Developing a Town-Based Urbanization Strategy for PRC
MANILA, PHILIPPINES (30 August 2004) - ADB is helping the Government of the People's Republic of China (PRC) develop a town-based urbanization strategy, through a technical assistance (TA) grant approved for US$750,000. The Government of Spain is cofinancing $500,000 of the grant amount, and the Government is contributing $250,000 equivalent toward the TA's total cost of $1 million. The TA will research patterns of urban settlement that contribute to efficient growth, poverty reduction, and improved urban environmental quality. The PRC Government sees urbanization as a way to reduce inequalities in income opportunities between urban and rural areas and to sustain the country's transition to a market economy. Between 1990 and 2001, urban populations increased from 300 million to 481 million, largely driven by the migration of surplus rural labor. Over the next 15 years, 150 million more people are expected to migrate from rural to urban areas. To manage the transition, the Government tries to channel population movements away from large cities toward smaller settlements such as towns instead. This phenomenon has been happening over the last decade with varied successes. "If not properly implemented, urbanization can severely disrupt not only the lives of the rural poor, but also existing urban systems," says Amy Leung, Social Sector Unit Head of ADB's Resident Mission in the PRC. "The urbanization strategy for PRC should identify towns with development potential and determine how different types of towns can help achieve national and provincial economic development objectives." Town development requires sound fiscal management and strong support from the private sector because of the large amount of capital investment it needs. Environmental regulations have to be implemented effectively to control possible environmental problems, such as those related to wastewater collection and treatment, solid waste disposal, and pollution air from new industries. The pace and structure of growth should also be managed to realize their full development potential. "Without a regional approach to guide the development of smaller centers within an urban region, the trends can lead to uncontrolled sprawl and extensive environmental pollution," says Ms. Leung. "Practical and effective policy instruments should be established to produce compact, well-serviced, and well-connected towns while minimizing scattered development." The TA will come out with case studies on two provinces with different histories and patterns of urbanization, an analysis of problems in applying national and provincial town development policies, and recommendations based on international best practices. The National Development and Reform Commission is executing the TA, which is due for completion in April 2005. Read the full TA report About ADB | 
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