Study On Sustainable Urbanization In Metropolitan Regions-The Asian Development Bank

257 Pages·2011·3.39 MB·English

by  Halcrow Group Limited in association with Tsinghua University, PRC and the UCL Development Planning Unit, UK

The Asian Development Bank

Study On Sustainable Urbanization In
Metropolitan Regions
Final Report : December 2007
Halcrow Group Limited
in association with
Tsinghua University, PRC and the UCL Development
Planning Unit, UK
The Asian Development Bank

Study On Sustainable Urbanization In
Metropolitan Regions
Final Report : December 2007
Halcrow Group Limited
in association with
Tsinghua University, PRC and the UCL Development
Planning Unit, UK

Halcrow Group Limited
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EXECUTIVE SUMMARY

Purpose of the Study
1 In line with the objectives of the 11th Five Year Plan, the National Development
Reform Commission (NDRC) proposes to optimise urbanisation by adopting a
new agenda to manage urban growth of metropolitan regions. This study assists
the NDRC in this task. It recommends 9 strategies to achieve sustainable
urbanisation in metropolitan regions in the People’s Republic of China (PRC) and
forms part of the Asian Development Bank (ADB) TA 4702-PRC.
2 In consultation with the NDRC and the ADB, an agenda for change is proposed
based on analysis of urbanisation trends and data, case studies of Wuhan and
Chengdu Metropolitan Regions and a review of national and international best
practices.
3 There is no universally agreed definition of a "metropolitan region". Different
countries have varying interpretations, which creates confusion. Most definitions
relate to an agglomeration of functions, which can be measured in terms of
population, labour, socio-economic factors, market forces or functional
characteristics, all of which are generally found in urban areas.

Urbanisation Trends and Issues
4 Analysis of urbanisation trends over recent years identified that the urban
population and physical expansion of urban area will continue to increase in the
foreseeable future. Best estimates are a 50% increase in the urban population
and a doubling of current urban areas by 2020. The implications of this are :-
• The great majority of the increase in the urban population will be
previously rural residents who either migrate to the cities or are living in
peripheral villages which will become incorporated into the main urban
areas. Due to declining household size, the demand for new housing
from the existing urban population will remain significant for the
foreseeable future.
• Infrastructure networks (water, sewerage and roads) will need to be
extended into the new urban areas. If these are concentrated in and
around existing county towns, the facilities in these will need upgrading
with appropriate linkages provided to the main urban centre.
• Infrastructure needs to be improved in villages that become enveloped by
the expanding cities.
Asian Development Bank, Peoples Republic of China - Study on Sustainable Urbanization in Metropolitan Regions
Draft Final Report, June 2007. Halcrow Group Ltd.
• The development of improved and integrated public transport systems will
be a priority as there is little precedent in the major cities of developing
countries outside the USA (and Australia) for car-oriented urban
transportation strategies.
• Financing of urban infrastructure by requisitioning land needs to be re-
appraised. It leads to inefficient provision of infrastructure, unnecessarily
dispersed settlement patterns, premature loss of agricultural land, and
social discontent.
• Already requisitioned land provides a major reserve which can
accommodate a substantial proportion of future land demands. Additional
land demands will come from the continuing central area redevelopment
projects. The importance of these will however decrease over time.
• The current policies of "hukou" create inequality and interfere with labour
mobility.
5 The government has recently made the creation of a harmonious society one of
its foremost national development goals. In conjunction with the objectives to
reduce the conversion of agricultural land, reduce pollution and generally improve
environmental conditions, the priorities become:
• Explicitly including the needs of migrants and rural residents on the urban
fringe in the future urban policy, especially in terms of housing and
education.
• Increasing infrastructure expenditure in rural areas within municipal
boundaries.
• Re-orienting land conversion and development policy to maximise the use
of under-developed land within the current urban boundary (as well as
land which has already been requisitioned) in order to create a more
efficient compact urban form and reduce the premature displacement of
farmers.
• The development of intra-urban and intra-metropolitan public transport
systems.
• Controlling pollution from industrial enterprises, especially SMEs, and
• Improving the treatment of wastewater and disposal of solid waste.

Case Studies of Wuhan and Chengdu
Metropolitan Regions
6 Key issues were identified from an examination of both Wuhan and Chendgu
Metropolitan Regions. These are listed below under subject headings. In most
instances the issues are the same for both regions. However, in the case of
Wuhan those that stem from interaction with other cities in the region are not so
strongly experienced at the present time.

Asian Development Bank, Peoples Republic of China - Study on Sustainable Urbanization in Metropolitan Regions
Draft Final Report, June 2007. Halcrow Group Ltd.
Institutional
1. Absence of mechanism to prepare and implement the policies mentioned
below

Strategic Planning
2. Uncoordinated and unplanned development within or between one or
more local administrative areas that comprise the region.

Land Use
3. Urban sprawl, leapfrogging and poorly serviced development in
peripheral areas.
4. Under-utilisation of serviced vacant land and brownfield (derelict) sites.
5. Over requisitioning of land for projects/activities that may be unnecessary
and inappropriate
6. Unacceptably long commuter journeys
Economic Development
7. Absence of any consistent policy for the economic advancement of the
entire region
8. Restrictions of the movement of labour (Hukou) are impacting on the
availability of appropriate human resources
9. Competition among local administrations for economic activity results in
wasteful investment and may prejudice land use and transportation
planning objectives as well as clustering.
10. Local economies have to adjust/restructure as inefficient or heavily
polluting State Operated Enterprises are either remodelled, relocated or
phased out.
11. Potential advantages of clustered economic activity has not been realised.
12. The government is not giving sufficient attention to market/promote the
region's products and services.
13. Business environment is unfriendly. Government is not facilitating private
sector investment, especially small to medium sized enterprises.

Infrastructure
14. Absence of any consistent policy for infrastructure investment within the
region results in wasteful investment often with little synergy with other
public or private endeavours.
15. Disparities between the range and quality of infrastructure or service
provision across various parts of the region, especially in peripheral
areas and outlying towns.
16. Infrastructure investments are prohibitively expensive.
17. Inefficient utilisation of infrastructure and services available in vacant or
under-utilised land.
18. Duplication of investment into mega-projects.

Transportation
19. Serious traffic congestion.

Social Welfare
20. Unacceptable disparities in income and opportunities exist between
various parts of the region
21. Sections of society are not able to access affordable housing.
22. Sections of society are not able to access social services.
23. Unnecessary requisitioning of rural land (for urban uses) displaces
farmers who (for want of a livelihood) often become non-skilled urban
migrants.
Asian Development Bank, Peoples Republic of China - Study on Sustainable Urbanization in Metropolitan Regions

Draft Final Report, June 2007. Halcrow Group Ltd.
Environment
24. Absence of holistic, systematic approach to the environment
25. Pollution of watersheds
26. Lack of integrated/coordinated approach for solid waste management
27. Competition over natural resources - loss of farmland, open space and
green spaces within urban areas.
28. Deterioration of the environment due to the uncontrolled disposal of
effluents from industrial activity and households.

Finance
29. No region wide financial management
30. Development budgets are insufficient in relation to the scale of
investments required
31. Poorly conceived projects, for activities that may not be required or
appropriate, involving unnecessary land requisitions and incurring non-
performing loan liabilities
32. Development budgets are unequal among the local administrations and
do not address investment needs and priorities, nor do they benefit from
any cross-subsidies.
33. Insufficient sources of finance for the provision of social facilities (schools,
clinics, etc.)
Lessons learned from International Experience
7 The following metropolitan regions were examined.
• Sydney, Australia
• Randstad, Netherlands
• Vancouver, Canada
• Paris, France
• London, UK
• New York- New Jersey
• Tokyo, Japan, and
1
• Shenzhen, China
8 The lessons learned are summarised below :-
a) A metropolitan authority, responsible for strategic policy, is beneficial in most
instances. However if local administrations are able to coordinate effectively
an authority is not always necessary, for example in the metropolitan regions
of Sydney and New York- New Jersey.

b) A primary function of the metropolitan authority is to prepare an overall
strategy (a vision) for the region. Such plans have been prepared for London,
Paris and Vancouver Metropolitan Regions.

c) Working with private sector trends is more likely to succeed than working
against them. This principle underpins the approach of the Greater London

1 Shenzhen is not a metropolitan region by administrative definition, but it offers valuable lessons for management of
complex urban problems
Asian Development Bank, Peoples Republic of China - Study on Sustainable Urbanization in Metropolitan Regions
Draft Final Report, June 2007. Halcrow Group Ltd.
Authority and the policies of the Regional Council of the Paris Metropolitan
Region.

d) Provision of strategic level infrastructure (roads, rail, water and solid waste
disposal) can be more efficient if managed by a regional agency such as
London Transport in London, Translink in Vancouver, and Syndicat des
Transports d'Ile de France (STIF) in Paris.

e) Urban growth can be structured by appropriate policies and major
investments in projects such as satellite towns and rapid inner regional rail
services, for example the 5 satellite towns of the Paris Metropolitan Region.

f) As shown in Vancouver, shortage of available land need not be a constraint
to city development and can be resolved with policies to encourage more
compact development of higher densities whilst maintaining high standards
in quality of life.

g) Clustering of economic activities has been successfully implemented in
Tokyo, Paris and Randstad Metropolitan Regions. Successful clustering of
economic activity can be achieved over time if the right policy and investment
framework is established to offer an attractive place to invest and live. It also
requires the government and local administrations to consult closely with the
private sector and the creation of a business friendly environment.

h) All metropolitan regions have to solve the problem of traffic congestion. Their
experience demonstrates that this has to be tackled in a comprehensive,
multi-dimensional manner and ultimately must include measures to restrict
the use of the private car (congestion charges), such as in London. However,
complementary improvements to alternative means of transport (public
transport) must be instigated as part of an overall transportation strategy.

i) In all regions, environment requires a cross cutting approach that operates at
a strategic level throughout the region. Often this is best achieved by
establishing an environmental agency at the metropolitan level.

j) Taxes and charges to finance region-wide authorities enables them to
operate with a minimum of subsidy while assisting in the implementation of
policy objectives.

Recommendations
9 Taking into the account the general characteristics of Chinese cities, the rate at
which they are growing and the nature of their administration (often comprising
many authorities whose jurisdictions may not coincide with the extent of
urbanisation) it is recommended that a metropolitan authority is established to
guide and control development at a strategic level. Existing local authorities can
continue to operate (although some adjustment to their boundaries may be
beneficial) providing that their activities comply with policies, regulations and
procedures to achieve strategic objectives.
Asian Development Bank, Peoples Republic of China - Study on Sustainable Urbanization in Metropolitan Regions
Draft Final Report, June 2007. Halcrow Group Ltd.
10 Strategic objectives should be clearly explained in a Vision Statement for the
region. This should be prepared through a process of intensive consultation with
all concerned stakeholders ( including local administrations, the private sector
and all sections of society) and will operate as a guiding agenda for shaping
development as well as rectifying aspects considered to have a negative impact.
11 The Vision should seek to utilise the driving force of the private sector, and work
to bring better solutions, rather than attempting to reverse or frustrate established
trends. Nevertheless efforts must be made to attain and maintain both
sustainable and inclusive development by the introduction of policies, regulations
and procedures to tackle key issues. In addition, policies are required to
safeguard the environment and ensure that all citizens are able to participate
freely with equal opportunities.
12 To achieve strategic objectives, 9 strategies are suggested : institutional,
strategic planning, land use, economic development, infrastructure,
transportation, social welfare, environment and finance.
13 Strategies should comprise integrated sets of policies that are consistent with
each other and fully coordinated with those of other strategies. The table below
summarises recommended policies for each strategy in relation to the key issues
mentioned earlier. There are 64 policies in total. Although metropolitan regions in
China differ according to their size, location and economic characteristics, it is felt
that most policies will apply (to a lesser or greater extent) to all.
14 Many policies could be applied without the need to establish a metropolitan
authority, in smaller regions perhaps, but this is not recommended as the nature
of strategic planning across and between two or more local administrations
appears (from the conclusions of this study) to require a degree of authority that
is presently missing.
15 Finally, the role and function of a Metropolitan Authority is to guide and control
the activities of local administrations, rather than to execute all actions itself.
However certain strategic activities, such as main roads and rail, water, waste
disposal and some environmental aspects, may be better managed at the
regional level. Either the authority can do this itself or establish regional agencies
to oversee or operate these. Such agencies are commonly found in most
metropolitan regions, in particular, for transport, water and the environment.

Asian Development Bank, Peoples Republic of China - Study on Sustainable Urbanization in Metropolitan Regions

Draft Final Report, June 2007. Halcrow Group Ltd.
Key Issues and Policy Responses Responsibility Instrument

INSTITUTIONAL
Absence of mechanism to prepare and implement the
policies mentioned below
• Establish a metropolitan authority with strategic State Legislation
responsibility for the entire region.
• Revised boundaries of administrations (if necessary) State and Legislation
to encompass urban conurbation and other regional Local
attributes. Administrations
• Clearly demarcate roles, functions and jurisdictions State and Legislation
between the metropolitan authority and subordinate Local
administrations. Administrations
• Define operation and funding procedures (see finance) State Rules and
on the understanding that the plans and programmes regulations
of subordinate administrations will comply with the
guidance and directions given strategic plans (see
below).
OR
Establish a means for liaison between the Administrations Agreements
administrations that comprise the region (for example - within the
a committee of representatives from the region
administrations supported by an executive to prepare
the strategies).
Clearly define legal status and functional
responsibilities of the liaison committee in relation to
the administrations, and the means to enforce
committee decisions.
This is not recommended and may undermine the
preparation and implementation of policies
recommended below.
STRATEGIC PLANNING
Uncoordinated and unplanned development within or
between one or more local administrative areas that
comprise the region.
• Establish a metropolitan vision for sustainable Metropolitan Document
development with clearly stated aims and objectives. Authority, Local based on
Administrations extensive
consultations
• Prepare strategies to realise aims and objectives (of Metropolitan Document
the vision). This should include a land Authority, Local based on
use/management strategy prepared in association Administrations consultation
with similar strategies for transportation, economic data and
development, infrastructure, socio-welfare and
Asian Development Bank, Peoples Republic of China - Study on Sustainable Urbanization in Metropolitan Regions

Draft Final Report, June 2007. Halcrow Group Ltd.