Choice of Urbanization in China

Urbanization and institutional innovation to promote urbanization, and the key is to let the farmers from the countryside, “going abroad” in the City “Andhra down.” Therefore, we must accelerate the pace of institutional innovation and reform, China has a population of over 1.3 billion, compared to the same level of development of the world’s countries, industrialization, urbanization rate are relatively low. Speed up the process of urbanization is not only a potential for expanding domestic demand, China is an important part of economic restructuring.

Mega-cities of the next round of challenges of urbanization in China, is not on how much determination, with many more years to complete this “historical mission”, no need to use a pile of data to demonstrate how important urbanization, the fundamental question is, can No real crack most populous city of problems.

The key is to share the development of urban and rural urbanization is for people modernization. China should move towards modernization, urbanization must be crossed this bridge. However, the city is only a means, never to urbanization and urbanization. Urbanization is the nature of the development of rural and city people to share the achievements of the common development of urban and rural areas, which is a prerequisite.

Urbanization is a comprehensive and profound social changes of urbanization as a major sustainable development of China’s economic policy, real interest structure of space is quite cramped would urbanization end of 2009, the Central Economic Work Conference and the Central Rural Work Conference, regarded promoting urbanization future for China’s economic growth and focus on stimulating domestic demand, and requested the lead in promoting small and medium cities and small towns reform the household registration system. This major decision-making attracted media and public attention. But how to promote the urbanization process, the specific content of what the difficulties faced in the implementation of which the public may not be clear.

In fact, back in “15” period, China proposed the strategy of urbanization. CPC Shi Liuda also stressed the need to “accelerate the process of urbanization,” which is quite a high level attention. But ten years later, the progress of urbanization is more a change in the statistics, but as the greatest obstacle to the development of urbanization, but progress in the reform of household registration system difficult.

Case I: Beijing “Villages” to review North Local Sustainability and large Wangjing village reconstruction, mainly by the Beijing municipal government “of a proposed” solution, is a special case. Next “Villages”, should be on a pilot basis, the priority policy reforms since 2008, reform of Beijing into urban high as the first priority of urban and rural integration, a series of policy measures and the leaders held in Beijing Haidian District Chaoyang District, North Local Sustainability and the pilot Wangjing village, which opened up to explore and solve a prelude to urban high.

Case 2: Jiangsu Danyang: “Urbanization in one step”

Strong grass-roots government to promote the “farmers live together,” and completely changed the farmer’s production and life, also challenge the existing land system Jiepai Town, Danyang City, Jiangsu jurisdiction of the smallest towns, the town is now the focus of five executive village moved into centralized living area – “Brand New Village community.” The concentrated residential areas will be completed in 2011, covers an area of 1,500 hectares, can accommodate five people live. In addition to centralized living area, the town has planned industrial park size, features agricultural zone and town business district, cemetery district. The local government called the “three concentration” model: the scale of land management to concentrate on living to the community focus, industry focus to the park. China Academy of Urban Planning and scholars Chen Peng called “one-stop urbanization.” This powerful grassroots-driven urbanization, the government has not only completely changed the lifestyle of local villagers production, but also challenging the existing land, taxation, residence and social security system.

Urbanization and institutional innovation to promote urbanization, and the key is to let the farmers from the countryside, “go out”, in the City “Andhra down.” Therefore, we must accelerate the pace of innovation and reform the system Penson China currently has more than 1.3 billion population, compared to the same levels of development the world’s countries, industrialization, urbanization rate are relatively low. Speed up the process of urbanization is not only a potential for expanding domestic demand, China is an important part of economic restructuring.

If the next 20 years China’s urbanization rate increased by 1 percentage point per year, by 2030, about 300 million farmers will become members of the public. farmers to become public process, due to the increase in revenue, will increase the basic living, housing, education, health and other direct consumer demand.

At the same time, urbanization will create traffic, communications, electricity, gas and water supply infrastructure needs. Followed and the appropriate scale of rural labor productivity will also expand rural consumption. Above, will create a trillion dollars in a huge market.

More important, not only the need for China to expand domestic demand in this market, the world needs in this market. Furthermore, urbanization of scale will significantly reduce the consumption of material resources, which means exactly is required by changes in the economic development goals.

Therefore, the 2009 Central Economic Work Conference and this year’s “Document” made it clear that, to steadily promote urbanization and the expansion of domestic demand as an important starting point for the adjustment of economic structure, and adhere to the road of urbanization with Chinese characteristics, promote the coordination of medium and small cities development, and focus on promoting small and medium cities and small towns of the reform and development.

How to reform the socialist market economy orientation, and from reality, form a set of requirements to adapt to urbanization diversified investment and financing mechanism for local governments and regulatory system to achieve the cash flow balance of urban construction, is to promote the urgent need to resolve urbanization key issues.

Accelerate small and medium cities and small towns, huge investment needs. As the main town construction, the local government in the current and future period of time how urbanization financing, is a major issue. Financing land in the early stages of urbanization, at the micro level are being explored, but this model brings a high degree of attention to the macro consequences.

In 2009 the central government to expand investment, not only to the local governments and state-owned enterprise investment, also contributed to private investment. In the “4 trillion” investment, driven by 2009, collective and private investment in China grew 36.7% and 35.0%, although lower than that of state-owned investment growth, but higher than the 2004 -2007 average annual growth in non-state investment rate (29.5%).

Although the government investment to promote economic stabilization to improve, but the sustainability of the economic situation, not to see the sustainability of the government’s input, the key is to look at, driven by government investment, private investment can continue to follow up. The future to promote urbanization, market forces must be mobilized, the investment focus towards the development potential of small and medium cities and small towns.

Since reform and opening process of urbanization that the development of urbanization in China, largely due to the economic system reform. Current changes in mode of development, promoting urbanization of the key is to make the peasants from the countryside, “go out”, in the City “Andhra down.”

Therefore, we must speed up institutional innovation and reform. On the one hand, to speed up the household registration system reform, relaxing restrictions on residence, so that qualified migrant workers to settle in cities; the other hand, but also through land reform, urban investment and financing system reform, to eliminate the many obstacles to urbanization.

First, the new generation of migrant workers settled in the towns problem. About 200 million migrant workers, especially new generation of migrant workers to settle in cities and towns have irreversible long-term, while some farmers are urgent requirements to the public. Must address the employment of migrant workers, housing, medical care and other issues, in particular to solve the education of the children of peasant workers, and actively promote the household registration system and the low-rent housing system reform.

Second, the development of innovative financing mechanisms of urbanization. In the new round of urbanization, we should relax the access of private investment, expand financing channels for the cities and towns. Protect the legitimate rights and interests of private investment, and actively develop the market-driven investment growth, and to stimulate private investment in public investment. Explore the issue of urbanization, construction bonds, the establishment of urban development and construction fund.

Third, to promote fiscal and taxation system and the financial system. Economic stimulus plan in the future, should the financial investment on urbanization as an important aspect. First, actively promote the financial system, and promote small and medium cities, small towns with higher levels of government financial resources and powers to match. The second is the policy, commercial financial institutions and medium-sized cities and small towns to support and actively promote innovation of financial instruments to promote regional small and medium sized joint-stock commercial banks, community development banks.

Fourth, the new model of financing the land, take full advantage of the process of urbanization of land in the capital dividend to address migrant farmer workers and business financing. According to local conditions, explore land use right mortgage, perfect the relevant systems, to promote loans to farmers insurance system, set up a scientific system of land assessment.

This according to the author of “2010 China International Forum of Urban Investment speech at the” finish, abridged Penson NDRC deputy director of the city for the re-balancing of China should accelerate the construction of “urban networks”, by modern transportation and communications systems, the big cities and small towns integrate to form a network of cities, small cities to achieve the “same city” of Liu Heshi world economy is in for quite a long time solution, the international market will become the most scarce resources in the global economy. In my opinion, from the major countries of the world’s population size, economic development, and system analysis of three aspects of preparation conditions, the most likely global economy needs to create a huge market.

Rough estimate, if the next decade the proportion of China’s middle-income 50% of the world will be a market scale of the New World than in Europe. Therefore, abandon the “Cold War” mentality, and jointly safeguard and create a huge market in China, is the positive solution of global economic development.

Nearly 20 years ago, I proposed the next 20 years the strength of world economic growth, driven only two: China’s urbanization and the expansion of high-tech developed countries. At present, the common challenge of climate change on the latter request, and in 2010 to accelerate the urbanization of China’s established policy is to enable the former to gain new momentum.

From a demand standpoint, urbanization will create huge investment and consumer demand. On the one hand, investment in urban infrastructure and housing investment demand will continue to grow; other hand, the urban population in particular, to gradually increase the number of middle-income class, no doubt greatly enhance the consumer demand.

From the supply perspective, the city helps to absorb the surplus production capacity. Merger and reorganization of excess capacity, improve production concentration is necessary, but not a permanent cure, and vigorously promote the short-term high cost. Urbanization creates demand for investment is to absorb the excess capacity of the main channel, while beneficial to the adjustment of industrial structure.

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