Urban transition in China: the Urban transition in China: the emergence of city-region emergence of city-region

governance governance

Fulong Wu Fulong Wu

School of City and Regional Planning, Cardiff School of City and Regional Planning, Cardiff UniversityUniversity

Presented in Conference of Regional Economies in a Globalising World: Enhancing Intellectual Capacity and Innovation. 21st November 2008, Cardiff, Wales, UK

Urban transition at the regional Urban transition at the regional economy scaleeconomy scale

The China story:The China story:

Demise of (socialist) redistributive regional policyDemise of (socialist) redistributive regional policy

The rise of entrepreneurial citiesThe rise of entrepreneurial cities

The crisis of urban entrepreneurialism The crisis of urban entrepreneurialism

Rescaling towards city-region governance Rescaling towards city-region governance

In response to globalizationIn response to globalization

A Chinese model?A Chinese model?

Export-oriented development following East Asian Export-oriented development following East Asian (the flying goose model), but does not pay (the flying goose model), but does not pay attention to Chinese specificityattention to Chinese specificity

‘‘Neoliberalism with Chinese characteristics’ (Harvey Neoliberalism with Chinese characteristics’ (Harvey 2005)2005)

A world factory regime – turning the socialist legacy A world factory regime – turning the socialist legacy into competition instruments: rural migrants + into competition instruments: rural migrants + regional economies + urban entrepreneurialism regional economies + urban entrepreneurialism

Historical formation

Form of state spatial selectivity

Form of urban-regional regulation

Major conflicts and contradictions

State socialism 1949-78

The national scale of statehood as overarching governance

Managerialism achieved through hierarchical planning coordination in the planned economy

Urban-rural dualism

Early market reformist regime 1979-2001

Rising localities

The dominance of large cities

Urban entrepreneurialism

Devolution of planning control

Fierce inter-city competitionUncoordinated and redundant

Post-WTO market society 2001 - present

Up-scaling towards the city-region, but this scale is only a layer of ‘soft institution’ without legislation or administrative power

Spatial plans, especially the centrally-initiated coordination plan for larger city-regions,

Building regional soft institutions such as mayors meeting, joint regional forum / councils

The city-region as an ‘imagined community’ but continues to see conflicting and diverse interests.

Changing regional governance in China: a conceptual framework

Entrepreneurial urban governanceEntrepreneurial urban governance

Shift from ideological purity and class struggle to the Shift from ideological purity and class struggle to the pragmatism of ‘growth first’ of Deng Xiaopingpragmatism of ‘growth first’ of Deng Xiaoping

Institutional foundation: hardening the ‘soft budget’ Institutional foundation: hardening the ‘soft budget’ (Walder 1995), local corporatism in rural China (Oi (Walder 1995), local corporatism in rural China (Oi 1997), and de facto federalism (Yinyi Qian’s work) 1997), and de facto federalism (Yinyi Qian’s work)

A proliferated literature on China’s central and local A proliferated literature on China’s central and local relation, e.g. the fiscal relation (Wong 1991, relation, e.g. the fiscal relation (Wong 1991, Zhang 1999) Zhang 1999)

Pro-growth coalition (Zhu 1999; Zhang 2002), based Pro-growth coalition (Zhu 1999; Zhang 2002), based on landed revenue on landed revenue

The location of Kunshan

A story beyond Shanghai: the emerging A story beyond Shanghai: the emerging world factor in the Yangtze River Deltaworld factor in the Yangtze River Delta

The case of Kunshan:

A county-level city under Suzhou municipality

The ‘little sixth’

Self-funded development zone, gained state recognition

Rapid growth in IT industry

Now aspirating to become Shanghai’s “edge city”

Phenomenal growth of Kunshan, the county-level city at the margin of Shanghai’s cit-region

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1978

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亿元

改革开放

昆山开办工业区

开发浦东

长江三角洲快速发展

中国入世

世界工厂

100 million

Opening of Shanghai’s pudong WTO, world factory

1,100 ICT companies, invested 14 billion USD

Notebooks account for 40% of the world total production

Major ICT production base

Figure 4 layout of Huangqiao Business Park

现代物流基地

延伸保税叠加

功能吸引展览

展示、国际采

购等高端部分

业务

服务外包基地

发展信息技术、数字内容、

生物医药、物流、金融

等领域服务外包

区域总部基地吸引跨国公司地区总部、研发

中心、服务中心、营销中心、

培训中心和咨询公司等

建滔集团总部

中城集团总部

苏豪国际广场

Construction of headquarter economy

The entrepreneurial city in crisisThe entrepreneurial city in crisis

Fierce inter-city competition Fierce inter-city competition

Redundant construction Redundant construction

Pursuing similar economic sector => over-supply, Pursuing similar economic sector => over-supply, low-value addedlow-value added

Ecological crisisEcological crisis

The fight between Kunshan and Shanghai:The fight between Kunshan and Shanghai:

““173 Project”: releasing 173 km2 ‘free land’ to draw 173 Project”: releasing 173 km2 ‘free land’ to draw investors back from Jiangsu province investors back from Jiangsu province

Jiangsu province: fighting back with 1730 km2 of an Jiangsu province: fighting back with 1730 km2 of an industrial belt surrounding Shanghaiindustrial belt surrounding Shanghai

The expansion of the built-up area in the Taihu area

Source: Qiu Baoxing presentation in 2007

Water pollution

Dian Lake in Kunmin Pollution of the River Huai

City-region governance as the City-region governance as the management of the crisis of management of the crisis of entrepreneurial citiesentrepreneurial cities

The need for regional governanceThe need for regional governance

The return of ‘public policy’? (replaced with the The return of ‘public policy’? (replaced with the notion of ‘sustainability’)notion of ‘sustainability’)

The subtle yet profound change of political ethos: The subtle yet profound change of political ethos: from Deng Xiaoping: “growth is hard truth”, to from Deng Xiaoping: “growth is hard truth”, to Hu Jintao: the “scientific approach to growth”. Hu Jintao: the “scientific approach to growth”.

(A) Strategic spatial plans(A) Strategic spatial plans

(B) Soft regional institutions(B) Soft regional institutions

(A) Spatial strategic plans(A) Spatial strategic plans

The emergence of ‘conceptual plans’, resulted from The emergence of ‘conceptual plans’, resulted from entrepreneurial thrusts entrepreneurial thrusts

These ‘conceptual plans’ are non-statutory plansThese ‘conceptual plans’ are non-statutory plans

China’s planning system: two-tiers: urban master China’s planning system: two-tiers: urban master plan – detailed construction planplan – detailed construction plan

Using ‘consultants’ to justify the local vision Using ‘consultants’ to justify the local vision

One of the earliest conceptual plans: Guangzhou conceptual plan

Technocratic plannerCPLAN PhD student (foreign experience)Self-made ‘neoliberal’ economistCelebrity planning consultantMunicipal planning bureau director

How ‘entrepreneurial’ is the Chinese state?

“City doctor”

Turning the ‘conceptual plan’ into ‘spatial Turning the ‘conceptual plan’ into ‘spatial strategies’ and coordination plansstrategies’ and coordination plans

National urban system planNational urban system plan

The Jin-Jin-Ji regional plan (Beijing, Tianji and Hubei)The Jin-Jin-Ji regional plan (Beijing, Tianji and Hubei)

The Pearl River Delta Coordination PlanThe Pearl River Delta Coordination Plan

The Urban System Plan of the Yangtze River Delta The Urban System Plan of the Yangtze River Delta

The Yangtze River Delta Regional Plan The Yangtze River Delta Regional Plan

National urban system plan prepared by the Chinese Academy of Urban Planning and Design

2000199520002002

The Pearl River delta

““one core area, three belts and five axes” spatial structure one core area, three belts and five axes” spatial structure of the coordination plan of the Pearl River Delta of the coordination plan of the Pearl River Delta

The Yangtze River Delta

Involvement of the national state level Involvement of the national state level departments: The Ministry of Construction, the departments: The Ministry of Construction, the National Development and Reform Commission National Development and Reform Commission (NDRC)(NDRC)

NDRC rejuvenated the Five-Year Economic Plan into NDRC rejuvenated the Five-Year Economic Plan into a ‘territorial strategic plan’a ‘territorial strategic plan’

NDRC: “Main Functional Area Plan” (NDRC: “Main Functional Area Plan” (zhuti zhuti gongnengqu guihuagongnengqu guihua))

Authorized by the State Council, to cover 9600,000 Authorized by the State Council, to cover 9600,000 km2 (national territory)km2 (national territory)

Four major types: Four major types:

The prioritized development areaThe prioritized development areaOptimization areaOptimization areaRestricted areaRestricted areaForbidden area Forbidden area

The basic units for the first three types are counties The basic units for the first three types are counties (basic administrative unit), and for the last type (basic administrative unit), and for the last type is natural boundary or designated area is natural boundary or designated area

What is the “plan of main function area”?What is the “plan of main function area”?

Recognition of Recognition of de factode facto devolution at the county / city devolution at the county / city levellevel

An attempt to link governance and regulation with An attempt to link governance and regulation with decision making units decision making units

‘‘Recentralization’ to restore some sort of Recentralization’ to restore some sort of coordination by assessing performance coordination by assessing performance accordingly (not just GDPnism) accordingly (not just GDPnism)

The central state’s effort to consolidate its The central state’s effort to consolidate its governance over entrepreneurial local agentsgovernance over entrepreneurial local agents

““The importance of urban and town clusters has transcended The importance of urban and town clusters has transcended a pure academic concept and becomes a real issue of a pure academic concept and becomes a real issue of government. The national Eleventh Five-Year Plan uses government. The national Eleventh Five-Year Plan uses urban and town clusters as the key form to promote urban and town clusters as the key form to promote urbanization; the Seventeenth CCP Congress adopts the urbanization; the Seventeenth CCP Congress adopts the concept of urban and town clusters”. concept of urban and town clusters”.

““Academic and business communities regard urban and town Academic and business communities regard urban and town clusters as the growth pole for enhancing clusters as the growth pole for enhancing competitiveness and regional capacities; competitiveness and regional capacities; the central the central government recognizes the need to intervene the government recognizes the need to intervene the development of urban and town clusters and set up the development of urban and town clusters and set up the necessary coordination mechanismnecessary coordination mechanism” (Li 2008: 5). ” (Li 2008: 5).

Mr. Li Xiaojiang, the Director of Chinese Academy of Urban Mr. Li Xiaojiang, the Director of Chinese Academy of Urban Planning and Design Planning and Design

(B) Building soft regional (B) Building soft regional institutioninstitution

Fierce inter-city competition Fierce inter-city competition

Spontaneous bottom-up coordinationSpontaneous bottom-up coordination

Pan-PRDPan-PRD

The regionalization of the Yangtze River Delta The regionalization of the Yangtze River Delta

The Pan-PRD boundary Source: Yeh and Xu (2008)

Pan-PRD: known as 9+2 (Hong Kong and Macao)Pan-PRD: known as 9+2 (Hong Kong and Macao)

Initiation under Mr. Zhang Dejiang, then Party Secretary of Initiation under Mr. Zhang Dejiang, then Party Secretary of Guangdong province Guangdong province

Coordination or expansion of hinterland?Coordination or expansion of hinterland?

““To understand and promote Pan-PRD cooperation, we need To understand and promote Pan-PRD cooperation, we need to adopt a global perspective and strategic thinking, from to adopt a global perspective and strategic thinking, from the height of promoting the national-scale region the height of promoting the national-scale region cooperation and regional collaborative development; cooperation and regional collaborative development; from the strategic consideration of stabilizing and from the strategic consideration of stabilizing and promoting the economies of Hong Kong and Macao”promoting the economies of Hong Kong and Macao”

Regionalization of the Yangtze River DeltaRegionalization of the Yangtze River Delta

Failure of Shanghai Economic Region in the 1980sFailure of Shanghai Economic Region in the 1980s

1996: the Coordination Association of Urban Economies 1996: the Coordination Association of Urban Economies

2000: the Forum of Economic Collaboration2000: the Forum of Economic Collaboration

Different “membership”: 15+1 model or 2+1 modelDifferent “membership”: 15+1 model or 2+1 model

Since 2005, focused on comprehensive transport system, Since 2005, focused on comprehensive transport system, science and technology, and environmental protection science and technology, and environmental protection

No regional development agency to coordinate No regional development agency to coordinate regional development regional development

Even the province cannot coordinate development Even the province cannot coordinate development within its territorywithin its territory

Pearl River Delta: Guangdong province Pearl River Delta: Guangdong province Yangtze River Delta: Shanghai + Jiangsu + Zhejiang Yangtze River Delta: Shanghai + Jiangsu + Zhejiang

Strong influence from the central government: Strong influence from the central government: Development and Reform Commission system Development and Reform Commission system (‘planning commission’)(‘planning commission’)

Adhere to soft institution Adhere to soft institution

Conclusion Conclusion

““the emergence of city-regions [is] as the product of a the emergence of city-regions [is] as the product of a particular set of economic, cultural, particular set of economic, cultural, environmental and political projects, each with environmental and political projects, each with their own logics” (Jonas and Ward 2007: 176) their own logics” (Jonas and Ward 2007: 176)

In the Chinese context, regional development in In the Chinese context, regional development in response to globalization has seen two response to globalization has seen two interrelated forces:interrelated forces:

1) ‘regional competitiveness’: devolution, and then 1) ‘regional competitiveness’: devolution, and then regionalization by entrepreneurial thrust, the regionalization by entrepreneurial thrust, the Yangtze River Delta became the core of China’s Yangtze River Delta became the core of China’s world factory productionworld factory production

2) ‘regional governance’: a reaction towards the 2) ‘regional governance’: a reaction towards the crisis of the entrepreneurial city,crisis of the entrepreneurial city,

a. Turning ‘entrepreneurial plan’ into regulatory device a. Turning ‘entrepreneurial plan’ into regulatory device (‘spatial plan’)(‘spatial plan’)

b. Building soft regional institution b. Building soft regional institution