1. Management Problem in the Process of Regional Integration: with the Region of Changsha, Zhuzhou and Xiangtan as Example Mao Tengfei Deputy Director of Hunan Development and Reform Commission

2. 1. Basic situation of urban agglomeration of CZT As a province in central and south China, Hunan is the birthplace of Chairman Mao Zedong and it is called the land rich for rice and fish and the homeland of nonferrous metals As a province in central and south China, Hunan is the birthplace of Chairman Mao Zedong and it is called the land rich for rice and fish and the homeland of nonferrous metals.

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

4. Statistics of CZT, 2006 Statistics of CZT, 2006 Absolute ValueRatio in Hunan (%) Area （ 10,000 KM 2 ） 2.813.3 Population （ 10,000 ） 129019.2 GDP （ 100,000,000 Yuan ） 281837.6 Gross Financial Revenue （ 100,000,000 Yuan ） 379.242.6 Actually Utilized Foreign Capital （ $100,000,000 ） 15.860.9

5. CZT has the advantage and potential of regional integration which is reflected by four aspects. CZT has the advantage and potential of regional integration which is reflected by four aspects. First, the compactspace structure is its endowment of integration. First, the compact space structure is its endowment of integration.

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

7. Third, favorable geographic position and transport condition. Third, favorable geographic position and transport condition.

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

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

10. In 2000, CZT region was chosen by World Bank as one of the first two cases in China for city development strategy research (CDS). And World Bank’s report declares that “the regional advantage and economic structure of CZT is unique in the world, and the economic integration of these three cities catches the development tendency of future cities while its prospect of development is promising and encouraging.” As result, $172 million loan was provided by World Bank to support infrastructure development of CZT. In 2000, CZT region was chosen by World Bank as one of the first two cases in China for city development strategy research (CDS). And World Bank’s report declares that “the regional advantage and economic structure of CZT is unique in the world, and the economic integration of these three cities catches the development tendency of future cities while its prospect of development is promising and encouraging.” As result, $172 million loan was provided by World Bank to support infrastructure development of CZT.

11. 2. Problems facing CZT integration In China, administrative district has long been the unit of resource allocation, which inevitably causes plurality of interest body, plurality of decision-making body and complexity of implementation pattern. In China, administrative district has long been the unit of resource allocation, which inevitably causes plurality of interest body, plurality of decision-making body and complexity of implementation pattern. Planning is not unified. Planning is not unified. Decision-making is not unified Decision-making is not unified. Infrastructure is not provided in a unified Infrastructure is not provided in a unified way. way. Industrial development is not unified. Industrial development is not unified. Market is not unified. Market is not unified. Environment is not properly protected. Environment is not properly protected.

12. 3. Major methods of CZT integration management 3.1 Constant innovation of integration promoters The coordination leading group has been established at the provincial level for CZT economic integration. Meanwhile, the devoted daily-work department was set up at both provincial and municipal levels. Regarding key issues to CZT integration, mechanisms was set up for task breakdown, task fulfillment, feedback, supervision, reward and punishment. The coordination leading group has been established at the provincial level for CZT economic integration. Meanwhile, the devoted daily-work department was set up at both provincial and municipal levels. Regarding key issues to CZT integration, mechanisms was set up for task breakdown, task fulfillment, feedback, supervision, reward and punishment. Conference attended by senior leaders of three cities was held annually to promote integration at municipal level. Conference attended by senior leaders of three cities was held annually to promote integration at municipal level. Intermediary agencies such as Entrepreneur’s Club of three cities have come into being to combine market promoting force with governmental ones Intermediary agencies such as Entrepreneur’s Club of three cities have come into being to combine market promoting force with governmental ones.

13. 3.2 CZT took the lead in setting up unified planning systems A comparatively complete planning system has been formed. Among over 10 plans, “Regional plan for CZT city region” is the first regional plan for city agglomeration in inland China, and “Master plan for development of the ecological and economic belt of Xiangjiang River” is a comprehensive plan for protection of Xiangjiang River, the motherland of CZT and urban construction in this region A comparatively complete planning system has been formed. Among over 10 plans, “Regional plan for CZT city region” is the first regional plan for city agglomeration in inland China, and “Master plan for development of the ecological and economic belt of Xiangjiang River” is a comprehensive plan for protection of Xiangjiang River, the motherland of CZT and urban construction in this region

14. In 2003, the “Construction and protection regulations for ecological and economic belt of CZT sector of Xiangjiang River” was issued by Hunan provincial governor. In 2003, the “Construction and protection regulations for ecological and economic belt of CZT sector of Xiangjiang River” was issued by Hunan provincial governor. “Statute for regional plan of CZT city agglomeration” is to be issued and implemented soon. “Statute for regional plan of CZT city agglomeration” is to be issued and implemented soon.

15. Transportation Transportation Energy Energy Finance Finance Information Information Bus service integration Bus service integration 3.3 Promotion of infrastructure integration with emphasis laid on joint construction, joint administration and benefit sharing.

16. 3.4 Promotion of industrial integration The “Industry integration plan of CZT city agglomeration” issued in 2002 defines the direction and key points for industrial development of three cities. The “Industry integration plan of CZT city agglomeration” issued in 2002 defines the direction and key points for industrial development of three cities. Changsha: engineering machinery manufacturing, biology medicine and electronic information Changsha: engineering machinery manufacturing, biology medicine and electronic information Zhuzhou: railway traffic equipment manufacturing and nonferrous metallurgy Zhuzhou: railway traffic equipment manufacturing and nonferrous metallurgy Xiangtan: machinery, electronic products and steel industry Xiangtan: machinery, electronic products and steel industry

17. 3.5 Exploration on mechanisms and systems of joint environmental 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 plans and by overall arrangement. The “Regional environmental protection plan of CZT” was issued and assessment criteria were set for three municipal governments concerning regional pollution control. The industrial policy and environment protection policy for three cities came into force and devoted law enforcement team is now in action.

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

20. To solve problems in regional integration, the “visible hand” of government and the “invisible hand” of market should act in a consistent way. To solve problems in regional integration, the “visible hand” of government and the “invisible hand” of market should act in a consistent way. In the coming days, we will provide institutional guarantee to the regional integration development by means of comprehensive reform on current systems of CZT to build it into the strategic growth pole of Hunan province and an important strategic supporting point for state’s program of Central China Rising. In the coming days, we will provide institutional guarantee to the regional integration development by means of comprehensive reform on current systems of CZT to build it into the strategic growth pole of Hunan province and an important strategic supporting point for state’s program of Central China Rising.

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