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Developing the West. 西部大開發. Where is the west?. 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、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。西部地区的这一最新定义,被称为“ 10+2+2” 。 西部地区幅员面积约 685 万平方公里,约占全国总面积的 71% 。 1999 年末,西部地区总人口约 3.65 亿,约占全国总人口的 29% 。
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Developing the West 西部大開發
Where is the west? • 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、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。西部地区的这一最新定义,被称为“10+2+2”。 • 西部地区幅员面积约685万平方公里,约占全国总面积的71%。1999年末,西部地区总人口约3.65亿,约占全国总人口的29%。 • 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、锡金、尼泊尔、印度、缅甸、老挝、越南等14个国家接壤,陆地边境线长达1.8万余公里,约占全国陆地边境线的91%;与东南亚许多国家隔海相望,有大陆海岸线1595公里,约占全国海岸线的1/10。
Why invest in the West? Market Potential in the West
Abundant power resources • natural gas fields (Sichuan, Shaanxi, Xinjiang) • HEP (Liujiaxia of Gansu, Longyangxia of Qinghai) • coal/crude oil (Shaanxi, Xinjiang) • geothermal energy (Tibet) • wind power (Xinjiang)
Rich mineral resources • manganese, zinc, lead • exploiting local resources can save transport cost
Rich agricultural resources • cotton, wool, fungi, fruits, vegetables • they are transported to coastal areas • except perishable goods
Rich Chinese medicine resources • Yunnan, Xinjiang, Tibet
Tourism resources • unique historic heritage • natural scenery • e.g. ancient Silk Road
Large domestic markets • growth of middle class • greater demand for food/consumer products
China’s “go west” strategies • power resources electricity for industries in the East • “west-to-east natural gas transmission”/“west-to-east electricity transmission” • encourage foreign investment • to supply capital, technology and management skills • provide a favourable environment for tapping the resources in the West
Role of government in industrial decentralization • Economic objectives • Social objectives • Political objectives • Strategic objective
Economic objectives • To ensure better utilization of resources and factors of production in less prosperous regions • To ensure regional economic balance • To avoid diseconomies of agglomeration in prosperous regions
Social objectives • To avoid regional inequalities which may result in social instability due to - Regional unemployment - Contrasting income levels - Massive migration from less prosperous to more prosperous regions • To avoid social problems: - Environmental pollution - Competitive social and economic structures - High crime rates - Mental illness
Political objective • Wide regional disparities may reduce national cohesion • High regional unemployment rates may threaten the chances of re-election of the ruling parties
Strategic objective • The government wants to decentralize industries so that industrial agglomerations are less vulnerable to attack, esp. during war time.
Role of HK • investment • help to sell products to the world market • help to attract foreign investment
What can be done to develop the West? • improve transport • infrastructure • improve economy jobs • develop technology • develop industries • provide funds to attract ind. • irrigation for farming • develop tourism • encourage foreign investment
Obstacles to developing the west • Industrialists may be reluctant to be the pioneer movers to less prosperous regions • Because of psychological barriers
Behavioural factors for industrial 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.
Reference • http://www.ewline.com.cn/index.htm • http://www.developwest.gov.cn/ • http://www.china.org.cn/ch-xibu/1aNew/indexban.html