CHINA CITY DEVELOPMENT STRATEGIES

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CHINA CITY DEVELOPMENT STRATEGIES

• Chreod Ltd./Urban Institute/ICSC

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Objectives of Presentation

• Provide guidelines on preparing for CDS
• Suggest how some Chinese urban issues can be
  addressed through CDS
• Suggest some issues identified through CDS that
  are relevant to senior government policies
• Outline a strategic planning framework used in
  this study, and illustrate how it can be used
• Comment on opportunities for IFI/donor
  participation coming out of CDS

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CDS

• Process of preparing a long-term vision of the
  citys future, from which is drawn a short-term
  action plan. The focus is on economic
  competitiveness, but poverty reduction,
  environmental, urban structure, infrastructure,
  and financial aspects are also covered. The
  process is participative, involving major
  stakeholders from all segments of the community.
  The product is a development strategy that will
  evolve and change as implementation proceeds.

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CDS

• Owned by the city
• Long-term view, coupled with short term actions
• Stakeholder participation
• Strategic and multi-faceted
• New ways of thinking about the citys development

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Preparing for CDS

• Support from top leaders
• Human and monetary resources
• External sponsor
• Local management structure
• Consultants
• Support of senior governments
• Identification of stakeholders

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Potential Problems

• Lack of non-governmental organizations
• Lack of experience in stakeholder participation
• Data deficiencies
• Lack of time of senior officials
• Expectations too high
• Rigidity of current planning framework

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Chinese Urban Issues and CDS

• CDS
• Comprehensive, inter-departmental teams, common
  database, identification of cross-sectoral issues

• ISSUE
• Strong institutions in place, but weak
  horizontal coordination

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Chinese Urban Issues and CDS

• CDS
• Product is development strategy, designed to be
  flexible
• Outside help in adapting planning to market
  realities

• ISSUE
• Major planning instruments in place, but too
  static and lack market orientation

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Chinese Urban Issues and CDS

• CDS
• Uses demand forecasting
• Infrastructure provision planned to meet market
  demand

• ISSUE
• Use of national norms to establish need for
  urban services

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Chinese Urban Issues and CDS

• CDS
• Views city in its regional and national context
• Identification of issues that require joint
  action with other governments

• ISSUE
• Focus on what is under direct control of
  municipal government

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Chinese Urban Issues and CDS

• CDS
• Involvement of stakeholders
• Opportunities for joint public-private initiatives

• ISSUE
• Plans and priorities determined by a few
  municipal departments

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Chinese Urban Issues and CDS

• CDS
• Assessment of financial constraints
• Prioritization of investments
• Identification of other financing mechanisms

• ISSUE
• Local governments have considerable decision
  making authority, but limited fiscal resources

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Chinese Urban Issues and CDS

• CDS
• Addresses these issues with combination of
  income security, urban development, and rural
  development initiatives

• ISSUE
• Urban poverty layoffs, rural in-migration

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CDS and Senior Governments

• National poverty reduction policies
• Municipal finance
• National Trunk Highway System
• Self financing infrastructure
• SOEs and local economic planning
• Western region policy

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Strategic Planning Framework
Environment
Infrastructure
Urban Structure
Economic
Social
Financial
Goals Strengths/weaknesses Issues Priorities Strat
egies Programs/projects Implementation
Operation/monitoring
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Economic AnalysesLocation Quotients
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Economic AnalysesIndustrial Structure by
Ownership
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Economic AnalysesIndustrial Structure by Sector
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Economic Issues

• Links to other markets
• Pillar and emerging industries
• Barriers to inter-firm collaboration
• RD support
• Technological levels
• Sources of investment

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Economic Strategies

• Facilitate spin-offs from pillar industries
• Create conditions for cluster development
• Structure supply chains
• Pursue tourism strategy
• Strengthen links with external markets
• Raise environmental quality targets

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Economic Programs Projects

• Research and commercialization center for
  promising emerging industry
• Transport cluster supported by multi-modal hub
• Assure completion of NTH links to other major
  cities
• Sponsor forum and brokering agency to encourage
  cluster development
• Program to strengthen supply chain for
  pharmaceuticals
• Improved roads to tourism attractions

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Financial AnalysesCapital Financing Sources
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Financial AnalysesDebt Service by Type of Debt
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Financial AnalysesDebt Service by Timing of
Development
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Financial Issues

• Dependence on revenues from State Bonds, land
  leasing, low-interest loans
• Information on debt levels not consolidated
• OM implications not considered
• Some facilities not used to full capacity
• UDICs vary in structure and operation

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Financial Strategies

• Financial management improvement program,
  including debt management
• Focus first on better OM and full use of
  existing assets
• Provincial guidelines for tariff setting with
  goal of full cost recovery
• Preparation for private and foreign financing of
  some projects

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Urban Structure

• Central core improvement
• New development nodes
• Costs of servicing
• Public transit

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Other Streams of Work

• Poverty reduction
• Other social issues (education, human resources)
• Environmental
• Transportation
• Infrastructure

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Opportunities for IFIs/Donors

• Priority programs and projects form part of
  comprehensive development strategy
• Thus, project preparation should be facilitated
• Both technical assistance and loans required

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Opportunities for IFIs/Donors

• Opportunities in industrial development poverty
  reduction education human resource development
  urban planning transportation, water,
  wastewater, and solid waste infrastructure
  tourism financial management

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Summary

• CDS works in Chinese cities, despite some
  constraints
• CDS can contribute to the resolution of some
  urban issues in Chinese cities
• Though process should unfold at the local level,
  senior governments are needed to address certain
  issues

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Summary

• For cities in CDS-2, need to assure
• Support from top leaders
• Human and monetary resources
• Solid management structure for the project
• Participation of stakeholders
• Need framework for data collection, analysis, and
  strategy development

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Summary

• IFIs and donors can be catalysts in CDS
  preparation and implementation
• Many opportunities for participation, in
  providing technical assistance and loans

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Summary

• Perhaps the most important issue is how to assure
  that CDS work continues after the initial study
• This will require the continuing dedication of
  resources to CDS, the willingness to allow change
  to take place, and efforts to continue to involve
  stakeholders