Chen Huai
 

Urban Economic Development Crucial to West
Deputy Director of the Market Economy Institute of the Development Research Center of the State Council Chen Huai says in an

 
 

 

 

article that having new ideas is crucial to the development of the west. Over the course of reform and opening to the outside world during the past two decades, the western regions of China actually had many favorable opportunities for development, but local economies have not taken off in general. An important reason for this is that the development and transformation of the urban economy there have always been overlooked.

According to statistics, there were 231 cities at and above the prefectural level in China at the end of 1998. The GDP of all these cities (counties under the jurisdiction of these cities are excluded; the same below) totaled 3,655.7 yuan, up 13.2 percent from the previous year, far outnumbering the average national growth rate of 7.8 percent. This makes up 44 percent of the national GDP figure. The role of the urban economy is outstanding. But of this GDP figure, the cities in the western regions share a proportion of only 12.64 percent. Among 45 cities whose GDP topped 20 billion yuan, only seven are in the west. None of the five cities whose GDP topped 100 billion are in the west. Of 34 cities whose per capita GDP surpassed 10,000 yuan, the majority are located in the eastern coastal areas except for a few western cities which have tobacco and mineral production as their leading industries. Lacking the cohesion of  the various factors driving economic growth is a crucial reason for western regions lagging behind in development. The key to the increasing gap in the development between the eastern and western regions lies in the increasing gap in urban development between these regions.

To develop the west requires a change of mind from the traditional strategy of ˇ°giving full play to advantagesˇ± to the strategy of ˇ°overcoming disadvantages.ˇ± How can we overcome disadvantages? The new strategic thinking should give priority to the development of the urban economy, which is the optimal point for coordinating various contradictions. This will help lighten the pressure of development on the natural environment, overcome the disadvantage of vulnerable ecological environment, and guarantee effective utilization of resources. During the coming 15 or more years, not only should the existing provincial capital cities develop rapidly, but also efforts should be made to develop a few medium-sized economic centers, allowing cities to play the leading role.

close window