and city safety• Historic preservation• Planning implementation, etc.

• Public absent• Mixing details of checklists• Complicated procedure• Inefficiency• Unbalanced duty/power• No cost-benefit/feasibility evaluation• Everything is nothing• Is plan approvable• Wag the tail of development


Checklists of State Approval

• Majority of GDP• Major land resource

consumer• National Interests

Debate I: ONE Plan vs. Power Division

• Planning system in China is a combination/result of political centralization and economic decentralization.

• At the national level, separated government planning is a result of historic evolution, but never should be taken granted.

• Decentralization needs more powers delegated to local government and integration of departmental planning at national level.

• Central government approval proved a failure mechanism, it can be replaced by identifying national interests which shall compulsorily carried out by local planning.


Debate II: Political vs. Technical

• Planning is basically a local affair. But the decentralization in planning lies with the overall democratization process of the civic society.

• Political legitimacy is far more important than technical rationality in a transitional society like China.

• Supervision by Provincial Authority, City People’s Congress and general public is vital while the central government should be vested with policies and guidelines for urbanization.


Debate III: A Free Hand or “Hands off”

• Central government usually do no planning except in areas of environmental issue, national infrastructure and social development

• Regional planning can only be initiated by provincial or regional governments. Central government should not be entitled to draft such plan on behalf of regional government.

• National government can be very important in designing the policy regarding urbanization and framework for intergovernmental relations.


Conclusion

Decentralization Centralization Challenges

Capital division of power

Regional planning

Overlapping and ambiguous

planning

Fiscal decentralization

Planning supervising

Wider social & spatial divide

Public participation Plan approval

Market/ & planning

failureNational Interests

Integration

Political Legitimacy

Supervision

Delegation


Conclusion

Those affairs evolves the whole country and trans-provincial affairs are vested in Central Government’s responsibility, while those evolves only local administrative regions vested in local government.

Most important issue in central-local relationship is identifying national interests rather than the approaches to accomplish such interests.


• Thanks

Shi [email protected]+86-10-5832-3851+86-13801125011

中国城市规划学会Urban Planning Society of Chinawww.planning.org.cnFax: +86-10-5832-3850

shi nan. central government's role in planning

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