The Role of Local Government in Developing Economy Wanxia Li 16 th, Feb., 2012 CLL, The University of Warwick

CONTENTS  Taking Songjiang District of Shanghai Municipality as an example.  The Comparison with UK Counterparts.

China is the second largest economy in the world  Gross Domestic Product 2010) Above US$ 6 trillion 11.3% growth, Second after U.S. (14 trillion)  Imports and Export US$ 3 trillion 35% growth (import: 1.4 trillion, Export: 1.6 trillion) Second after U.S.  Foreign Direct Investment Above US$100 billion, up 17.4%, Ranked 1st in developing country  Foreign Currency Reserve US$ 2.8 trillion, ranked 1st in the world

Why? Two possible answers?  The developmental state?  These two differing orientations toward private economic activities, the regulatory orientation and the developmental orientation, produced two different kinds of business- government relationships. The United States is a good example of a state in which the regulatory orientation predominates, whereas Japan is a good example of a state in which the developmental orientation predominates. --- Chalmers Johnson, (1982). MITI and the Japanese Miracle. Stanford, CA: Stanford University Press.  The local governments of China?

The Map of Songjiang District Songjiang : one of Shanghai’s 16 districts Area: 605 Sq.km. 10% of Shanghai Population:1.46million 6% of Shanghai Industrial Output: billion 13.47% of Shanghai

Two Transformations of Songjiang U rbanization ： From an mainly rural area into mainly urban area

Two Transformations of Songjiang , Million RMB Year I ndustrialization : From an agricultural area into exporting center

The Roles of Government The Roles of Gov. Economy Adjustment Public Service Market Supervision Society Management

The Main Functions of Local Government  To make the decisions  To find the Resources  To provide the Services

The Location of Songjiang Government Central government Shanghai municipality government Songjiang District government Township government Other District Government Provincial government Municipality Government County Government Township Government

The Annul Fiscal Revenue of Songjiang

Events Shanghai government approved it Hu-Song High way opened to traffic Songjiang New City started to built

Events Started to Extend Metro No Thames Town opened University Town started to built Metro No. 9 opened to traffic

Songjiang New City (2001- )

Songjiang New City

Thames Town (2002- )

Finding the Resources offering creating chasing Capital Land Policies Borrow money Establish Companies Attracting Investment the approval of higher level

Resources-Offering hectare land30million RMB

Songjiang Industrial Zone (1992- )

Songjiang Export Processing Zone (2002-)

Songjiang University Town (2002- )

Resources-creating PurposeCompanies For IndustrializationSongjiang Industrial Zone Co., Ltd. Songjiang Export Processing Zone Co., Ltd. …… For Urbanization Songjiang New City Construction Co ， Ltd Songjiang Fangsong Construction Co. Ltd Songjiang University Town Construction Co., Ltd. Songjiang Metro Line Construction Co., Ltd. ……

Metro Line 9

Resources- Chasing

Providing Services Demolish 1 Service teams 3 Coordination Panel for the Key projects 2

Comparison  1. Different development stage  2. Different definition of local government  3. Different structure of local government  4. Government and Governance  5. Different expectation of local government

Comparison  One thing important in common?

CLL, The University of Warwick