Developing the WestDeveloping the West

西部大開發西部大開發

Where is the west?Where is the west?• 中国西部由西南五省区市（四川、云南、贵州、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、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、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“地区的这一最新定义，被称为“ 10+2+2”10+2+2”。。

• 西部地区幅员面积约西部地区幅员面积约 685685万平方公里，约占全国万平方公里，约占全国总面积的总面积的 71%71%。。 19991999年末，西部地区总人口约年末，西部地区总人口约3.653.65亿，约占全国总人口的亿，约占全国总人口的 29%29%。。

• 西部地区与蒙古、俄罗斯、塔吉克斯坦、哈萨克西部地区与蒙古、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、锡金、尼泊尔、印度、缅甸、老挝、越南等 1144个国家接壤，陆地边境线长达个国家接壤，陆地边境线长达 1.81.8万余公里，万余公里，约占全国陆地边境线的约占全国陆地边境线的 91%91%；与东南亚许多国；与东南亚许多国家隔海相望，有大陆海岸线家隔海相望，有大陆海岸线 15951595公里，约占全公里，约占全国海岸线的国海岸线的 1/101/10。。

Why invest in the West?Why invest in the West?

Market Potential in the WestMarket Potential in the West

Abundant power resourcesAbundant power resources

• natural gas fieldsnatural gas fields (Sichuan, Shaa (Sichuan, Shaanxi, Xinjiang)nxi, Xinjiang)

• HEPHEP (Liujiaxia of Gansu, Longya (Liujiaxia of Gansu, Longyangxia of Qinghai)ngxia of Qinghai)

• coal/crude oilcoal/crude oil (Shaanxi, Xinjiang) (Shaanxi, Xinjiang)

• geothermal energygeothermal energy (Tibet) (Tibet)

• wind powerwind power (Xinjiang) (Xinjiang)

Rich mineral resourcesRich mineral resources

• manganese, zinc, leadmanganese, zinc, lead

• exploiting local resources can exploiting local resources can save transport costsave transport cost

Rich agricultural resourcesRich agricultural resources

• cotton, wool, fungi, fruits, cotton, wool, fungi, fruits, vegetablesvegetables

• they are transported to coastal they are transported to coastal areasareas

• except perishable goodsexcept perishable goods

Rich Chinese medicine Rich Chinese medicine resourcesresources

• Yunnan, Xinjiang, TibetYunnan, Xinjiang, Tibet

Tourism resourcesTourism resources

• unique historic heritageunique historic heritage

• natural scenerynatural scenery

• e.g. ancient Silk Roade.g. ancient Silk Road

Large domestic marketsLarge domestic markets

• growth of middle classgrowth of middle class

• greater demand for greater demand for food/consumer productsfood/consumer products

China’s “go west” China’s “go west” strategiesstrategies

• power resources power resources electricity for indus electricity for industries in the Easttries in the East

• ““west-to-east natural gas transmissionwest-to-east natural gas transmission”/“west-to-east electricity transmission”/“west-to-east electricity transmission””

• encourage encourage foreign investmentforeign investment• to supply to supply capital, technology and manacapital, technology and mana

gement skillsgement skills• provide a favourable environment for taprovide a favourable environment for ta

pping the resources in the Westpping the resources in the West

Role of government in Role of government in industrial decentralizationindustrial decentralization

• EEconomic objectivesconomic objectives

• SSocial objectivesocial objectives

• PPolitical objectivesolitical objectives

• SStrategic objectivetrategic objective

Economic objectivesEconomic objectives

• TTo ensure better utilization of o ensure better utilization of resources and factors of production resources and factors of production in less prosperous regionsin less prosperous regions

• TTo ensure regional economic balanceo ensure regional economic balance• TTo avoid diseconomies of o avoid diseconomies of

agglomeration in prosperous regionsagglomeration in prosperous regions

SSocial objectivesocial objectives• TTo avoid o avoid regional inequalitiesregional inequalities which may which may

result in result in social instabilitysocial instability due to due to- R- Regional unemploymentegional unemployment- C- Contrasting income levelsontrasting income levels- M- Massive migration from less prosperous to assive migration from less prosperous to more prosperous regionsmore prosperous regions

• To avoid To avoid social problemssocial problems::- E- Environmental pollutionnvironmental pollution- C- Competitive social and economic ompetitive social and economic structuresstructures- H- High crime ratesigh crime rates- M- Mental illnessental illness

Political objectivePolitical objective

• WWide ide regional disparitiesregional disparities may may reduce national cohesionreduce national cohesion

• HHigh regional unemployment igh regional unemployment rates may threaten the chances rates may threaten the chances of re-election of the ruling partiesof re-election of the ruling parties

Strategic objectiveStrategic objective

• TThe government wants to he government wants to decentralize industries so that decentralize industries so that industrial agglomerations are industrial agglomerations are less vulnerable to attack, esp. less vulnerable to attack, esp. during war time.during war time.

Role of HKRole of HK

• investmentinvestment

• help to sell products to the world help to sell products to the world marketmarket

• help to attract foreign investmenthelp to attract foreign investment

What can be done to What can be done to develop the West?develop the West?• improve transportimprove transport• infrastructureinfrastructure• improve economy improve economy jobs 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 Obstacles to developing the westwest

• IIndustrialists may be reluctant to ndustrialists may be reluctant to be the pioneer movers to less be the pioneer movers to less prosperous regionsprosperous regions

• BBecause of ecause of psychological psychological barriersbarriers

Behavioural factors for industriBehavioural factors for industrial dispersalal 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.

ReferenceReference

• http://www.ewline.com.cn/index.http://www.ewline.com.cn/index.htmhtm

• http://www.developwest.gov.cn/http://www.developwest.gov.cn/

• http://www.china.org.cn/ch-xibu/http://www.china.org.cn/ch-xibu/1aNew/indexban.html1aNew/indexban.html