Developing the West 西部大開發

Where is the west? 中国西部由西南五省区市（四川、云南、贵州、 西藏、重庆）、西北五省区（陕西、甘肃、青海 、新疆、宁夏）和内蒙古、广西以及湖南的湘西 、湖北的恩施两个土家族苗族自治州组成。西部 地区的这一最新定义，被称为 “10+2+2” 。 中国西部由西南五省区市（四川、云南、贵州、 西藏、重庆）、西北五省区（陕西、甘肃、青海 、新疆、宁夏）和内蒙古、广西以及湖南的湘西 、湖北的恩施两个土家族苗族自治州组成。西部 地区的这一最新定义，被称为 “10+2+2” 。 西部地区幅员面积约 685 万平方公里，约占全国 总面积的 71% 。 1999 年末，西部地区总人口约 3.65 亿，约占全国总人口的 29% 。 西部地区幅员面积约 685 万平方公里，约占全国 总面积的 71% 。 1999 年末，西部地区总人口约 3.65 亿，约占全国总人口的 29% 。 西部地区与蒙古、俄罗斯、塔吉克斯坦、哈萨克 斯坦、吉尔吉斯斯坦、巴基斯坦、阿富汗、不丹 、锡金、尼泊尔、印度、缅甸、老挝、越南等 14 个国家接壤，陆地边境线长达 1.8 万余公里，约 占全国陆地边境线的 91% ；与东南亚许多国家隔 海相望，有大陆海岸线 1595 公里，约占全国海岸 线的 1/10 。 西部地区与蒙古、俄罗斯、塔吉克斯坦、哈萨克 斯坦、吉尔吉斯斯坦、巴基斯坦、阿富汗、不丹 、锡金、尼泊尔、印度、缅甸、老挝、越南等 14 个国家接壤，陆地边境线长达 1.8 万余公里，约 占全国陆地边境线的 91% ；与东南亚许多国家隔 海相望，有大陆海岸线 1595 公里，约占全国海岸 线的 1/10 。

Why invest in the West? Market Potential in the West

Abundant power resources natural gas fields (Sichuan, Shaanxi, Xinjiang)natural gas fields (Sichuan, Shaanxi, Xinjiang) HEP (Liujiaxia of Gansu, Longyangxia of Qinghai)HEP (Liujiaxia of Gansu, Longyangxia of Qinghai) coal/crude oil (Shaanxi, Xinjiang)coal/crude oil (Shaanxi, Xinjiang) geothermal energy (Tibet)geothermal energy (Tibet) wind power (Xinjiang)wind power (Xinjiang)

Rich mineral resources manganese, zinc, leadmanganese, zinc, lead exploiting local resources can save transport costexploiting local resources can save transport cost

Rich agricultural resources cotton, wool, fungi, fruits, vegetablescotton, wool, fungi, fruits, vegetables they are transported to coastal areasthey are transported to coastal areas except perishable goodsexcept perishable goods

Rich Chinese medicine resources Yunnan, Xinjiang, TibetYunnan, Xinjiang, Tibet

Tourism resources unique historic heritageunique historic heritage natural scenerynatural scenery e.g. ancient Silk Roade.g. ancient Silk Road

Large domestic markets growth of middle classgrowth of middle class greater demand for food/consumer productsgreater demand for food/consumer products

China’s “go west” strategies power resources  electricity for industries in the Eastpower resources  electricity for industries in the East “west-to-east natural gas transmission”/“west-to-east electricity transmission”“west-to-east natural gas transmission”/“west-to-east electricity transmission” encourage foreign investmentencourage foreign investment to supply capital, technology and management skillsto supply capital, technology and management skills provide a favourable environment for tapping the resources in the Westprovide a favourable environment for tapping the resources in the West

Role of government in industrial decentralization Economic objectivesEconomic objectivesEconomic objectivesEconomic objectives Social objectivesSocial objectivesSocial objectivesSocial objectives Political objectivesPolitical objectivesPolitical objectivesPolitical objectives Strategic objectiveStrategic objectiveStrategic objectiveStrategic objective

Economic objectives To ensure better utilization of resources and factors of production in less prosperous regionsTo ensure better utilization of resources and factors of production in less prosperous regions To ensure regional economic balanceTo ensure regional economic balance To avoid diseconomies of agglomeration in prosperous regionsTo avoid diseconomies of agglomeration in prosperous regions

Social objectives To avoid regional inequalities which may result in social instability due toTo avoid regional inequalities which may result in social instability due to - Regional unemployment - Contrasting income levels - Massive migration from less prosperous to more prosperous regions To avoid social problems:To avoid social problems: - Environmental pollution - Competitive social and economic structures - High crime rates - Mental illness

Political objective Wide regional disparities may reduce national cohesionWide regional disparities may reduce national cohesion High regional unemployment rates may threaten the chances of re-election of the ruling partiesHigh regional unemployment rates may threaten the chances of re-election of the ruling parties

Strategic objective The government wants to decentralize industries so that industrial agglomerations are less vulnerable to attack, esp. during war time.The government wants to decentralize industries so that industrial agglomerations are less vulnerable to attack, esp. during war time.

Role of HK investmentinvestment help to sell products to the world markethelp to sell products to the world market help to attract foreign investmenthelp to attract foreign investment

What can be done to develop the West? improve transportimprove transport infrastructureinfrastructure improve economy  jobsimprove economy  jobs develop technologydevelop technology develop industriesdevelop industries provide funds to attract ind.provide funds to attract ind. irrigation for farmingirrigation for farming develop tourismdevelop tourism encourage foreign investmentencourage foreign investment

Obstacles to developing the west Industrialists may be reluctant to be the pioneer movers to less prosperous regionsIndustrialists may be reluctant to be the pioneer movers to less prosperous regions Because of psychological barriersBecause of psychological barriers

Behavioural factors for industrial dispersal The general preferences for industrial location may not be modified solely by financial incentives The government objectives are usually different from those of individual industrialists Strong initiatives are needed to overcome industrial inertia, There is home town effect and industrialists tend to resist to make spatial/location changes Movement to new production environments often involves risks and uncertainties Industrialists have imperfect knowledge about the destination regions Relocation may also break down personal ties and existing linkages with the original industrial network.

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