China to Accelerate Its Urbanization Pace

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Last updated at: (Beijing Time) Friday, December 06, 2002

China to Accelerate Its Urbanization Pace

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China is now facing an opportunity to speed up its urbanization process.

"If well done, China is able to upscale its urbanization level one to two percentage points every year, and finally reach a level of over 50 percent by the year of 2020," Zheng Xinli, deputy director of the Policy Research Office of the Chinese Communist Party Central Committee, was quoted as saying by the Beijing-based China Economic Times.

So far, the urbanization level in China stands at about 37 percent, roughly 10 percentage points lower than its industrialization level. Such a level is not only far lower than that of developed countries, but also nearly 10 percentage points below to that of most developing countries with more or less the same industrialization level as China.

As a matter of fact, the lower urbanization level is pulling China's fast moving economic pace already.

Analysts widely agree that the lower urbanization rate and consequently a large rural population, and farmers' restrained consumption power are one major, if not the only, reason for the troublesome deflationary phantom for which China has been on guard since 1997.

China has succeeded in feeding its 1.3 billion population, but how to make its nearly 900 million rural population "get rich" is apparently a tough mission.

The per capita less than 1 mu (0.06 hectare) farming land, the rocketing farming cost, the declining grain prices and the mutually-separated rural and urban economies have rendered it not only nearly impossible for farmers to increase their income through plowing their meager plot of land, but also very hard to benefit, together with their urban counterparts, from China's rapid economic growth.

In the 16th National Congress of the Communist Party of China held last month, the Party made up its mind to build an all-around "Xiaokang" - literally a moderately "well-off" - society, of which a higher level of urbanization is a major part.

"China's industrialization is now entering a fast lane, and (correspondingly) the urbanization level will go up one percentage point per year and eventually hit over 50 percent by the year of 2020," said Zeng Peiyan, minister of the State Development Planning Commission in his signed article in the People's Daily.

"By then, of the total labor force in China, the proportion of those working in the agricultural sector will drop to 30 percent from 50 percent in the year 2000," he said.

Keep a somber mind

While speeding up the urbanization drive, China should pay sufficient attention to six points, according to Zheng Xinli.

First, metropolises, medium-and-small cities and tiny towns should develop coordinately.

That's to say, cities and towns, big or small, should be allowed to grow on their own as long as they meet the required conditions.

This means a change of the former philosophy of China's urbanization proceedings, in which small towns are usually emphasized as the main termini to absorb excessive farmers.

As for the ensuing pressure on the infrastructure and the public facilities of big cities with more farmers swarming in, Zheng said this is an unnecessary fear.

Despite there have been some big cities along China's coastline, none of which has reached the population density of that in the major city belts of Japan, South Korea and China's Taiwan, he said.

To make a city rise as a business hub, it must be big enough in terms of its area and population, he said.

Second, the current barriers impeding Chinese people's migration between cities and countryside must be dismantled. The first step should be to reform the existing household registration system so that more farmers can move freely to cities if only they want.

Critics said that China's existing household registration system has in fact locked farmers onto their farming land, which is actually a kind of prejudice against farmers.

Third, big cities such as Beijing and Shanghai should improve their public transportation between the downtown area and the suburb, which will help reduce the real estate prices in downtown and meanwhile divert more residents to the suburb.

Fourth, instead of building up one or two world-rate metropolises, China should focus on developing more city belts, which, usually as capital and technological hubs, will lead their adjacent area to higher prosperity.

To date, three dynamic city belts are taking shape in the Pan-Bohai Bay area in north China, the Yangtze River Delta and the Pearl River Delta, all prominently driving the economy of the contiguous area.

Fifth, while shaping their development strategy, local governments must take into account their unique economic and natural advantages and disadvantages.

By developing more cities, local government should be clear that they are creating the darting forces of the local economy instead of copying the grand metropolises in every detail, he said.

Finally, Zheng said city development is eventually intended to create living space for the residents. Therefore, local governments must consider bettering the natural environment, the cultural and living facilities to make their cities habitable.

To polish their administrative performance, local governments sometimes just thrust to erect more imposing shopping malls but neglect the fundamental natural and cultural facilities for the local residents.

By PD Online Staff Forest Lee

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