Toward a Coordinated and Balanced Development: New Initiatives for the Development of Yangtze River Economic Belt and Explorations in Jiangsu [1st ed.] 9789811584534, 9789811584541

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Changchun Cheng Fenghua Yang

Toward a Coordinated and Balanced Development New Initiatives for the Development of Yangtze River Economic Belt and Explorations in Jiangsu

Toward a Coordinated and Balanced Development

Changchun Cheng · Fenghua Yang

Toward a Coordinated and Balanced Development New Initiatives for the Development of Yangtze River Economic Belt and Explorations in Jiangsu

Changchun Cheng Yangtze River Development and Research Center Nantong University Nantong, Jiangsu, China

Fenghua Yang Yangtze River Development and Research Center Nantong University Nantong, Jiangsu, China

Translated by Guanghua Chen School of Foreign Studies Nantong University Nantong, China

ISBN 978-981-15-8453-4 ISBN 978-981-15-8454-1 (eBook) https://doi.org/10.1007/978-981-15-8454-1 Jointly published with People’s Publishing House. The print edition is not for sale in Chinese mainland. Customers from Chinese mainland please order the print book from: People’s Publishing House. © People’s Publishing House 2020 This work is subject to copyright. All rights are reserved by the Publishers, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publishers, the authors, and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publishers nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publishers remain neutral with regard to jurisdictional claims in published maps and institutional affiliations. This Springer imprint is published by the registered company Springer Nature Singapore Pte Ltd. The registered company address is: 152 Beach Road, #21-01/04 Gateway East, Singapore 189721, Singapore

The translator dedicates the book to his family, to his sister and her family, and to Prof. Ouyang Meihe of Shanghai University of Political Science and Law.

Foreword

Uncoordinated and unbalanced regional development is a puzzling problem for social and economic development in the new normal of China. In this key period for the final victory in the construction of a mildly prosperous society, the balanced regional development strategy, which has been under implementation for over 20 years, should be optimized and uplifted to coordinated and balanced regional development strategy to promote coordinated, correspondent, simultaneous and sustainable regional development and to optimize the spatial layout for the development of the territory. The significance of the adjustment can be found from the two perspectives as follows: on the one hand, it benefits the market to play its deciding role in the optimized allotment of regional resources and in improving economic efficiency, and on the other hand, it helps the government, directed by the mentality of coordination, to facilitate orderly and free flow of factors, to strengthen the restriction of major functions, to facilitate equalization of basic public services, and to realize coordination between economic development and the bearing capacity of resources and environment. Implementation of the strategy of coordinated and balanced regional development is the actual implementation and practice of the five major development notions of innovative development, coordinated development, green development, open development and shared development proposed by the Fifth Plenary Session of the 18th CPC National Congress. The mentality of balanced regional development emphasizes the spirit of innovative development and open development; the deciding role of the market in facilitating optimized allotment of regional resources is to be better exercised through nurturing new motivations for regional development and forging new advantages in regional opening-up. The principle of coordination must be abided by balanced regional development, emphasis to be laid on the practice of the spirit of coordinated development, green development and shared development. With the better practice of the function of the government, the deficiency of the market is to be made up to realize coordinated, sustainable and simultaneous regional development. In fact, the mentality of coordinated and balanced development has been included in great abundance in the implementation of the strategy of “Three Propping Belts” based on the strategy of the four blocks since 2014. The initiative of “One Belt One

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Road” aims at promoting policy communication, facility connection, unimpeded trade, smooth financing and kindness between the peoples so that a cross-national cooperation framework for regional economy that is open, inclusive, balanced and commonly beneficial can be forged through joint efforts. The strategy for the joint development of Beijing-Tianjin-Hebei aims at breaking through administrative barriers, formulating mechanisms and systems for coordinated and balanced regional development and forging a demonstration for connotative and intensive coordinated regional development through deepening reform. The initiative of Yangtze River Economic Belt lays its emphasis on the exploitation of the colossus potential of internal demands contained in the vast expanse in the central and upper reaches of Yangtze River, the optimization of industry structure and the layout of urbanization along Yangtze River and the construction of a new corridor for the bidirectional opening-up of the land and the sea as well as a green eco-passage so that a layout with the three reaches mutually compensating each other with their advantages and cooperating and interacting with each other can be formed to effectively resolve the problem of imbalance between the three reaches in their development. Objectively, this requires the optimization of the overall guideline for regional development in China to better direct the implementation of the strategy of the “Three Propping Belts” and to better demonstrate the new status in the transformation of the fountainhead for regional economic growth in the new normal from mainly the expansion of investment of factors to the improvement of efficiency brought about by the optimized spatial allotment of factors. Yangtze River Economic Belt runs across the three major regions of the East, the Central and the West, where regional disparities as regarded the development of land and economic development are considerable. The significant role it plays in facilitating coordinated development, correspondent development, simultaneous development and balancing spatial patterns, therefore, has long attracted the attention of scholars. Early in the 1980s, it was pointed out by Lu Dadao and other scholars that, the first level development axis, the T-shaped axis composed of the regions along Yangtze River and regions along the sea, is the central area in regional division of China. Meanwhile, Sun Shangqing, the former director of the Center for Development and Research of the State Council, proposed the preliminary notion for Yangtze River Economic Belt, the industry-intensive belt of Yangtze River, taking it that comprehensive development of Yangtze River should take a turn from mainly flood prevention to the resurrection of transportation, the development of water conservancy and hydropower and the construction of an industry-intensive belt. From the end of the 1980s to the end of 1990s, the concept of Yangtze River Economic Belt and its strategic construction was proposed, for which this should be a comprehensive development belt of the resource belt, power belt, industry belt, city belt and collective belt for wealth. The connection and cooperation between regions along Yangtze River are to be strengthened with the river basin as a whole abiding by the laws of nature and economy. From the beginning of the twenty-first century to the

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issuance of “Guidelines of the State Council for Facilitating Development of Yangtze River Economic Belt Relying on the Golden Waterway” (hereafter referred to as “the Guideline”) by the State Council, it was realized by most scholars that the promotion of coordinated development, correspondent development, simultaneous development and spatial balance alone Yangtze River Economic Belt was to be considered from a higher perspective of forging a new pillaring belt for Chinese economy. Together with the transformation and upgrade in the lower reach, development and opening-up of the middle and upper reaches are to be facilitated to promote the formation of a new status in which the market is unified, industries are connected and bidirectional opening-up is realized and in which economy, population and ecology are spatially balanced. The development of Yangtze River Economic Belt has been uplifted to the level of national strategy, preliminary development having been made as regarded the integration of customs clearance, the construction of the comprehensive cubic transportation system, the migration of industries and cooperation of the parks. “Outline for the Planning of the Development Strategy for Yangtze River Economic Belt” to come out soon, a series of key strategies are to be quickly designed and implemented. This new cycle of the development of Yangtze River Economic Belt is not to be deprived of the guidance of regional development strategies. We take it that the guidance of a new coordinated and balanced regional development strategy is required in the construction of a globally influential inland river economic belt, a coordinated development belt in interaction and cooperation of the East, the central and the West, an opening-up belt for promoting domestic and foreign opening-up along the river and a forerunning demonstrator belt for eco-civilization. More emphasis is to be laid on the deciding role the market is to play in allotting regional resources, on equalization of regional basic public services and on the coordination of regional economic development, distribution of population and the bearing capacity of territorial resources and environment. In twelve chapters, it has been originally proposed in this book that coordinated regional development strategy for the narrowing down of regional economic disparities is to be uplifted to the strategy of coordinated and balanced regional development for it to better demonstrate the new trend in the reform of economic mechanism, to fulfill the new requirements for strengthening the wholeness of economic development, to promote equalization of opportunities and to facilitate spatial balance so that it can fully adapt to the overall trend of more plurality and better balance in regional development, which is our meager theoretical contribution to the optimization of the overall guideline for regional development in China. Based on this are suggestions and analyses into the prospects and paths for the formation of integrated development and parallel development in the coordinated and balanced development of Yangtze River Economic Belt as well as the integration of Jiangsu into this development. It

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is hoped that some reference can be provided for forging a new pillaring belt for Chinese economy out of Yangtze River Economic Belt. Nantong, China

Changchun Cheng Fenghua Yang

Translator’s Acknowledgements

Upon completing the translation of this book, and before its publication, I extend my gratitude to Prof. Changchun Cheng and Prof. Fenghua Yang for their firm belief in me. My thanks must also go to Prof. Wu Wenquan, who has held several discussions with me concerning the actual translation work of the book, kindly and generously offering me priceless instructions and encouragements. On behalf of Prof. Cheng Changchun and Prof. Yang Fenghua, I would like to thank the following scholars of Nantong University for their selfless help in making the book possible: Lu Feng, Feng Jun, Song Lixia, Jin Hua, Hu Junfeng, Huang Hequn, Yang Chunlei, Wang Lin, Qian Xuefei, Song Chao and Chen Changjiang. Editor of People’s Publishing House, Ms. Feng Yanling, the anonymous editors of Springer, who always helped in silence, deserve a big “Thank you!” from me, without whose help, the publication would not have been possible.

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Contents

1

2

Proposal of the Strategy of Coordinated and Balanced Regional Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Evolvement of Strategies and Policies for Regional Development in China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.1 Implementation of Strategies and Policies of the Planned Balanced Mode from 1949 to 1978 . . . . . . . . . . . . . . . . . . . . . . . 1.2 Implementation of Uneven Regional Strategies and Policies from 1979 to 1991 . . . . . . . . . . . . . . . . . . . . . . . . . . 1.3 The Preliminary Formation of Balanced Coordinated Regional Development During 1992–1998 . . . . . . . . . . . . . . . . . 1.4 Comprehensive Implementation of Coordinated Regional Development Strategies from 1999 to 2005 . . . . . . . . 1.5 The Stage of Strategic Combination of the “Four Blocks” and Major Function Zones . . . . . . . . . . . . . . . . . . . . . . . 1.6 The Strategic Combination of the “Four Blocks” and the “Three Propping Belts” from 2014 on . . . . . . . . . . . . . . 2 Taking the Lead in the New Normal with Strategies for Coordinated and Balanced Regional Development . . . . . . . . . . . . 2.1 The Problem of Imbalance in Regional Development in the New Normal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.2 New Strategies for Coordinated and Balanced Regional Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Strategic Scheming of Coordinated and Balanced Development Along Yangtze River Economic Belt . . . . . . . . . . . . . . . . 1 National Strategic Intentions in Motivating the Development of Yangtze River Economic Belt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.1 Background for the Proposal of Yangtze River Economic Belt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.2 Significance of Yangtze River Economic Belt . . . . . . . . . . . . . . 2 Concrete Analyses in Regional Economic Differences in Yangtze River Economic Belt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1 2 2 6 9 12 16 19 22 23 26 41 42 42 45 48 xiii

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2.1 Regional Divisions and Origin of Data . . . . . . . . . . . . . . . . . . . . 2.2 Measurement Methods for Regional Economic Disparities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.3 Analyses of Spatial Disparities in Yangtze River Economic Belt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.4 Decomposition of the Economic Disparities Within Yangtze River Economic Belt . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.5 General Conclusion About Economic Disparities Within Yangtze River Economic Belt . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.6 Evolution of the Layout of Regional Development of Yangtze River Economic Belt . . . . . . . . . . . . . . . . . . . . . . . . . . 2.7 Three Major Stages of Evolution of the Layout of Regional Development of Yangtze River Economic Belt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.8 New Trend for the Layout of Yangtze River Economic Belt in the New Normal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Prospects of and Ways Leading to Coordinated and Balanced Development Along Yangtze River Economic Belt . . . . . . . . . . . . . . . 3.1 Strategic Prospects of Yangtze River Economic Belt . . . . . . . . . 3.2 Strategic Path to Coordinated and Balanced Development of Yangtze River Economic Belt . . . . . . . . . . . . . . 3

Strategies for Jiangsu in the Coordinated and Balanced Development Along Yangtze River Economic Belt . . . . . . . . . . . . . . . . 1 Positions and Functions of Jiangsu in the Economic Evolution Along Yangtze River Economic Belt . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.1 Meager Territory, Voluminous Economy . . . . . . . . . . . . . . . . . . . 1.2 Nature-Endowed Strong Water Carriage Capabilities, Improving Transportation Abilities . . . . . . . . . . . . . . . . . . . . . . . 1.3 Rich Resources of Science and Education, and Marked Advantages in Opening-Up . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.4 Extensive Regional Cooperation and Communication, Gradient Transference of Industries Being Accelerated . . . . . . 2 New Requirements for Jiangsu in the Construction of Yangtze River Economic Belt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.1 Further Deepening of Reform . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.2 Innovation Motivation to Be Strengthened . . . . . . . . . . . . . . . . . 2.3 Magnifying Advantages from Water Carriage Capabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.4 Expansion of Opening-Up Sphere . . . . . . . . . . . . . . . . . . . . . . . . 2.5 Facilitation of Regional Coordination . . . . . . . . . . . . . . . . . . . . . 2.6 Construction of Eco-Civilization . . . . . . . . . . . . . . . . . . . . . . . . . 3 Orientations and Means for Development of Jiangsu in the Construction of Yangtze River Economic Belt . . . . . . . . . . . . .

49 49 52 57 63 64

64 66 71 71 73 77 77 78 79 80 81 82 82 82 83 83 84 86 87

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3.1 Orientations for Development of Jiangsu in the Construction of Yangtze River Economic Belt . . . . . . . . 3.2 Overall Means for Development of Jiangsu in the Construction of Yangtze River Economic Belt . . . . . . . . 4

5

An Unimpeded Golden Waterway . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Better Use to Be Made of the Golden Waterway in This Coordinated Balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.1 A Reorganization of Existing Literature into the Study of Golden Waterway . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.2 A Retrospect to the History of Development of the Golden Waterway . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.3 An Analysis of Advantages in the Development of the Golden Waterway of Yangtze River . . . . . . . . . . . . . . . . . 1.4 Upgrading the Function of the Golden Waterway of Yangtze River in a Coordinated Manner . . . . . . . . . . . . . . . . . 2 Construction of the Golden Waterway in Jiangsu: Status Quo and Prospects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.1 Major Achievements in the Construction of the Golden Waterway in Jiangsu . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.2 Restrictions in the Construction of the Golden Waterway in Jiangsu . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.3 Basic Situations in the Construction of the Golden Waterway in Jiangsu . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 A New Combined Transportation System to Be Constructed Between the River and the Sea with All Efforts . . . . . . . . . . . . . . . . . . 3.1 Improvement to the Functions of the Golden Waterway to Be Expected from Combined Transportation of the River and Sea . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.2 Experience of Holland and Germany in Developing Combined River-Sea Transportation . . . . . . . . . . . . . . . . . . . . . . 3.3 Measures and Suggestions for Developing Combined River-Sea Transportation in Jiangsu . . . . . . . . . . . . . . . . . . . . . . . References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Consummation of a Comprehensive Transportation Network . . . . . . 1 A Comprehensive Transportation Network to Be Constructed by Means of Coordinated Balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.1 Combining Existing Literature into the Study of Comprehensive Transportation Network Within Yangtze River Economic Belt . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.2 Analysis of the Current Status of the Comprehensive Transportation Network Within Yangtze River Economic Belt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

87 88 93 94 94 97 100 105 112 112 116 118 119

119 121 130 135 137 138

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1.3 Necessity for the Construction of the Comprehensive Cubic Transportation Corridor Within Yangtze River Economic Belt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Construction of a Comprehensive Transportation Network in Jiangsu Province: Status Quo and Prospects . . . . . . . . . . . . . . . . . . 2.1 Major Achievements in the Construction of the Comprehensive Cubic Transportation Hubs in Jiangsu . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.2 Restrictions in the Construction of Comprehensive Cubic Transportation Hubs in Jiangsu Province . . . . . . . . . . . . . 2.3 Basic Status in the Construction of Comprehensive Cubic Transportation Hubs in Jiangsu . . . . . . . . . . . . . . . . . . . . . 3 New Hubs to Be Forged for the Comprehensive Transportation Network in Jiangsu . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.1 The Guiding and Restricting Functions of Plans to Be Made Prominent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.2 Deepening Reforms in the Industry of Transportation . . . . . . . . 3.3 Facilitating the Construction of a Comprehensive Cubic Transportation Network . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.4 Facilitating the Swift Development of Commodity Transportation and Logistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.5 Making Improvements in Transportation Service Standards and the Level of Legal Management . . . . . . . . . . . . . 3.6 Strengthening the Construction of Science Creation and Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.7 Developing Transportation That Is Green, Recyclable and Low Carbon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.8 Creating a Secure and Harmonious Transportation Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Motivating Industry Innovations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Motivating Innovative Industry Development Through Coordinated Balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.1 Combining Existing Studies into Innovation Motivation and Industry Innovation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.2 Current Status of the Development of Industry Innovation Within Yangtze River Economic Belt . . . . . . . . . . . . 1.3 Promoting Industry Innovation Development Within Yangtze River Economic Belt in Coordination . . . . . . . . . . . . . . 2 Industry Innovations in Jiangsu: Status Quo and Prospects . . . . . . . . 2.1 A Retrospect of Industry Innovation Development in Jiangsu . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.2 Effectiveness in Industry Innovation in Jiangsu . . . . . . . . . . . . .

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2.3 Restrictions in Industry Innovation Development in Jiangsu . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.4 Significance with the Further Promotion of Industry Innovation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.5 Basic Status in Industry Innovation Development in Jiangsu . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 New Motivations to be Enhanced in Industry Innovations in Jiangsu . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.1 Transformation and Upgrade of Conventional Industries . . . . . 3.2 Supporting Accelerated Development of New Industries . . . . . 3.3 Attracting Accelerated Assembling of High-End Factors and Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.4 Controlling the High End of the Industry Chain Through Cooperation of Zones . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.5 Nurturing Favorable Environment for Innovation and Business Creation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.6 Promoting Green, Recyclable and Low-Carbon Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

8

Improving the Quality of Urbanization . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Upgrading the Quality of Urbanization with Coordinated Balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.1 Connotations and Indicators of New Urbanization . . . . . . . . . . . 1.2 Coordinated and Simultaneous Promotion of New Urbanization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Urbanization in Jiangsu: Status Quo and Prospects . . . . . . . . . . . . . . . 2.1 A Retrospect of the History of Urbanization in Jiangsu . . . . . . 2.2 An Analysis of the Current Status of Urbanization in Jiangsu . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.3 Basic Status of the Development of Urbanization in Jiangsu . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 New Status to Be Created in Urbanization in Jiangsu . . . . . . . . . . . . . 3.1 Main Connotations of New Urbanization in Jiangsu . . . . . . . . . 3.2 Paths for the Development of New Urbanization in Jiangsu . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.3 Measures for the Development of New Urbanization in Jiangsu . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . New Advantages to Be Created in the Opening-Up Situations . . . . . 1 Opening-Up from Both the Easterly and Westerly Directions by Means of Coordinated Balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.1 A Combining Existing Literature for Bidirectional Opening-Up in China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.2 New Requirements for the Easterly and Westerly Opening-Up Within Yangtze River Economic Belt . . . . . . . . . .

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213 217 221 226 227 228 229 230 231 233 237 238 239 250 260 260 263 276 277 278 279 281 297 298 298 299

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Contents

1.3 Necessity for the Bidirectional Opening-Up Within Yangtze River Economic Belt . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Further Opening-Up in Jiangsu: Status Quo and Prospects . . . . . . . . 2.1 An Empirical Analysis of the Relationship Between Economic Openness and the Growth of Economy in Jiangsu . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.2 Status Quo of the Development of Opening-Up Economy in Jiangsu and Its Restrictions . . . . . . . . . . . . . . . . . . . 2.3 New Opportunities Brought About by the Initiatives of Yangtze River Economic Belt and “One Belt One Road” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 New Advantages to be Energetically Sought in the Opening-Up Situations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.1 Key Points to Be Seized for Improving the Standard of Opening-Up in Jiangsu . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.2 New Advantages in Opening-Up to Foreign Countries in Jiangsu Created by Bidirectional Opening-Up . . . . . . . . . . . . 9

Construction of an Ecological Passage . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Toward a Strengthened Ecological Civilization Deriving from a Coordinated Balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.1 Ecologically Coordinated Development of Different Regions: An Internal Requirement . . . . . . . . . . . . . . . . . . . . . . . . 1.2 Significance in Strengthening the Construction of Eco-Civilization Within Yangtze River Economic Belt . . . . 2 Ecological Civilization in Jiangsu: Status Quo and Prospects . . . . . . 2.1 An Outline of the Chosen Means for Measuring the Construction of Eco-Civilization in Jiangsu . . . . . . . . . . . . . 2.2 An Introduction of the Means for Calculating Ecological Economic Harmony in Jiangsu . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.3 An Analysis of the Evaluation Results of Ecological Economic Harmony in Jiangsu . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 New Layouts of Ecological Economic System to Be Created in Jiangsu . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.1 Strengthening Education of Eco-Civilization . . . . . . . . . . . . . . . 3.2 Perfecting the Mechanism for Eco-Civilization . . . . . . . . . . . . . 3.3 Promoting the Practice of Eco-Civilization . . . . . . . . . . . . . . . . . 3.4 Facilitating the Development of Eco-Economy . . . . . . . . . . . . .

10 Innovations in Social Administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Promoting Interaction in Social Administration with Coordinated Balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.1 Existing Studies into Regional Social Administration . . . . . . . . 1.2 An Analysis of the Features of Current Status of Social Administration Within the Yangtze River Economic Belt . . . . .

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320 322 323 325 331 331 332 336 339 340 341 353 367 369 371 376 380 383 384 384 390

Contents

1.3 Necessity of the Coordination of Social Administration Within the Yangtze River Economic Belt . . . . . . . . . . . . . . . . . . 2 Social Administration in Jiangsu: Status Quo and Prospects . . . . . . . 2.1 Major Achievements in Social Administration in Jiangsu . . . . 2.2 Restricting Factors in Social Administration in Jiangsu . . . . . . 2.3 Basic Status in Social Administration in Jiangsu . . . . . . . . . . . . 3 Active Explorations into New Modes of Social Administration in Jiangsu . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.1 Enthusiastically Promoting the Development of Public Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.2 Formulating a Coordinating Mechanism for Social Administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Regional Cooperation to be Bolstered . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Cross-Regional Cooperation Along Yangtze River Economic Belt: Theories and Practices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.1 A Combing of Existing Literature for Regional Cooperation Within Yangtze River Economic Belt . . . . . . . . . . 1.2 Practical Foundation for Regional Division and Cooperation Within Yangtze River Economic Belt . . . . . . . 1.3 Promoting Integration and Coexistence of Yangtze River Economic Belt by Means of Coordinated Balance . . . . . . . . . . . 2 Regional Divisions and Cooperation in Jiangsu: Status Quo and Prospects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.1 An Outline of Regional Division in Jiangsu and the Features of Its Development . . . . . . . . . . . . . . . . . . . . . . 2.2 An Analysis of Status Quo of Regional Division and Cooperation in Jiangsu . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.3 The Status of Cooperation Between Jiangsu and Other Provinces and Cities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Perfection of New Mechanisms for Regional Division and Cooperation in Jiangsu . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.1 Basic Requirements for Coordinated and Balanced Regional Development in Jiangsu . . . . . . . . . . . . . . . . . . . . . . . . . 3.2 Major Measures for Coordinated and Balanced Regional Development in Jiangsu . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.3 Coordinated Regional Development of Society, Culture and Ecology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.4 The Safeguarding Mechanism for Coordinated and Balanced Regional Development in Jiangsu . . . . . . . . . . . .

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392 395 396 400 402 406 406 409 419 420 420 425 429 437 437 443 445 448 448 452 458 460

12 Promoting the Construction of Entities as the Carrier . . . . . . . . . . . . 465 1 Facilitating the Construction of Key Carrier Platforms by Means of Coordinated Balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 466 1.1 The Function of Carrier Platforms in the Development of Regional Economy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 466

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1.2 An Analysis of the Current Status in the Construction of Carrier Platforms Within the Yangtze River Economic Belt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Construction of Major Carriers in Jiangsu: Status Quo and Prospects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.1 Current Status and Prospects in the Construction of Jiangbei New Zone in Nanjing . . . . . . . . . . . . . . . . . . . . . . . . . 2.2 Current Status and Prospects of the Construction of Regional Navigation Logistics Center in Nanjing . . . . . . . . . 2.3 Current Status and Prospects in the Construction of Demonstrative Zones for Modernization in South Jiangsu . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.4 Current Status and Prospects in the Construction of the Demonstrative Zone for Coordination Between Yangtze River and the Sea Around Tongzhou Bay . . . . . . . . . . . 3 Construction of New Support of Major Carrier Platforms in Jiangsu . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.1 Exercising the Motivating Function of Jiangbei New Zone in Nanjing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.2 Improving the Function of Nanjing as a Regional Navigation Logistics Center . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.3 Enhancing the Leading Function of the Demonstrative Zones for Modernization in South Jiangsu . . . . . . . . . . . . . . . . . 3.4 Strengthening the Pioneering Effect of the Demonstrative Zone of Combined Development Between Yangtze River and the Sea Around Tongzhou Bay . . . . . . . . . . . . . . . . . .

469 474 475 477

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488 489 489 496 500

504

Translator’s Afterword . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 511

About the Authors

Prof. Changchun Cheng as Doctor of Administration, is currently Party Secretary of CPC Committee of Nantong University while at the same time chairing the Research Institute of Yangtze River Economic Belt. His research interest has mainly been focused on regional economy and river drainage area economy. He has in recent years hosted a key research project of social science sponsored by National Social Science Foundation, and a division of one key research project of theoretical studies of Marxism founded by Propaganda Department of the CPC. Some ten other research projects supported by National Natural Science Foundation and Foundation for Key Projects of Ministry of Education and similar research projects of the provincial and ministry level or above have also been hosted by him, yielding over 100 articles published in Guangming Daily and others, out of which over 30 have been reprinted or indexed in Xinhua Digest, Periodical Literatures Reprinted by People’s University and some other publications. He has also been the author of over 20 monographs such as Winning in the Future: Key Competitive Forces of Universities, and Joint development of Ports, Industries and Townships in Jiangsu along the Coast of the Sea. Twice winner of second prize for outstanding research projects of philosophical and social sciences of Jiangsu Province, he has over ten of his counseling research reports commented upon and instructed by former major leaders of the country, CPC Jiangsu Committee and provincial government of Jiangsu. He is now employed as a reserved communicative expert for appraisal of projects to be founded by National Foundation for Social Science, chief expert for Research Development Base of Jiangsu along the Sea, and director and chief expert of Research Base for Theories of Socialism with Chinese Characteristics of Jiangsu, which is located in Nantong University. Prof. Fenghua Yang Doctor of Administration, is currently Vice President of Research Institute for the Development of Jiangsu along Yangtze River and the Sea in Nantong University involving himself mainly in studies of regional development and management. He has hosted one research project supported by National Social Science Foundation and hosted or participated in three other projects of or above the provincial or ministry level. He is author of one monograph, at the same time getting over 20 of his research articles published in such periodicals as Management Review, Shanghai Finance and Chinese Social Science Today. His counseling research papers xxi

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About the Authors

have been approved by major leaders of the provincial and municipal levels. He has successfully enlisted himself among the leading candidates in the “Qing-Lan Project,” one aiming at nurturing young academic potentials in universities in Jiangsu.

Chapter 1

Proposal of the Strategy of Coordinated and Balanced Regional Development

Since the establishment of New China, strategies taken in regional development have been in an oblique manner, which is further divided into two stages, the first covering the period from 1949 to 1978 in which labor force was deployed in the west, and the other starting from 1979 lasting until 1991 in which the unbalanced manner of labor deployment took an eastbound direction. Faced with such problems as the daily increasing diversities in the development of different regions, strategies for regional development have been optimized into regional coordinated development ever since the beginning of the 1990s, covering four stages of the initial formation, holistic implementation, strategic coordination with major regional functions, and strategic coordination with the “Three Propping Belts.” The implementation stage of coordinated and balanced regional development can be treated as a transition period for the unbalanced regional development to be guided into a high-standard coordinated regional development. Under regional development strategies and policies for different stages, the layout for regional development is gradually optimized, yet problems still exist in the following areas: the ever-greater absolute gap between economies of different regions, unequal basic public services in different regions, incompatibility between regional economic development and the bearing capacity of the environment and resources, fragmentation of regional economic policies and the like. Strategies for coordinated regional development are guidelines in a particular period to cope with problems such as the widening gap between different regions, the ever-intensifying frictions between different regions and the convergence tendencies of different regions. Limited by their connotations for developing economy, they are no longer an excellent demonstration of the current requirement of making full use of the market to deploy resources to enhance holistic development together with equality in regional public services and balance between economy, population and the ecosystem. For this reason, it is necessary, when basic facilities and preparations are made, to revise the concept of strategies for regional development and to enrich their current connotations, so that the strategies limited within the balanced development of economy and transitional guidance for regional economy to develop from the unbalanced mode to a high level, balanced, coordinated regional development © People’s Publishing House 2020 C. Cheng and F. Yang, Toward a Coordinated and Balanced Development, https://doi.org/10.1007/978-981-15-8454-1_1

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1 Proposal of the Strategy of Coordinated …

mode can be promoted to strategies for facilitating coordinated, simultaneous and mutual development between different regions, and for spatially balanced strategies for coordinated regional development with the expectation that some strategic new thoughts can be formed in which the function of the market and the government can be properly brought into play and which can better direct practices in the “Three Propping Belts.”

1 Evolvement of Strategies and Policies for Regional Development in China The so-called regional development strategies are the guiding principles and basic guidelines that play a pivotal, overall role for the optimization of overall directions or spatial layouts. Regional policies are the sum total of the policies and measures designed to facilitate optimization of resources according to their spatial whereabouts and to facilitate and coordinate regional economic development, which mean the deepening of the strategies for regional development. Ever since PRC came into being, regional development strategies and policies have gone through the following major adjustments and evolvements to cope with concrete situations in economic development at home and abroad in different periods and to quicken economic development.

1.1 Implementation of Strategies and Policies of the Planned Balanced Mode from 1949 to 1978 Planned economic development strategies and policies for regions were practiced to facilitate balanced development between coastal areas and inland areas to deal with unbalanced development between them from the establishment of New China to the beginning of reforms and opening-up, which is called in many existing literatures balanced regional development strategies. Regional development strategies during this period demonstrated the strategic ideal of facilitating balanced development and balanced deployment of productivity of different regions, and they were heavily tinted with characteristics of planned economy as well. For this reason, they are named planned and balanced regional development strategies. In that period when economy was highly concentrated, deployment of resources was done according to administrative orders; strategies for planned balanced regional development laid emphasis on deploying investment and projects in different areas in a balanced manner; the function of the market to deploy resources was not yet well-made use of, neither was the ideal of exerting the comparative advantages of respective areas brought into full play. And at the same time the ideal of balanced development between population and the environment and resources were not yet well accepted. Balanced regional

1 Evolvement of Strategies and Policies for Regional Development in China

3

development motivated by planned balanced regional development strategies and policies were still a low-level regional development structure as a whole, the market not playing a key role in facilitating competitive regional balanced development, with no interactions between different regions and no mutual symbiosis between human beings and Nature. (a) The formation of planned balanced regional development strategies The relationship between coastal areas and the inland was seen both as the relationship between areas at different economic development stages and as the relationship between different ethnic areas; it was at the same time the relationship between economic construction and national defense. This made it the core matter in the layout of national economic strategies. The facts considered that productivity was not equally scattered between the east and the west parts during the early years of New China, that national security had to be properly considered in the tense international situation, and that theoretically the Soviet balanced productive theories, and the mechanical dogmatic understanding of classical Marxist authors about balanced development were strongly influential, planned balanced development strategies for these two areas dominated for a long time, particularly during the “First Five-Year” period and the “Third-Front Construction Movement” when productivity was moved from coastal areas to inland in large scales. National economy was severely damaged in those years, economic foundation weak, layout of productivity severely deformed, with industries concentrated in the eastern areas while in the expansive southwestern areas, northwestern areas, and in Inner Mongolia almost no modern industry could be found, a situation unreasonable both economically and from the perspective of national defense. Efforts were made to correct this extremely unreasonable situation with balanced regional development strategies soon after New China came into being. For the First Five-Year period, the CPC central committee unambiguously proposed guidelines for proper management of the relationship between coastal and inland areas: deploying industry in a planned and balanced way in the country as a whole, which led to the first massive movement of productivity to the west. It was explicitly pointed out in the first Five-Year plan that “spatial deployment of industry is to be optimized and adjusted according to long-term interests of the country and the following principles: industrial productivity is to be deployed properly in different areas of the country, locating industry where material and energy are produced and near its consuming locations, considering at the same time the requirements for strengthening national defense so that the original unreasonable status can be gradually modified and economy status in backward areas can be uplifted.” Under this strategic guideline, more attention was paid to constructions in inland areas while coastal areas were to a certain degree neglected. Talking about this structure of the westward movement of productivity in 1956 in On the Ten Major Relations, Mao Zedong emphasized on the relationship between industry in coastal and inland areas. He pointed out that no negligence of the use of industrial productivity and

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1 Proposal of the Strategy of Coordinated …

technology could be tolerated in coastal areas with the excuse of overemphasis on balanced deployment of productivity and national defense factors. When the greater part of new industries is to be located in inland areas with which a balance of industry deployment could be reached, benefiting national defense as well, new facilities were to be constructed in coastal areas and at the same time original industries should be enlarged and reconstructed for a better use and development of industrial foundations, which would help improve the ability to develop and support inland industries. That is why in the second “Five-Year Plans” such construction ideals are proposed: making use of and properly enhance the original industries in coastal areas. It was explicitly proposed that when new industries were constructed according to existing plans in inland areas, full use of original industries in coastal areas are to be enhanced, further efforts are to be made to strengthen the industrial foundations in Northeastern China, with simultaneous construction of industries in coastal areas in East China, North China and South China so that they can make relevant contributions to the construction of the country. Taken as a whole, the second “Five-Year Plan,” affirming the first “Five-Year Plan” at the same time, made further feasible adjustments and deployments. But the Movement of Great Leap Forward starting in 1958 threw the plan into confusion. In the period from 1958 to 1960 during the movement, regional strategic thoughts focused on these two aspects: to realize proportionate distribution of industries in the country and to establish a relatively independent and holistic industrial systems in each province and in each coordinating area. Tension in international situation starting from early 1960s made it necessary for the third and fourth “Five-Year Plans” to take national defense and “Third-Front” areas as their pivotal goal when making regional development strategies, distribution of regional productivity was moved even west in greater scales and industrial deployment in the original “First-Front” coastal areas was gradually moved to the “Second-Front” areas in the middle and the “Third-Front” areas in the west. (b) Implementation of Planned Balanced Regional Development Policies and Its Effects Prior to opening-up, especially during the first “Five-Year” and “Third-Front Construction,” all the west-inclined policies resulted in large-scale westward movement of national investment and key projects, effectively motivated economic development in inland areas, the share of its total industrial output in the country continuously increased, rising from 30.6% in 1952 to 39.1% in 1978. The extremely unbalanced distribution of industries from old China was basically remedied. However, overemphasis on national defense and pursuit of balanced development of different regions, coupled with the aim of “blossom everywhere,” “star-studded distribution” in the deployment of industries and the blind goal of establishing an independent industry system in each region, led to the following negative results: Firstly, potentials for economic development in coastal areas were severely restricted. Shanghai and North China, where the original industries were located, were not favored by the central government in investments for rebuilding, enlarging

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and setting up new industries. Their functions and potentials were not fully exploited. Economic development in such areas suffered great setbacks, interfering with the economic efficiencies of the country as a whole. Then, the expected goal of narrowing the gap between the east and the west was not realized. Despite the fact that during the first “Five-Year” period, the gap between the three fronts, especially the gap between coastal areas and inland areas narrowed to a certain extent in terms of national income per capita, due to the deviations in the guidelines for productivity distribution in the “Great Leap forward” and “Construction of the Third-Front,” the westward preferences of national investment did not prevent the widening gap. There was a sharp increase in weighted coefficient of variation of national income per capita from 0.195 to 0.282 during 1957–1960, and from 0.209 to 0.390 during 1965–1976. Similarly, the ratio of per capita income for coastal residents to that of inland residents was 1.38 in 1952, which was reduced to 1.29 in 1965. It then gradually started its gradual increase, reaching 1.60 in 1980. This is an illustration of the fact that when investment effects are not considered, economic efficiency not considered, the function of the market neglected, artificial, mechanic facilitation of west-inclined investment policies will not necessarily result in ideal outcomes, even if economic increase in coastal areas is sacrificed. Thirdly, economic efficiency was rather low. The prejudiced investment policies naturally had an effect on the overall economic achievements of the country. And in addition, during the “Great Leap Forward” and “Construction of the Third-Front,” the one-sided emphasis on independent industrial system in individual areas led to large scale, scattered distribution of industries, resulting in sharp decrease in investment efficiencies, even worse in western areas (Table 1.1). During “Construction of the Third-Front,” factories were scattered, close to mountains, concealed and in tunnels because of the stress on national defense. Organic connections in production were violently cut, resulting in low efficiencies in both macro- and micro-economies. Table 1.1 A comparison of the investment efficiencies in the Eastern and the Western areas from the first Five-Year period to the fourth (unit: income provided by vestment into the construction of basic facilities) Area

The first Five-Year period

The second of Five-Year period

1963–1965

The third of Five-Year period

The fourth Five-Year period

The country as a whole

6.12

5.38

4.91

4.82

4.35

Eastern

6.22

5.87

5.37

5.23

5.47

Western

6.09

4.4

4.4

3.8

3.96

Data origin Huang Sujiang, Wei Houkai. Eds. The Grand Development of the West and the development of Eastern Central Areas. Economy & Management Publishing House, 2001. P163

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1.2 Implementation of Uneven Regional Strategies and Policies from 1979 to 1991 During 1979–1991, national policies for national development took a turn, more support given to coastal areas where conditions are better. The turn was mainly brought about by the uneven development strategies of the time. (a) The formation of uneven development strategies favoring coastal areas It only started in late fourth and early fifth “Five-Year” period when major investments were cast to the coastal areas. The key strategic decision of “turning working focus to the construction of socialist cause” was soon reached in the Third Plenary Session of the 11th Central Committee of CPC. The conversion of economic development strategies aroused thoughts from scholars about the distribution of productivity. They reached the common conclusion that the westward movement of productivity guided by planned balanced regional development strategies, contributing to a certain degree as it did to the balanced distribution of productivity in coastal and inland areas, sacrificed the aim of efficiency. Priority must be set on efficiency for the distribution of socialist productivity in the periods to come. In this way, uneven development policies favoring coastal areas stressing the priority of efficiency took the place of planned balanced regional development strategies, and they became the guiding principles for regional development of economy during the period from 1979 to 1991. During this period, reforms for planned commodity economy gradually unwound. Price mechanisms, state monopoly of purchase and marketing and foreign trade were reformed, and financial market, labor market and technology market were developed, which enhanced the market in its adjustment of regional economic development. Based on its advantageous economic foundation and the environment, economic vitality in eastern areas was better stimulated. In this way, the double influence of both favorable policies and stimulated vitalities in eastern areas led to widening gap between them and central and western areas. The relative evenness of regional interest structure during the planned economy period quickly diverged. The central and western areas were faced with even severer pressures of development. Several factors contributed to the formation of the uneven regional development favoring coastal areas in the east. Deng Xiaoping’s thoughts of not getting rich together but getting rich in the end together are the first factor. The major ideals about regional development strategies at the initial period of opening-up was that to facilitate development with openingup, locational and economic advantages of coastal areas must be made full use of to nurture an export-oriented economy, encouraging international competition and cooperation in these areas so that they could develop ahead of others. Following their example, inland areas, it was hoped, would rise quickly. It was just as Deng Xiaoping said, “I have always been encouraging some individuals, some areas to get rich first, but the general principle is to get rich together. It is a shortcut to accelerating development if some areas are to develop more quickly than others, and with their help, all areas can get rich together.” It can be said that regional development strategies

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and policies for a certain period after opening-up was influenced to a great degree by this ideal of Deng of getting rich together but not at the same time. Secondly, the guidelines for making use of advantages and facilitating cooperation were proposed. After the third Plenary Session of the 11th Central Committee of CPC, the guideline of internal activation of economy and external opening-up was put into practice. Blockages between areas, departments were loosened, and multilayer crosswise economic connections in multi forms were developed in such areas as production, circulation and technology. In 1980, the State Council issued “Regulations for Facilitating Economic Joints,” in which making use of regional advantages and facilitating joints were encouraged in such terse slogans as “making the best use of advantages and bypass disadvantages; giving play to local strong points, protecting competition, and encouraging joints.” The guideline was well practiced in the following “Five-Year” plans and layouts later. The third factor can be found in the transformation of guidelines for economic development. Divergence in economic strategies after opening-up turned from emphasizing national defense and narrowing the gap between different regions to improving economic efficiency beginning from the sixth “Five-Year” plans. Correspondingly, preferential treatment was given to the coastal areas in the layout of productivity. It was explicitly required in the sixth “Five-Year” plans that existing economic foundations in coastal areas must be made active use of, and their advantages must be exploited so that they could spur inland areas for further development; for inland areas, constructions in such industries as energy, transportation and materials were to be strengthened so that they could provide support to coastal areas. The seventh “Five-Year” plan divided the country into three economic belts, namely, the eastern, middle and the western, and proposed accelerating development in the eastern coastal belt. The report for the Thirteenth CPC National Congress further pointed out that, in the layout of productivity, eastern coastal areas must play a key role in economic development; the opening-up structure, which was already in the formation, of “special economic zones—opening-up cities along the coast—coastal economic development zones—inland areas” should be strengthened and developed. Fourthly, the implementation of economic development strategies in coastal areas. During the seventh “Five-Year” period, insufficient investment in inland areas on exploiting resources led to fierce competitions for resources and market. To cope with such problems, an analysis of new economic situations in developed countries and regions made at the beginning of 1988 found that, when adjustments were made to industry structures, labor-intensive industries were moving toward regions where labor costs were low. This considered in combination with situations in China, economic development strategies for coastal areas were proposed: making vigorous efforts to develop export-oriented economy in coastal areas, using it to spur regional economic development to better enable them to lead the central and western regions. The main part of the strategy was to rigorously develop labor-intensive industries in coastal areas, whose industries were to “have both ends of pursuing materials and marketing products abroad, importing and exporting in large volumes.” The strategy was later made national guidelines at the “Meeting for Opening-up in Coastal Areas” convened in March, 1988.

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(b) Implementation of uneven development policies and its effects Superiority in location and economic foundation and the long history of opening-up and other advantages with coastal areas qualified them as precedents in openingup, helping them attract foreign investments. To facilitate development, increase macro-economic efficiencies, enhance national economic power, and to remove poverty and backwardness, favorite policies for coastal areas were implemented to encourage their development ahead of other areas. Major policies were as follows: first, for the coastal areas to open up in advance. Five special economic zones (Shenzhen, Zhuhai, Shantou, Xiamen, Hainan), fourteen coastal port cities (Beihai, Zhanjiang, Guangzhou, Fuzhou, Wenzhou, Ningbo, Shanghai, Nantong, Lianyungang, Qingdao, Yantai, Tianjin, Qinhuangdao, and Dalian), five coastal opening-up zones (the Pearl River Delta, Xiamen-Zhangzhou-Quanzhou Delta south of Fujian, the Yangtze Delta, Jiaodong Peninsular, and Liaodong Peninsular) and one National New Zone (Shanghai Pudong New Zone) were set up successively. The second policy was for the coastal area to take the lead in reforms. Preferential policies were implemented within areas of investment, foreign trade and investment, financial and taxes, credit loans, prices and so on. Compared with the fifth “Five-Year” period, for example, ratio of inland investment in basic facilities in the sixth “Five-Year” period to that of the country drop from 50 to 46.5%, while there was the rise in coastal areas from 42.2 to 47.7% (Construction of some basic facilities is not separated, so the figures do not necessarily sum up to 100%). Thirdly, it was for the coastal areas to take the lead in development. More key projects were located by central government in southeastern areas, attracting economic factors to such areas, further boosting national economy as a whole. Compensations to backward areas and areas where minority groups were located were provided to a certain extent for sure. Preferential policies greatly improved environment for investment, pillaring rapid development in these areas. More importantly, guided by export-oriented strategies, these areas gradually turned into foundations attracting direct foreign investment and export processing, their superior geographical location and economic basis providing support. Out of the three major geographical belts, the coastal areas attracted the country’s 90.6% of direct foreign investments and other investments ($18.8 billion) during the period from 1983 to 1991. Ten years’ rapid development made coastal areas the locomotive for the highspeed development of Chinese economy. But, due to the defects with the mechanism and policies, during the divergence of the double mechanisms in development strategies and economic mechanisms after opening-up, numerous problems came up, mainly found in the following two areas: First, the quickly widening gap between the east and other areas. Influenced by natural, historical, societal, economical and cultural factors, in a general upward trend of economy in the country after opening-up, all the three belts saw considerable economic development. But as to the degree of improvement, there could not be found a simultaneity in other areas as in coastal areas. Rather, an obvious delay, and even a widening gap was there. The ratio of local GDP to that of the country turned

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Graph 1.1 Changes of the rate of GDP of the eastern areas and that of the central and western areas combined to the GDP of the country from 1979 to 1991. Note Not including Xinjiang Production and Construction Corps, Hong Kong and Macau, the two figures do not add up to 100%. Data source Collected from Collection of Statistics Data for the 60 Years of New China

from 3.53% lower than the central and western added together in 1979–2.99% higher (Graph 1.1) in 1991. Second, interest conflicts and regional bulwarks were on the rise. Motivated by central government’s policies, different forms of horizontal economic joints and inter-regional joints thrived with the introduction of opening-up, all in prosperity. Incomplete statistics show that there were more than 100 inter-regional, horizontal economic joints of different forms at the end of the seventh “Five-Year” period. However, with the increase of the economic benefits of local government, especially with the implementation of fiscal responsibility mechanism, behind this prosperity could be seen increasing numbers of bulwarks constructed by different administrative means under different names for the purpose of protecting local budding processing industries, increasing local governmental income and nurturing local independent industries. For example, measures such as setting up checkpoints of all kinds to collect taxes and charges, prohibiting purchases outside of local areas, limitations on goods from other areas to enter local markets were taken. To protect local products in some areas, leverages of price, finance, credit loans, awards and fines were made use of to enforce bulwarks and monopoly on local resources, production factors and commodities, resulting in campaigns of various kinds for resources, in interest conflicts and trade frictions, what was called “the economy of vassals.”

1.3 The Preliminary Formation of Balanced Coordinated Regional Development During 1992–1998 Principles of coordinated regional economic development were officially confirmed early in 1992 when Deng Xiaoping completed his inspection to the South. These principles intended to curb the widening gaps between different regions caused by implementation of uneven development strategies. But generally, distribution of national

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investments and support still were cast to coastal areas, which was caused by the transitional nature of policy adjustments and tardiness of corresponding effects. Meanwhile, with the gradual establishment of socialist market economy, with reforms in financial administration mechanism, cooperate, finance, foreign exchange quickly pushed forward, the function of the market to distribute resources in the situation of macro-regulation was continuously enhanced, and the flow of resource factors was accelerated. The efficiency of the development of economy was improved as a whole. But the market not sufficiently nurtured, the legal system not yet perfected, and the fiscal mechanism being that of a “dining by different ovens,” local governments managed to set up numerous market blockages to protect their own interests. Series of blockages featuring administrative separations made it difficult for market factors to flow according to their values and the laws of competition, neither was it easy for individual regions to share the benefits or responsibilities relating to resources and basic facilities. This layout of development encouraged the central and western areas, rich in resources yet lacking necessary fund and technology for deep processes, to take advantage of their monopoly status to rise prices for an advantageous domestic position; contrary to this, the eastern areas, at an opposite position, opted to purchase from international market to avoid monopolized prices, hesitant in their choice of joint investments to exploit resources in central and western areas. That investment layouts and what was supported by policies concentrated in eastern areas, coupled with incomplete markets and unsound legal systems, the gap between regions was sharply widening despite the fact that economic development as a whole was accelerating. (a) Preliminary formation of coordinated regional development Adjustments to regional economic development were being considered at the end of the seventh “Five-Year” period to cope with the problems caused by uneven regional development strategies. The seventh plenary session of the thirteenth CPC Central Committee passed the “Proposals of CPC Central Committee for Drafting a Ten-Year Plan for the Development of National Economy and Society and for Making the Eighth Five-Year Plan.” It was explicitly pointed out that ever since opening-up and reform were implemented, unprecedented development had been realized, and financial capabilities were considerably strengthened. But there existed the problems of too much repetition of construction, tendency in industry structure becoming similar, unreasonable distribution of resources and regional separation and blockage, making it difficult to exert the relative advantages, interfering with the formation of a unified national market. For this reason, principles of making plans as a whole, reasonable division between regions, mutual compensation with each other’s strong points and harmonious development must be closely followed in the ten years to come. Horizontal joints and mutual benefits and reasonable economic divisions between different regions would facilitate development toward making use of regional characteristics and regional cooperation. Based on this, the relationship between origins of resources and processing locations could be reasonably handled; it could also be expected that economic and social problems caused by too wide an

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income gap between different regions were to be tackled with great efforts. Measures must be taken at the same time to break separations and blockages between different regions to facilitate the formation and development of a nationally unified market. Viewed from this, the strategic idea of coordinated regional development was already being brewed by the end of the seventh “Five-Year” period, but it was not until the 14th CPC National Congress that it was put forward as a long-term strategic guideline to cope with the widening gap between regions. It was pointed out in the communique of the 14th CPC National Congress in October 1992 that principles of planning according to regional characteristics, reasonable division of functions, making use of the advantages of each region, mutually compensating each other and developing together must be stuck to based on the precondition of a nationally unified planning so that a reasonable layout of regional economy could be formed and a healthy development of regional economy could be pushed forward. The “Plans for the Development of National Economy and Society during the 9th Five-Year Period and Suggestions for the Long-Term Aims for 2010” passed at the Fifth Plenary Session of the 14th Central Committee of the CPC in September 1995 pointed out that “one of the key guidelines for the 15 years to come is to stick to coordinated development of regional economy so that the gap between regions can be narrowed down.” One important aspect of the core of socialism and of the maintenance of social stability is to gradually narrow down regional gaps, to solve the problem of unfair income distribution and to realize the goal of getting rich simultaneously. In a special chapter of the “Ninth Five-Year Plan about the Development of National Economy and Society and Prospects for 2010” passed at the 4th Plenary Session of the 8th National Congress in March 1996, there is a systematic exposition of the guideline and major policy measures of “sticking to coordinated development of regional economy and narrowing down the gap between different regions.” It was further stressed in the communique of the 15th CPC National Congress in September 1997 that reasonable layout of regional economy and coordinated development must be maintained. The series of key decisions showed that coordinated regional development strategies already came into being. (b) Primary implementation of coordinated regional development policies and its effects Regional policies applied during 1992 to 1998 include mainly the following: 1. Comprehensive implementation of opening-up policies. After Deng Xiaoping’s inspections to the South in 1992, the degree of opening-up increased in coastal areas on the one hand, and on the other, with the opening-up of a series of coastal cities, cities along Yangtze River, and capital cities of inland provinces, and with the approval of Open Economic Zone of the Three Gorges, there was seen an accelerated speed of opening-up in central and western areas. A comprehensive opening-up layout of multilayers and multi-channels came into being along the coasts, along the borders, along the River, and in inland provincial capitals. 2. Adjustments to investment and industry layout policies. During this period, with investments coming from more and more subjects, direct allotment of resources

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by central government decreased as it was, national investment in central and western areas relatively increased. And, to boost economic development in central and western areas, national policies encouraged preliminary processing industries such as cotton spinning to move to central and western areas rich in resources. 3. Consummation of policies for poverty alleviation. Implementation of relative plans started in 1994. It was determined that within seven years starting from 1994, man power, material resources, and finance were to be concentrated, and resources from different social strata were to be collected, to fundamentally solve the problem of basic needs of 80 million rural populace. In October, 1996, the Central Committee and the State Council issued “Decisions for Solving Rural Poverty Problems as Soon as Possible,” calling on the Party as a whole and the country as a whole to extend a helping hand to the poor, focusing on key problems, with resources gathered to solve the problems of basic needs for the rural poor, so that poverty could be eliminated. To enhance cooperation between east and west to solve such problems and to narrow down the gap between regions, the State Council approved and transmitted “Report about the Organization of Developed and Less-Developed Areas to Help Out the Poor” by the Leading Group of Poverty Alleviation and Development. The above policies and measures contributed greatly to poverty alleviation in rural areas, basically realizing the goals previously set by “Plans for Poverty Alleviation.” Meanwhile, actively following the example of national investments, investments to the central and western areas considerably increased. But bulwarks coupled with the weak foundation discouraged investments from the east into resource exploitation; new investments in central and western areas concentrated on basic facilities; coastal areas achieved rapid development based on their advantages with location, conditions and favorable policies. All this led to the increasingly widening absolute gap instead of the opposite. The ratio of GDP of the east to that of the nation as a whole rose from 5.66% higher than that of the central and western added together in 1991 to 10.97% higher in 1998 (Graph 1.2). There was a long way to go before the goal of coordinated development could be realized. What cannot be neglected is that deterioration of environment was becoming severer, and in some cities, it was already very serious, in spite of the efforts made in environment preservation and construction.

1.4 Comprehensive Implementation of Coordinated Regional Development Strategies from 1999 to 2005 Ever since the end of the twentieth century, various hidden regional problems in the development of economy and society have unveiled in incessant manners: serious backwardness in western regions, regression in original industry bases in the northeast, marginalization of economic status in the central, serious expansion of large cities in the east, etc. leading to low efficiency and even waste in the geographical

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Graph 1.2 Changes of the rate of GDP of the eastern areas and that of the central and western areas combined to the GDP of the country from 1992 to 1998. Note Not including Xinjiang Production and Construction Corps, Hong Kong and Macau, the two figures do not add up to 100%. Data source Collected from Collection of Statistics Data for the 60 Years of New China

distribution of resources, making it difficult to meet the requirement of the east to take the lead in development and of the central and western in their economic expansion, severely restricting the continuous, healthy and swift development of national economy. To cope with the widening gap and other social and economic problems that incurred, the Central Government implemented such strategies as Great Development of the West, Resurrection of Original Industry Bases in the Northeast, and Rise of the Central under the guidelines of scientific development. The formulation and implementation of such strategies meant comprehensive implementation of coordinated regional development strategies; the harmony of regional development and the vitality of development were significantly enhanced. But economic decentralization and separation, imperfections with the market system, unsound legal system and other factors that came together with administrative achievement assessments centering around GDP led to the lack of a scientific systemic framework to adjust the interest relationship relating to the exploitation and use of resources, regional division and cooperation and preservation of the environment and compensation. The lack of a clear description of regional function in some places resulted in ill matches between industry development and resources and environment. Deterioration of the ecosystem and conflicts between Nature and human society are unavoidable. (a) Comprehensive implementation of coordinated regional development Twenty years after the implementation of coastal development strategies, the Fourth Plenary Session of the 15th Central Committee of the CPC passed “Decision of the CPC Central Committee about Some Major Problems Relating to Reform and Development of State-Owned Enterprises,” in which it was explicitly pointed out that strategies of great development of the west were to be carried out on the state level, comparatively advantageous industries and technologically advanced enterprises were to be developed by the west based on their own conditions to facilitate optimization and upgrade of industry structure; the east should provide support for

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the development of the west through transference of industries, transference of technologies, point-to-point support, joint development and other means, which were based on the principle of mutual benefits, mutual compensation for each other with their advantages, and mutual development, when they were boosting reform and development. This signified the formal concrete implementation of the strategy of coordinated regional development. To provide key-point support on the state level to western areas, the State Council issued “Notice about Some Policies and Measures Relating to Western Development” in 2000. In the outlines of the tenth “Five-Year” plan published in 2001, “starting great development of the west, facilitating coordinated regional development” was explicitly pointed out. Coordinated regional development was lifted to an unprecedented height. The year 2001 saw the beginning of the tenth “Five-Year” plan and the realization of the goals of the third strategic stage, requiring the northeast, the once “cradle of China’s industries” and “the barn of the country,” where there was a high proportion of national economy, a heavy burden of planned economy, and exhausted mineral resource, to promote sustainable development strategies, and to provide more mineral products and raw materials. Preservation of the environment and frugality with resources demanded more from original industry bases in the northeast at the same time. Under such circumstances, resurrection of the northeast and other original industry bases was contained in national strategies in 2002. The Third Plenary Session of CPC Central Committee in 2003 first put forward explicitly the key strategy of “integrated regional development” and made “formation of a mechanism for facilitating coordinated regional development” a major task in perfecting socialist market economy system. Under this guideline, the national strategy of facilitating the rise of the west saw the start of its implementation in March, 2004. It was decided in “Proposals about Making the Eleventh Five-Year Plan” passed in 2005 at the Fifth Plenary Session of the 16th Central Committee of the CPC that holistic strategies for regional development are to be fulfilled, continuous efforts are to be made to promote great development of the west, to resurrect the northeast and other original industry bases, to motivate the rise of the central and to encourage the east to take the lead in development so that a coordinated regional development layout and mechanism in which the east, the central and the west are to mutually compensate each other and to interact with each other in a friendly way can be formed. This is a precise definition of the connotations of coordinated regional development and its goal and promotes coordinated regional development to the stage of comprehensive implementation as well. Meanwhile, it is the first description of the holistic national development strategy including the “four blocks” of the east, the central, the west and the northeast, a sketch of concrete path to coordinated regional development.

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(b) Comprehensive implementation of coordinated regional development and its effects Taken as a whole, guidelines of making overall plans, taking all factors into consideration and tutoring according to different categorization were applied, gradually relieving restrictions imposed on the development of each region. There appeared in the development of the “four blocks” a pattern in which the key points were explicit with each having its own distinctive characteristics, the results relatively satisfying. The implementation of great development of the west gradually improved the environment and conditions for development. There was a rapid improvement of transportation, communication, water conservancy and other facilities, laying a solid hardware environment for attracting investment in the west on the first hand; then there was a gradually improved or strengthened ecological environment in some parts and the eco-safeguard of the upper streams of major rivers that came from returning grain plots to forestry, returning animal shepherd to grass and recovery of the source of the three rivers; thirdly, advantageous industries with characteristics of the west take on a prosperous look, with Chengdu-Chongqing and Guanzhong in the middle of Shanxi Province playing a more and more strengthened leading role. For example, process of farm products, energy industry, tourism and other advantageous industries are thriving with the implementation of western development. Fourthly, education, science, culture, health, social security and other causes are extending from cities to rural areas, with enhanced efforts to help out the poor; fifthly, there has been found positive changes in the senses of opening-up and reform and notions concerning socialist market economy in the public. There is an enhanced confidence and determination in the west to speed up the construction of a fairly well-off society. Implementation of strategies to resurrect the northeast lead to breakthroughs in some key fields and rings, accelerating the development of local economy and society. Reforms and merges in state-owned enterprises being accelerated, employment and reemployment obviously quickened; adjustments and optimization with economic structure being accelerated, innovation and creation in enterprises is incessantly being uplifted; transformation of industries and reconstruction of slum habitations in regions where resources are exhausted are both accelerated, sustainability enhanced. There was a good beginning with the rise of the central. On the one hand, there is a series of policies to support, benefit and strengthen agriculture, consolidating the status of the central as the most important area for agriculture produce especially grain of the country; secondly, foundations of energy and resources, and of production of modern equipment and high-tech is being paid attention to, optimization and upgrade of industry structure accelerated; thirdly, status as transportation hubs is being uplifted, pillaring powerfully transportation and tourism in the central regions. City clusters centering around Wuhan, on the Central Plains along the middle reaches of the Yellow River, in Changsha-Zhuzhou-Xiangtan, and along Wanjiang River are quickening their pace of development, providing platforms for economic development and population concentration. The comprehensive implementation of coordinated regional development strategies slowed down the widening gap between regions. The average disposable family

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income in 2005 in the east, west, central and the northeast rose by 65%, 67%, 56%, 74%, respectively, compared to those of the year 2000 (price factor included). But in case of local government “taking GDP as the sole goal” instead of pursuing integrated local development and harmonious coexistence of human and Nature, there cannot be found optimized, effective and sustainable use of local space, neither can problems with compensations for resources and environment be perfectly solved.

1.5 The Stage of Strategic Combination of the “Four Blocks” and Major Function Zones (a) Promotion and implementation of the strategy of major function zones With the implementation of comprehensive regional development strategies, there appeared in the regional development of economy and society some problems. Highspeed increase pursued at any price, one-faceted understand of narrowing the gap as narrowing the gap of economy gross in some places, coupled with the colossuses of regions where regional policies were to be implemented led to overexploitation, unchecked exploitation, disorderly exploitation and especially scattered exploitation, resulting in the decrease of arable land at too high a speed and too large a volume, ever severer pollution, degeneration of the ecosystem and other problems. Information collected from actual implementation showed that the essence of comprehensive regional development policies is the one to narrow down the GDP gap between different regions, not the one for spatial development, the problem of spatial balance between population, economy and resources and environment not likely to be solved. At the same time, the negligence in the layout of productivity of the bearing capacity of the environment of different regions, with too much emphasis laid on economic balance of different regions, is quite likely to lead to unchecked development and pollution of the environment, and unbalanced distribution of population and volume of economy in different cities. For this reason, when comprehensive regional development strategy is being facilitated, when regional economic balance is attended to, theories directing regional development must be enriched and expanded, so that the notions relating to spatial balance of economy, population and ecology can be established. The major function of each region has to be nailed down based on a comprehensive analysis of the bearing capacity of land, resources and environment. The national major function zone strategy was formed and implemented under this circumstance. The basic concept of major function zone strategy was proposed in the outlines of the eleventh “Five-Year” plan for the first time by National Development and Reform Committee submitted to the State Council, in which the major function zones were categorized as the ones to be optimized and integrated, key development centers, ecologically fragile ones and development forbidden ones. “Proposals about Making the Eleventh Five-Year Plan by the CPC Central Committee” explicitly

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put forward the holistic requirement for the construction of major function zones. Based on this, the overall direction and major tasks were systematically illustrated in “Outlines of the 11th Five-Year Plan for the Development of National Economy and Society of the People’s Republic of China” in March, 2006. In July 2007, the State Council issued in the form of a document “Opinions of the State Council about Composing Major Function Zones” ([2007]21), in which some key matters were explicitly elaborated: the orientation, principles, major tasks and the double levels (national and provincial), and the definitions of the four major function zones. One of the major goals, as was proposed in the communique of the 17th CPC Central Committee of the comprehensive construction of a comparatively well-off society, is the formation of the layout of major function zones. Thus, the notion of major function zone has been actualized from theory into practice. “Layout of National Major Function Zones” provides a strategic, fundamental, and binding planning of the spatial development of the land of our country, categorizing the spatial development as optimized development, pivotal point development, restricted development and prohibition. “Proposals for the Plans for the Development of National Economy and Society during the 12th Five-Year Period” uplifted the strategy of major function zones to the level of the state, pointing out the goal of establishing a layout in which different zones could compensate each other with their advantages, the major function was clearly defined, land was effectively made use of and human and Nature could carry on in harmony, one that had the strategies of comprehensive regional development and major function zones implemented in match with each other, realizing gradually equality of basic public services in different regions. In this way, the holistic regional development strategy and the major function zone strategy became mutually supportive to each other, structuring a complete strategic pattern for the spatial development of the land. (b) The gradual deepening, detailing and consolidating of the strategy of the “four blocks” After the formation of the strategy of the “four blocks,” efforts were made in combination with past successes and actual requirements to gradually deepen, detail and consolidate regional development strategies and policies, blocks attended to going from large expansions to relatively smaller ones. Examples can be found from the economic zones and economic belts constructed with regional planning and schemes from 2006 that cover different provinces, different drainage areas and different administrative zones, such as the Economic Zone on the West Coast of Taiwan Straits, Central Plains Economic Region, Cheng-Yu Economic Zone, Beibu Gulf Economic Zone and others. Incomplete statistics shows that after the initiation of the strategy of the “four blocks,” the State Council drafted or officially signed over 100 files of strategic significance for the state-level regional strategies of different scales, some large as “Planning for Regional Development of the Yangtze Delta,” some small as “Yiwu International Trade Comprehensive Reform Experiment Point.” There is more and more objective pertinency and regional adaptability in the regional development strategies of China.

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(c) The implementation of the “four-block” strategy and major function zones and its effects The government has kept on its support to the central and the western regions ever since the implementation of regional development strategies represented by the “fourblock” strategy to curb the widening regional gap while at the same time having the east playing the leading role as usual. Policies and measures from this aspect orchestrate the development of the “four blocks.” In recent years, increase in local GDP, investment and industry in the east is repeatedly surpassed by the central and western regions. With increased general transfer payment to the central and western areas, continuously strengthened construction of basic facilities, and the migration of the population to the east, the gap between average GDP per capita of the four blocks is narrowing down, and the same is also happening to public services and basic facilities. Meanwhile, the strategy of the major function zones was beginning to be implemented, taking as its major content the equalization of basic public services. The pattern of coordinated interaction between economic development and preservation of ecosystem gradually took form. Combined implementation of the two strategies introduced a series of positive changes with the layout of regional development. Firstly, the regional economic growth pattern is going from the east taking the lead in the past to that of the four blocks advancing side by side. Great changes happened to the patterns of regional development during the period of the 11th “Five-Year” Plan. Lower development rates in the central and western and the northeast than the east were turned over. The annual average growth speed of 13% in the central and western and the northeast overtook the east by 0.5 to 1%. A situation of coordinated regional development is gradually coming into being. Secondly, the sole pursuit of economic growth in regional development was gradually turning to the associated development of economy, society and ecosystem. The connotation of coordinated regional development, as guided by the strategy of major function zones, which used to mean purely narrowing down of economic gaps, was enriched and meant harmony between economy and population, society, resources and the ecosystem. Recent years have seen considerable achievements in the construction of economic growth, social causes and the ecosystem. Thirdly, insufficient coordination in regional development was turning to one of the better coordinations. Joint implementation of the “four blocks” and major function zones enhanced the positivity, initiation and sustainability, and relative advantages were being made better and better use of in regional division and cooperation. There was more harmony in inter-regional relationships. There were enriched contents in regional developments, which was being incessantly widened and deepened, horizontal economic relationships and regional integration continuously strengthened. Meanwhile, city clusters and economic circles are functioning as increasing poles in regional cooperation and development. Fourthly, administrative means of coordination were turning to some comprehensive means of economy, administration and statute. With more and more attention paid to comprehensiveness of the contents, experimental and demonstrative nature of the reforms, directionality of distribution, pertinence of location, economic belts,

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city clusters, capital circles, economic zones, experimental zones are budding and thriving, promoting the requirement for the development of facilitation of integration of regions, which would inevitably lead to changes with managing modes from mainly administrative ones to ones laying equal stress on both administrative zones and economic zones, so that the requirement of breaking through regional boundaries for the integration of resources coming from different administrative regions could be met. The establishment of a series of key development zones of different scales and the clear definition of major function zones categorized according to the four major function zones resulted in the gradual optimization of location layers, dayto-day refining of regional development structure and the pluralization of regional adjustment means (for which more and more economic means as planning directions, cooperative mechanism and policy support are replacing administrative means), and meanwhile, regional legislation is on agenda now. In a word, a situation for the comprehensive use of economic, administrative and legal means to adjust regional development is being formed. There should be no denial that with considerable achievements in coordinated regional development came inevitably some crying problems and conflicts. On the one hand, the absolute gap between regions is still widening. Influenced by existing development foundation and other factors, the absolute gap between the east, central and the west regions is widening despite the somewhat narrowing relative gap. And besides, there is prominent advantage in public service in the east over those in the central and the west. On the other hand, the power of the market to distribute resources is not yet fully exerted. Repetition in construction and low-level competition still exist. And also, institutions and mechanisms for coordinated regional development are not yet complete nor perfect. Fourthly, fragmentation of regional layout and policies is taking shape.

1.6 The Strategic Combination of the “Four Blocks” and the “Three Propping Belts” from 2014 on (a) The formation of the strategic combination of the “four blocks” and the “Three Propping Belts” One of the strategies in the management of a large country is to balance development levels in different regions and to make good regional layouts and coordination so that inhabitants of each region can enjoy the welfare of being a citizen for the collective cohesion of the country. In the case of a new normal in economic development, CPC Central Committee, basing its requirements on recognizing new normal, adjusting to new normal and pioneering the new normal, sets new tasks for optimizing the layout of economic development. It was explicitly proposed in the Central Economic Work Conference in October 2014 that regional policies are to be completed and perfected to facilitate coordinated, cooperative and joint regional development; when

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the comprehensive regional development strategy is kept on, the three initiatives of “One Belt One Road,” “Beijing-Tianjin-Hebei Integrated Development” and Yangtze River Economic Belt are to be implemented as focal points. This is the new guideline directing regional economic development in the background of the new normal. The Report on the Work of the Government by the State Council in 2015 first defined “One Belt One Road,” “Beijing-Tianjin-Hebei Integrated Development” and Yangtze River Economic Belt as the “Three Propping Belts,” deploying at the same time the new regional development strategy of “the expansion of new spaces for regional development, and joint implementation of the four blocks and the Three Propping Belts.” In this way, the “Three Propping Belts” and the past “four blocks,” together with the major function zone make up the strategic combination for regional development. The establishment of the strategic combination signifies the turning of strategic thinking from rough modes of focusing mainly on regions for coordinated regional economic development to emphasizing more on inter-regional communication and cooperation, on coordination and balance. The initiative of “One Belt One Road” is a key ring in the new cycle of high-level opening-up and reform and constructing a new structure of opening-up. The “Silk Road Economic Belt” and “Twenty-First-Century Maritime Silk Road” (shortened to “One Belt One Road”), from their proposal first by China in 2013, attracted wide attention from international society and has now become a common wish beneficial to all parties along the route and one that reflects the requirements of all parties. The government work report by the State Council in 2014 explicitly required the immediate construction of the Silk Road Economic Belt, and Twenty-First-Century Maritime Silk Road, and promotion of the economic corridor of Bangladesh–China– India–Myanmar and of China-Pakistan. A bunch of key propping projects are to be started, basic facilities are to be connected and space for basic cooperation in the international economy is to be widened. The initiative of “One Belt One Road” is thus lifted to the state level. National Development and Reform Commission, Ministry of Foreign Affairs and Ministry of Commerce of the People’s Republic of China jointly issued “Visions and Actions on Jointly Building Silk Road Economic Belt and Twenty-First-Century Maritime Silk Road” on March 28, 2015, signifying the comprehensive propelling of “One Belt One Road” strategy. It was proposed by the Chinese government that, based on peace and cooperation, openness and inclusiveness, mutual learning and teaching and mutual benefits, a comprehensive concrete cooperation is to be facilitated to forge a community of common benefits, common fate and common obligation where there is mutual political trust, blending of economy and cultural tolerance. China and other countries along the route are planning the six economic corridors of China-Mongolia-Russia, the New Eurasia Land Bridge, China-Central-Asia-West-Asia, China-Indochina Peninsula, China-Pakistan and Bangladesh–China–India–Myanmar. Integrated Development of Beijing, Tianjin and Hebei proves to be a key strategy on the state level for forging a coordinated regional internal intensive development sample, to peel off from Beijing the functions not belonging to those of a capital, to have them three compensate each other with their advantages and to cultivate a new pole for the development of integration. The topic of integrated development of

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Beijing, Tianjin and Hebei was listed in the agenda in 2013 as a key item for regional development in China. In February 2014, it was upgraded to being a key development strategy on the state level, with its significance, means of implementation and key tasks explicitly nailed down. On April 30, 2015, the Political Bureau of CPC Central Committee examined and adopted “Outlines of Coordinated Development of Beijing, Tianjin and Hebei,” all work started in an orderly manner, adjustments to economy and spatial structure where population economy is concentrated started, exploration into sampling optimization of associated regions as a whole getting on the way. The strategy with Yangtze River Economic Belt is a key measure for the country to forge a new propping belt relying on the Golden Waterway to facilitate economic growth to go from coastal regions to inland areas. To empower domestic demand as a major engine for economic growth in the new economic normal, it was proposed in the work report of the State Council in 2014 that, aside from making use of consumption as a basis and investment as a key factor, new regional economic belts have to be constructed so that a long-term mechanism for enlarging domestic demand could be established with efforts made from supply side. It was further pointed out that strategic pillaring should be sought from Yangtze River Economic Belt and other regional economic belts when comprehensive regional development strategies were being put further into practice. “Guidelines from the State Council for Motivating the Development of Yangtze River Economic Belt Based on the Golden Waterway” was officially released in September 2014, signifying the uplifting of the regional initiative of Yangtze River Economic Belt to the state level. (b) Implementation of the policies of “the four blocks” and “the Three Propping Belts” and Its effects When comprehensive regional development strategies whose major projects are found in the “four blocks” are presently being kept on, the three state-level strategies are being schemed for implementation: “One Belt One Road”, Coordinated Development of Beijing, Tianjin and Hebei and Yangtze River Economic Belt. Combined implementation of the “four blocks” and “Three Propping Belts” has been followed in incessant manners by the official approval of the “Cooperative Planning of the Yellow River Golden Delta Region of Shanxi, Shaanxi, and Henan,” “Plan for the Resurrection of the Original Central Soviet Zone of Jiangxi, Fujian, and Guangdong,” “Plan for the Economic Belt of the Pearl River and Xijiang River,” “Plan for the Economic Eco-Zone of Dongting Lake,” “Plan for the Maritime Major Function Zone of China” and “Outline for Regional Cooperation and Development around Bohai Sea.” The New Zone of the West Sea Coast of Qingdao, Jinpu New Zone of Dalian, Tianfu New Zone of Sichuan, Xiangjiang New Zone of Hunan, Jiangbei New Zone of Nanjing, Fuzhou New Zone, Dianzhong New Zone of Yunnan and other new zones have been approved. With the initiative of “One Belt One Road” comes cooperation in international production capacity and equipment production. The spatial network framework of “one core, double cities, three pixels, four districts and multi pivots” is under construction in Beijing, Tianjin and Hebei from various aspects. Positive development has been made within integration of regions in Yangtze River

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Economic Belt. A new chessboard composed of points and lines is present in regional development of China, laying foundation for regional economy in China to develop in a more harmonious and coordinated manner, for a better optimization of regional spatial layout, and providing as well an effective support for facilitating coordination and cooperation of regional economy and for transformation and upgrade of regional economy.

2 Taking the Lead in the New Normal with Strategies for Coordinated and Balanced Regional Development The period between 1980s and the first decade witnessed quickening growth of China’s industrialization, during which time, social value tends to be one of “stimulated craze for materials,” sacrificing eco-environment and social welfare for material wealth in bloody competitions. The 12th “Five-Year” period was the beginning of deepening industrialization, which would last until mid-twenty-first century. This is an era when modernization in state administration is pursued through comprehensively deepening reforms, one in which we are experiencing the “new normal” in economic development. There is a crave in social spirit for participation in profits, and for balance in development; there is a tendency in social psychology for long-term rationality, for public consideration and long-term patience; strategic consideration on the state level is better found in long-range vision, long-term objectives and longlasting peace and security. When material achievements are still valued, allocation of material benefits, and nonmaterial pursuits as well, are more and more sought after, for which purpose, the cost of a lower growth might be paid to a certain extent. “Weighed materialism” might be the appropriate term for this value orientation: when richness and strength may still be pursued in a materialist age, post-materialist orientation is gradually taking root. When “development is the most persuasive argument” is still stuck to, more and more attention is paid to environmental quality, and uniformity and sustainability of development. The behavior of the public characteristically takes on an inclination toward balance in development, equity and risk-avoidance. As a result, there must be a turning in policies from “efficiency first, with consideration given to equity” to “promoting efficiency with equity,” pursuing equity with balanced development and guaranteeing equity with laws and statutes. Strategic considerations for regional development must adjust to the new normal of fluxes of the time when new normal is a normal in the development of macroeconomy. One important point out of this is to change the favoritism and too much administration in regional strategic considerations for ones that are more open, more unified, fairer and better balanced.

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2.1 The Problem of Imbalance in Regional Development in the New Normal It lays the foundation for prosperity of economy and harmony of society to make scientific regional development strategies so that a reasonable regional development layout can be formed. Directed with coordinated regional development strategies since the 1990s, there has been continuously strengthened positivity and initiative in developing regional economy, the widening gap preliminarily curbed, environment and conditions for development considerably improved, effectively supporting the high-speed increase of economy and notable development of society. In this condition of new normal, such problems can still be found: the continuously widening absolute gap in regional development, the disturbed flow of resource factors between different regions, unequal chances for development in different regions, incompatibility between regional economic growth and the bearing capacity of resources and environment, fragmentation in regional economy and others. Imbalance in regional development in the new normal is a great trouble in the development of economy and society. (a) The widening absolute gap in regional development of economy Development of regional economy is out of balance for long due to differences in natural resources and location, where there is a great disparity between economy in the east and that of the central and west and the northeast. Although there is a slow-down in the accelerating speed of the widening gap with the implementation of coordinated regional development strategies, a situation of “slow in the east and fast in the west” gradually taking form, the situation is not yet solidified. Most backward areas have barely entered the period of quickening industrialization and urbanization; there is still severe poverty in the central, especially the west. Compared with statistics from developed countries, there is much too large a gap between areas, GDP per capita in high-income areas 5–6 times over that of low-income areas; the figure is 2–3 in developed countries. If things just go in this course of unbalanced economic mode, fund, man power, technology and other factors will keep on flowing to the east and other developed areas, exacerbating the imbalance, making it impossible for each region to share the fruit of development, neither would it be beneficial for sustainable economic development, for the harmony of the society and for the coexistence of human beings and Nature. And what’s more, the east, after so many years of speedy development, is now caught in the bottleneck of weakness in technological innovation, rising cost of labor, unreasonable industry structure and others. If recovery in export goes feeble, efforts made by the east to develop domestic market in central and western areas will be restricted by low consumption demands there due to their backwardness in development. Narrowing the gap in economic development should catch the attention of all circles of society against this macro-background of stimulating domestic demand and motivating economic transformation and upgrade.

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(b) Disturbed flow of resource factors between different regions Fierce competitions between local governments under the mechanism of fiscal divisions since the implementation of the “four blocks” have resulted in speedy economic growth in different regions on the one hand, while on the other they have led to local conservativism for more resource factors to develop local economy. Due to administrative divisions, there is localism when local government is stimulating economy, making it difficult for them to make holistic development plans by putting themselves in the region of a certain larger scale. They instead pursue “large and all-inclusive” or “small but all-inclusive,” leading to homogeneous competition and repetition of construction. There is much too large a productivity surplus. There has been more and more cooperation between local governments since the implementation of coordinated regional development strategy, but the lack of an effective mechanism for cooperation, dialog and negotiation results in a kind of cooperation that is not institutionalized, reasonable flow of resources and factors not effectively backed by a system. (c) Inequality in development opportunities between different regions Difference in geographical locations, economic foundations, development stages and basic facilities such as transportation have caused factual inequality between the east and central and west areas. To change the backwardness in the central and the west, resources are exhausted, the environment is polluted and the ecosystem is damaged, leading to a vicious circle, interfering with their sustainability in development; while in the east, which relies on its locational advantages and the “going first, trying first” privileges enjoyed from policies, a development situation with a relatively perfect market system, a thriving export-oriented economy and a relatively powerful motivating ability for surrounding areas has been established. To earn a better salary, laborers from the west would like to get employed in eastern developed areas or cities. Thus, development opportunities in the west and their abilities to attract investment are weaker than the west. And on the other hand, under the current fiscal and taxation mechanism, the relatively small volume of economy poses restrictions on their financial revenues, and further a small fiscal expenditure. Meanwhile, current regional policies lay emphasis on regional economic balance, so that not enough attention is paid to such public services as education, culture, health and others. This, coupled with the spatial separation of labor and the population to be fed, has actually caused the much too large a gap in public services. (d) Incompatibility between distribution of population and economy and the bearing capacity of the environment With the simultaneous development of the “New Four Modernizations” (new industrialization, information, urbanization, agricultural modernization), the key issue of harmonious development of population, resources and environment and economy and society still prevails the implementation of scientific development. Means of production extensive, technology lowly, fast economic growth in some period in the

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past depended mainly on bulky investments of production factors. There was eversharpening conflict between economic development and resources and the environment. Thus, behind the considerable achievements is the insufficiently realized threedimensional goal of compatibility between economic development, social progress and genial environment. There is an urgent need for economy and society to enter a state characterized by mild growth centering on optimized adjustment of structures. Meanwhile, in those long years of development, never was there an overall plan for economy, population, resources and environment to be considered together from the perspective of sustainable development, neither was there enough attention paid to the balance of distribution of population, to the balance between economic development, population distribution and resources and the environment. Regional economy and the concentration of population are not well matched to the bearing capacity of regional resources and the environment. So, the key issue is to put into practice the principles of “integration and balance,” making a complete analysis of the bearing capacity of resources and environment in different regions, so that optimization to the spatial structure on the state and regional level can be made to correct the imbalance between concentration of economy and distribution of population for realizing the balance of “five-in-all” of economy, politics, culture, society and eco-civilization. (e) Fragmentation in policies for regional economy The comprehensive regional development strategy of the “four blocks” offer a spatial division that is much too large in scale, requiring further refinement through regional economic policies when implemented, so that their pertinence, practical operation and effectiveness can be promoted. Against this background, regional development strategies on the national level came out in large numbers, pushing forward regional economic growth at a high speed, forging more and more new growth poles, motivating the transformation of the layout of regional development from relying heavily on the limited few areas surrounding Bohai Sea, the Yangtze River Delta, the Pearl River Delta to one that is motivated by multiple poles. But the fragmentation caused by “flourishing everywhere” in the regional strategic planning leads to the weakening of the guiding function of regional strategies, and the generalization of policies. In actual fact, regional planning on the national level has to a certain extent been transformed to regional competitions; the promulgation of a regional planning is sometimes the outcome of competitions between regions. Differences in regional development policies caused by fragmentation in regional planning would necessarily cause unequal opportunities for development; administration at free will and blind pursuit of political achievements and GDP are also quite likely. If not considered in an all-around way, this could be the beginning of a new cycle of disorderly competition, interfering with coordinated, cooperative, simultaneous and sustainable development. For example, the fragmentation in regional policies for inter-regional cooperation has led to fragmentation in values and ideals, in managing mechanisms, in technological management and in administrative systems. The above-mentioned imbalance in regional development helps us realize the truth that adjustments to regional development strategies must be made according

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to the important changes in the status of social and economic development. The solution to imbalance in regional development could be found in remolding regional economic relationship under the condition of market economy, globalizing regional development planning and strengthening cooperation and coordination in regional economy. Such cooperation and coordination will have to meet the requirements of predominant enterprises in developed areas to expand their business at a low cost, enlarging their markets, broadening their resource origins, while at the same time, restrictions on fund, technology, operation and administration and marketing in backward regions must be released to accelerate their industrialization with the bearing capacity of resources and environment taken into full consideration at the same time to promote reasonable development of national land.

2.2 New Strategies for Coordinated and Balanced Regional Development The above-mentioned imbalances in regional development cannot be solved through strategic considerations and policies for regional development of “stimulated materialism.” When economic development of China has entered a period of intensified industrialization characterized by “new normal” and by value orientation of “balanced materialism,” adaptive optimization to regional development strategies and policies must be made. Separated planning, extensive expansion and unbalanced development dominated by administrative regions, enlarging strategic spaces and changing regional economy as they have, caused “spatial congestion” (concentrated economic activities and excitement resulting in bearing difficulties) and “spatial obstruction” (difficulties of economic activities and entities in expansion and/or intensification due to certain limitations), marginal contribution of resources decreasing, processing capacity redundant, margin for profit contracting, regional attraction for investment insufficient, bearing capacity caught in a bottleneck, etc. Regional development must be expanded to a wider and more extensive strategic sphere for an optimized allocation of resource factors, coordinated innovation of industrial technologies, inter-regional cultural interactivities and optimization of territorial spaces, which would definitely not repeat the mentality of planned economy of neglecting efficiency and mechanic deployment of productivity, neither should it follow the inclination during the years of “stimulated materialism” of “short-term goal orientation, expansion and promotion on a flat surface, in pursuit of rapid effectiveness.” Instead, efforts must be made based on the holistic regional benefits to exercise the functions of the market and the government so that a strategic consideration can be reached that realizes coordinated development, cooperative development, mutual development and spatial balance to help lift coordinated regional development to coordinated balanced regional development. In this way adaptation to the “new normal” can be made and a leading position can be occupied.

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(a) Connotations and basis of coordinated balanced regional development (1) Connotations of coordinated and balanced regional development Coordinated and balanced regional development is the sublimation of coordinated regional development, the definition of the former depending on the definition of the latter. Coordinated regional development is the guideline implemented ever since early 1990s, around which voluminous research has been done into its connotations, opinions various. Out of these, one takes it that coordinated regional development is the pursuit of relative balance and dynamic coordination between regions during the process of unbalanced regional development; it is a process to motivate opening-up between regions, to help intensify economic communications, to strengthen interactions, to limit the economic gap within certain ranges until finally it is gradually narrowed down and to realize virtuous interaction, harmonious mutual progress and balanced sustainable development. For the second opinion, coordinated regional development is the choice of development mode (under the macroscopic adjustment and control of the government) according to the nature of certain given factors to form reasonable divisions while narrowing down the gap between development conditions of different regions and the gap between living standards of people in different regions, with due respect paid to the coexistence between humans and Nature. For a third opinion, coordinated regional development means an economic development mode in which efficient operation and reasonable growth are realized through the principle of productivity first. It is a facilitation of common richness, limitation of economic gap within reasonable sphere to realize compensation for each other with regional advantages, development and prosperity going together. It is the opinion of a fourth notion that coordinated regional development, under the precondition of scientific development, is the reasonable spatial layout, optimization of overall economy and social effectiveness, and the relatively equal public service enjoyed by the people, that is, the overall improvement of economic effectiveness on the basis of relatively equal public service, instead of any painstaking pursuit of narrowing economic gap. For a fifth opinion, coordinated regional development should cover: approximation of regional GDP per capita, average income per capita and public products enjoyed by the public, balance on the whole of population and economic layout, correspondence between distribution of population and economy and the bearing capacity of the environment. Taken as a whole, the above opinions have defined the connotation of coordinated regional development from the perspective of economic development, taking it that, in the development of economy, holistic efforts must be made from the perspectives of enhancing relationships, mutual motivation, narrowing the gap and improving common interests to realize balanced development for each region. Enriching and enlarging the connotation of coordinated regional development from the perspective of economic development as some may have done, for example, adding new connotations such as equality in public service, coordination between distribution of population and economy and the bearing capacity of resources and environment,

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yet, taken as a whole, coordinated regional development is the guideline issued during a particular period to solve the problem of widening regional gap caused by unbalanced regional development strategies, one economic development concept centering on narrowing the gap between economy of different regions, a guideline directing the transformation of unbalanced regional development to high-level balanced development. Despite the fact that in the part of the Guidelines for the 12th Five-Year Plan entitled “Facilitating Coordinated Regional Development” two chapters, respectively, named “Overall Strategy for the Implementation of Regional Development” and the “Implementation of the Strategy of Major Function Zones” have been devoted to the illustration of the major tasks for coordinated regional development, and that some scholars are also trying to enrich the connotations of coordinated regional development from the perspectives of economic balance and coordination between economic development and the bearing capacities of resources and environment, the strategy of coordinated regional development, as a general guideline for the current and future development tinted with distinctive transitional features, both in the expression of its concept and its actual connotation, is not a good demonstration of the requirement of the reform of economic system for the decisive role of the market in allotting resources or for the better practice of the government function, not a good demonstration of the requirement of expanding the space for development in coordinated development and enhancing the future potential in making up for the weak aspects proposed in the Fifth Plenary Session of the 18th CPC National Congress, neither is it a good demonstration of the requirement of making good shared development and realizing the spatial balance of economy, population and ecology when balanced development in regional economy is being promoted. Therefore, it is necessary to upgrade the expression of the concept of the general guideline comprehensively directing regional development of China together with its current connotations in a combined consideration of the new features and new tasks for regional development in the new normal, promoting coordinated regional development to coordinated and balanced regional development for the formation of strategic considerations that better adapt to the requirements of the reform of economic system and better demonstrate the new features and new trends in regional development so that it can more clearly expound the rich connotation of promoting the development of regional economy more efficiently, more fairly and in a more sustainable manner and of spatial balance of economy, population and ecology that is to be found in the general guideline directing the current and future regional development. Therefore, the road of evolution of regional development strategies and its upgrade can be indicated in Graph 1.3. Coordinated and balanced regional development is the sublimation of coordinated regional development with the factual situations and the requirements of the time taken into consideration, which can serve as the comprehensive guideline to direct the strategy of “the four blocks,” the strategy of major function zones, and the strategy of “the Three Propping Belts.” Balance is a widely applied notion in economy. Generally, it means a relatively static state in which certain variants, interacting with each other under certain conditions, help participants of economic activities to realize their expectations. In the

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Both macro and micro

development

economic

(producvity

efficiencies

moving to the

low

West)

1979 to 1991:

1992 to 1998:

enlarging

inial formaon

disparies slowing down

1999 to 2005: comprehensive implementaon (the four blocks)

Improving condions of basic facilies

unbalanced

Regional

regional

disparies

development

enlarging,

(producvity

becoming

combinaon

Strong

favoring the east)

severer

with main

requirements

funcon zone

for spaal

strategy

balance

2006 to 2013: its

Coordinated development

Correspondent development

Simultaneous development

Spaal balance

Pracce of the strategy of the three pillaring belts

balanced

Coordinated regional development strategies

Favored regional development strategy

planned regional

Coordinated and balanced regional development strategies

1949 to 1978:

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Graph 1.3 Evolution of regional development strategies and its upgrade

market of products or factors, market balance means the empty state of the market when supply meets demand, which can further be divided into partial balance and general balance. The former refers to the empty state of individual markets or part of the market when supply meets demand under the precondition that other products or factors remain unchanged; the latter refers to the empty state that price mechanism of the whole economy helps reach the correspondence of supply and demand in all interrelated markets. Western economists proposed the theory of “market equilibrium (balance)” to illustrate the existence of general balance under perfect competition, and further the “Pareto Optimality” which is to allocate resources. This kind of “general equilibrium” could only be realized under very stringent conditions, hardly possible in actual life, but with it, scholars have come to a common cognition that the concept of equilibrium mainly stresses on the deciding role market plays in optimizing allocation of resources and upgrading economic efficiency and that any unnecessary, improper interference with the market will impede optimized allocation of resources and lowers economic efficiency. During this period of accelerating the development of socialist economy in China, economic resources in many fields are already allocated with the market, but the defects of mechanism and discoordination in regional development have caused widespread low efficiency, and even waste, and repetition in construction, production, transportation, consumption and other rings. To solve the problem of optimizing allocation of resources, one of the theories put forward by the Third Plenary Session of the 18th CPC Central Committee to handle the relationship between the government and the market is to change the original “fundamental function” of the market to the “decisive function.” This significant theoretical innovation signifies the guideline that is to be followed in a certain period to come, reforms with the economic mechanism to follow the major clue of having the market to play the pivotal role in allocating resources, allocation of resources by the government to be reduced in large

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scale, and efficiency of national economy to be improved greatly. The improvement of economy will not be realized without the powerful support of regional integration, coexistence and development. For this reason, strategies and policies directing regional development and endowing motivation to regional development must abide by the requirements of the above-mentioned trends in perfecting the mechanism of market economy and demonstrate the ideal of balanced development both in concepts and in actual connotations. Semantically, correspondence means proper match and consistence in the relationships between matters; pragmatically, it may refer to the proper relationship between matters in their development as well as the process of optimization during which matters progress toward this ideal state. The concept, when applied to regional development, produces what is called coordinated regional development, which means the progress to the ideal state of organic relationship between regional mechanism that is based on the principles of respecting objective laws and mastering the relationship between regions. Different from the market mechanism stressed on by “balance” in economics, “correspondence” has within its inclusion non-market forces such as government, organizations, society and morality for facilitating harmonious and mutual development in regional relationships. Practices of economic and social development at home and abroad show that the consummation of the mechanism of socialist economy depends on both the favorable operation of the market mechanism and the exertion of the macro-regulation of the government. Positive progress has been made these thirty years since opening-up and reform in the managing mechanisms of the Chinese government from the aspects of transformation of government functions and facilitating institutional reforms, guaranteeing significantly the continuous growth of Chinese economy. But there still exist such issues as insufficient macro-regulations, intermittent joints in regional planning, irregularity in market system, incongruity in social administration, inequality in basic public service, insufficient participation of the public, etc. To solve the problem of excessive and improper interference in the allocation of resources of the market by the government in the construction of socialist market economy, a second point proposed by the 3rd Plenary Session of the 18th CPC Central Committee is to better exert the function of the government, which means the government, in a certain period of time to come, must exercise its economic function in accordance with the guideline for coordinated development. Through perfecting government regulations and the supply of public products, maintaining the market system, strengthening market supervision, guaranteeing market competition, motivating equality of basic public service, facilitating sustainable development, stimulating common prosperity and effectively solving the problem of market inefficiency, the relationship between different economic entities is to be coordinated and maintained. One aspect of coordinating the relationship between economic entities is coordinating the relationship between different regions, through the guidance of regional development strategies and policies, better keeping the gap between GDP per capita of different regions within proper sphere, better exercising the relative advantages of individual regions, better motivating joint development of different regions, better

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facilitating equality of basic public services and better realizing harmonious coexistence of human beings and Nature. For this reason, regional development strategies and policies that direct regional development and endow it motivation must take in close proximity the tendentious requirements of further promoting inter-regional relationship of the government, so that coordinated development under the impact of market mechanism as a concept and its connotation as well can better be expressed as an exertion of the coordinating function of the government, and a development of inter-regional relationship and harmonious correspondence between human beings and Nature. Based on our understanding of the core content of reforms with the economic system at present and in a certain period to come, in connection with understanding of balance and correspondence, and our judgement about the new situations and new tasks of regional development, we propose that coordinated regional development strategies, a solution to the quickly widening gap caused by unbalanced regional development strategies, the goal of which is to direct development to a balanced and higher level, must be upgraded to coordinated and balanced regional development strategies, which are based on the situation of development at home and abroad and the foundation and condition laid by domestic regional development, so that better directions can be found for regional scientific development. The so-called coordinated and balanced regional development is one that centers around higher efficiency, more equality, better sustainability of regional economy, that has the market playing a decisive role in allocation of resources and the government playing a better regulating role, that promotes coordinated, corresponding and joint development while maintaining the spatial balance between regional economy, population and the ecosystem, and one that will finally lead to a harmonious state in which there is overall equality in public services, in living conditions, in living standards, there is overall balance between economic distribution and population, and there is a correspondence between economy and population and the bearing capacity of resources and environment. Coordinated and balanced regional development is a concentrated demonstration of “innovative development, coordinated development, green development, open development and shared development” put forward at the Fifth Plenary Session of the 18th CPC Central Committee. Coordinated regional development emphasizes the spirit of innovative development and open development; through fostering new development motivations and forging new opening-up advantages, the decisive function of the market mechanism in the optimized allocation of resources is to be better exercised. That the principle of correspondence is to be stuck to in balanced regional development is for the purpose of putting into practice the spirit of coordinated development, green development and shared development. Taken as a whole, the coordinated and balanced development that we propose from our studies takes within its inclusion the following key contents. First, proper management of the relationship between the government and the market in regional development. The existing vague boundary between market and the government has interfered with the effectiveness of resource allocation. Local conservation, for example, has led to fragmentation, and flawed regional market

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system that contains commodity market and factor market. When the concept for regional development strategies is elevated to coordinated and balanced regional development, on the one hand, the decisive role of the market in optimizing regional resource allocation and uplifting economic efficiency that is required by the motivation of balanced regional economic development is properly stressed on so that excessive interference of the government can be reduced, and that waste of resources, damage to the environment, and power-renting caused by local conservatism and repetition in construction can be decreased to make room for the market to play its due role in the optimized allocation of resources. On the other hand, it is intended to illustrate the fact that facilitating balanced regional economic development is not the equivalent of saying that the market is omnipotent and that the government can let go of the market. Instead, it is required that there must be correspondence in the balanced regional economic development under government regulation; through joint supervision of the market from government of various levels, the market system maintained with joint efforts, social administration practiced with correspondent efforts and preservation of the ecosystem promoted with combined measures, the responsibilities and functions of the government are to be made full use of so that conflicts between the pursuit of market entities to maximize their profits that might have been stimulated by their spontaneity and rashness, and the benefits of regional economy and society can be resolved. Second, proper management of the relationship between efficiency and equality in regional development. It was pointed out in “Decision of the CPC on Some Major Issues Concerning Comprehensively Deepening the Reform” passed at the third Plenary Session of the 18th CPC Central Committee that, in the consummation and development of socialism with Chinese characteristics, and promotion of modernization of national administration system and capabilities, measures must be taken to “… make it possible for all the fountains of social wealth to outflow, and make sure the fruits of development benefit all people still more and equally.” And it was pointed out in the fifth Plenary Session of the 18th CPC Central Committee that allocation of labor, capital, land, technology, management and other factors must be optimized through nurturing new dynamism and exploring new development space, and that the public must be encouraged to progress toward common prosperity through effective arrangement of institution in shared construction and development. Such arguments are explicit illustrations of fundamental requirements for effectively promoting efficiency and equality in consummation of socialist market economy system for a certain period to come. The upgrading of the concept for regional development strategies to coordinated and balanced regional development is to better exert the function of the government in directing coordinated, corresponding, and simultaneous development, and facilitating equality in development opportunities, consummation of regional division and cooperation, reasonable layout of land while the maximization of benefits and the optimization of efficiency are realized from allocation of regional resources through market regulations, prices and competition.

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Thirdly, proper management of the relationship between human and Nature in regional development. The state of coordinated and balanced regional development is a spatial Pareto Optimality of correspondence between economy, population, basic public service, resources and the environment. It is a favorable division and cooperation between regions, and equal opportunities and harmony between human beings and Nature. The potential in development is exploited to the greatest possible extent, emphasizing the relative advantages of individual regions; it puts economy, society, resources and the environment in harmonious order, maximizing the overall benefit from regional economy, society and ecology, sticking to the path of improving productivity, prospering life and promoting ecology, forging a new situation of modernization for the harmonious development of human beings and Nature, propping the construction of Beautiful China, contributing to eco-security of the planet. (2) Bases and conditions for coordinated and balanced regional development Given international situations and the path of evolution of regional development strategies from the establishment of the Republic and the accumulative effectiveness of the implementation of regional policies in different stages, upgrading coordinated regional development strategies to coordinated and balanced regional development policies is an adaptation to international and domestic changes and has its bases and conditions as well. Firstly, to exploit to the fullest extent the potentials of the colossus regions and to cope with the complicated and changeable international situations, and to fulfill the difficult task of reform, development and stability, there is a strong desire for coordinated, correspondent and simultaneous development through coordinated and balanced regional development. Significant changes are happening to situations of international competition and cooperation with the deepening of globalization, competitions fierce around institutions, regulations, market, technology and resources. To cope with new technological innovations, new regulations in international trade, and new normal in economic development after the economic recession, to meet new international and domestic situations and requirements of “middle income trap” and the like, coastal areas need to accelerate transformation and upgrade to improve their core competitiveness and international competitiveness, while inland areas need to release the colossus markets, practice their function as caches, and make use of potential of domestic needs. And meanwhile, from the strategic height of expanding domestic demand, stabilizing growth, adjusting structure and forging new advantages in opening-up, coastal and inland areas should together nurture a new development pattern of coordination between the east and the west, full-scale opening-up, and overall consideration of the land and the sea. The conventional regional development path characterized by high growth, high consumption, high emission, messy exploitation, negligence of coordination, indifference of correspondence is not sustainable in this situation. One new scientific regional development path has to be found, one that is human oriented, emphasizing regional coordinated and correspondent and simultaneous sustainable development, that breaks

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through horizontal and vertical administrative patterns, that motivates regional integration and that holistically bands together economic and social development of different regions. With this, more coordination and interaction could be provided in economic development between urban and rural areas, promising a prosperous future for development. Secondly, optimization of layout of spatial arrangement has become the top priority in construction of eco-civilization in China. There is a strong desire for spatial balance through coordinated and balanced regional development. The construction of eco-civilization has been now included in the overall layout of “five-in-one” in the construction of socialism with Chinese characteristics, and optimization of layout of spatial arrangements has been listed as top priority in the communique of the 18th CPC National Congress. This is an indication that spatial layout is not just a fundamental structure for the development of industries, population and the layout of cities and towns; it plays a pivotal role in eco-civilization and for the construction of “Beautiful China.” For this reason, in the future promotion of regional development, things must be done based on the layout of the “four blocks,” depending on the degree of association of economy, similarity in development level and characteristics, similarity in natural conditions and nature of resources, and strategic intention of national development, to promote demarcation of economic regions, to narrow down reasonably spatial areas for regional policies, creating basic spatial units for future regional planning, regional cooperation, and for making regional policies where boundaries are vague. Comparative advantages of individual regions are to be taken, the homogeneity inside the region to be made use of to create regional spaces of different types, to enlarge the room for other measures for coordinated development between different regions in the hope of improving pertinence and effectiveness of regional policies. The notion and principle of spatial balance must be established, too. When comprehensive use of urban and rural areas, maritime and land territories, and underground and surface spaces is being made, scales, structures and layout of spaces for production, life and ecosystem are to be determined scientifically and reasonably according to the requirements of balance between population and resources and environment, and coordination of economic, societal and ecological benefits to form a spatial arrangement, industry structure, productive methods and living styles for economizing resources and protecting the environment. In this way, territorial land could be exploited in some orderly, concentrated and effective ways to form a new pattern of modernization of harmonious development of human and Nature. Thirdly, the widening gap in regional economy is gradually curbed, the pattern for economic development is optimized and great achievements have been made with the foundation for coordinated and balanced regional development. Division and cooperation in regional economy have gradually taken root. There is a transformation from disorganization, imbalance to coordination and balance. Based on this, in order to steer the macro-layout of land toward better balance, to encourage the formation of industrial and economic structures that bear individual characteristics and mutually compensate each other and exploit to the greatest possible extent the advantages of division and cooperation, there are objective needs to upgrade overall guidelines from coordinated regional development to coordinated and balanced development to help

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better release and stimulate the potentials and vitality of development in individual regions. Fourthly, the grip of basic facilities on coordinated, correspondent regional development is gradually released, transportation and other basic facilities fatal for coordinated and balanced regional development now readily equipped. Great changes have happened to propping facilities for regional economic development in recent years, which is mainly found in the accumulated effects coming from long-term, incessant, large-scale investments, especially in high-speed railway network and in joint transportation network on rivers and seas. This changed the relatively static conventional development pattern, making it possible for high-speed flows of resource factors between regions of different attributes, shortening enormously the spatial and temporal distances between eastern, central and western areas, and moreover providing fundamental conditions for remolding regional development patterns, constructing influential city clusters and economic circles, especially for promoting corresponding regional development and balanced development. Fifthly, the relationship between government and the market in reforms of economic mechanisms is gradually straightened, systemic environment for coordinated and balanced regional development being sublimated on a daily basis. It is a normal in the optimized allocation of regional resources to have the double mechanisms of the market and the government to interweave with and compensate each other. Practices at home and abroad show that coordinated and correspondent and simultaneous development has its precondition in optimized market and relies on scientific management and adjustment of central and local governments. “Decision of the CPC on Some Major Issues Concerning Comprehensively Deepening the Reform” passed at the third Plenary Session of the 18th CPC National Congress points out, “Economic system reform is the focus of deepening the reform comprehensively. The underlying issue is how to strike a balance between the role of the government and that of the market, and let the market play the decisive role in allocating resources and let the government play its functions better.” This new positioning of the relationship between the government and the market provides systemic guarantee for promoting coordinated and balanced regional development. On the one hand, the decisive role the market plays in allocating resources benefits economic subjects for them to improve their efficiency in allocating resources according to market regulations following the mechanisms of supply and demand, competition and prices so that the balancing function of the market for micro economy can be better realized. On the other hand, the better practice of government function gives room to the government for it to play fully its role to maintain stability in macro-economy, to strengthen and optimize public service, and to make sure of fair competition; it may resolve such issues as market fragmentation, imbalance, regional conservation, vicious competition, resource waste, environment damages and others caused by too much government interference and separations between governments of different levels, so that a unified, open, fairly competitive and well-administered market system can be constructed.

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(b) Significance with the implementation of coordinated and balanced regional development strategies (1) It helps to control the gap between regional economies Imbalance in the development of regional economy is caused mainly by unbalanced distribution of natural resources and diversities in the level of opening-up, industrial basis, industry structure, locational conditions, production factors, technology and others, mainly found in diversities in gross economic growth, growth rate, economic quota per capita, economic structure and conditions for economic development. During the initial stage of regional development, funds and talents are quite likely to be drawn to places where there is greater potential for economic development due to greater potentials in economic development and higher rewarding rates from capital, contributing to their becoming new growth points and faster growth than surrounding areas, thus forming a beneficial cycle. During this process, the growth in areas surrounding the growth point will be suppressed, resulting in imbalance between them. To have the limited capital and resources make the greatest economic reward, regions with better economic and technological foundations or locational advantages are usually chosen for leading development efforts, unbalanced regional strategies implemented. This preferred development strategies produces weak defuse effects, and a certain echoing effect: man power, funds, technology, resources and other factors drawn to developed areas from backward areas due to different rewarding rates, there is ever-greater economic gap between them, and the gap between regional incomes is continuously enlarged. The progress made in economic development is accompanied by the more and more prominent problem of widening economic gap, interfering with social harmony. Imbalance in regional economic development has become a prominent barrier troubling the continuous, fast, healthy and coordinated economic development, a focal problem calling for urgent attention both theoretically and in practice. If not put under control in time, it is likely to widen, leading to over-concentration of resources and population, and overload of burdens in developed areas; while for backward areas, the outflow of labor, technology and fund indispensable for regional development to developed areas deprives them of their guarantee for development, necessarily resulting in long-term slow growth and even regression. The upgrade of coordinated regional development policies to coordinated and balanced regional development policies helps promote strategically the layout of spatial distribution to moderate balance, offering encouragement to individual regions to develop their advantages, facilitating development according to their circumstances to form an industrial and economic structure with their own characteristics and mutually compensating each other so that the benefits of division and cooperation can be fully exploited. This would better help regional development policies, construction of key facilities and large-scale investments to show more favor to central and western areas, to improve the level of opening-up in inland areas along borders and to form more spatially balanced distribution.

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(2) It helps establish the principle and notion of spatial balance The implementation of strategies of major function zones that compensate the strategies of “the four blocks” is still in slow progress, the comprehensive policy system for major function zone not yet fully coming into being, the disorderly situation in spatial development not yet switched fundamentally. In “Planning of National Major Function Zones” were put forward policies of regional administration according to different classifications, but still construction of major function zones nation-wide is at its experiment stage. Technical criteria, standard, assessment measures are still under the control of some strictly separated departments, characterized by fragmentation, there not being any unified detailed rules for implementation. Experiment plans are made by local governments, reflecting their interests. Meanwhile, calculation of the eco-value of leading eco-function zones is in slow progress, horizontal eco-compensation mechanism between governments of different regions a little bit lagging behind. The upgrading of coordinated regional development to coordinated and balanced regional development helps associate the function of overall regional development strategies in economic development with the function of major function zone policies in guiding spatial balance, so that when economic balance between regions is considered, the notion and principle of spatial balance can be established from strategic considerations, facilitating the formation of comprehensive policy system for major function zones to help with the harmonious development of human beings and Nature; it also helps in preventing the abuse of “developing rights” for overdose economic development in some ecologically fragile regions, controlling fundamentally the development strength in low bearing capacity areas and controlling fundamentally the functions of central areas of oversized capitals where there is an overload of population, so that the trend of eco-deterioration and the spread of city diseases can be curbed. (3) It helps with the establishment of effective corresponding mechanism between different administrative districts Current efforts to establish some inter-regional corresponding mechanisms are caught in some difficulties. There is no authorized coordinating organization, and neither is there any sense or innovative creations for regional management. The so-called regional administration refers to the collective behaviors of local governments, social organizations, enterprises and inhabitants to interfere with regional public affairs by means of negotiation, planning, policies and legislation to maximize regional public interests. Regional functions are related to individual interests; they are subsystems of national function as well, the realization of national function and intention within certain national spaces. Based on this, the object of regional administration is the perfection and realization of regional functions, a coordinated and unified systemic arrangement of regions and the nation as a whole. Regional administration is an organic component of national administration. Without effective regional administration, there can hardly be effective national administration. Modernization of

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national administration and administrative abilities requires continuous innovation with regional administrative mechanisms. The upgrading of coordinated regional development to coordinated and balanced regional development helps the formation of a balanced regional development environment, and the formation of regional administration that is economically unified. Through participation of government, organizations, corporations, and inhabitants, by means of regional planning, corresponding regional organizations, adjustments to administrative areas, regional autonomy and legislation, conflicts and frictions between regions are to be dealt with, so that goals of inter-regional division and cooperation, connection of basic facilities, shared preventative measures for the ecosystem and the market allocation of production factors can be realized. It helps in tackling the problems of administrative separation and regional boundaries and motivates establishments of unified statutes. It proposes a task list for unified development and connects it directly with administration assessment, forming an assessment system for unified development. It helps strengthen all-regional coordinating organizations, facilitating the establishment of regional coordinating committees led by the government of a higher level with emphases laid on different functions of the government, societies and enterprises, correcting twists of market, space and information caused by monopoly powers of the government. (4) It helps with the implementation of the “Three Propping Belts” strategy Differentiated regional development policies have been put under perfection in the layout of national investment since 2014. When overall regional development strategies and major function zones are promoted, implementation of “Three Propping Belts” was started with the goal of having spatially optimized factors playing a motivating role for economic growth. There is rich ideology of coordination contained in the strategy of “Three Propping Belts.” It is explicitly proposed in “Visions and Actions on Jointly Building Silk Road Economic Belt and twenty-first-Century Maritime Silk Road” that joint building of “One Belt One Road” is to build an interconnected network through communication in policies, connections in facilities, openness in trade, free flow of funds, communication of the public so that economic factors in Asia, Europe and Africa could freely flow in orderly manners, resources could be allocated effectively, and the markets are deeply merged. Regional cooperation covering a larger range, of a higher standard, and more fundamental is to be expected so that an open, inclusive, balanced, allbenefiting regional structure for economic cooperation can be realized, concretizing a pluralistic, autonomous, balanced and sustainable development. Forging a cooperative, coordinated and balanced structure for international economy is one central content for the implementation of “One Belt One Road” strategy. Beijing, Tianjin and Hebei are faced with predominant capital city illness faced by Beijing, the relationship between human beings and Nature in eastern areas tense, regional function layouts not reasonable enough, systems of cities unbalanced, barriers explicit or implicit found in the flow of factors, comprehensive mechanism for regional development missing, the gap between regional development great. The

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goal of strategies of coordinated development for Beijing, Tianjin and Hebei is to realize optimized spatial allocation of production factors, and to narrow down the gap in regional development. This, also, is to maximize overall advantages and competitiveness of Beijing, Tianjin and Hebei through coordinated and balanced regional development. It is a common law in world economic history to start from coastal areas and then develop along inland rivers to inland areas. It is a shared experience in modernization of many developed countries as well. Motivating the development of Yangtze River Economic Belt based on the Golden Waterway is to exploit the great domestic demand in inland areas along the middle and upper reaches of Yangtze River, to optimize industry structure and urbanization layout so that a new propping belt can be forged, and this and the coastal economic belt are to form the spatial skeleton of national economy. Taken as a whole, the implementation of the strategies of “Three Propping Belts” in the new normal since reform and opening-up has marked a new stage in regional development strategies and policy choices, one in which coordination and holistic characteristics are paid attention to, in which the motivating function of optimized allocation of factors is taken advantage of, and in which simultaneous development is stressed on. The upgrading of coordinated regional development to coordinated and balanced regional development, both spatially and regionally, is to better demonstrate the fact that the origin of regional economic growth has turned from expanding investment of factors in the past to relying mainly on improved efficiency coming from optimized allocation of factors, which would help illustrate the requirements of coordinated and balanced regional development in the “Three Propping Belt” strategies from perspectives of strategic consideration and goals of policies.

Chapter 2

Strategic Scheming of Coordinated and Balanced Development Along Yangtze River Economic Belt

The waterway of the Yangtze River runs through the east, the central and the west areas, making up the most important east-west axis in the spatial development of China. Promoting coordinated and balanced development in Yangtze River Economic Belt on the basis of this Golden Waterway provides strategic guidance for promoting coordinated, corresponding and simultaneous development of the east, central and the west and realizing the balance between population, economy and resources and environment. Regional economic development along Yangtze River has gone through three stages since opening-up and reform, namely, low-level balance, gradient imbalance, smooth imbalance in adjustment, now one of the most massive and comprehensive strategic pillars for China. However, problems still persist in exerting its propping function of comprehensive transportation passage along the river, in the optimization of spatial development layout, integration of innovative resources, coordinated construction of unified and open markets, organic synchronization of the layout of cities along the river and industries, in the formation of comprehensive opening-up pattern and in joint prevention and management of ecosystem within the coverage of the river. To solve such problems, it requires organic integration of scattered economic activities within the area to have the east exert its leading function and to have it radiated to surrounding areas so that potentials of the central and west can be activated, and that integrity and coordination of the development of Yangtze River Economic Belt could be considerably improved, all this to be done under the direction of overall guidelines for coordinated and balanced regional development, with emphasis laid on promoting integrated development within and between regional units, for the ultimate goal of realizing mutually beneficial and coexistent relationship between different economic entities and between human beings and Nature. With efforts made from perspectives both of policy and practice, Yangtze River Economic Belt will be actively channeled to coordinated and balanced development mode, the strategic status of Yangtze River Economic Belt in the overall layout of regional development in China will further be considerably and comprehensively uplifted to a new height.

© People’s Publishing House 2020 C. Cheng and F. Yang, Toward a Coordinated and Balanced Development, https://doi.org/10.1007/978-981-15-8454-1_2

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1 National Strategic Intentions in Motivating the Development of Yangtze River Economic Belt 1.1 Background for the Proposal of Yangtze River Economic Belt Comprehensive implementation of the strategy of the “four blocks” saw the dense publication or approval of a series of regional planning or guidelines with related considerations for what is required by various reforms and demonstrative experiments to improve pertinence and precision of regional policies for refined applications of them, for example, supporting reform experiment zones for multiple themes, leading economic zones for the perfection of coastal layouts and in inland provinces, demonstrative zones for transferred industries in central and western areas, new zones of the national-level relying on solidly founded central cities, comprehensive experiment opening-up zones along borders, etc. Incomplete statistics has it that the above national-level regional plans and guidelines add up to approximately one hundred (Table 2.1). The publication of such regional economic policies and plans indicates the intensification in the making up and implementation of regional policies, contributing to considerable achievements in regional economic development, promoting coordinated regional development. However, at the back of such achievements, how to coordinate the implementation of such densely published regional policies tailored for special areas or particular aims has become an issue. Lasting and continuous massive investments into transportation and communication in recent years significantly changed basic conditions pillaring coordinated regional economic development, laying foundations for remolding the layout of regional development. Such favorable conditions shifted the focus of scheming and implementing regional development strategies and policies to coordinating the “four blocks,” to coordinating national-level regional planning in related areas to Table 2.1 An overview of economic policies and regional planning after the formation of the strategy of four blocks Policy category

Regional economic policies and regional planning

National new zone

Binhai New Zone in Tianjin (2005), Liangjiang new zone in Chongqing (2010), Zhoushan Island new zone in Zhejiang (2011), Lanzhou new zone in Gansu (2012), Nansha new zone in Guangzhou (2012), Xixian new zone in Shaanxi (2014), Guian new zone in Guizhou (2014), Xihaian new zone in Qingdao (2014), Jinpu new zone in Dalian (2014), Tianfu new zone in Chengdu (2014), Xiangjiang new zone in Hunan (2015), Jiangbei new zone in Nanjing (2015), Fuzhou new zone (2015), Dianzhong new zone in Yunnan (2015) (continued)

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Table 2.1 (continued) Policy category Reform experiment zones

Regional economic policies and regional planning Comprehensive correspondent reform experiment zones

Pudong Socialist Market Economy Comprehensive Correspondent Reform Experiment Zone in Shanghai (2005), Binhai New Zone in Tianjin (2006), Nationally Coordinated Comprehensive Correspondent Reform for Urban and Rural Areas Experiment Zone in Chongqing and Chengdu (2007), Comprehensive Correspondent Reform Experiment Zone for the Construction of a Nationally Resource-Saving and Environment Friendly Society in the City Circle and the City cluster of Changsha, Zhuzhou and Xiangtan (2007), comprehensive correspondent reform experiment point in Shenzhen (2009), comprehensive correspondent reform experiment zone for national new industrialization in the economic zone in Shenyang (2010), national comprehensive correspondent reform experiment zone for the transformation of resource-economy in Shanxi (2010), comprehensive correspondent reform experiment zone for international trade in Yiwu (2011), comprehensive correspondent reform experiment zone for deepening communication and cooperation between the two sides of Taiwan Strait (2011), comprehensive correspondent reform experiment zone for modern agriculture in the two major plains in Heilongjiang (2013)

Experiment zone for financial reform

Comprehensive reform experiment zone for finance in Wenzhou (2012), comprehensive experiment zone for financial reform and innovation in the pearl River delta (2012), comprehensive reform experiment zone for finance to serve the real economy in Quanzhou (2012), comprehensive experiment zone for the construction of finance along the border in the Zhuang nationality in Yunnan and Guangxi (2013), comprehensive financial reform experiment zone for wealth management in Qingdao (2014)

Other experiment zones

Experiment zone for inland opening-up economy in Ningxia (2012), china Shanghai Free trade experiment zone (2013), inner Mongolia Erenhot key development and opening-up experiment zone (2014), overseas Chinese economy and culture operative experiment zone in Shantou special economic zone (2014), China Hangzhou comprehensive experiment zone for cross-border e-commerce (2015), China free trade experiment zones (Tianjin, Guangdong, Fujian) (2015) (continued)

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Table 2.1 (continued) Policy category

Reform experiment zones

Regional economic policies and regional planning Demonstrative zone for the migration of industries

Demonstrative zone for accepting migrated industries along Wanjiang city belt in Anhui (2010), demonstrative zone for accepting migrated industries in Eastern Guangxi (2010), Demonstrative zone for accepting migrated industries along Yangtze River in Chongqing (2011), Demonstrative zone for accepting migrated industries in Southern Hunan (2011), Jingzhou Demonstrative zone for accepting migrated industries in Hubei (2011), Demonstrative zone for accepting migrated industries in the Golden Delta of Yellow River in Shanxi, Shaanxi and Henan (2012)

In the western areas

Development plan for Mianyang science and technology Museum 2005–2010 (2005), the 11th Five-Year period planning for the grand development of the West (2007), overall planning for urban and rural areas in Chongqing 2007–2020 (2007), development planning for Beibu bay economic zone in Guangxi (2008), overall planning for reconstruction of Wenchuan after the earthquake (2008), overall planning for the city of Xian 2008–2020 (2008), development planning for Guangzhong-Tianshui economic zone (2009), overall planning for recyclable economy in Gansu (2009), overall planning for the city of Lasa 2009–2020 (2009), overall planning for Tsaidam recyclable economy experiment zone in Qinghai (2010), overall planning for reconstruction of Zhouqu after the earthquake (2010), overall planning for reconstruction of Yushu after the earthquake (2010), regional planning for Chengdu-Chongqing economic zone (2011), overall planning for the city of Nanning 2011–2020 (2011), overall planning for molding a bridgehead for opening-up to the Southwest out of Yunnan 2012–2020 (2012), planning for the resurrection of the former revolutionary bases of Shaanxi, Gansu and Ningxia (2012), planning for the development of the economic belt to the north slope of Tianshan Mountain (2012), the 12th Five-Year period planning for the grand development of the West (2012), overall planning for reconstruction of Lushan after the earthquake (2013), overall planning for the city of Guiyang 2011–2020 (2013), opinion supporting the reconstruction of Mianxian County and Zhang County after the earthquake (2013), overall planning for the city of Urumqi 2014–2020 (2014), overall planning for reconstruction of Ludian after the earthquake (2014), etc. (continued)

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Table 2.1 (continued) Policy category

Regional economic policies and regional planning Northeast areas

Overall planning for the city of Mudanjiang 2006–2020 (2006), overall planning for the city of Hegang 2006–2020 (2006), planning for the resurrection of the Northeast (2007), planning for the development of the coastal economic belt in Liaoning (2009), an outline of the planning for the cooperative development of Tumenjiang area in China (2009), overall planning of the city of Changchun 2011–2020 (2011), overall planning for the city of Harbin 2011–2020 (2011) planning for the 12th Five-Year period for the resurrection of the Northeast (2012)

Central areas

Overall planning for the city of Datong 2006–2020 (2006), planning facilitating the rise of the central areas (2009), planning for Poyanghu ecology-economy zone (2009), etc.

Eastern areas

Overall planning for the city old Beijing 2004–2020 (2005), etc.

Other economic planning

Planning for the prevention and treatment of pollution along Songhuajiang River 2006–2010 (2006), etc.

further enhance the scientific qualities, operability and effectiveness of coordination, and combine them to urbanization strategies and new opening-up strategies. It is against this background that promoting a new cycle of development in Yangtze River Economic Belt has been uplifted to state level, signifying the evolution of regional development strategies since opening-up and reform has entered the new stage of emphasizing coordination effects between different regions and their holistic characteristics. Yangtze River Economic Belt covers areas a little bit different from each other in different researches. The one attended to in this book covers the east block, covering Shanghai, Jiangsu and Zhejiang, the middle block, including Anhui, Jiangxi, Hunan, Hubei and the west block, in which are Chongqing, Guizhou, Sichuan and Yunnan, according to “Guidelines of the State Council for Facilitating Development of Yangtze River Economic Belt Relying on the Golden Waterway” (hereafter also “the Guideline”) issued in 2014.

1.2 Significance of Yangtze River Economic Belt Proposal of Yangtze River Economic Belt helps improve the supply ability of local areas through regional integration and expand demand through global integration. Blending mutual motivation and regional integration and economic globalization

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help realize optimized allocation of resources in larger scopes to expand development spaces. To be exact, implementation of Yangtze River Economic Belt promotes links between the east, the middle and the west, promotes divisions and cooperation between city clusters and within individual groups themselves, provides support to “One Belt One Road” and helps Shanghai Free Trade Zone exert its demonstrative functions. (a) It helps promote the coordination between the east, the middle and the west Regional policies directed by gradient theories have in the long run contributed considerably to differentiated development but have also to a certain degree resulted in separation of markets and unbalanced development. Development strategies for a new cycle of economic development along Yangtze River Economic Belt takes the belt as a whole. It is intended that, through connections via the Yangtze River waterway and the high-speed railway network along the river, transferences of industries along the river, bidirectional interactions in opening-up, and creation and perfection of mechanisms and systems for coordinated regional development, Yangtze River Economic Belt is to be forged into a coordinating belt for communications between the east, the middle and the west where resource allocation efficiencies can be improved within a larger space to better stimulate internal vigor of regions. For this reason, the new cycle of strategies for the development of Yangtze River Economic Belt will effectively motivate coordinated and balanced regional development in the belt by strengthening interactions between different economic entities both upstream and downstream where imbalance is caused by different natures of resources and different locations, and by improving the degree of integration of regional markets to facilitate smooth flow of factors and to lower the cost of transportation between regions. (b) It helps with divisions of industries and cooperation within and between city clusters along the Yangtze River. The fact that global economy has entered the stage of regional and collective competitions, city clusters are now basic regional units for China to participate in global competition and division of labor, spatial rear for urbanization and for motivating national and regional modernization, dominating the development of Chinese economic development. Implementation of the initiative of Yangtze River Economic Belt will help promote correspondence between city clusters at the Yangtze River Delta, midstream of the river, Chengdu and Chongqing, and between city clusters in Central Guizhou and Central Yunnan, a new propping belt for Chinese economy henceforth to be set up, uplifting the global influence of city clusters along Yangtze River. Expansion of Yangtze River Economic Belt from the original seven provinces and two cities within the coverage of the waterway to nine provinces and two cities including Zhejiang and Guizhou, on the one hand, is to have it cover more completely the reaches of the river geographically, and on the other hand, it is to emphasize more explicitly that the battlefront of the development of Yangtze River Economic Belt

1 National Strategic Intentions in Motivating …

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takes as its main body the three cross-regional city clusters and as its supplement the two regional city clusters, which work fine in industry divisions and cooperation. (c) It is supportive for “One Belt One Road” strategy. Yangtze River Economic Belt has always been the source of commodities and power for maritime and land silk roads, bulwark for the development of “One Belt One Road.” One strategic positioning of the new cycle of development of Yangtze River Economic Belt is to stick to comprehensive consideration, to development both on land and at sea and to opening-up both at east and at west. This is to forge Yangtze River Economic Belt into a comprehensive opening-up belt along the coast, along the river and along borders. More opening-up is to be introduced following the lead of Shanghai and other coastal cities on the one hand, and on the other, Yunnan is to act as bridgehead for further opening-up to the west together with opening-up to Mid- and West Asia and even East Europe through the major passage of ChongqingXinjiang-Europe. In this way the potential of Yangtze River Economic Belt is to be further exploited. Promotion of opening-up at both ends of Yangtze River Economic Belt matches the goal of opening-up both on land and at sea in the initiative of “One Belt One Road.” Despite their different tasks, “One Belt One Road” and Yangtze River Economic Belt have one thing in common: to promote efficiency and upgrade in Chinese economy through active measures to cope with complicated international political and economic environment at the outside, and implementation of coordinated regional development strategies through improved opening-up in inland areas and along borders so that a new pattern of opening-up can be forged. Development and reform in China cannot be deprived of opening-up. Practices in opening-up have effectively motivated the fast development in coastal areas in the east. But faced with the ever-severer situations abroad and at home, further opening-up at the east should be boosted, and there should be further opening-up to the west as well. This balanced opening-up in both directions will help the formation of a new international strategic pattern with an established linkage between the east and the west with China at the center. Forging a corridor running from the east through the west and combining the south and the north that is open and cooperative with Yangtze River Economic Belt, and strengthening its interaction with the “One Belt One Road” strategy will help lay a solid foundation for the realization of the dream of “One Belt One Road.” (d) It helps with Shanghai Free Trade Zone to exert its sampling function. Shanghai Free Trade Zone is an experimental field in the new era of opening-up, its status prominent in motivating transformation of government functions, boosting convenience in trade and investment and creating new advantages in opening-up. Of the eleven provinces and cities within the coverage of Yangtze River Economic Belt, Shanghai is not only located at the intersection of Yangtze River Economic Belt, but the most robust, most perfect city in Yangtze River Economic Belt as well, functioning as fountain head of the belt. Innovations with the mechanism, hub port for international trade, the platform for concentrating resources and the environmental advantages from its internationalization and legalization, all this will

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proliferate through the city and even the Yangtze River Delta to motivate and lead reform and opening-up within the river basin, serving enterprises within the belt in the flows of their cross-border funds, providing them with conveniences in their trade accounts for them to develop export-oriented businesses. This will help make better use of Shanghai’s opening-up advantages, its function as transportation hub, and its role as leader in the belt, and Yangtze River Economic Belt will hopefully find a new road for its coordinated regional development led by the government and motivated by the market in its new cycle of development.

2 Concrete Analyses in Regional Economic Differences in Yangtze River Economic Belt There is a great difference between the east, the middle and the west sections along Yangtze River Economic Belt, and similar differences can be found within individual provinces and cities as well. Regional economic disparity is a key index for regional development, a normal in regional economic development, contributing to a certain degree to rational competition and economic development within the region. But too large a disparity will necessarily result in the Matthew effect, regional imbalance strengthening itself in repeated cycles, harmful to coordinated regional development. For this reason, further research into regional disparities and their evolution along Yangtze River Economic Belt proves to be of theoretical and practical significance. Positivist studies occupy a significant place in the tide of quantification for regional economic studies. Regional economic disparities have become the core issue in the positivist regional economic studies. Abundant academic achievements have been made in domestic studies within the sphere of regional economic disparities, trends forming in the following three aspects: first, there is a shift with the subjects studied from regional and cross-belt disparities to disparities within provinces and between economic zones; second, the macro-scales for the three economic circles, and crossprovincial ones are turning to micro-scales as in prefecture cities and counties; third, there is a change with the methods for studies from conventional statistical analytical ones as Gini coefficient and Theil index to spatial statistical ones as studies combined with GIS. Temporal and spatial evolution of regional economic development has attracted considerable attention. What is contained in this study is the study of the layout of regional disparities and their evolution with various statistical methods and indexes. Measurements of regional economic disparities are usually influenced by regional scale, temporal range and different spatial layers. Quantitative measurements based on the provincial spatial unit may well demonstrate the evolution of regional economical layouts, but the relatively macro-spatial unit on the provincial level is not easily break down to micro-units within the province, neglecting the unbalanced development of regional economy in the province. This makes it necessary to break down the study units to prefecture cities, which makes it possible to probe, with

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multilayer, multi-spatial measurements, into the temporal and spatial evolutions of economic disparities in Yangtze River Economic Belt. This considered, the present study divides study units to the prefecture city level, and with analytical methods of Theil index, how differences between the three blocks, between provinces (cities), and within provinces (cities) affect the comprehensive disparities along Yangtze River Economic Belt will be analyzed to reveal the evolution of temporal and spatial layouts within regional economy along the belt.

2.1 Regional Divisions and Origin of Data (a) Regional divisions Spatial and temporal ranges have to be defined when disparities with regional economy are studied. Three layers of spatial units will be defined within Yangtze River Economic Belt in the study of this chapter to unveil the disparities between blocks, between provinces and within provinces and their evolutions: the prefecture city level, the provincial level and the macro-spatial unit of the three blocks of the east, the middle and the west. (b) Origin of data Quantitative measurements are to be done according to such data as GDP, population and GDP per capita collected from individual provinces and municipality directly under central authority and prefecture cities under their administration. Temporal sequence data include provincial data ranging from 1978 to 2013, and cross-sectional data cover all areas in 1990, 2000 and 2013. These data come from China Statistical Yearbook (1991–2014) and statistical yearbook of each province of related years.

2.2 Measurement Methods for Regional Economic Disparities (a) Frequently used indexes for analyses of regional disparities Quantitative descriptions of disparities in regional development are often done with such indexes as Coefficient of Variation, Gini coefficient and Theil index, mainly used for quantitative measuring of the absolute disparities and relative disparities of regional economy. Out of these, Theil index, celebrated for its prominent advantage of being able to be decomposed, is widely used. The decomposition of in-group disparities and cross-group disparities provides convenience for analyzing the variations within the group and between groups, and also their contribution to the total disparity. For this reason, Theil index is chosen to measure the relative disparities

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when studies are made into economic disparities within Yangtze River Economic Belt. Theil index was first proposed by Theil and Henri in 1967, whose formula is T =

N 

yi log

i=1

yi Pi

(2.1)

In this formula, N indicates the number of regions, yi indicates the rate of GDP of location i to that of the whole region and Pi indicates the rate of population of location i to that of the whole region. The larger the Theil index, the larger the disparity in regional economy; smaller indexes indicate smaller disparities, regional economy tends to develop in a balanced state. (b) Introduction to means of decomposing Theil index (1) The first stage of decomposing The overall disparity in Yangtze River Economic Belt can be decomposed as disparity between the east, the middle and the west blocks, and disparity between individual provinces within each block. Formula for overall regional disparity: Tp =

  Yi j  i

j

Y

log

Yi j Y Ni j N

(2.2)

Yij :income of j province in block i; Y: total income of all provinces. Nij : population of j province in i block; N: total population of all provinces.  Yi j   Yi j  Define T pi = log NYiij Yi j

Ni

Tpi indicates disparity between provinces within i block. Theil index can now be decomposed as Tp =

 Yi  Y   Yi 

T pi +

i

=

i

Y

 Yi  i

Y

log

Yi Y Ni N

T pi + TB R

=TWR + TBR

(2.3)

Y i : total income of block i; N i : population of i block; T BR : disparity between blocks. (2) Two-stage nested Theil decomposition method This is an expansion of the first stage of decomposing, which is based on the first stage of analysis, and by which the overall regional disparity within Yangtze River

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Economic Belt can be decomposed into the disparity between blocks (TBR ), the disparity between provinces (TBP ) and the disparity within the province (TWP ). The formula goes like this Tdi =

  yi jk  j

k

Yi

  yi jk /Yi log n i jk /Ni

(2.4)

yijk : income of k area of the province j in block i; Y: the income total of the area nijk : population of k area of the province j in block i; N: the population total of the area Define Tdi and the income disparity between regions in block i, and the calculation goes like: Tdi =

  yi jk  j

k

Yi

  yi jk /Yi log n i jk /Ni

And Td can be decomposed as Td =

 Yi  Y

i

=

 Yi  Y

i

Define Ti j =

 yi jk  k

Yi j

y

Tdi +

 Yi  i

Y

 log

Yi Y Ni N



Tdi + TB R

(2.5)

/Y

log( nii jkjk /Niijj )

Then, Tdi can further be decomposed as Tdi = =

 Yi j  j

Yi

j

Yi

 Yi j 

Ti j +

 Yi j  j

Yi



Yi j

Yi log Ni j

Ni

Ti j + T pi

(2.6)

T pi indicates the disparity between different provinces in block i, and finally: ⎤ ⎡  Yi   Yi j  ⎣ Ti j + T pi ⎦ + TB R Td = Y Yi i j   Yi j   Yi  Ti j + T pi + TB R = Y Y i j i =Tw p + TB P + TB R

(2.7)

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2 Strategic Scheming of Coordinated and Balanced …

Formula (2.7) indicates that the overall regional disparity can be decomposed into the three elements of the disparity between blocks (TBR ), the disparity between provinces (TBP ) and the disparity within the province (TWP ). The disparity within the province is composed of the weighted-average of all the disparities within the province, and the disparity between provinces is the weighted-average of the disparity between provinces within the three blocks. The decomposing formula of the first and the second stage Theil compared, it can be found that the disparities between blocks share the same components. The disparity within the block in the former (TWR ) and the disparity between provinces (TBP ) in the latter share the same components. However, the first stage decomposing calculation is based on the provincial data, while for the second stage, it is based on the data of prefecture cities within the province. Generally speaking, provincial GDP is not the sum total of the GDP of prefecture cities. There can be some minor differences. Decomposition of Theil in this chapter is realized by the programming with the language of MATLAB.

2.3 Analyses of Spatial Disparities in Yangtze River Economic Belt (a) Analyses of absolute disparities between provincial economic developments within the coverage of the belt. (1) Relative growth rate from 1978 to 2013 Growth rates of GDP and GDP per capita are often used to measure regional economic development. But due to the great differences of the bases, actual volume of growth in developed areas well exceeds that of backward areas provided the same growth rate. Growth rate would not do to reveal precisely actual development of provinces and cities. An index, the relative development rate (Nich), has to be opted to reflect relative growth volume for regional economy. Relative growth rate is the ratio of variations of GDP per capita within a certain period to that of the complete region of the same period. The formula goes Nich =

Y2i − Y1i Y2 − Y1

(2.8)

Y2i and Y1i represent the GDP per capita of i province in a certain period; Y2 and Y1 represent GDP per capita of the whole region in that same period. Adjustments to macro-regional economic development policies were made from the beginning of the 1990s. Coastal areas in the east are to take the lead in development, motivating simultaneous development of the middle and the west. The beginning of the twenty-first century saw the establishment of the strategic consideration of coordinated regional economic development, colossus development started in a

2 Concrete Analyses in Regional Economic Differences … Table 2.2 Nich values of provinces and cities along Yangtze River Economic Belt during 1978–2013

53

Provinces or cities

Nich 1978–1990

1990–2000

2000–2013

Shanghai

3.230

3.954

1.631

Jiangsu

1.578

1.699

1.675

Zhejiang

1.696

1.903

1.479

Chongqing

0.847

0.901

0.969

Hubei

1.123

1.070

0.933

Hunan

0.884

0.778

0.827

Sichuan

0.822

0.633

0.738

Jiangxi

0.806

0.654

0.717

Anhui

0.872

0.675

0.709

Yunnan

0.935

0.600

0.544

Guizhou

0.590

0.326

0.539

comprehensive manner in the twelve western provinces. That is why the years 1990 and 2000 (after 1978) are chosen as milestone years for analyses of separate stages. Calculation yields the Nich values of individual GDP per capita of each province and city for periods 1978–1990, 1990–2000, and 2000–2013 (Table 2.2), and based on the GIS platform, with the method of quartile, the Nich values are divided into four types (Graph 2.1(a–c)). Great disparity is found between individual provinces. As can be found from Graph 2.1, Nich values, aside from the ones for Jiangsu, Zhejiang and Shanghai, of most central and western provinces were below 1 during the three periods from 1978 to 2013. Jiangsu, Zhejiang and Shanghai are taking the lead in Yangtze River Economic Belt, central and western provinces and cities lagging behind the overall regional development. Nich values of Shanghai and Zhejiang were the highest during 1978–1990 followed by Jiangsu, Hubei and Yunnan, Hunan, Anhui and Chongqing relatively low, Sichuan, Jiangxi and Guizhou at the bottom. During 1990–2000, Nich values of Shanghai and Zhejiang were still the highest, with Jiangsu, Hubei, Chongqing following behind, that of Hunan, Anhui and Jiangxi relatively low, Sichuan, Yunnan and Guizhou the lowest. Jiangsu and Shanghai came first during 2000–2013, followed by Zhejiang, Chongqing and Hubei, Hunan, Sichuan and Jiangxi relatively low, Anhui, Yunnan and Guizhou coming at the end. Shanghai and Zhejiang maintained relatively high development rates during 1978– 2000, which declined afterwards with that of Shanghai substantially reduced to about 1.6. But Jiangsu gradually progressing to the lead, overtaking Shanghai, its development rate relatively high. From 1990 on, most central and western provinces and cities went through substantial decline in their development rates compared to previous years, but the period from 2000 to 2013 saw small recovery; there is stable rise with the relative development rate of Chongqing while there is incessant decline in Hubei and Yunnan.

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2 Strategic Scheming of Coordinated and Balanced …

Graph 2.1 Disparities in the relative development rate of the provinces along Yangtze River Economic Belt

2 Concrete Analyses in Regional Economic Differences …

55

It can be concluded that economic development disparities between provincial administrative divisions from 1990 on is becoming much wider than that of the period from 1978 to 1990, more significant between the east and the west. There has been a significant surge with the economic strength in all the east, central and western regions along Yangtze River Economic Belt since implementation of opening-up and reform. But against the background of unbalanced economic development strategies favoring coastal areas, a swift development has been realized in the east, its development speed and level well surpassed those of the central and western areas, quickly widening the gap between these three regions. Unbalanced economic development deepened until the year 2000, further widening the holistic gap. Only after 2000 when development in Shanghai and Zhejiang slowed down and central and western provinces and cities realized significant growth was the gap gradually narrowed. (2) Characteristic disparities of spatial layout of economic development on the prefecture city level Prefecture cities as spatial bases are divided into the four types of advanced, hypoadvanced, undeveloped and backward according to GDP per capita of 2013, taking 150%, 100%, 50% of GDP per capita in year 2013 along Yangtze River Economic Belt as benchmark. All the prefecture cities are visually mapped based on GIS platform to display their spatial disparities (Graph 2.2).

Graph 2.2 Spatial layout of economic development of prefecture cities along Yangtze River Economic Belt for 2013

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2 Strategic Scheming of Coordinated and Balanced …

As can be seen from Graph 2.2, number of undeveloped and backward areas progressively increases from the east to the west. When central administered cities are not divided into counties or districts, prefecture cities along Yangtze River Economic Belt totaled 130 in 2013, eighteen of them in developed areas, making up 14% of the total. They are not spatially evenly distributed, most in east provinces, seven in Jiangsu, five in Zhejiang, and only five such cities in the middle rank themselves among the advanced. Hypo-developed prefecture cities total 23, making up approximately 18%, distributing in a spatially balanced manner, four and three in Zhejiang and Jiangsu, respectively, four of them in Hubei in the middle, three in Anhui, Hunan and Jiangxi each having two, Sichuan and Yunnan each having two, and Guizhou having one. Undeveloped prefecture cities make a total of 57, occupying approximately 44%, found mainly in central and western provinces, with Sichuan having fifteen to take the lead. Chongqing is also found here. Hubei follows with nine, Anhui and Hunan each having eight. Four are in Jiangxi. The east province of Jiangsu has three, and Zhejiang has two. Backward prefecture cities add up to 32, making up approximately 25% of the total, all in central and western provinces and cities: ten in Yunnan, seven in Guizhou, Anhui and Sichuan each having four, and two or three found in Hubei, Hunan and Jiangxi. (b) Analyses of relative disparities between provincial economic developments within the coverage of the belt. Theil index of GDP per capita of the provincial level within Yangtze River Economic Belt is calculated using the formula for Theil index for the period of 1978 to 2013, revealing relative disparities between individual provinces and their evolution from opening-up and reform on (refer to Table 2.2 and Graph 2.3). As can be clearly seen from Graph 2.3, 1990 is an obvious turning point. Theil index for the 1980s was in a continuous sharp declining trend which turned to an

Graph 2.3 Theil indices of Yangtze River Economic Belt during 1978 to 2013

2 Concrete Analyses in Regional Economic Differences …

57

overall ascending trend in the 1990s, reaching a peak in 2003, going down quickly then again. The track of the evolution of relative provincial disparities shows that regional economic disparities were narrowing during 1978 to 1990, and that these disparities were widening from 1990 on, reaching their peak in 2003, then narrowing again.

2.4 Decomposition of the Economic Disparities Within Yangtze River Economic Belt (a) Decomposition on the provincial spatial level Decomposition of Theil index on the provincial spatial level further reveals the composing blocks for the economic disparities and the process of the development of such disparities in individual provinces. Calculation using formula for the first stage decomposing of Theil index yields the decomposition of Theil index and its contribution to the overall disparity during the period from 1978 to 2013 between the east, the middle and the west blocks, and within individual blocks themselves. The process of the changes is reflected in a line chart (Graph 2.4). Line charts visually reflect how each disparity varies with time. The overall trend is that relative variations between the three blocks and variations within disparity compositions in the west tend to follow the same pattern, while the ones between

Graph 2.4 Theil indices of provincial disparities of the three blocks along Yangtze River Economic Belt during 1978 to 2013

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2 Strategic Scheming of Coordinated and Balanced …

blocks and the east, and disparity compositions in both the east and the west basically follow the opposing pattern (Table 2.3). Disparities between eastern provinces shrank quickly during the 1980s, the volume of decreasing significant; from 1990 on, it took on an overall small-range fluctuation on a gradual decrease. Disparities between western provinces fluctuated within a narrow range on a gradual increase, the volume somewhat large in the 1990s. The middle provinces were on a continuous fluctuation, changes mild. There was small fluctuation with economic disparities between the three blocks in the 1980s, the overall trend decreasing; there was a sharp climb in the 90s, the volume considerable; there was great fluctuation during 1995 to 2001; the uptrend maintained itself until 2005, then falling sharply. This is an indication that economic disparity quickly enlarged from 1990 on, maintaining until the beginning of the twentyfirst century, then falling quickly, which corresponded with the overall disparity of Yangtze River Economic Belt. As for the contribution rate shown in Table 2.2 contribution from the east has always been on a steep decline, falling from 63.29% in 1978 to 2.13% in 2013, and contribution from the west has always been insignificant. Out of this, that from the west takes an uptrend in that small amplitude of fluctuation, the middle maintaining a continuous fluctuation. This indicates a development toward balance in eastern provinces. There is no balance of the same level in western provinces as in the east and the middle, but this has just a weak influence on the overall economic disparity in Yangtze River Economic Belt. Contribution of disparities between the three blocks rose sharply from 34.39% in 1978 to 89.44% in 2013, rising yearly, variations within disparity compositions between blocks contributing considerably to the overall disparity. Obviously, the growing overall disparity within Yangtze River Economic Belt originated from unbalanced development between the three blocks. In further exploring into the causes of the dynamic evolution of overall disparity within Yangtze River Economic Belt, the author takes it that, economic reforms in the 1980s took place mainly in rural areas, with the east, the middle and the west each realizing some degree of economic growth, disparity in overall economic growth decreasing. The seventh “Five-Year” plan starting from 1986 divided the country into the three blocks of the east, the middle and the west, regional economic development to be sequentially implemented in the three blocks. Unbalanced regional development strategies were implemented until late 90s, a series of policies and measures favoring the east being their major content. Advantageous geographical locations, outstanding natural conditions and optimized allocation of productivity factors flowing to the east resulted in widened gaps in economic efficiency between the three regions, the east obviously overtaking other areas, regional gaps significant. Strategic thoughts of coordinated regional economic development were introduced to cope with the enlarging gap between coastal regions and other areas in the middle and the west when we entered the twenty-first century, massive development of the west initiated, rise of the middle implemented. Economy of the middle and the west developed rapidly, but the east maintained superior development status, and

2 Concrete Analyses in Regional Economic Differences …

59

Table 2.3 Decomposition of Theil indices reflecting disparities between and within the blocks along Yangtze River Economic Belt 1978–2013 Theil for the east

Theil Theil for the for the middle West

Theil Theil of Contribution Contribution Contribution Contribution between Yangtze rate of the rate of the rate of the rate between blocks River east (%) middle (%) West (%) the three Economic blocks (%) Belt

1978 0.1478 0.0021 0.0030 0.0802

0.233

63.39

0.92

1.31

34.39

1979 0.1158 0.0041 0.0026 0.0787

0.201

57.58

2.04

1.27

39.11

1980 0.1140 0.0034 0.0031 0.0787

0.199

57.21

1.72

1.55

39.52

1981 0.1019 0.0022 0.0024 0.0761

0.183

55.79

1.23

1.32

41.67

1982 0.0883 0.0022 0.0021 0.0707

0.163

54.09

1.36

1.26

43.28

1983 0.0784 0.0016 0.0024 0.0670

0.149

52.46

1.10

1.61

44.84

1984 0.0667 0.0026 0.0020 0.0668

0.138

48.30

1.90

1.43

48.38

1985 0.0596 0.0023 0.0021 0.0768

0.141

42.37

1.62

1.47

54.55

1986 0.0496 0.0021 0.0020 0.0789

0.133

37.38

1.61

1.51

59.50

1987 0.0406 0.0023 0.0013 0.0832

0.128

31.85

1.84

1.05

65.26

1988 0.0339 0.0020 0.0012 0.0862

0.123

27.51

1.60

0.99

69.90

1989 0.0316 0.0023 0.0016 0.0776

0.113

27.95

1.99

1.46

68.60

1990 0.0326 0.0024 0.0024 0.0639

0.101

32.17

2.41

2.35

63.07

1991 0.0357 0.0032 0.0025 0.0723

0.114

31.37

2.85

2.21

63.57

1992 0.0338 0.0030 0.0030 0.0896

0.129

26.14

2.30

2.31

69.25

1993 0.0328 0.0029 0.0035 0.1084

0.148

22.25

1.96

2.39

73.41

1994 0.0297 0.0024 0.0044 0.1142

0.151

19.71

1.62

2.89

75.78

1995 0.0278 0.0019 0.0055 0.1163

0.152

18.35

1.25

3.64

76.76

1996 0.0283 0.0026 0.0061 0.1120

0.149

19.01

1.72

4.12

75.15

1997 0.0313 0.0031 0.0067 0.1109

0.152

20.58

2.02

4.41

72.99

1998 0.0333 0.0034 0.0069 0.1148

0.158

21.00

2.12

4.38

72.50

1999 0.0287 0.0037 0.0064 0.1215

0.160

17.89

2.29

4.02

75.80

2000 0.0262 0.0052 0.0064 0.1202

0.158

16.55

3.31

4.08

76.06

2001 0.0233 0.0055 0.0070 0.1220

0.158

14.75

3.46

4.43

77.36

2002 0.0249 0.0016 0.0071 0.1400

0.174

14.32

0.92

4.11

80.65

2003 0.0233 0.0016 0.0072 0.1515

0.184

12.70

0.89

3.93

82.47

2004 0.0219 0.0014 0.0075 0.1492

0.180

12.15

0.76

4.18

82.91

2005 0.0172 0.0016 0.0061 0.1513

0.176

9.78

0.91

3.47

85.84

2006 0.0147 0.0017 0.0056 0.1480

0.170

8.65

0.98

3.28

87.09

2007 0.0123 0.0020 0.0052 0.1389

0.158

7.77

1.24

3.26

87.73

2008 0.0090 0.0022 0.0052 0.1261

0.143

6.31

1.55

3.63

88.50

2009 0.0072 0.0025 0.0055 0.1169

0.132

5.42

1.89

4.16

88.53

2010 0.0048 0.0022 0.0060 0.1066

0.120

3.98

1.81

5.03

89.18

2011 0.0031 0.0021 0.0063 0.0934

0.105

2.94

1.98

6.03

89.05

2012 0.0023 0.0023 0.0057 0.0830

0.093

2.44

2.48

6.15

88.93

2013 0.0019 0.0024 0.0050 0.0783

0.088

2.13

2.73

5.70

89.44

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2 Strategic Scheming of Coordinated and Balanced …

Table 2.4 Results of economic disparities along Yangtze River Economic Belt using second stage nesting Theil index decomposing method for a typical year Disparity elements

1990 Theil

Contribution rate (%)

2000 Theil

Contribution rate (%)

2013 Theil

Contribution rate (%)

Within the province

0.1378

63.41

0.1546

55.00

0.1083

50.50

Between provinces

0.0232

10.66

0.0135

4.81

0.0098

4.56

The east

0.0059

1.06

0.001

0.15

0.0001

0.02

The middle

0.0501

8.51

0.0247

2.87

0.016

2.39

The west

0.0098

1.09

0.0225

1.79

0.0203

2.15

Between blocks

0.0563

25.93

0.1129

40.19

0.0964

44.94

Overall disparity

0.2173

100

0.281

100

0.2145

100

western provinces were still faced with serious challenges. Economic gap between them and the east narrowing as it might have been, it just remained considerable. (b) Decomposition based on prefecture cities. Deeper analyses of economic disparities within Yangtze River Economic Belt are done according to the three-layer regional administration units of the three blocks—provincial regions—prefecture cities for disparities between the three blocks, between provinces in individual blocks, and between different regions within individual provinces using second stage nesting Theil index decomposing method. Considering data consistency and characteristics of the formula, the city of Shanghai is incorporated into Jiangsu, Chongqing into Sichuan, both considered as a prefecture city. Decomposition of economic disparity within Yangtze River Economic Belt is calculated for the years 1990, 2000 and 2013 (Table 2.4). Theil index of each disparity group shows that Theil index for disparities within provinces and between blocks increased during 1990–2000, and then fell. Disparity between provinces gradually decreased with the passage of time. This indicates that, on the prefecture city level, disparities within individual provinces and between blocks were on the rise between 1990 and 2000, falling afterwards. Comparatively, disparities between middle provinces were larger than those for the other two blocks, contributing most to the overall disparity. These were followed by western provinces, and eastern provinces came last. This is an indication that development in the central and western provinces was unbalanced, cross-provincial disparities great, while there was a relative balance between eastern provinces. When contribution rate of each disparity group is considered, disparities within provinces contributed greatest to the overall disparity during 1990 to 2013. Declining on a yearly basis as it was, it still was over 50%; the ones between the three blocks

2 Concrete Analyses in Regional Economic Differences …

61

contributing relatively high, even gradually taking on a steep rise; cross-provincial disparities the least and gradually declining. So, on the prefecture city level, disparities within provinces and between the three blocks make up basically the overall regional disparity of Yangtze River Economic Belt. It is noteworthy that changes with disparities within provinces impacted most obviously the changes of the overall disparity on the prefecture city level. Due attention must be paid to disparities within provinces when the ones between the three blocks are being focused on. With Shanghai further divided to its composing districts and counties, and Chongqing into the function zones of “core function zones of the city, expanded function zones, new development zones, reserved development zones northeast of Chongqing, ecologically protected development zones southeast of Chongqing,” using corresponding data of the prefecture level for 2013, applying the second stage Theil index decomposing method, the overall disparity of Yangtze River Economic Belt for 2013 and the Theil index of its composing parts can be calculated (Table 2.5). A comparison of the results between each component for 2013 according to Tables 2.4 and 2.5 leads to the discovery that there is relatively small difference between composing parts whether centrally administered cities are divided into its composing districts and counties or not. What follows here is an analysis of in-province disparities along Yangtze River Economic Belt in 2013. Theil indexes of the three blocks and their respective contribution show that differences between western provinces are the greatest, contributing the most to the overall disparity, the middle provinces following and the east the smallest, development obviously unbalanced in central and western provinces. Considered from within individual provinces, Theil indexes in eastern provinces are generally low, Shanghai the highest, Jiangsu following, Zhejiang the lowest. Theil indexes for central and western provinces are generally high. For the middle, Anhui comes first, followed by Hunan and Hubei, with Jiangxi the lowest. As for the west, that of Sichuan is the highest except Chongqing, Guizhou and Yunnan coming next. Larger Thiel index indicates an imbalance within individual provinces, as for under-developed areas in developed provinces and developed areas in underdeveloped provinces. Smaller Theil index indicates the opposite, with wealth enjoyed by all or poverty suffered by all. Of the central and western provinces, imbalance is the most significant in Anhui, relatively great disparity found between prefecture cities. Hunan and Hubei in the middle, and Sichuan and Guizhou in the west also have the considerable problem of prominent imbalance. There can be found a relative balance between prefecture cities in Jiangxi, Yunnan and Chongqing. Contribution of in-province disparities to the overall disparity considered, Jiangsu has contributed the greatest, Sichuan following, then Hunan, Anhui and Hubei. Chongqing does the least, following by Guizhou, Yunnan, Jiangxi and Shanghai. This is an indication that in-province disparities of Jiangsu, Sichuan and some other provinces impact the overall disparity the most greatly. GDP ratio taken as the weight when calculating contribution rates, economic status is represented by contribution rates. GDP of the central and western provinces is at a relatively low level in general, so the large in-province disparities do not contribute significantly

0.0001

0.0864

0.0789

0.0748

0.1167

0.0117

0.0922

0.2206

East

Shanghai

Jiangsu

Zhejiang

In-province disparities

Disparity between provinces

Disparity between blocks

Total

Theil

Provinces

100

41.79

5.32

52.89

4.82

8.31

2.84

0.01

Contribution rate

0.147 0.1585

Hunan

0.1046

0.2056

0.016

Theil

Hubei

Jiangxi

Anhui

Middle

Provinces

6.95

6.60

2.58

6.87

2.34

Contribution rate

Yunnan

Guizhou

Sichuan

Chongqing

West

Provinces

0.1147

0.1409

0.1669

0.076

0.0285

Theil

Table 2.5 Theil indices of in-province disparities within Yangtze River Economic Belt and their contribution rates for 2013 (%)

2.36

2.02

7.90

1.65

2.96

Contribution rate

62 2 Strategic Scheming of Coordinated and Balanced …

2 Concrete Analyses in Regional Economic Differences …

63

to the overall disparity; the relatively low provincial disparity in Jiangsu contributes much more greatly than other provinces due to its large GDP percentage.

2.5 General Conclusion About Economic Disparities Within Yangtze River Economic Belt (a) Differences in relative development rate during 1978–1990 indicate an enlarged gap between provinces from 1990 than what it was during 1978–1990, the gap between eastern and western provinces especially prominent. From 2000 on, development in Jiangsu, Zhejiang and Shanghai slowed down a little bit, central and western provinces experiencing a significant increase, economic imbalance then somewhat relieving. (b) Spatial differences in economic development in 2013 are a direct indication that eastern provinces are mostly developed or under-developed, middle provinces mostly undeveloped, western ones mostly backward. (c) Track of evolution of relative differences between provinces on the provincial spatial level shows that regional economic differences between provinces were always narrowing down during 1978–1990, but from 1990 on, it was enlarging, only to narrow down early twenty-first century. Decomposition of the first stage Theil index shows that overall disparities between eastern provinces took on a narrowing trend, while the west presented an uptrend in small volume fluctuations. Economic disparities between the three blocks quickly enlarged from 1990 on, continuing until early twenty-first century, then declining quickly, corresponding generally to the trend with the overall trend. The enlarging overall disparities originated mainly from imbalance between the three blocks. (d) Double-stage decomposition with Theil indexes, taking as basic spatial unit of prefecture cities, is applicable in analyses of disparities between the three blocks, between provinces, and their contribution to the overall disparity along Yangtze River Economic Belt; it is also applicable for analyzing disparities within individual provinces. This helps with more thorough research into regional economic disparities. Decomposition of disparities on the basis of prefecture city level shows that changes with in-province disparities contribute most significantly to the overall disparity of Yangtze River Economic Belt, a key segment of it. Disparities between the three blocks paid due attention to, in-province disparities are no less significant. Compared with eastern provinces, imbalance between central and western provinces is more considerable, great gap existing between prefecture cities, most significantly in Anhui. It is followed by Hunan, Hubei in the middle, Sichuan and Guizhou in the west. There is a relatively better balance in Jiangxi, Yunnan and Chongqing.

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2 Strategic Scheming of Coordinated and Balanced …

2.6 Evolution of the Layout of Regional Development of Yangtze River Economic Belt Analyses of regional economic disparities in Yangtze River Economic Belt lead to the discovery that, from reform and opening-up, with the guidance and under the influence of development conditions at home and abroad, layout of Yangtze River Economic Belt went through three major stages of evolution of low-level balance, gradient imbalance and approaching balance in adjustment, and it is now basically equipped with conditions for a new stage of coordinated and balanced development. In this “U-form” process of dynamic evolution, Yangtze River Economic Belt is at its starting point for a new process of evolution from a higher level balance to “coordinated balance.” To forge a propping economic belt, it is necessary to master the characteristics and demands of the new normal. Directed by new national guidelines for coordinated, correspondent and simultaneous development, led by integrated development strategies to be implemented between regions and within regions, oriented toward mutually beneficial relationships between regions, Yangtze River Economic Belt is to be ushered into a new stage of coordinated and balanced development.

2.7 Three Major Stages of Evolution of the Layout of Regional Development of Yangtze River Economic Belt The period between the start of reform and opening-up and the issuance of “The Guidelines” saw the three major development stages of low-level balance, gradient imbalance and approaching balance in adjustment if changes of the ratio of GDP of each block to that of the belt taken as a whole (Graph 2.5). (a) The stage of low-level balance during 1979–1991 A lot of policies favoring coastal areas were implemented during 1979–1991 directed by unbalanced regional development strategies, making them a powerful force motivating the high-speed growth of national economy at the time. But the city of Shanghai, head of Yangtze River Economic Belt as it was for the period, did not enjoy the variety of favorable opening-up policies as Shenzhen did to act as file leader of opening-up and reform in China, neither did it see the upsurge of voluminous and dynamic rural enterprises as happening in its neighboring provinces of Jiangsu and Zhejiang, leading to its failure to keep up with the quick tempo of highspeed economic growth in coastal areas, it staying in the conventional economic mechanism dominated by state-ownership mechanism, making little progress. The voluminous economic total of Shanghai made transformation of economic mechanism difficult, resulting in the overall growth of the eastern block of the Yangtze River economic falling below that of the country in average, and its GDP ratio to that

2 Concrete Analyses in Regional Economic Differences …

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Graph 2.5 Changes of local GDP in the East and the central and the West and GDP per capita within Yangtze River Economic Belt during 1979–2014

of Yangtze River Economic Belt taken in all remaining 15–18% below that of the central and western blocks added together. Relatively low productivity of the period, relatively secluded social productivity and life, and severely restricted communications of personnel, material, information, etc. caused by insufficient cross-regional basic facilities such as the road contributed together to the relatively stable and static low-level balanced development on the overall layout of the three blocks among Yangtze River Economic Belt. (b) Gradient imbalance during 1992–2007 A gradient development layout higher in the east lower in the west was in formation during 1992–2007 motivated by development and opening-up of Pudong. The strategic decision of “further opening-up of portal cities along the Yangtze River with development and opening-up of Pudong acting as fountainhead” was explicitly proposed at the 14th CPC National Congress, directing a new stage of the development of Yangtze River, accelerating the integrating process of economy of the eastern block centering on Shanghai. However, the long spatial distance, the weak foundation and limitations of many other factors restrained Pudong in its motivating function for the central and western blocks. Despite the central government’s efforts to cope with the continuously widening gap in the overall strategies of “great development of the west,” “rise of the middle,” “reviving of northeastern original industry basesand “the east taking the lead in development,” in further opening-up Chongqing, Yueyang, Wuhan, Jiujiang, Wuhu, Huangshi, Yichang, Wanxian, Fuling and some other cities along the river, in setting up experiment zone for state-level rural-urban comprehensive reforms, and the state-level resource-conserving, environment friendly social construction comprehensive reform experiment zone of the city circle of Wuhan and city cluster of Changsha, Zhuzhou and Xiangtan, the relatively superior location and development basis contributed to the considerably higher growth rate in the eastern block than that of the middle and the west, the ratio of its GDP to that of the belt

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taken as a whole gradually growing until it finally overtook the latter by 3%, the obvious layout of gradient imbalance in the east-west direction formed. (c) Approaching balance in adjustments during 2008–2014 The export orientation, the rising cost of factors and the increasing pressure from environment preservation during 2008–2014 under the impact of international financial crisis slowed down the growth of the eastern block, a layout with it lower than the middle and the west emerging. The continuous support of strategies of great development of the west and rise of the middle gradually improved the bases and conditions for economic development of the central and western blocks. And this is further enhanced by some other policies for the purpose of “stabilizing growth, stimulating domestic demand and adjusting structures” such as the documents or files drafted or replied to by the state council: “Planning for Motivating the Rise of the Middle,” “Opinions about Forceful Implementation of Rise of the Middle Strategy,” “Reply to Planning of Demonstrative Zone for Industry Transference within the City Belt along Wanjiang River,” “Reply to Planning of Poyanghu Lake Eco-Economy Zone,” “A Few Suggestions for Further Implementation of the Strategy of Grand Development of the West,” “Agreement for the Establishment of Yangtze-Jialingjiang New Zone in Chongqing” and “Agreement for the Establishment of Tianfu New Zone in Sichuan Province.” These had enhanced internal growth of these two blocks, and strengthened their ability to accept transferred industries both domestic and from abroad, resulting in the continuous growth of the ratio of their GDP added together and finally overtaking that of the east in 2009. By 2014, it had overtaken the east by 9.5%. This, to a certain extent, is an indication that room for adjustment has been made, a new tendency for a new balance in the layout of Yangtze River Economic Belt forming.

2.8 New Trend for the Layout of Yangtze River Economic Belt in the New Normal To make the most of advantages of superior tenacity, great potential and large room for adjustments in Chinese economy in this new normal of economic development, to ensure a reasonable growth rate during the process of evolution so that Middle Income Trap can be avoided, adjustments must be made to regional development strategies. Ranked among the three key regions, development of Yangtze River Economic Belt must take into full consideration differences in regional development stages, in the nature of resources, and in possibilities of development, having it strategically positioned in the country and even the world as a whole, transforming the current “tendency for balance in adjustments” heavily tinted with gradient characteristics of “coordinated and balanced” development distinctly characterized with coordination.

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(a) Proposal of coordinated and balanced development of Yangtze River Economic Belt Firstly, it is the requirement of making adjustments to regional development policies of the country. New policies for regional development in the new normal laid the ideological foundation for the new layout of coordinated and balanced development in Yangtze River Economic Belt. To better adjust to the new normal and further optimize the spatial layout for economic development, direction for regional development for a certain period in the future was explicitly proposed at the Central Economic Work Conference in December, 2014: when strategies for comprehensive regional development and major function zones were kept to, there must be “perfection of regional policies, motivating coordinated, correspondent and simultaneous regional development.” To realize the goal of a moderately prosperous society as planned, it was proposed in “Proposals of CPC Central Committee for Drafting the Thirteenth Five-Year Plan for the Development of National Economy and Society” at the Fifth Plenary Session of the 18th CPC National Congress that a new layout for coordinated regional development had to be modeled where there was free and controllable flow of factors, effective restrictions of major functions, equal basic public service, and a development intensity bearable for resources and the environment. This is the new guideline directing the development of Yangtze River Economic Belt in the new normal, clearly implied in which is the ideology of coordinated and balanced development. Secondly, it is the requirement of the extension of propping belts for Chinese economy. Extension of propping belts for economy in the new normal from coastal areas to inland areas along the river provides internal demands for the new layout of coordinated and balanced regional development. Over thirty years of development forged coastal areas in the east into solid propping belt for Chinese economy, but the overall development of Yangtze River axis does not match its strategic status, restricting greatly the exploitation of potentials of economy of China. In this new era when there is improved conditions in the middle and the west, and when there is accelerated flow of resources between regions, one aim in the development of Yangtze River Economic Belt is the formation of the layout for coordinated and balanced regional development to stimulate the expansion of development from coastal areas to inland areas along the river, so that the great potential of internal demand can be exploited to motivate optimization of regional structure and domestic demand structure. Thirdly, it is the requirement of the construction of a new corridor for bidirectional opening-up both inland and at sea. This provides the external support for the formation of the new layout. Expanding opening-up in inland areas and along borders and nurturing new competitive advantages for participation and taking the lead in international competition and cooperation mean significantly much to improving our comprehensive power and international competitiveness. The greatest difference between Yangtze River Economic Belt and other economic zones lies in the fact that its Golden Waterway connects not just the east, middle and the west, but to the east and west the twenty-first-Century Maritime Silk Road and Silk Road Economic

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Belt, respectively, forming a new opening-up pattern. One task in the construction of Yangtze River Economic Belt is to have it contribute effectively to the twenty-firstCentury Maritime Silk Road and the Silk Road Economic Belt when a new layout of comprehensive opening-up is being formed within it through coordinated and balanced development, further opening-up at its east end, stimulating opening-up at its west end, enlarging opening-up along borders and making best use of its spatial advantages for opening-up both inland and at sea. (b) Connotation of coordinated and balanced development of Yangtze River Economic Belt Differences in spatial and temporal backgrounds, basic conditions and development potentials have always led to the conflict between balance and imbalance in the process of regional economic development, the evolution of their relationship accompanying the evolution of regional system to higher levels. The rough process of “lowlevel balance → imbalance → high-level balance” will generally be experienced in regional economic development. To find an exact illustration for this process of evolution, sequential data and cross-sectional data of 24 countries were analyzed by American economist Williamson with positivist methods, and “Inverted-U Theory” was described: gaps between regions will widen at the taking-off stage of economic development, low-level balance transforming to unbalanced development; further development of economy will stabilize the imbalance between regions; the gap will narrow down, imbalance turning to high-level balance at the mature stage. “Inverted-U Theory” incurred some doubts due to its negligence of the interference of the government in the narrowing down of regional gaps. Tendency of variation with data considered, factors leading to fluctuation of “Inverted-U” neglected, the difference between the ratio of GDP of the east to that of the west taken as temporal sequential data, a simulation of its variation tendency using second-order polynomial (Graph 2.6) leads to the rough conclusion that the unbalanced relationship between regions in Yangtze River Economic Belt is gradually stabilizing, basically at the

Graph 2.6 The difference between the GDP in the East and that of the middle and the West within Yangtze River Economic Belt during 1979–2013 and its second-order polynomial

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top of the “inverted-U” curve, starting its point to a new higher level balance. This high-layer balance, different from the previous low level, low efficiency, scatteredand static- balance with meager cross-regional communication, is of high level, high efficiency and coexistent, one that is directed with ideals of coordinated regional development in which there is frequent economic communications with the market playing a significant role in allotting resources whose spatial interactivities are strong where there is close association, mutual compensation and division and cooperation, and thus can be called “coordinated balance.” As a high-level development layout, coordinated and balanced development of Yangtze River Economic Belt is a layout to maintain a reasonable range for economic development, one motivated by innovation. Great as the achievements might have been made since opening-up when development was mainly motivated by industry factors and investments, massive cost of colossus consumption of resources and abuse of environment was paid for such achievements. As opening-up and development intensify, ever greater pressure will be applied on resources and environment, and the method for developing economy relying solely on compensatory cooperation based on resources and factors is faced with severe challenges. Innovation has to be stressed on to find a path for cooperation mutually helpful in the new normal of economy. The formation of the layout of coordinated and balanced development is to uplift economic development from the one motivated by factors and investments to a higher level motivated by innovation. Cross-regional technology transference and cooperation will motivate development to relying more heavily on progress in science, better-qualified labor and innovated management. Independent innovation is to be spread to all areas within the coverage of Yangtze River. Highly effective, coordinated and balanced development of Yangtze River Economic Belt is a development layout through cooperation and integration all along the river to optimize allocation of resources and through optimization of economic structure. This development of economy in the new normal stresses more on combination between regions, association between industries, economic cooperation and corresponding development. A unified, open and competitive and orderly market system covering the river basin is to help optimize spatial allocation and regional division, and compensate each other with their own advantages. The government and the market are to exert their adjusting abilities to motivate the formation of spatial integration between regions as well as an integrated development tendency where there is industrialization, information, urbanization and modernized agriculture within individual units and integration between ports, industries and cities, between cities and rural areas, and between manufacturing and service sector. As a layout for coexistence, coordinated and balanced development of Yangtze River Economic Belt is a dynamic one during the transformation from imbalance to balance, which is based on coexistence that comes from spatial interaction. In the new notion of scientific, sustainable, inclusive development directing regional development in the new normal, blind pursuit of GDP at the cost of Nature and ecology will be turned to green, ecological and sustainable and coexistent development mode, cooperative and coexistent, mutually beneficial relationship between regions and between human and Nature and the ecosystem expectedly to be nurtured.

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Balance does not mean absolute parallel development or there to be a predetermined static goal; it instead emphasizes more of a mutually beneficial and coexistent relationship between regions, economic entities and human and Nature based on which advantages can compensate each other, development associated and sustainable, the value of coexistence gradually enhanced. To sum up, the new layout of coordinated and balanced economic development is one aiming at forging a new propping belt for Chinese economy, focusing on better efficiency, more fairness, and improved sustainability, starting from integrated development between regions and within individual regions, rooted on cultivating a mutually beneficial relationship between different economic entities and between human and Nature, organically organizing dispersed economic and social activities within the region, giving full play to the leading role the east is to play in its radiation effects, effectively activating the economic dynamism of the east, the middle and the west, improving the comprehensiveness and association of the whole Yangtze River Economic Belt, and forming a new pattern of coordinated, correspondent, simultaneous and sustainable development. (c) Significance of coordinated and balanced development of Yangtze River Economic Belt Economic growth slowing down, economic structure transforming, forging a new pattern relying on the Golden Waterway helps from the following aspects: (1) It helps forging an economic belt along an inland river of global significance. The formation of coordinated and balanced development helps the Golden Waterway to exert its chain effect. A connected comprehensive cubic transportation network along the upper, middle and lower streams of the Yangtze River helps optimize industry structures and layout along the river, helps nurture a cluster of industries of international level, facilitates combined development and cooperative interaction between city clusters along the river, propping up the major skeleton for development, effectively curbing the widening gap of GDP per capita between the east and the middle and the west (Graph 2.5), and cultivating an inland river economic belt for participation in international competition and cooperation. (2) It helps forge a coordinated development belt for interaction and cooperation between the east, the middle and the west. A coordinated and balanced development pattern helps connect dispersed regional development for further enhancing its scientific nature, its operability, and improving its efficiency in connected efforts, and in combination with other development strategies such as urbanization, Yangtze River Economic Belt is expected to be forged into a demonstrative economic belt. (3) It helps with the formation of an opening-up belt both outward and inward along the coast, the river and borders.

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A coordinated and balanced development layout helps with the best use of locational resources in bidirectional opening-up. Opening-up to the east and the west through Yangtze River Economic Belt and opening-up to Central Asia and West Asia and even Eastern Europe through the passage of Chongqing-Xinjiang-Europe, if connected, forms an omnidirectional opening-up pattern in the new normal. When eastern areas are modeled on with their innovative opening-up pattern demonstrated in free trade zones, interconnections between the central and western areas and surrounding countries and areas are to be enhanced. Strengthening their connection with “One Belt One Road” will model a corridor that runs through the east, the middle and the west and connects the south and the north in Yangtze River Economic Belt. (4) It helps forge a demonstrative belt of eco-civilization. A coordinated and balanced development layout helps with the establishment of mechanisms for preservation of water resources and hydro-ecology and helps with the construction of cross-provincial eco-compensation mechanism so that an environment protection pattern can be formed, the previous regional issues of regional economic and social development and protection of ecology to be shared by the community within the river basin, guaranteeing the ever-lasting lucidity of the river water originated from “Origin of the Three Rivers” for permanent use, cutting a new path that is green and ecological.

3 Prospects of and Ways Leading to Coordinated and Balanced Development Along Yangtze River Economic Belt Motivating coordinated and balanced development along Yangtze River Economic Belt under the guidance of coordinated and balanced regional development strategies is to improve transportation capability of the Golden Waterway, to construct a comprehensive cubic transportation corridor, to guide orderly transference and acceptance of industries, to forge cross-regional and regional city clusters, to cultivate new bidirectional opening-up advantages, to facilitate joint efforts for preservation of ecology, to optimize regional division and cooperation etc. so that the present dispersed, mono-directional, loose and gradient development pattern can be quickly transformed to integrated, coexistent, bi-directionally open, coordinated and balanced pattern.

3.1 Strategic Prospects of Yangtze River Economic Belt The new development pattern in the new normal helps with the integration of independent regional units into an organic whole, continuously increasing the value of coexistence in regional economic development.

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(a) Coordinated and balanced development is innately characterized by integrated development. Coordinated and balanced development of Yangtze River Economic Belt is a complicated and systematic process characterized by integration of independent regional units, industry sectors and economic entities into one comprehensive whole with ranked layers. Integration is the innate nature of coordinated and balanced development of Yangtze River Economic Belt. As a typical form of river basin economy, long years of development did not successfully nurture a well-integrated largescale layout, traces of unbalanced and fragmented development obvious. One pivotal measure is to motivate integration, facilitating coordination, communication and connection in economic planning, facility construction, industry development, urban construction and environment preservation, improving efficiency in allotting resources on a larger regional scale. Multiple fields are related in promoting integrated development, including crossregional integration of comprehensive development of the east, the middle and the west, and urban integration across the river. It also takes within its coverage integration of the “Four Modernizations” within regional units, integration of the port, production and the city, integration of the city and rural areas, and integration of manufacturing and service sector, etc. In all, a coordinated and balanced development pattern takes as its prerequisite coordination between and within regions in areas such as transportation, industry, city, ecology and life. Integration is to be realized strategically in economy, society, culture and ecology. (b) Coexistence in development is the value orientation of coordinated and balanced development of Yangtze River Economic Belt. Coexistent development in regional economy is the new tendency in development of regional economy. Coexistent development of regional economy aims at coexisting values of harmonious coexistence between different regional units, it centering around nurturing a mutually beneficial coexisting relationship, taking as its clue coexisting resources of multi-region, multi-generation, ecology, development and institutions, its inclusive development including development between human beings themselves, human beings and Nature and Nature itself, it stimulating coexisting willingness and behavior based on coexisting interests, finally forming an economically and ecologically coexisting subject. Connotation of coexisting development of regional economy can be decomposed into a logic structure as “coexisting interests— coexisting resources—coexisting values,” coexisting resources being the headspring of coexisting development of regional economy, coexisting interests the motivation and coexisting values its goal. (c) Strategic structure of coordinated and balanced development for Yangtze River Economic Belt. The overall strategic structure of coordinated and balanced development of Yangtze River Economic Belt consists of three layers: strategic measures considered, starting

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from integration of the belt as a spatial whole and of development contents of individual regions, combining strategies and policies scattered within Yangtze River Economic Belt, this will enhance its scientific nature, operability and efficiency in combination. Its spatial wholeness considered, for example, a connection between the east taking the lead, rise of the middle and development of the west must be established to facilitate integration in the east-west direction. There must be crossriver measures as well to motivate integration of cities across the river. The “Four Modernizations” within individual regional units must be facilitated, and integration of the port, manufacturing, and the city, and the city and rural areas, so that quality and efficiency of economic development can be upgraded. Secondly, as for strategic goals, they must be based on a mutually beneficial and coexistent relationship, cultivating coexistent willingness and behavior based on coexistent interests so that shared resources and coexistent values can be formed. Thirdly, as for strategies to the outside world, opening-up to the west through the upper stream of Yangtze River must be enhanced, forging a bidirectional opening-up pattern through the belt. Implementation of strategies on such three measures will transform the current dispersed, mono-directional, loose, gradient development pattern to coordinated and balanced pattern, integrated, coexistent and bidirectional (Graph 2.7). Motivating coordinated and balanced development in the new normal requires the direction of integration and coexistent development. Efforts should be made through coordination in improving transportation capabilities of the river, combined efforts to promote transformation of industries, optimization of layouts of cities and towns and their styles and formation of an all-out opening-up pattern. In this way the strategic status of the river will be forged into an axis in the overall layout of regional development in China.

3.2 Strategic Path to Coordinated and Balanced Development of Yangtze River Economic Belt (a) Construction of a comprehensive transportation network centering around improving transportation capabilities of the Golden Waterway. Exploiting the advantages of low cost, colossus capability and energy efficiency of river transportation, a comprehensive cubic transportation network of water, railway, express road, civil aviation and tube relying on the Golden Waterway is to be constructed to provide basic guarantee for coordinated and balanced development along the river. Propped by this, combined development of the three blocks, reasonable flow of factors, division and cooperation of industries will be motivated, and combination of the advantages of fund, technology, talents and administration of the lower stream and rich resources and expansive market of the middle and the west will forge an economic belt where there is favorable interaction and shared prosperity.

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Graph 2.7 Strategic prospects for integration and coexistence from coordination and balanced development of Yangtze River Economic Belt

(b) Transformation and upgrade motivated by innovation. Comply with innovation trends in the new cycle of technological revelation, creates an environment attractive for innovative talents and capital, and establishes and optimizes related institutions. Science and education resources from universities, research institutes, massive enterprises and national science zones along the river are to be fully exploited to create allies for scientific innovation and platforms for coordinated innovation so that scientific achievements can be actualized quickly. The three innovative subjects owned by the nation, foreign entities and privately owned enterprises are to be stimulated for their enthusiasm to have them strategically compensate each other with their advantages. A concentration of innovative industries along the

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river of advanced manufacturing, burgeoning strategic industries and modern service industry will improve the status of Yangtze River Economic Belt in the global value chain. (c) Healthy development of urbanization based mainly on city clusters. Taking as major parts cross-regional city clusters at Yangtze River Delta, along the midstream, and Chengdu-Chongqing, and as complement regional city cluster in Central Guizhou and Central Yunnan, as auxiliary capital cities, medium cities, minor cities and towns along the river, having them connected when planning, promoting division and cooperation between city clusters and within themselves as well for an economic system with optimized city layouts and structures will realize mutual victory in positioning city functions and development of industry and economy, joint efforts and shared benefits in construction of basic facilities and public service, correspondence and cooperation in resource exploitation and eco-construction so that potentials of urbanization in enlarging domestic demand can be fully exploited. (d) Forging new comprehensive opening-up advantages focusing on bidirectional opening-up at the east and the west. Taking as its basis advantages with opening-up at the east of Yangtze River Economic Belt, opening-up is to be promoted in inland areas along the river, custom ports to be set up in inland areas where conditions are suitable, connection and communication between central and western areas and surrounding countries and areas to be further facilitated, application of innovative mechanisms of customs supervision in Free Trade Zone of Shanghai in central and western areas along the river to be accelerated, and economic passages of China-Pakistan and China-India-Burma to be soon forged. The major transportation passage from the Pacific Ocean to the Baltic Sea connected by the Silk Road is to be cut through. Connections and communications through the twenty-first-Century Maritime Silk Road will help exploit Southeastern Asian markets, and even Indian and African markets via southeast Asia and the Indian Ocean. (e) Green and ecological passages to be constructed under direction of ecocivilization ideals. Eco-civilization ideals of respect for Nature, complying to Nature and protecting Nature have to be established. Conventional ideals for sole pursuit of development of economy and society and neglecting consumption of resources and environment must be changed. This will help stick to development that is green, recyclable and low-carbon. Strictest mechanisms for eco-protection and water resource administration are to be established and optimized to comprehensively administer the rich eco-factors in all the waters, so that an eco-security layout with trunk stream and tributary river of Yangtze River as its veins, with mountains and waters and forests and arable land as its whole can be constructed, its relationship between rivers and lakes harmony, its water quality superior, its flow abundant, its water and soil conservation effective, and its species multiple.

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(f) Perfection of interaction and cooperation mechanism aiming at integration and coexistent development. Coordination and direction on the state level has to be strengthened, mechanisms for joint conferences between departments to facilitate development of Yangtze River Economic Belt to be established. Feasible measures to implement “Guidelines” of the State Council have to be found based on the principle of “fair competition, shared benefits, suitable compensation and simultaneous development,” key issues concerning development of the river belt to be solved through discussion. Then, institutions such as Changjiang Water Resources Commission of the Ministry of Water Resources, Changjiang River Administration of Navigational Affairs of the Ministry of Transport, Office of Fishery Supervision and Administration of Yangtze River Basin of the Ministry of Agriculture, and Environment Protection and Supervision Centers in East China, South China and Southwest China under Ministry of Environmental Protection have to shoulder their responsibilities in promoting flood control, shipping, electricity generation and eco-protection in combined efforts. Finally, reconstruction of Joint Conferences of Mayors of Economy-Coordination Committee of Central Cities along Yangtze River must be done to set up or improve the comprehensive coordinating mechanism through special standing institutions and establish a platform for sharing regional information.

Chapter 3

Strategies for Jiangsu in the Coordinated and Balanced Development Along Yangtze River Economic Belt

Located at the lower reach of Yangtze River, Jiangsu is where “One Belt One Road” meets Yangtze River Economic Belt, where the “T” structure of the longitudinal coastal belt meeting the latitudinal river belt is formed. It is the most dynamic frontline of Chinese economy. Over 30 years of development has bestowed Jiangsu with a superior economic foundation, tremendous science and technology capabilities, a long history of opening-up, a dense collection of scientific research centers, an assemblage of high-tech parks and a considerable advantage with its ports at the coast and along Yangtze River. Since the 18th CPC National Congress, based on the original strategies of development along the coast, integration of Yangtze River Delta, and demonstrative zones of modernization in the south, Jiangsu has been enjoying other national strategic opportunities of “One Belt One Road,” Yangtze River Economic Belt, demonstrative zones for independent innovation in its south, Jiangbei New Zone in Nanjing, etc. In the remolding of national economic geography, therefore, Jiangsu is to give a comprehensive analysis of its status and function in Yangtze River Economic Belt in combination with considerations of global situations, fully recognizing the new tasks and requirements in its optimization of development pattern and transformation and upgrading of its economy, scientifically positioning itself and choosing a path in the development of Yangtze River Economic Belt, so that it can better exert its function in taking the lead to motivate the belt toward coordinated and balanced development.

1 Positions and Functions of Jiangsu in the Economic Evolution Along Yangtze River Economic Belt Yangtze River Delta has long been the fountainhead in the development of Yangtze River Economic Belt due to policies and its superior location. Jiangsu, located by the sea and on both banks of Yangtze River, enjoys 954 km of coastlines, 425 km of banks along Yangtze River, and 369 km of deepwater river channel. Superior natural © People’s Publishing House 2020 C. Cheng and F. Yang, Toward a Coordinated and Balanced Development, https://doi.org/10.1007/978-981-15-8454-1_3

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conditions, added by effective policies, contribute to its leading position for long, its emanative leading function continuously enhanced.

1.1 Meager Territory, Voluminous Economy Of the eleven provinces and provincial cities along Yangtze River, Jiangsu, with a territory area of 102.6 thousand square kilometers, is just a little bit larger than Zhejiang, considerably smaller than other provinces (Graph 3.1) except the relatively small cities of Shanghai and Chongqing, its territory area per capita the smallest among all provincial administrative units. In sharp contrast to this, Jiangsu has been occupying the first chair among provinces and cities within Yangtze River Economic Belt with its GDP total since 1979. Its GDP totaled RMB 5916.18 billion yuan in 2013, 1.6 times that of Zhejiang which ranked second, 7.4 times that of Guizhou which came last. Area factor eliminated, its economy density of RMB 57,662,600 yuan per square kilometer ranked second only to that of Shanghai achieving RMB 342,890,800 yuan per square kilometer in 2013. If population factor is removed, GDP per capita reached RMB 74,516 yuan in 2013, second again just to Shanghai with a GDP per capita of RMB 89444 yuan. Generally speaking, Jiangsu is now in the middle or latter part of industrialization, a pivotal stage to mild prosperity and to realization of basic modernization. This massive economy lays foundation for the leading position of Jiangsu in Yangtze River Economic Belt. Particularly for South Jiangsu, whose territory covers just 1.4% that of Yangtze River Economic Belt, 0.3% that of the country, its GDP share in Yangtze River Economic Belt and the country rose from 8.0% and 3.3% in 1978, respectively, to 14.0% and 6.4% in 2013. Urbanization climbed to 73.5% in 2013, approximately 20% higher than the average of the country (53.7%). This area is now among the most developed, the best

Graph 3.1 A comparison of the land area and GDP of the provinces within Yangtze River Economic Belt for 2013

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modernized areas, contributing significantly to its demonstrative role within Yangtze River Economic Belt in its progress to modernization.

1.2 Nature-Endowed Strong Water Carriage Capabilities, Improving Transportation Abilities Yangtze River running through it, the sea surging by it, lakes and creeks densely populating it, covering 17% of its area, Jiangsu comes first when considered from this aspect of its waters; it has 24800 km of inland river channels, one-fifth of the country, ranking first. Yangtze River runs in an east-westerly manner, crossing the Grand Beijing-Hangzhou Canal, which form the skeleton of its inland river transportation network; coastline by the Yellow Sea runs nearly 1000 km. Superiority with water resources continuously accelerates transportation by water. Further advance with the development of coastal areas and accelerated construction of deepwater ports manifest its advantageous status in joint transportation of Yangtze River, the sea and other inland rivers. As is displayed in Table 3.1, seaports whose traffic capacity exceeded 100 million tons numbered 19 in 2013, whose container (TEU) capacity exceeded one million added up to 17 in 2013, Lianyungang of Jiangsu occupying a place in both lists (ranking 13 and 8, respectively, upgrading one position compared to that of 2012). In 2013, capacity of 16 ports (13 seaports and 3 inland river ports) exceeded 200 million tons. Out of these, all three inland river ports are in Jiangsu, namely, Suzhou Port (454 million tons), Nantong Port (205 million tons) and Nanjing Port (202 million tons), ranking 5, 14 and 15, respectively). Statics has it that the 24 major port enterprises realized merchandise capacity, export capacity and container capacity of 624.1341 million tons, 119.5389 million tons and 8612.95 thousand, respectively, in 2013. Ten out of these are located in Jiangsu, realizing a merchandise capacity, export capacity and container capacity of 444.5017 million tons, 105.5817 million tons and 6296.66 thousand, the ratio of these to that of the 24 added together being 71.22%, 88.32% and 73.11%, respectively. Its water transportation capabilities made the best use of, a comprehensive transportation network composed of “four longitudinal axes and four latitudinal axes” of highways, railways, waterways, airways and tubes has come into being in Jiangsu complying to the requirements of integration of transportation in Yangtze River Delta, its transportation with neighboring provinces and cities significantly improved, its comprehensive transportation network considerably being expanded, its layout continuously optimized, the significance of these efforts to be long-lasting. All this laid solid foundation for continuous and swift coordinated development of economy, supporting firmly economic transformation and upgrade and further optimization of the comprehensive transportation network.

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Table 3.1 Ranking list of the coastal ports whose commodity traffic overtakes 100 million tons or whose container traffic overtakes 1 million TEU in 2013 Commodity traffic and ranking

Container traffic and ranking

Port

Traffic (100 million tons)

Ranking number

Port

Traffic (10,000 TEU)

Ranking number

Ningbo-Zhoushan

8.06

1

Shanghai Port

3361.7

1

Shanghai Port

6.83

2

Shenzhen Port

2327.8

2

Tianjin Port

5.01

3

Ningbo-Zhoushan

1735.5

3

Guangzhou Port

4.55

4

Qingdao Port

1552.0

4

Qingdao Port

4.50

5

Guangzhou Port

1530.9

5

Tangshan Port

4.46

6

Tianjin Port

1301.2

6

Dalian Port

4.07

7

Dalian Port

1001.5

7

Yingkou Port

3.20

8

Lianyungang Port

548.8

8

Rizhao Port

3.09

9

Yingkou Port

530.1

9

Yantai Port

2.87

10

Yantai Port

215.0

10

Qinhuangdao Port

2.73

11

Rizhao Port

202.7

11

Shenzhen Port

2.34

12

Fuzhou Port

197.7

12

Lianyungang port

2.02

13

Quanzhou Port

170.1

13

Zhanjiang Port

1.80

14

Dandong Port

150.8

14

Huanghua Port

1.71

15

Shantou Port

128.8

15

Fuzhou Port

1.28

16

Haikou Port

116.8

16

Dandong Port

1.20

17

Jiaxing Port

101.0

17

Quanzhou Port

1.08

18

Zhuhai Port

1.01

19

Data source China Ports, Issue 1, 2014

1.3 Rich Resources of Science and Education, and Marked Advantages in Opening-Up Jiangsu is prominent with its science and education resources. Its capital Nanjing enjoys a science and education resource second only to Beijing and Shanghai. Take as an example the number of patent applications and acceptances. Statistics from the site of Bureau of Statistics and statistics communique of economy and society published by each province in 2013 show a continuously-on-the-rise ratio of acceptance of patent application and authorization in total to that of the 11 provinces and cities added together (Graph 3.2). Statistics from State Intellectual Property Office shows that number of patent applications, number of authorizations of patent, number of patents for invention, enterprise applications of patents, and number of patents authorized to enterprises ranked top for 4 years on end in the country. As for education, number of higher education institutions and number of higher education admittances have

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Graph 3.2 Changes of the ratio of the number of patent application and the total of import and export values to those of Yangtze River Economic Belt during 1987–2013

always taken the lead among provinces and cities along Yangtze River Economic Belt since reform and opening-up. Abundant resources of science and education contribute significantly to maintaining a healthy development of Yangtze River Economic Belt. One advantage with economic development of Jiangsu coming from its superior locational position is found in export orientation at the beginning and end of its industries and in its high degree of opening-up. Jiangsu has always been taking the lead in the development of open-end economy, both from the aspect of actual use of foreign investments and export, and from the aspect of construction of development zones and outsource of services. Take total volume of export and import, for example. The ratio of total volume of export and import in Jiangsu to that of the belt added up together took an incessantly uptrend (Graph 3.2) during 1987–2013, rising from 19.5% in 1987 to 33.6% in 2013, by approximately 14%. The daily expanding advantage from opening-up is a powerful engine for development, for reform and for innovation within Yangtze River Economic Belt.

1.4 Extensive Regional Cooperation and Communication, Gradient Transference of Industries Being Accelerated Relayed motivation of experiments in “Shanghai Economic Zone,” development and opening-up of Pudong, integration of Yangtze River Delta since opening-up and reform have incessantly promoted integration of Yangtze River Economic Belt, horizontal economic communications and connections intensifying on a daily basis between Jiangsu and its counterparts in Yangtze River Delta. A cooperation mechanism between delta governments based on the decision-making layer, coordinating layer and implementing layer has generally been formed. Participating cities of “Conference for Economic Coordination between Central Cities along Yangtze River,”

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which was jointly initiated by four central cities including Nanjing in 1985, now number over 30. Intensified communications and cooperation between them powerfully motivate sustainable development of economy within the coverage of Yangtze River. Industries in South Jiangsu realized their gradient transference to Central Jiangsu and North Jiangsu during such regional cooperation and communication, and to Anhui and other midstream and upper stream provinces as well. In that considerably influential “Phenomenon of Langxi,” for example, numerous industries in Wuxi migrated to Langxi of Anhui, realizing the rise of Langxi from the low-lying land, and making room for enterprises more suitable for Wuxi as well.

2 New Requirements for Jiangsu in the Construction of Yangtze River Economic Belt To construct Yangtze River Economic Belt relying on the Golden Waterway, propping sustainable development of Chinese economy is a new chess game for regional development. As a motivating zone along Yangtze River, Jiangsu is faced with new requirements.

2.1 Further Deepening of Reform Presently, such problems as irrational composition of industries, surplus productivity in some industries and backwardness in social administration mechanism still exist in economic and social development of Jiangsu. Rate of increase in the three industries in 2013, for example, was 10.0:43.9:46.1, with the tertiary industry overtaking the second for the first time, but that rate for Jiangsu was 6.1:49.2:44.7, the second industry overtaking that of the country as a whole by 5.3%, yet its service sector 1.4% below the average of the country. Opportunities coming with the construction of Yangtze River Economic Belt must be taken hold of for Jiangsu to exert its demonstrative role. Deepening of reform must be firmly stuck to, mechanisms and institutions favorable for scientific development to be constructed or optimized, major conflicts and issues in development to be dealt with in full swing.

2.2 Innovation Motivation to Be Strengthened Jiangsu has witnessed three key transformations in its economic development since reform and opening-up, the first coming in 1980s symbolized with the rise of township enterprises, motivated by factors, realizing the transformation from agriculture

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to industry, the second happening in 1990s, making use of opportunities of development of Pudong, motivated by investments, realizing the transformation from domestic to foreign. The one beginning from early twenty-first century is the third transformation, centering around the transformation from development relying on resources, motivated by investments and driven by export to innovation motivation, independent innovation and international competitiveness to facilitate continuous economic development. Faced with the current severe situation of rising and thriving global scientific and industrial revolution, implementation of innovation motivated development strategies must be sped up so that new competitive edges can be quickly formed in the construction of Yangtze River Economic Belt.

2.3 Magnifying Advantages from Water Carriage Capabilities Speeding up the construction of the Golden Waterway and the construction of comprehensive transportation system within Yangtze River Economic Belt to fully release the unique superiorities and colossus potentials is the key to the key tasks in the construction of Yangtze River Economic Belt. Vital opportunities in the development of Yangtze River Golden Waterway must be taken hold of in this situation to make full use of the favorable conditions of the highest percentage of water coverage, the longest inland transportation channel, the largest number of inland river ports and transportation capacities, the preeminent inland river banks, the most massive economy total, and the location by the sea and across Yangtze River, its advantages with water transportation to be further magnified, the relationship between development of resource-saving and green means of water transportation and other means of transportation to be coordinated so that a comprehensive transportation guarantee can be provided for the construction of Yangtze River Economic Belt.

2.4 Expansion of Opening-Up Sphere The strategic opportunity from the construction of Shanghai Free Trade Zone must first be grasped, its overflown effects to be made full use of, and at the same time, efforts must be made to strive for expanded experimental free trade parks (zones), stable, transparent and foreseeable trade environment to be nurtured to promote transformation of opening-up economy from expansion of volume to improvement of quality and efficiency, from cost advantages to comprehensive competitive advantages centering on intellectuals, capital, technology, service and brands. Then, when advanced manufacturing is developed relying on existing opening-up measures, trends of globalization in service industry must be followed for further openingup in this sector to improve its global competitive edge in service trade. Finally, direct investments abroad must be encouraged to improve the abilities of enterprises

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to allot resources around the world to realize economic structure adjustments and optimized allocation of resources in a wider space so that its status in international division can be improved, and more benefits can be achieved.

2.5 Facilitation of Regional Coordination To reflect the spatial difference between regions along Yangtze River Economic Belt, this part samples all the 110 prefecture cities in the nine provinces and two cities in accordance with the establishment of administrative regions in 2012, dividing all the cities into five groups (Table 3.2) according to ratios of individual GDP per capita of each city to that of the average of all cities: extremely low (0 < ratio < 0.5), low (0.5