Urban China:Toward Efficient, Inclusive, and Sustainable Urbanization

April 2014, BostonUCI Urban Leaders Roundtable

Key Messages1. Reform land management and institutions, and

urban planning2. Give migrants urban residency and provide equal

access to services3. Reform local finances by creating stable

revenues, and allow local governments to borrow directly, with strict central government rules.

4. Strengthen enforcement of environmental legislation

Strains of Urbanization Excessive land consumption and increasing sprawl Fragmented and poorly functioning land market

Shanghai 2000-2010 growth:

Area 1,470 km2 up to 3,216 km2

Average density = 6,200

people/km2

Drop of 34% in 10 years

Map produced by University of Wisconsin-Madison, May 2013. Administrative boundaries from University of

Michigan – China Data Center.

Density in China’s large

cities decreases rapidly

1. Land Management and Institutions Develop a unified and vibrant market, enhance equality

and benefits of urbanization for all Move away from land quotas and growth restrictions – enable market

prices to drive urban land allocation Require all land use rights to be auctioned (incl. industrial land) Property taxes for densification Stronger property rights for farmers, with higher compensation for

requisition Legal limits on rural land taken for public purposes New mechanisms for converting rural land to urban use and shifting

zoning of industrial land to commercial and residential use

1. Land Management and Institutions Redefine Role of Government in Planning Process:

Less planning, better & more transparent regulations Combine economic, transport, housing and land use

planning More flexibility to adjust zoning and density (FARs) Incentives for urban redevelopment and optimization of land

use in cities Livability and diversity through service quality, flexibility,

mixed-use space

1. Land Management and Institutions Move from Superblock to

Smaller Blocks Reduce block sizes to

encourage walking and biking Facilitate redevelopment and

urban regeneration Integrate land use and

transport planning Densify cities around major

transport systems Focus on integration between

modes and accessibility

0 68 136 204272 3404084765440

10000

20000

30000

40000

Built up area (km²)

Den

sity

(inh

ab/k

m²) Guangzhou

Seoul

2. Urban Residency and Access to Services

Reform the hukou household-registration Remove barriers to labor mobility from rural to urban areas,

and between cities to boost worker’s wages Evolve the hukou system into a residency system providing

a minimum standard of public service to any resident Provide equal access to quality services for all citizens

China’s rising inequality

Source: World Bank DRC (2014)

3. Local Finances and Governance Place urban finances on a more sustainable footing

while creating financial discipline for local governments Move to a revenue system (incl.

property taxes and higher charges for urban services

Allow local governments to borrow directly, within strict rules

Take measures to address over-indebtedness

Adjust performance evaluation for a more sustainable urbanization process

Improve financial management and transparency of local governments

Gross land revenues are large, but net revenues are declining

Source: World Bank DRC (2014)

4. Environment Pollution-related health problems cost China $300 billion p/y Water resources are becoming more scarce, GHG emissions a

pressing issue Environmental management by jurisdiction, not by scope or

scale of problem Technical/engineering solutions without complementary

institutional and economic policies

Per capita CO2 emissions for 11 Large Chinese Cities and Other Cities around the World

Source: Chinese cities: Wang and others 2012; Other cities: Carbon Disclosure Project 2012

4. Environment Enforcement, Enforcement, Enforcement

Green governance” with incentives and market-based tools, such as taxes and trading systems for carbon, air and water pollution, and energy

“Improve data collection, information dissemination, and public participation in holding polluters accountable.

Cross-border and cross-sector management of cross border environmental challenges (air and water quality management and urban form)

TRANSPORT WATER &WASTEWATER

POWER &HEATING

SOLIDWASTE

INDUSTRY EE BUILDINGS EE

Abhas K. Jha Sector ManagerTransport, Urban Development, Disaster Risk ManagementEast Asia and Pacific Regionajha(at)worldbank.org(at)abhaskjhawww.worldbank.org/eapdisasters

Thank you!