Management Problem in the Management Problem in the Process of Regional Integration: Process of Regional Integration:

with the Region of Changsha, with the Region of Changsha, Zhuzhou and Xiangtan as Zhuzhou and Xiangtan as

ExampleExample

Mao TengfeiMao Tengfei

Deputy Director of Hunan Development and Deputy Director of Hunan Development and Reform CommissionReform Commission

1. Basic situation of urban 1. Basic situation of urban agglomeration of CZTagglomeration of CZT

　 　 　　 　 　 As a province in central and As a province in central and south China, Hunan is the south China, Hunan is the birthplace of Chairman Mao Zedong birthplace of Chairman Mao Zedong and it is called the land rich for rice and it is called the land rich for rice and fish and the homeland of and fish and the homeland of nonferrous metalsnonferrous metals.

　 　　 　 CZT is composed CZT is composed of three cities of of three cities of Changsha, Zhuzhou Changsha, Zhuzhou and Xiangtan. Among and Xiangtan. Among them, Changsha is the them, Changsha is the provincial capital city provincial capital city and is 800 kilometers and is 800 kilometers away from both away from both Shanghai and Hong Shanghai and Hong Kong.Kong.

　 　 　　　　　　 　 　　　　　 Statistics of CZT, 2006Statistics of CZT, 2006

Absolute

Value

Ratio in

Hunan (%)

Area （ 10,000 KM2 ） 2.8 13.3

Population （ 10,000 ） 1290 19.2

GDP （ 100,000,000 Yuan ） 2818 37.6

Gross Financial Revenue

（ 100,000,000 Yuan ）379.2 42.6

Actually Utilized Foreign

Capital （ $100,000,000 ）15.8 60.9

　 　　 　 CZT has the CZT has the

advantage and potential advantage and potential

of regional integrationof regional integration

which is reflected by four which is reflected by four

aspects. aspects.

　 　　 　 First,　the　First,　the　compactcompact

space structure is its space structure is its

endowment of endowment of

integration. integration.

　 　　 　 Second, the excellent natural resources condition Second, the excellent natural resources condition has better carrying capacity. has better carrying capacity.

　　　　　　　　Third, Third,

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position position

and and

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Fourth, solid foundation of scientific Fourth, solid foundation of scientific research and industries may provide important research and industries may provide important support to new-type industrializationsupport to new-type industrialization..

　 　　 　 The regional development of CZT has aroused The regional development of CZT has aroused concerns from many sides. concerns from many sides. 　 　　 　 Early in the 50’s of the 20th Century, the experts Early in the 50’s of the 20th Century, the experts proposed the concept of building “City of Mao proposed the concept of building “City of Mao Zedong”. Zedong”. 　 　　 　 At the beginning of 80’s, preliminary experiment At the beginning of 80’s, preliminary experiment was carried out following concept of CZT economic was carried out following concept of CZT economic zone. zone. 　 　　 　 In 1997, CZT economic integration was set out as In 1997, CZT economic integration was set out as the key strategy of Hunan province to build CZT into the key strategy of Hunan province to build CZT into the core growth pole of the province.the core growth pole of the province. 　 　　 　 CZT is included in the national 10th five-year plan CZT is included in the national 10th five-year plan as the prioritized city region and it is in the list of key as the prioritized city region and it is in the list of key city regions to be supported by state in program of city regions to be supported by state in program of “central rising”.“central rising”.

　　　　　　　　In 2000, CZT region was chosen In 2000, CZT region was chosen

by World Bank as one of the first by World Bank as one of the first

two cases in China for city two cases in China for city

development strategy research development strategy research

(CDS). And World Bank’s report (CDS). And World Bank’s report

declares that “the regional declares that “the regional

advantage and economic structure advantage and economic structure

of CZT is unique in the world, and of CZT is unique in the world, and

the economic integration of these the economic integration of these

three cities catches the three cities catches the

development tendency of future development tendency of future

cities while its prospect of cities while its prospect of

development is promising and development is promising and

encouraging.” As result, $172 encouraging.” As result, $172

million loan was provided by World million loan was provided by World

Bank to support infrastructure Bank to support infrastructure

development of CZT.development of CZT. 　　　　

2. Problems facing CZT integration 2. Problems facing CZT integration

　　 In China, administrative district has long been the In China, administrative district has long been the unit of resource allocation, which inevitably causes unit of resource allocation, which inevitably causes plurality of interest body, plurality of decision-making plurality of interest body, plurality of decision-making body and complexity of implementation pattern.body and complexity of implementation pattern.

• Planning is not unified.Planning is not unified.• Decision-making is not unifiedDecision-making is not unified.• Infrastructure is not provided Infrastructure is not provided in a unifiedin a unified way. way. • Industrial development is not Industrial development is not unified.unified.• Market is not unified.Market is not unified. • Environment is not properly Environment is not properly protected.protected.

3. Major methods of CZT integration 3. Major methods of CZT integration managementmanagement3.1 3.1 Constant innovation of integration promotersConstant innovation of integration promoters

　 　 The coordination leading group has been The coordination leading group has been established at the provincial level for CZT economic established at the provincial level for CZT economic integration. Meanwhile, the devoted daily-work integration. Meanwhile, the devoted daily-work department was set up at both provincial and department was set up at both provincial and municipal levels. Regarding key issues to CZT municipal levels. Regarding key issues to CZT integration, mechanisms was set up for task integration, mechanisms was set up for task breakdown, task fulfillment, feedback, supervision, breakdown, task fulfillment, feedback, supervision, reward and punishment.reward and punishment. 　　 Conference attended by senior leaders of three Conference attended by senior leaders of three cities was held annually to promote integration at cities was held annually to promote integration at municipal level.municipal level. 　　　 Intermediary agencies such as Entrepreneur’s Intermediary agencies such as Entrepreneur’s Club of three cities have come into being to combine Club of three cities have come into being to combine market promoting force with governmental onesmarket promoting force with governmental ones.

3.2 CZT took the lead in setting up unified 3.2 CZT took the lead in setting up unified planning systems planning systems

A comparatively complete A comparatively complete

planning system has been formed. planning system has been formed.

Among over 10 plans, “Regional Among over 10 plans, “Regional

plan for CZT city region” is the plan for CZT city region” is the

first regional plan for city first regional plan for city

agglomeration in inland China, agglomeration in inland China,

and “Master plan for development and “Master plan for development

of the ecological and economic of the ecological and economic

belt of Xiangjiang River” is a belt of Xiangjiang River” is a

comprehensive plan for protection comprehensive plan for protection

of Xiangjiang River, the of Xiangjiang River, the

motherland of CZT and urban motherland of CZT and urban

construction in this region construction in this region

In 2003, the “Construction and protection regulations In 2003, the “Construction and protection regulations for ecological and economic belt of CZT sector of Xiangjiang for ecological and economic belt of CZT sector of Xiangjiang River” was issued by Hunan provincial governor. River” was issued by Hunan provincial governor.

“ “ Statute for regional plan of CZT city agglomeration” is Statute for regional plan of CZT city agglomeration” is to be issued and implemented soon.to be issued and implemented soon.

TransportationTransportation EnergyEnergy FinanceFinance InformationInformation Bus service Bus service

integrationintegration

3.3 Promotion of infrastructure integration with 3.3 Promotion of infrastructure integration with emphasis laid on joint construction, joint emphasis laid on joint construction, joint administration and benefit sharing. administration and benefit sharing.

3.4 3.4 Promotion of industrial integrationPromotion of industrial integration

　 　　 　 The “Industry integration plan of CZT city The “Industry integration plan of CZT city agglomeration” issued in 2002 defines the direction and key agglomeration” issued in 2002 defines the direction and key points for industrial development of three cities.points for industrial development of three cities.

　　　　　　　　 ChangshaChangsha: engineering machinery manufacturing, : engineering machinery manufacturing, biology medicine and electronic informationbiology medicine and electronic information 　　　　 ZhuzhouZhuzhou: railway traffic equipment manufacturing and : railway traffic equipment manufacturing and nonferrous metallurgynonferrous metallurgy 　　　　 XiangtanXiangtan: machinery, electronic products and steel : machinery, electronic products and steel industryindustry

3.5 3.5 Exploration on mechanisms and systems of joint Exploration on mechanisms and systems of joint environmental control of three citiesenvironmental control of three cities

　　　　 CZT is taken as an integrated environment unit to CZT is taken as an integrated environment unit to

keep the pollution under control guided by common keep the pollution under control guided by common

plans and by overall arrangement. The “Regional plans and by overall arrangement. The “Regional

environmental protection plan of CZT” was issued environmental protection plan of CZT” was issued

and assessment criteria were set for three municipal and assessment criteria were set for three municipal

governments concerning regional pollution control. governments concerning regional pollution control.

The industrial policy and environment protection The industrial policy and environment protection

policy for three cities came into force and devoted policy for three cities came into force and devoted

law enforcement team is now in action. law enforcement team is now in action.

　　

　　　　 CZT integration brought vigor to this region.CZT integration brought vigor to this region.

　 　　 　 To solve problems in To solve problems in regional integration, the regional integration, the “visible hand” of government and the “invisible hand” “visible hand” of government and the “invisible hand” of market should act in a consistent way.of market should act in a consistent way.

　 　　 　 In the coming days, we will provide institutional In the coming days, we will provide institutional guarantee to the regional integration development by guarantee to the regional integration development by means of comprehensive reform on current systems of means of comprehensive reform on current systems of CZT to build it into the strategic growth pole of Hunan CZT to build it into the strategic growth pole of Hunan province and an important strategic supporting point province and an important strategic supporting point

for state’s program of Central China Rising. for state’s program of Central China Rising.

　　　　 You are always welcome to visit CZT, to You are always welcome to visit CZT, to study CZT and to invest in CZT!study CZT and to invest in CZT!