[Part I Objectives and Strategies]

[Part I Objectives and Strategies] Chapter 1 To Learn about the City-region Chapter 2 Development Objectives Chapter 3 Development Strategies � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �� Chapter 1 To Learn about the City-region �� Chapter 1 To Learn about the City-region ��

The Greater PRD City-region comprises nine cities in the PRD, Hong Kong and Macao, and occupies a total land area of 42,831.5 km2. The nine cities in the PRD include Guangzhou, Shenzhen, Zhuhai, Foshan, Dongguan, Zhongshan, Jiangmen, Huizhou (including only Huicheng and Huiyang Districts and Huidong and Boluo Counties) and Zhaoqing (including only Duanzhou and Dinghu Districts and Gaoyao and Sihui Cities), with a total land area of 41,698 km2. The area of Hong Kong is 1,104.3 km2 while the area of Macao is 29.2 km2 1 (Figure 1-1).

Legend

Boundary of the GPRD City-region

City Boundaries

Figure 1-1 The Boundary of the Greater PRD City-region

The Greater PRD City-region is the most developed city-region in China. Although none of the cities in the PRD is the strongest one in China and Hong Kong is not the most developed city in the world, the PRD region, with its well-established outward-oriented manufacturing industries and continuous innovations, has become one of the three major city-regions in China, together with the Yangtze River Delta and Beijing-Tianjin-Hebei. 1 The information about the Hong Kong, with the most liberal economic system in the world and as an PRD is sourced from "2008 international financial, trading, shipping, tourism and logistics centre, enjoys Guangdong Statistical Yearbook". The information about Hong a comparable status to three global cities, namely New York, London and Kong is sourced from the website Tokyo. It has even been included in the term "Nylonkong" with New York of the Census and Statistics � �� 2 Department of Hong Kong and and London . the�� information�� about�� Macao�� is sourced�� from�� the� �website�� of� the� Statistics�� and� �Census� Bureau of Through a comparative study on the most developed city-regions Macao. both within China and in the overseas, this chapter analyzes the spatial � �� 2 See an article titled "A Story of characteristics, functions, major problems and options of way forward for the �� Three Cities" in the Times (Asian Greater PRD City-region. Edition),�� 28.1.2008.� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �� Chapter 1 To Learn about the City-region �� 1.1 Spatial Characteristics �� Columns 1-1 and 1-2 describe the major characteristics and functions of a world-class city-region as concluded in the Topical Study I of the Greater PRD Study after analyzing the three major city-regions including New York, London and Tokyo. In comparison with these city-regions, the Greater PRD City-region has the following unique features:

Column 1-1:The Basic Characteristics of a World-class City-region 1. Excellent locational advantages; 2. Megalopolis with global significance (i.e. global cities or world cities); 3. Highly efficient spatial structure; 4. Highly accessible transportation system; 5. Quality living area of international standards; 6. Soft strength based on the growth of social welfare.

1.1.1 A structure not based on one single mega-city as the regional centre

The Greater PRD City-region has at least four regional centres with national and international significance, i.e. Hong Kong, Macao, Guangzhou and Shenzhen. Among these, Hong Kong has already become a mega-city of global significance. However, due to the existence of administrative boundaries under the "One Country, Two Systems" framework, these regional centres, in spite of over 30 years of rapid economic development through cooperation among them, have not developed into global cities like New York, London and Tokyo which occupy an absolutely dominant role in their respective regions. Instead, each of these cities has fulfilled only part of the functions of a global city. In other words, these cities collectively carry out the functions of a regional centre.

1.1.2 Poly-centric development pattern

Besides having the above-mentioned four regional centres, the Greater PRD City-region has seven prefecture-level cities and more than 510 industrialized towns based on jurisdiction of streets and towns (Figure 1-2). With Hong Kong, Guangzhou and Shenzhen as the functional nuclei, these prefecture-level cities and industrialized towns are distributed along the trunk transportation routes over an area of more than 40,000 km2 and form a poly- centric development pattern (Figure 1-3). The poly-centric pattern is in four- fold. First, Hong Kong, Macao, Guangzhou and Shenzhen have become the regional centres with global and national significance. Second, Zhuhai, though being a Special Economic Zone like Shenzhen, has a slightly lower economic development level and radiating power, and is thus at a lower hierarchy than the above four cities. Its role, however, is more significant than the other � �� prefecture-level cities in serving as a centre. Third, the other six prefecture- �� level cities are at different hierarchy due to the differences in locations and �� levels of economic development. Foshan, Dongguan and Zhongshan are sub- regional centres, while Huizhou, Zhaoqing and Jiangmen are local centres. � �� Fourth, a few hundreds of industrialized towns have gradually developed on the �� foundation of traditional rural villages and spread around the wide PRD region �� (Figure 1-4). � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �� Chapter 1 To Learn about the City-region �� 1.1.3 "Cross-boundary" linkages �� (1) External linkages: the Greater PRD City-region constitutes one of the regions in China that have the closest economic linkages with the overseas. Hong Kong, as an important trading hub in Asia, has maintained close economic and trade linkages with major economic systems around the world. With quality high-end services, Hong Kong has become one of the focal points of overseas investment and multinational companies in the Asia Pacific region, Macao

Kong Hong 10 131 and 2 towns streets and 62 county- districts level cities

6 55 streets districts Shenzhen Guangzhou 6 towns streets and 18 4 towns streets and 28 Central government 3 cities and 4 towns and 62 districts 17 streets county-level 2 cities and 2 towns and 32 districts 11 streets 11 Guangdong county-level (Part) 2 (Part) and 2 towns and 43 districts counties 15 streets Figure 1-2 Administrative structure above the municipal level in Greater PRD Figure 1-2

5 towns and 21 districts 12 streets

Note: There are 259 streets and

253 towns in the PRD region 3 towns (figures in 2008). and 15 districts Zhuhai Foshan Huizhou Zhaoqing Jiangmen Dongguan Zhongshan 8 streets � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �� Chapter 1 To Learn about the City-region � ��

Figure 1-3 Urbanization Pattern in the Greater PRD City-region (2007)

Regional Centres

Prefecture Administrative Centres District Administrative Centres

Rural Town Centre

Figure 1-4 The poly-centric development pattern in the Greater PRD City-region

and stays as one of the top cities exerting significant radiating power and influences over the global economy. The PRD region, as an outward-looking manufacturing base, has gradually integrated into the global economic system as the famous "global manufacturing base". Macao has also integrated into the global economy through its gaming and tourism industries for a long time.

(2) Internal economic linkages: the internal economic linkages within the Greater PRD City-region are characterized with cross-boundary linkages between Guangdong and Hong Kong. Calculation under gravity model demonstrates that the economic development level of a city in the PRD is highly � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �� Chapter 1 To Learn about the City-region �� correlated to the land distance between that city and Hong Kong1. The extent �� of economic linkages and dependency among the cities in the PRD highlights the status of Hong Kong as a regional economic centre. Within the region, Hong Kong maintains strong linkages with all cities, in particular with Shenzhen. Guangzhou is an important centre linking the eastern and western parts of the PRD, and its radiating power over the western part is stronger than Hong Kong.

(3) Linkages regarding the internal flow of people: according to the survey of "Northbound Southbound 2007" conducted by Planning Department of Hong Kong, the number of people crossing the boundary during the survey period (two weeks) reached 6.9 millions, representing an increase of 9.6% over the corresponding survey period in 2006. It demonstrates that the linkage between the PRD and Hong Kong is increasingly close in terms of passenger flow. During the survey period, visitors from the Mainland reached 1.075 million, representing an increase of 17.8% from 2006. The survey also shows that more and more Hong Kong residents visited the Mainland for leisure purposes, with the daily average number increased from 152,000 in 2006 to 173,000 in 2007. The people from Hong Kong and Macao who has purchased properties in the PRD is a direct cause for the growth of passenger flow between Guangdong, Hong Kong and Macao. In recent years, due to rapid economic development and good natural environment, PRD has become an increasingly attractive place for people of Hong Kong and Macao to live. Since 2001, Hong Kong residents living in the Mainland has increased by approximately 50% every two years. According to the "Thematic Household Survey 2007/08 – Hong Kong Residents' Experience of and Aspiration for Taking Up Residence in the Mainland of China" conducted by Planning Department, approximately 155,000 Hong Kong people live in the Mainland during the survey period, representing a significant increase from 92,000 in 2005, of which 83.0% live in Guangdong Province, mainly in Shenzhen, Guangzhou and Dongguan. With the development of tourism in Macao, the number of tourists to Macao has also greatly increased. In 2007, 26.993 million tourists visited Macao, representing an increase of almost 23% from 21.998 million in 2006. Most of the tourists came from the PRD, fully demonstrating the close linkage between Macao and the PRD as regards passenger flow2.

1.1.4 Highly outward-oriented and advanced transportation infrastructure

The Greater PRD City-region is located at the intersection of major international transportation routes, China's southern transportation hub and the cities governed under the "One Country, Two Systems" framework. It is an important transportation "gateway" of China, established with an 1 The Consultants for this study: "Study on the Internal and integrated transportation system which is characterized with "cross-boundary" External Economic Linkages of transportation and connections with areas both within and outside China. the Greater Pearl River Delta City-region". The region comprises well-developed facilities for domestic 2 Planning Department of Hong Kong: "Northbound Southbound and international air-based and water-based transportation. Since 2007". the economy of the Greater PRD City-region is highly outward-oriented, its infrastructure is also highly outward-oriented. The Greater PRD City- � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �� Chapter 1 To Learn about the City-region � region has the world's largest outward-oriented port cluster, which is an �� important component of the port system in China. The capacity of container ports of Hong Kong and Shenzhen ranks the second and fourth in the world respectively. The Greater PRD City-region constitutes a region with the highest density of airports in China, where the routes of the five major airports in the region cover all major cities in the five continents of the world. The airport of Hong Kong is one of the busiest international airports in the world, and is also the one in the Greater China region with the most international linkages. Guangzhou is one of the three major aviation hubs in China.

The region is located at a peripheral position of China's land transportation network. The Greater PRD City-region is linked with the other parts of Guangdong Province as well as the other provinces through five major highways (Column 1-2). A smooth and convenient highway network is basically in place, which, however, could not completely alter the peripheral position of the city-region in China's transportation network. Construction of railway networks, in particular for rapid railways, is still necessary to improve the linkage of the city-region with the hinterland in Pan-PRD and other areas in China. Moreover, due to the existence of administrative boundaries, Hong Kong has not yet established adequate transportation linkages with the Mainland. The coverage of the current railway network in the Greater PRD City-region is relatively low, with three railways, namely Beijing-Guangzhou Railway, Beijing-Kowloon Railway and Kowloon-Canton Railway on the east coast and only one railway linking Zhaoqing, Foshan and Guangzhou on the west coast. Without a wide coverage of railway network, the Greater PRD City-region will remain at a peripheral position in China's land transportation network and the linkages with other parts of China would be subject to significant constraint (Figure 1-5).

Column 1-2: The Five Major Highways linking the Greater Pearl River Delta City-region with other Places 1. Eastern route: Shenzhen-Shantou Expressway + National Expressway 324 : leading to the eastern part of Guangdong Province and Fujian Province; 2. Northeastern route: Shenzhen-Huizhou Expressway + National Expressway 205: connecting to Huizhou-Heyuan Expressway and leading to Jiangxi Province; 3. Northern route: Beijing-Zhuhai Expressway + National Expressways 107, 105, 106: leading to Hunan and Hubei Provinces via Qinyuan and Shaoguan. A major link of Greater PRD with the provinces to the north; 4. Western route: Guangzhou-Zhaoqing Expressway + National Expressway 321, 324: connecting to Guangzhou-Wuzhou Expressway, linking to Guangxi Province via Zhaoqing and Yunfu; 5. Southwestern route: Western Coastal Expressway + National Expressway 325: linking up the major cities/towns along the western coast of Guangdong Province and connecting to Chongqing-Shanghai Expressway. An important road link to Guangxi and Hainan.

1.2 Important Status

1.2.1 The most developed economic centre in China

In 2007, the economic output of the Greater PRD City-region amounted to over RMB3,850 billions. The City-region occupies only 0.45% of the land area of China but accounts for 13.38% of the economic output of � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �� Chapter 1 To Learn about the City-region ��

Fig 1-5 The Existing Highways and Railways in the PRD

Column 1-3: The Major Functions of a World-class City-region (1) Major spatial entity that participates in international competition; (2) Leader of division of labour in global economy; (3) Showing strong vitality in the era of globalization; (4) The most important economic core of a country.

the country. The GDP per-capita and per-land area is 1.4 times and 2.0 times respectively of those of Yangtze River Delta. It is the city-region with the highest economic efficiency in China. When compared with other regions in the world, the economic output of the Greater PRD City-region has already exceeded that of Singapore and Taiwan, and is only lower than that of � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �� Chapter 1 To Learn about the City-region � Japan, Korea and India in Asia (excluding China). The City-region is indeed �� the economic core of China, and play an important role in the economic development of the country.

1.2.2 An internationally-recognized global manufacturing base

Hong Kong and Macao (in particular Hong Kong), making use of their existing industrial foundation and international linkages, have occupied the high-end segment in production, such as financing, management, product design and sales, and serve mainly the role of "shop" in the production system. On the other hand, PRD utilizing its relatively rich resources, such as land, labour force and raw materials, has engaged in the low-end segment, such as plant construction and operation, manufacturing and assembly of products, and serves mainly the role of "factory". The structure of "front shop and back factory" has enabled the products from the PRD to enter the mainstream markets of developed countries even under stringent entry conditions and provided impetus for rapid development of the PRD into a world-class manufacturing base in 30 years.

1.2.3 An innovative pioneer region in China

Since the implementation of the reform and open door policies, the PRD has created the "PRD model" based on cross-boundary cooperation with Hong Kong and Macao. A multitude of system innovations, including land system reform, has served as models for the implementation of the reform and open door policies throughout the country. Following the Asian financial crisis in 1998, the PRD began to engage in technology innovation, established a regional innovation system, and carried out technology innovation primarily by enterprises. In 2007, the output value of the new and high technology industries in Guangdong Province reached RMB1,485.4 billion, the highest in China1. In 2008, Huawei Technologies Co., Ltd. in Shenzhen applied for 1,737 international patents (PCT) and became the company with the most patent applications in the world. In 2007, Hong Kong and Shenzhen entered into the "Shenzhen/Hong Kong Innovation Circle" Agreement, marking a new stage of regional innovation system among the PRD, Hong Kong and Macao.

1.3 Major Problems

1.3.1 Shortage of land: rapid and continuous economic and social development versus limited land resources

The administrative boundaries confine the spatial development of Hong Kong and Macao within a limited area, making these cities one of the regions with the highest population density in the world. Such limit also hinders further social and economic development. For PRD, substantial land resources have been used up in recent years due to rapid economic development. Land 1 Nanfang Daily, 11 December 2008. Coverage on "The new available for development is limited and is not evenly distributed. In the more and high technology industry in developed cities, like Shenzhen and Dongguan on the eastern part of PRD, there Guangdong recorded the highest output value in the country last is virtually no land suitable for new development. Limitation of land resources year". has become an important factor restricting regional development. � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �� Chapter 1 To Learn about the City-region 1.3.2 Restrictions imposed by the boundaries: increasingly close internal �� linkage versus restrictions imposed by administrative boundaries and �� natural (the Pearl River Estuary) boundaries.

The linkage among Guangdong, Hong Kong and Macao in terms of the flow of people and economic factors has been growing rapidly for years, and the construction of transportation infrastructure that strenghtens such linkage is in full swing. However, such linkage is still hindered by the need of CIQ clearance arising from the administrative boundaries, as shown in the saturation of the design capacity of major BCPs. For example, the saturation rate of Huanggang BCP is approximately 0.97 and that of Man Kam To and Sha Tau Kok BCPs are 1.02 and 1.09 respectively. Furthermore, the separation of the region into the east and west coasts by the Pearl River Estuary has also imposed constraints for meeting the increasingly close economic linkage between the east and west, affecting balanced development of the region.

1.3.3 Limited hinterland/market: huge economic output versus small hinterland/market

The geographic boundaries of Hong Kong and Macao are fixed under the administrative boundaries. They cannot directly expand into other areas and their hinterland. Due to the natural blockage by the Lingnan Mountains, the hinterland of PRD within China is limited and not conveniently accessible. Having a highly outward-oriented economy, PRD has not built up close relation with the inland areas of China. While it has established a status of "world factory", there is also a higher risk of its economy being affected by the international markets.

1.3.4 Inadequate accessibility: densely distributed centres/towns versus insufficient accessibility within the region.

An integrated transportation network has not yet been established in the region and the Intercity Mass Rapid Transit network, which would significantly facilitate accessibility in the region, is yet to be built up. As such, the demand for close linkage within the region can hardly be satisfied. In addition, there is a lack of feeder facilities serving the transportation nodes (such as airports and ports). The lack of multi-mode transportation has imposed constraints for realizing division of functions among the transportation nodes.

1.3.5 Inter-city competitions: dominance by the regional centres versus discrete governance of individual cities

Numerous factors such as administrative boundaries and administrative divisions have led to discrete governance of individual cities and inter-city competitions which has become a major problem in regional development.

1.3.6 Deterioration of environmental quality: continuous increase in economic efficiency versus deterioration of ecological and environmental quality � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �� Chapter 1 To Learn about the City-region It is obvious that rapid industrialization and urbanization would � affect the ecology and environment of a region. Air pollution, water pollution �� and the instability of the eco-system in the Greater PRD City-region have become increasingly serious. How to balance economic development with the protection of ecology and environment has become an important issue in regional development.

1.3.7 Competition with other city-regions in China

The highly urbanized regions in China, such as the Yangtze River Delta, Beijing-Tianjin-Hebei, Shandong Peninsula, west coast of Taiwan Strait, Changsha-Zhuzhou-Xiangtan, Chengdu-Zhongqing, and central and southern Liaoning are developing rapidly. In particular, the Yangtze River Delta with Shanghai as its centre will pose serious challenges to the Greater PRD City- region in the development of service industries e.g. the financial and shipping services under the national strategies such as those outlined in the "Opinions on promoting the development of Shanghai's modern service industry and advanced manufacturing industry, and the development of Shanghai into an international financial centre and international shipping centre".

1.4 New Circumstances

Since 2007, the Greater PRD City-region has come across a series of major issues, such as the adjustment of the State's policy for trading of processed goods, the huge pressure exerted by international markets on processed goods for export, the USA's sub-prime mortgage crisis and its resulting global financial crisis and the State Council's approval of the implementation of "the Outline". Among these, the impacts of the global financial crisis and the incentives provided by "the Outline" have the greatest implications on the region. These are outlined below.

1.4.1 Opportunities and challenges brought about by the global financial crisis

The financial crisis resulting from the US sub-prime mortgage crisis has spread all over the world since 2007, and has posed enormous challenges to the Greater PRD City-region which is principally engaged in the export of outward processing manufacturing products. The governments of Hong Kong, Macao and Guangdong Province have launched various proactive measures to deal with the crisis. Although the financial crisis has brought great impact on the region in the short run, there are new development opportunities in the long run.

■ Firstly, as one of the successful countries in dealing with the crisis, China may be the first one to ride out the financial crisis. Its national power will be further strengthened, which would support the development of the Greater PRD into a world-class city-region.

■ Secondly, the international efforts in coordination in dealing with the crisis has set out an environment for "win-win" cooperation in international economy, which would provide a good basis for cooperation among Guangdong, Hong Kong and Macao. � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �� Chapter 1 To Learn about the City-region �� ■ Thirdly, the shrinking of demand from international markets and the �� increase of domestic demand from China has provided new opportunities for industries in the Greater PRD City-region to undergo transformation.

■ Lastly, the State's investment policies focusing on the construction of infrastructure would facilitate development of transportation infrastructure in the Greater PRD City-region.

1.4.2 The opportunities and missions under "the Outline"

"The Outline" explicitly regards the development of the PRD region as a national strategy for the first time. It also specifies that the PRD shall act as the pilot area for the implementation of the State's scientific development model, pioneer for intensification of reforms, important international gateway open to the world, global base for advanced manufacturing industry and modern service industry, and important economic centre of the country. These provide opportunities for the Greater PRD to develop into world-class city- region. While "the Outline" provides a comprehensive strategic framework to guide the overall coordinated and sustainable development of the Greater PRD, it has obvious significance in the spatial development of the region.

■ Firstly, "the Outline" attempts to stop the situation of discrete governance of cities within the PRD, so as to promote coordinated development within the region.

■ Secondly, "the Outline" establishes firmly the development objectives of the PRD, with the emphasis shifting from development "scale" to development "quality".

■ Thirdly, "the Outline" lays the policy foundation for closer cooperation among Guangdong, Hong Kong and Macao in building the Greater PRD City-region.

1.5 Direction of Spatial Development

1.5.1 Way forward

After comparing and learning from the development experience of the established world-class city-regions and reviewing the Greater PRD's characteristics, this study identifies the following six aspects that need further improvement in order to build the Greater PRD into a world-class city-region:

■ further upgrading the status of the key cities such as Hong Kong, Guangzhou, Macao, Shenzhen and Zhuhai;

■ bringing into play the unique innovation edges of the region for being the pioneer in China's macro-economic transformation; � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �� Chapter 1 To Learn about the City-region � ■ stepping up the construction of transportation infrastructure within �� the region to facilitate integration of and foster closer relation within the region in order to form a functional entity under the "One Country, Two Systems" framework;

■ further nurturing an open and vibrant cultural environment so as to attract talents from different places to enhance the competitive edges of the region;

■ strengthening the protection of ecology and environment, promoting clean manufacturing, and building environmental-friendly living environment;

■ stepping up the construction of transportation linkages between the Greater PRD and other regions within China, in particular the construction of expressways and high-grade railways, to expand the hinterland of the Greater PRD.

1.5.2 Coordination in three key spatial elements

Targeting at developing into a world-class city-region, the Greater PRD City-region should continue to make improvements in the above six aspects. Having regard to the established functions and development plans and the relevant studies undertaken by the governments of Guangdong, Hong Kong and Macao, it is considered that three key spatial elements, namely spatial structure, accessibility and ecology/environment are the areas that mostly need coordination and cooperation among the three places. Among these:

■ the spatial structure serves as the foundation of regional development;

■ accessibility is concerned with the means to improve the development efficiency of the city-region;

■ quality environment offers the fundamental safeguard for coordinated and sustainable development of the city-region.

This study serves to formulate coordinated development strategies for the region in the above three aspects, in order to promote the development of the Greater PRD into a coordinated and sustainable world-class city-region. � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �� Chapter 2 Development Objectives �� Chapter 2 Development Objectives ��

The reunification of Hong Kong and Macao with China has a definitive historic meaning for the Greater PRD City-region. Since the reunification, the governments of Guangdong, Hong Kong and Macao have been actively promoting regional cooperation officially on the basis of the previous market-driven cooperation among the private sectors. Under the political and economic framework of "One Country, Two Systems" and the CEPA arrangements, the governments of the three places have put marked efforts in upgrading the development and people's living standards in the region. One of the key efforts is to collectively plan and develop the Greater PRD City- region as a whole. In 2003, it was proposed in the Hong Kong/Guangdong and Macao/Guangdong Cooperation Joint Conferences that "the Greater PRD should be developed into one of the world's most flourishing and dynamic economic regions". "The Outline" promulgated in 2008 also sets a target to develop the PRD region as "one of the most competitive metropolitan areas in the world through labour division, cooperation and mutual complementation among Guangdong, Hong Kong and Macao". In accordance with those high- level planning strategies, Hong Kong, Macao and the cities in the PRD have adopted coordinated development in the region as a development objective. A common consensus has been formed, i.e. the development within Greater PRD City-region should be coordinated to improve the overall competitiveness of the region. The development objectives of the Greater PRD City-region stated in this chapter, including the overall objectives and the objectives by areas and by phases, reflect the demand from the governments, academics, non- government bodies and individuals of Guangdong, Hong Kong and Macao in response to the situations in China and overseas as well as the characteristics of development in the region.

2.1 Overall Objectives

The overall objective for the development of the Greater PRD City- region is that: "Guangdong, Hong Kong and Macao should jointly build a world-class city-region with coordinated development, sustainability and global competitiveness". The objective is elaborated as follows:

―― A world-class city-region with global competitiveness and influences: through enhancing the core functions of certain key cities in the region and the integration of these core functions by enhancing the connection among cities, a functional core region with global influences should be created.

―― A world-class advanced manufacturing base with innovation abilities: through improving the innovation abilities of the region, the positions of the region as an advanced technology centre and a world-class manufacturing base should be strengthened. � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �� Chapter 2 Development Objectives � ―― A highly open, world-class centre of modern service �� industries: a world-class service centre should be created by coordinating the manufacturing and marketing processes, agglomerating the service providers and improving the service quality.

―― A world-class domestic and international transportation hub: with the largest port and airport clusters in Asia-Pacific region, the Greater PRD should strengthen its railway and highway connections with the Mainland in order to grow into an international as well as a domestic transportation hub.

―― A cultural centre with global influences: the position of the region as the cradle of Lingnan culture and a place where the Eastern culture integrates with the West and the overseas Chinese culture meets the modern immigration culture should be consolidated. Through fortifying a more tolerant, open and influential system of cultures, a creativity and culture centre of global significance should be established.

―― A quality living area that is affluent, civilized, harmonious and liveable: the people in Guangdong, Hong Kong and Macao are "living under the same sun, on the same soil, along the same river and of the common ancestry". We should work together to create "a prosperous, clean, civilized and comfortable Greater PRD".

2.2. Objectives by Areas

―― The PRD should become a world-class base of advanced manufacturing and modern services and an important economic centre of China: the PRD should realize modernization ahead of other regions, establish a good system of socialist market economy, form an industrial structure featuring modern services and advanced manufacturing industries, cultivate globally advanced capabilities of scientific innovation, foster a scenario in which all people live in harmony, and bring forth one of the most competitive metropolitan areas in the world through labour division, cooperation and mutual complementation among Guangdong, Hong Kong and Macao.

―― Hong Kong should continue to strengthen its position as an international metropolis in Asia and focus on international finance, trading, shipping, logistics and high value-added services to develop as one of the most important centres of modern service industries in the world and a quality living global city: through bringing the unique advantage of "One Country, Two Systems" into full play and minimizing the institutional constraints, Hong Kong should speed up its integration with the PRD, the "Pan-PRD" and other parts of the Mainland, strengthen its status as an Asian international metropolis and further elevate its status as a world- class centre of modern services with focus on the finance and modern logistics services. � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �� Chapter 2 Development Objectives �� ―― Macao should become the most attractive tourism and �� leisure centre in the world as well as regional trading and commercial service platform: Macao should further solidify and strengthen its advantages in tourism industry and strive for becoming the most attractive tourism and recreation centre in the world. It should fully seize the opportunity of CEPA and the collaboration with the "Pan-PRD" region so as to build an appropriately diversified economy, especially to create conditions for establishing a trading and commerce service platform. It should actively strengthen the strategic cooperation with the PRD and the "Pan-PRD" region with a view to becoming a distinctive and quality regional commerce service platform which would promote multilateral economic cooperation between the enterprises in the Mainland and Portuguese-speaking countries.

2.3 Objectives by Phases

Short-term objectives (2012): the top priority is to deal with the financial crisis. Measures like regional cooperation, industrial transformation and macro-economic control by government will help to reduce the adverse effects of the international financial crisis to the minimum. By 2012, the GDP in the Greater PRD City-region is likely to have reached RMB5.73 trillion, with a population of 58 million people. The per capita GDP will have been nearly RMB100,000. The urbanization level will be approximately 84%. The GDP of the PRD, Hong Kong and Macao is expected to reach RMB4 trillion, RMB1.574 trillion and RMB1.567 billion respectively. The population in the PRD will hit 50 million; and the population of Hong Kong and Macao will be 7.21 million and 0.61 million respectively. The per capita GDP of the PRD, Hong Kong and Macao will reach RMB80,000, RMB220,000 and RMB260,000 respectively. The urbanization level in the PRD will have reached 81% (see Column 2-1 for the forecast methodology).

Mid-term objectives (2020): the flow of economic factors in the Greater PRD City-region should be basically unobstructed, the overall spatial structure of the City-region should be fully optimised, and the Bay Area should have all prerequisites to become the world's most developed city- region. By 2020, the GDP of the Greater PRD City-region is expected to be about RMB9.5300 trillion, with a population above 62 million people. The per capita GDP should be more than RMB150,000. The urbanization level should be about 87%. The GDP of the PRD will likely reach RMB7.25 trillion; the GDP of Hong Kong will reach RMB2.0726 trillion and the GDP of Macao will reach RMB206.3 billion. The population in the PRD, Hong Kong and Macao will be nearly 54 million, 7.72 million and 690,000 respectively. The per capita GDP of the PRD, Hong Kong and Macao will reach RMB140,000, RMB270,000 and RMB300,000. The urbanization level in the PRD will reach 85% (see Column 2-1 for the forecast methodology).

Long-term objectives (2030): the Greater PRD City-region should become a highly developed world-class city-region, the flow of economic factors should be more convenient and the regional economy should be highly integrated. The city-region should strive to achieve a GDP of RMB15 trillion, � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � ��

��

� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �� Chapter 2 Development Objectives �� with a population of more than 66 million people. The per capita GDP will �� exceed RMB220,000. The urbanization level will exceed 90% (see Column 2-1 � � � � � � � � � � � � � � � � �for the forecast methodology). � � � � � � � � � � � � � � � � � ��

 � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � ��  �� � � �� �� 5.73�� 5782�� 9.9�� 83.5��

�� �� 4.00� 5000�� 8.0� 81��

�� 1.57�� 721�� 22.0�� Approx�� 100

�� 0.16�� 61�� 25.8�� Approx�� 100 

  

     9.53 6211 15.3 87   7.25 5370 13.5 85 �  2.07 772 26.9 Approx 100

 0.21 69 30.1 Approx 100 �



  14.86 6608 22.5 90

 11.8 5701 13.5 85    2.79 831 33.5 Approx 100   0.28 76 36.5 Approx 100 



 � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �� Chapter 2 Development Objectives

�� Column 2-1: The Methodology for the Forecast of Development Indicators in the �� Greater PRD City-region (1) The economic growth targets of the PRD in 2012 and 2020 are based on the targets set out in the "Decisions of the Guangdong Provincial Committee and the People's Government of Guangdong Province to implement the Outline of the Plan for the Reform and Development of the PRD (2008-2020)" promulgated in April 2009 (the "Decisions"). The static growth rate in the PRD in 2021-2030 is set at 5%. (2) The forecast of population of the PRD is based on the economic output and forecast per capita targets set out in the "Decisions". Under the targeted trend, it is predicted that the average annual growth rate of population in the PRD in 2021 - 2030 will be 0.6%. (3) The forecast of urbanization level in the PRD in 2012 and 2020 is based on the established targets set out in the "Decisions". The urbanization level of Hong Kong and Macao is set at 100%. In view of the characteristics of overseas city- regions, the urbanization level in 2030 is set at 90%. (4) The forecast on population of Hong Kong is based on the "Hong Kong Population Projections 2007-2036" prepared by the Census and Statistics Department of Hong Kong SAR Government. The forecast on population of Macao is based on the "Macao Resident Population Projections 2007-2031" prepared by the Statistics and Census Service of Macao SAR Government. After making adjustments to reflect the actual situations, the average growth rate per annum in 2011, 2021, 2031 is adopted for the forecast of the population in 2012, 2020 and 2030. �(5) Making reference to various analyses and forecasts of the economy of Hong Kong and Macao, it is assumed that the economic growth of Hong Kong and Macao, which are relatively well-developed, would remain to be relatively low and stable. The GDP in 2008 (Hong Kong: about RMB1.4788 trillion, Macao: about RMB146.459 billion) is adopted as the basis for forecast. The trend of GDP growth as determined by static prediction is assumed as –4.0% in 2009 (due to the impact of economic crisis), 3.5% in 2010-2020, and 3% in 2021-2030. � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �� Chapter 3 Development Strategies � Chapter 3 Development Strategies ��

To build a coordinated and sustainable world-class city-region is a complex and all-encompassing strategic proposition. It relies on a good spatial structure as the development framework, enhanced accessibility as safeguard to development efficiency, and a high-quality environment as safeguard to coordinated and sustainable development. As such, this study proposed the strategies for spatial structure optimization, high accessibility and quality environment for achieving coordinated development of the Greater PRD City- region.

3.1 Strategy for Optimizing Spatial Structure

Spatial structure is an important factor in the development of a region. The purpose of optimizing spatial structure is to improve the linkages of various elements in the region in order to improve the efficiency in investment and utilization of resources for promoting economic growth and optimizing of industrial structure in the region1.

On the basis of the "National Urban System Planning (2005– 2020)", "Urban System Planning of Guangdong Province (2007–2020)", "Planning of the Pearl River Delta Townships (2004–2020)", and "Hong Kong 2030: Planning Vision and Strategy", and according to the objective of "developing a coordinated and sustainable world-class city-region", this chapter proposes that the optimization of spatial structure of the Greater PRD City-region should be launched in six aspects, namely a centralized "Bay Area", "Metropolitan Areas" with global functions, "Development Axes" oriented towards hinterland, "Development Tiers" for radiating function, integrated "Sub-regions" and "poly-centric network" of cities/towns. The strategy for optimizing spatial structure for the Greater PRD City-region could be generalized in one statement, "focusing at the Bay Area and three Metropolitan Areas, development of three Axes and four Tiers, and development of three Sub-regions in a poly-centric pattern" (Figure 3-1).

3.1.1 "Focusing at the Bay Area and three Metropolitan Areas"

(1) The "Bay Area" refers to the Bay Area of Pearl River Estuary. It broadly covers the whole of Hong Kong and Macao, the main parts of six cities including Guangzhou, Shenzhen, Zhuhai, Dongguan, Foshan and Zhongshan, and the main airports, ports and functional waterfront areas surrounding Pearl River Estuary. Because of its well-known position of being the regional industrial, ecological, political and cultural centres as well as a transportation hub, the Bay Area presents the core development space for the Greater PRD City-region. Guangdong, Hong Kong and Macao should make concerted efforts to develop the area into a region of innovations, high-end industries, transportation hub, quality environment, scenic attractions and 1 Chen Xiuying, Effects and Regional Strategy of Spatial cultural vibrancy so as to become a renowned liveable area in the world in the Reorganization [J], Finance and 21st century. Economics, 2003, (6):39-42. � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �� Chapter 3 Development Strategies ��

Pan PRD

Circum PRD

Pan-PRD and Major Domestic and International Markets Circum-PRD Outer GPRD

The Bay Area

Three Major Development Tier Metropolitan Areas

Regional Bay Area Development Axis

Boundary of GPRD Integrated Centre

Boundary of Sub- Specialized regions Centre Figure 3-1 Optimization of the Spatial Structure of the Greater PRD City-region (2) The "Three Metropolitan Areas" refer to the Hong Kong- Shenzhen, Guangzhou-Foshan and Macao-Zhuhai Metropolitan Areas. The details are as follows.

The Hong Kong-Shenzhen Metropolitan Area should aim to consolidate Hong Kong's status as an Asia's World City and Shenzhen as one of China's economic centres. The Metropolitan Area's functions of promoting the development of the PRD, "Circum-PRD", "Pan-PRD"1, other parts of China as well as the overseas should be strengthened. The Metropolitan Area should also develop as one of the most important centres of modern service industries in the world. Such collaborative platforms as the "Shenzhen/Hong Kong Innovation Circle" and "Shenzhen-Hong Kong Cooperation Agreement" should be fully utilized to further strengthen coordinated development within the area.

The Guangzhou-Foshan Metropolitan Area should aim at strengthening Guangzhou's status as a key city, an integrated gateway and a regional centre of culture and education of China. Guangzhou should be developed as the best liveable area of Guangdong and an international metropolis oriented towards the world and serving the whole of China. The integration of Guangzhou and Foshan should be promoted. New methods for integration should be explored in such aspects as integration of infrastructure, industrial cooperation and integration of public services, making the Metropolitan Area one of the most competitive production centres and influential integrated service centres in the world.

1 For the scope of Pearl River The Macao-Zhuhai Metropolitan Area should make full use of Delta, Circum-Pearl River Delta, Macao's status as an international leisure and tourism centre, and a regional and Pan-Pearl River Delta, refer to paragraph 3.1.2 and Figure 3.3. trading and commercial service platform. Zhuhai's position as the key city on � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �� Chapter 3 Development Strategies � the west bank of PRD should be reinforced. Strengthening the Macao-Zhuhai �� Metropolitan Area will increase the influence of the two cities on the west bank of PRD, capitalize on the area's advantages of the abundance of resources and good environment, promote the development of large-scale industries and form a new economic growth pole.

(3) "Focusing at the Bay Area and three Metropolitan Areas": this strategy is to ensure that the Bay Area and the three Metropolitan Areas, via coordination or cooperation actions, will surmount the constraints set by administrative divisions and inadequate transport infrastructure for efficient distribution of economic factors, and form an enhanced spatial structure to consolidate economic development. Externally, the Bay Area and the three Metropolitan Areas would participate in international competition and cooperation "on behalf" of the Greater PRD, targeting to exercise the consolidation functions of global cities like New York, London and Tokyo. Internally, it should take a pivotal role in promoting the overall economic development of PRD and "Circum-PRD", and serving as an economic centre of China (Figure 3-2).

Figure 3-2 The Strategy of Focusing at the Bay Area and Three Metropolitan Areas

3.1.2 "Development of Three Axes and Four Tiers"

(1) The "Three Axes" refer to the three major development axes in the region, namely the roughly north-south running "Guangzhou/Shenzhen/Hong Kong Development Axis" (connecting Guangzhou, Dongguan, Shenzhen and Hong Kong) and "Guangzhou/Zhuhai/Macao Development Axis" (connecting Guangzhou, Foshan, Zhongshan, Zhuhai and Macao), and the east-west running "Coastal Development Axis" (connecting Shenzhen and Hong Kong on the east bank with Zhongshan, Zhuhai and Macao on the west bank, via the Hong Kong-Zhuhai-Macao Bridge, Shenzhen-Zhongshan Bridge and, in the long term, the railway bridge crossing Pearl River). � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �� Chapter 3 Development Strategies �� The idea of "Three Axes" is developed on the basis of the "regional �� development backbone" set out in the "Planning for the PRD Townships" for strengthening Guangzhou and Shenzhen as the regional centres and integrating the functions of the areas along the Guangzhou-Hong Kong axis to improve the overall competitiveness of the region. From an internal perspective, the upgrading of the Guangzhou/Zhuhai/Macao Development Axis and the establishment of Coastal Development Axis, combined with the strengthening of the Macao-Zhuhai Metropolitan Area as the new pivot of the Bay Area, will help the Hong Kong-Shenzhen Metropolitan Area to radiate its influences onto the west bank of PRD, promoting the west bank as the region's new growth pole. From an external perspective, the extension of Coastal Development Axis to its eastern and western flanks will bestow the region, currently at a peripheral position of China's land transport network, with a stronger pivotal status. With the strengthening of Guangzhou/Zhuhai/Macao and Guangzhou/ Shenzhen/Hong Kong Development Axes, the region will be linked with the Mainland along the "Beijing/Guangdong artery" to the north, and along the coastal rapid railway to the east and west. From the perspective of Hong Kong and Macao, the three major development axes mark the first time that both cities are included in the PRD transportation hub at the Bay Area. The ability of Guangdong, Hong Kong and Macao to connect with a greater hinterland will be improved.

(2) The "Four Tiers" refer to the multi-tier development space formed by the Bay Area, the outer Greater PRD, the "Circum-PRD" (including the eastern, western and northern Guangdong and the adjoining peripheral areas) and the "Pan-PRD" (including nine provinces, i.e. Guangdong, Fujian, Jiangxi, Guangxi, Hainan, Hunan, Sichuan, Yunnan and Guizhou).

The "Circum-PRD" and "Pan-PRD" form the principal hinterland that connects Greater PRD with the other regions in China. Their function is to consolidate and expand the influences of the Greater PRD, notably the Bay Area. On one hand, the Bay Area would provide impetus for the "Circum- PRD" to participate in the coordinated development of Guangdong. On the other hand, the development of "Circum-PRD" would strengthen the linkages between the Greater PRD and the economic hinterland of the "Pan-PRD" (Figure 3-3). � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �� Chapter 3 Development Strategies � �� Pan-PRD and Major Markets in China and in the Overseas

Circum-PRD

Outer-GPRD

Bay Area

Pan-PRD and Major Domestic and Overseas Markets Circum-PRD

Outer GPRD

Bay Area

Three Major Development Axes

Figure 3-3 The Strategy of Developing along Three Axes and Four Tiers

From the perspective of regional development, the development of four Tiers should be considered in a scope covering a larger area in the Mainland as well as overseas. Efforts should be made to engage with the major markets in China such as the Yangtze River Delta and the Beijing-Tianjin-Hebei region to form a great development axis in the east. Efforts should also be made to engage with the overseas markets for enhancing global connections. The advantages of export-oriented economy of the Greater PRD should be fully utilized to explore new overseas markets, consolidate the traditional markets like Europe, USA and Japan, further strengthen the cooperation with Southeast Asia in the "10+1" free trade framework, and reinforce the position as a gateway for connecting the markets in China and overseas (Figure 3-4).

3.1.3 "Development of Three Sub-regions in a Poly-centric Pattern"

(1) The "Three Sub-regions" refer to the Eastern Sub-region comprising Hong Kong, Shenzhen, Dongguan and Huizhou; Central Sub- region comprising Guangzhou, Foshan and Zhaoqing; and Western Sub- region comprising Macao, Zhuhai, Jiangmen and Zhongshan. In this study, the development of the three Sub-regions is proposed to highlight the importance of balanced development and allowing resource allocation and spatial development in the approach which is specific to the need of individual cities/towns. The Sub-regions will serve as the spatial units for integration of economic development in the Greater PRD region.

The formation of the three Sub-regions signifies the end of a situation that each city in the PRD does things in its own way. The potential of economy of scale and economic agglomeration will then be realized. The development of Sub-regions will be conducive to the mutual complementation and functional integration among the Bay Area, the Metropolitan Areas and the Outer Greater � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �� Chapter 3 Development Strategies ��

Figure 3-4 The Multi-tier Development Space PRD. It will also help integrate the infrastructure within the region and promote the development of integrated and specialized centres at the peripheral areas. In turn, it will boost urbanization (not only the development of towns driven by industrialization and integration of towns and villages, which is characterized with low-quality social and economic development). The functional integration of the Sub-regions will inevitably bring about reforms in the modes of economic development and resource allocation. The problems that exist in the previously uncontrolled economy and scatter land uses and town development will be rectified. A platform for the resolution of certain sub-regional environmental problems, such as the control of water quality of rivers with small catchment area, will become available.

Eastern Sub-region: the key objective is that Hong Kong and Shenzhen should work together to build a global centre of finance, logistics, trading, innovation, and innovative culture. Based on the "Shenzhen/Hong Kong Innovation Circle" and the "Framework Agreement on Promoting Close � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �� Chapter 3 Development Strategies � Cooperation in the East Bank of the Pearl River Estuary", comprehensive �� cooperation on areas such as development planning, industrial development, regional innovation, transportation, safeguard of energy supply, water resources and flood control, information network, environment and ecology, and public administration should be encouraged.

Central Sub-region: Guangzhou should make full use of its advantages as a provincial capital and a major city in the Greater PRD City- region. Building on the integration of Guangzhou and Foshan, Guangzhou, Foshan and Zhaoqing should join hands to implement their consensus in building a "Guangzhou-Foshan-Zhaoqing economic zone". They should first make breakthroughs in areas such as planning, transportation infrastructure, industrial development, ecology protection, education, culture, healthcare, tourism, public safety and cooperation in the "double shift"1 process to set an exemplar role in promoting integration in the PRD. Priority should be given to the development of high-end service industry, construction of advanced manufacturing base, advancement of the capabilities in innovation and establishment of a modern industrial system. Guangzhou should also amass greater cultural strengths, increase its competitiveness, underpin its status as a major city of China, an integrated gateway city and a regional cultural and educational centre, and enhance its radiating and driving power. The ecology in Zhaoqing should be protected and the tourism resources there should be properly developed, coupling with the industrial resources in the Guangzhou- Foshan Metropolitan Area, to promote overall economical growth in the Sub- region.

Western Sub-region: on the basis of the protection of ecology, the cities in this Sub-region should work towards closer cooperation in areas such as planning, transportation, industry, environmental protection, technology, contingency management, Hong Kong – Macao cooperation, and servicing the western Guangdong in order to enhance the overall development level and competitiveness of the Sub-region. The Zhuhai - Macao Metropolitan Area should serve as the centre of the Sub-region to take full advantages of Macao as "an international tourism and leisure centre and a regional trading and commercial service platform", and solidify the status of Zhuhai as a key city in the west bank of Pearl River. Zhuhai should play an important role similar to Guangzhou and Shenzhen to lift the development level of the west bank of PRD.

(2) "Poly-centric pattern" refers to the multi-node network of cities and towns in the Greater PRD City-region, which are of different scales and 1 "Double shift" refers to the are arranged in clearly defined hierarchy. It includes: economic policy of Guangdong Province to encourage the relocaton of labour-intensive The Centres of the city-region: comprising the six regional centres industries in PRD to the less forming the Hong Kong-Shenzhen, Guangzhou-Foshan and Macao-Zhuhai developed areas and the flow of labour of the less developed areas Metropolitan Areas. They carry out the most comprehensive and highest level of to the secondary and tertiary functions in the city-region, including division of labour on the regional, national sectors of the local area and to PRD in order to achieve overall and international levels, and the radiating, driving and servicing functions within economic development of the the city-region. Province. � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �� Chapter 3 Development Strategies The integrated centres in sub-region level: comprising the other �� five prefecture-level cities in the PRD. Through strengthening the integrated �� servicing functions of these cities, the servicing capacity of the three Sub- regions will be improved and the competitiveness of the Greater PRD City- region will be enhanced.

The specialized centres in sub-region level: comprising those relatively developed industrial parks and specialized towns in the Bay Area and along the three major Development Axes. Through institutional arrangements and industrial integration, they will form new sub-regional centres. Through spatial and functional integration and optimization, these centres will achieve economy of scale and economic integration to enhance the industrial competitiveness of the Greater PRD City-region.

The specialized towns: comprising the various specialized towns which are of different industrial advantages and development characteristics. Through spatial integration of land use and industries, the urbanization process of these specialized towns will be enhanced leading to the formation of local manufacturing centres with industrial agglomeration.

(3) The "development of three Sub-regions in a poly-centric pattern" underpins the distinctive functional framework of the Greater PRD City-region for co-ordinated development of the region. The formation of the three Sub-regions will bring Hong Kong and Macao into the framework in which the cities in PRD have been working towards closer relationships (for example, the integration of Guangzhou and Foshan). While promoting the functional integration of Hong Kong, Macao and PRD, the gap between the development levels of the east and west banks of the Pearl River should be narrowed to achieve a more balanced regional development. The "poly-centric" strategy aims at developing a rational structure of cities/towns in the city- region, encouraging the cities/towns to make full use of their local advantages for specialized development to achieve an integrated development and "smart growth" of the region (Figure 3-5).

3.1.4 The internal relationship within the spatial structure

The concepts of "Bay Area", "Metropolitan Area", "Development Axis", 'Development Tier", "Sub-region" and "poly-centre pattern" have their own distinctive meanings but are also correlated. They will jointly reinforce the various functions of the Greater PRD City-region, forming the region into a spatial entity to attain the objective of developing into a world- class city-region. The interrelationship of the concepts is as follows:

(1) The Bay Area is the major spatial unit in the Greater PRD City- region carrying out global functions. The three "Metropolitan Areas" will collectively fulfil their roles as "global cities" on the basis of cooperation across administrative boundaries. The "consolidation-radiation" functions of the Bay Area (including the three Metropolitan Areas) can only be achieved by � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �� Chapter 3 Development Strategies � ��

Figure 3-5 The Strategy of Development of the Three Sub-regions in Poly-centric Pattern

strengthening the Development Axes and Development Tiers. The three Sub- regions will directly support the three Metropolitan Areas and will also form the direct hinterland of the Bay Area.

(2) The concepts of "Sub-region" and "poly-centric pattern" are not only related to the different functions of individual sub-regions and cities/ towns. They also represent the complementation and integration of these spatial entities. Each city would have its own development agenda but they should cooperate on the sub-regional level to narrow the gap between the development levels of the east and west banks of Pearl River and attain a closer integration among Guangdong, Hong Kong and Macao. In each Sub- region, the driving role of the "Metropolitan Area" in the establishment of integrated service centres and specialized industrial centres should be emphasized. The integration of functions should be achieved through the institutional integration in the Bay Area and the linkage of the "Development Axes".

(3) The Bay Area is the core of the four "Development Tiers". Further away from the core, the economic influences of the Bay Area will decrease. The postulation of "tier" development is to "expand" the Bay Area's influences. The effectiveness of expansion would depend on such factors as the industrial and institutional setup, manpower and infrastructure in each tier. The "Development Axes" provide the direct driving force of tier development. The development of the tiers of "Circum-PRD" and "Pan-PRD" will be in form of the development of new cities/towns and a poly-centric network of cities/ towns.

3.2 Strategy for High Accessibility

As an essential factor of mobility, well-developed transportation � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �� Chapter 3 Development Strategies infrastructure is one of the prerequisites for economic development. A �� world-class transportation hub connecting with other areas within the local �� country as well as the overseas is a necessary condition for a coordinated and sustainable world-class city-region. The importance of transport accessibility is also demonstrated in the success of the well-established city-regions and the globalization of economic systems which is characterized with high mobility of human and resources. For this reason, a Strategy for High Accessibility should be applied to build the Greater PRD into a world-class city-region (Column 3-1). Based on the status-quo and development trend of the Greater PRD City-region, the Strategy should be implemented through further optimizing the overall transportation network, the regional transportation hubs and the intercity transportation systems as well as their respective connecting infrastructures, including the cross-boundary facilities.

Column 3-1: The Meaning of Accessibility Accessibility means the degree of convenience of travelling from one place to another via a specific transportation system. It reflects the ease or difficulty for two places to overcome the communication constraints caused by physical separation and can be interpreted as a measurement of the relationship between two places. Accessibility is usually measured in terms of time (e.g. "one-hour commuting circle"), which is a fundamental consideration in travelling. Thus, accessibility does not only concern the use of traffic infrastructure to shorten the distance between two places but also the use of transportation modes and traffic management means, the latter in particular, to achieve connection and integration of transportation facilities to minimize the time for travelling and cargo transportation.

The Greater PRD City-region is characterized as a "gateway-type" integrated transportation hub. It is a navigation centre that connects with overseas countries and a transportation hub that connects with all areas within China. It also comprises cross-boundary transportation. From the consensus reached among Guangdong, Hong Kong and Macao in all levels of planning and taking into account the existing transportation problems in the region, the transportation development in the region should proceed towards the objectives of being more integrative, convenient, pivotal and environment-friendly. On this basis, this chapter sets forth the Strategy for High Accessibility for the Greater PRD City-region, which includes the establishment of a systematic transportation network comprising the Bay Area as the hub of external linkages, a "one-hour intercity commuting circle" (Figure 3-6) and "seamless connections" in cross-boundary traffic.

3.2.1 The Bay Area as the transportation hub of external linkages

Due to the existence of administrative boundaries, no single city in the Greater PRD City-region can play the important role of transportation hub of external linkages without the support of other cities. In the circumstance, the Bay Area as a whole should be made the hub of the external transportation system of the Greater PRD City-region. All concerned cities should co-ordinate amongst themselves in transportation planning through effective cooperation mechanisms, and set up convenient connections between major transportation nodes to help establish an integrated transportation hub. � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �� Chapter 3 Development Strategies � ��

City Node

One-hour Commuting Circle within Metropolitan Area

One-hour Commuting Circle within Sub-region One-hour Commuting Circle within Bay Area

Planned Railways

Planned Expressways

Bay Area

Figure 3-6 "one-hour intercity commuting circle" In making the Bay Area the transportation hub, all cities within the area should abandon the idea of acting as an independent transportation hub, and should work together to establish a "multi-airport system" and an "integrated port system" in the region which run across the administrative boundaries. The overall position of the Bay Area as a transportation hub of external linkages should be reinforced when planning the regional expressway and railway networks, and the connections between the important facilities such as airports and ports should be strengthened to increase the integrity of the external transportation system.

3.2.2 The "one-hour intercity commuting circle"

The "one-hour intercity commuting circle" involves the establishment of express transportation networks of mainly railways and expressways which link up major transportation nodes in the Greater PRD City-region. It comprises mainly the following three components:

(1) a "one-hour commuting circle within the Bay Area", which would enable the transportation from one major node to another between any two cities in the Bay Area to complete in less than one hour;

(2) "one-hour commuting circle within Sub-regions", which would enable the transportation from one major node to another between any two cities in each of the three Sub-regions to complete in less than one hour;

(3) "one-hour commuting circle in Metropolitan Areas", which would enable rapid commuting across the boundary between the cities in each of the three Metropolitan Areas.

Apart from the implementation of the intercity rail links, the railway network within each city should also be improved. The stations of intercity rail links should be taken as the nodes for connecting to the railway networks of individual cities. � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �� Chapter 3 Development Strategies �� The "one-hour intercity commuting circle" of the Greater PRD City- �� region is established to enhance the mobility of passengers and cargo within the city-region so as to make the urban functions like transportation, land use, employment and living more convenient and to create a more efficient form of spatial organization.

3.2.3 "Seamless Connections" in cross-boundary traffic

Achieving "seamless connections" in cross-boundary traffic between Hong Kong, Macao and the PRD would help ease the traffic congestion caused by administrative boundaries, reduce the time and cost on CIQ clearance, and enhance the overall transportation efficiency within the Greater PRD City- region. Focus should be put on the coordination in the improvement of cross- boundary transportation routes and boundary crossing facilities.

(1) As regards the improvement of cross-boundary transportation routes, the implementation of the major cross-boundary infrastructure projects as agreed among the State, Hong Kong/Macao and Guangdong Province should be expedited. Connections of the major transportation routes among Guangdong, Hong Kong and Macao should be enhanced, and express routes linking up the airports and ports in the region should be established. By means of expressways and intercity express railways, special routes connecting the airports should be established.

(2) Regarding the boundary crossing facilities, the BCPs connecting the "adjoining areas", such as those between Hong Kong and Shenzhen, Hong Kong and Macao, Hong Kong and Zhuhai, and Macao and Zhuhai, as well as those connecting the "non-adjoining areas", such as those between Hong Kong/Macao and the inland areas of PRD region, should be enhanced. The boundary control facilities should be expanded to enhance the CIQ clearance efficiency. Furthermore, the boundary-crossing facilities for the "non-adjoining areas" should be enhanced to help satisfy the cross-boundary transportation needs between different areas in the Mainland and Hong Kong/ Macao. On the basis of optimizing the spatial arrangement of boundary crossing infrastructure, studies on the improvement of cross-boundary transportation management should be undertaken. By introducing hi-tech methods and innovative management practices and the enhancement of "soft environments", it is expected that the effectiveness and efficiency of cross- boundary infrastructure can be optimized to achieve "seamless connections".

3.3 Strategy for Quality Environment

While the PRD manages to make great strides in its social and economic development by means of extraordinarily rapid industrialization and urbanization, it pays the price by having its ecology and environment deteriorated. Ecology, atmospheric environment and aquatic environment should be considered as a whole and form the basic components of quality environment of the Greater PRD City-region to safeguard a quality living area � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �� Chapter 3 Development Strategies � for the region. For this purpose, this chapter proposes a Strategy for Quality �� Environment for the Greater PRD City-region, which is set out "to establish a comprehensive eco-security system in the region with emphasis on protecting the ecologically sensitive areas; to promote the control over atmospheric and aquatic environments and intensify the comprehensive control over major polluting sources and polluted areas; and to ascertain the environmental protection responsibilities of each city through effective cooperation".

3.3.1 To establish a comprehensive eco-security system in the region with emphasis on protecting the ecologically sensitive areas

The comprehensive eco-security system of the Greater PRD City-region should comprise the three major rivers (as river-based ecological corridors), seven mountain ranges (as natural ecological corridors), three vertical and three horizontal trunk routes (as traffic ecological corridors), and nine major eco-functional zones in the region (see Column 3-2) to form a "tree-form" network of green areas and water systems providing adequate safeguard to the ecosystem. The functional origins and nodes of ecological significance should be identified and protected as part of an integrated ecosystem comprising clean water and green hills, and with green belts as an important landscape element. Efforts should also be made to protect the ecologically sensitive areas such as the Pearl River Estuary, Shenzhen Bay, Mirs Bay, Wugui Mountain-Fenghuang Mountain-Hengqin Island, Wanshan Islands and so on (Figure 3-7).

Column 3-2: The Eco-security System "Three Rivers" : Xi Jiang, Bei Jiang and Dong Jiang in the Pearl River system; "Seven Mountains" : the hilly areas comprising Lianhua Mountain and its residual range, Maluan Mountain, Wutong Mountain, Pat Sin Leng–Tai Lam Country Park; the hilly areas comprising Baipenzhu Reservoir-Gutian Nature Reserve– Xiangtou Mountain; the hilly areas comprising Luofu Mountain–Liuxihe Reservoir in Chonghua; the hilly areas comprising Dinghu Mountain area–Liantang; the hilly areas comprising Genghe–Zhaiwu–the western hilly area of Enping; the hilly areas comprising Gudao Mountain-Liangmo Mountain; and the hilly areas comprising Hengqin–Fenghuang Mountain–Wugui Mountain; "Three Vertical and Three Horizontal Trunk Routes": the "Three Vertical Trunk Routes" refer to the routes along Beijing-Kowloon Railway – National Expressway 205 – Huizhou-Heyuan and Huizhou-Yantian Expressways; Beijing- Guangzhou Railway – Beijing-Zhuhai Expressway – National Expressways 105 & 106 – Guangzhou-Shenzhen and Guangzhou-Qingyuan Expressways and South China Expressway; and Xinhui-Taishan and Foshan-Kaiping Expressways – National Expressway 325. The "Three Horizontal Trunk Routes" refer to the northern route which runs along National Expressway 321 & 324, Guangzhou- Zhaoqing, Guangzhou-Shanshui and Guangzhou-Huizhou Expressways, Guangzhou- Zhaoqing/Dongguan Railway; the central route that links Huizhou-Jiangmen, Jihe and Shenzhen-Huizhou Expressways; and the coastal route that runs along the West Coastal Expressway, Yantian-Bagang and Shenzhen-Shantou Expressways. "Nine eco-functional zones": refer to Column 6-1. � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �� Chapter 3 Development Strategies ��

Inland River System Ecological Node

Eco-functional Zone

Eco-functional Origin

Traffic Eco-corridor Mountain-based Eco-corridor

River-based Eco-corridor

Figure 3-7 The Comprehensive Eco-security System of the Greater PRD

3.3.2 To promote the control over atmospheric and aquatic environments and intensify the comprehensive control over major polluting sources and polluted areas

For the improvement of air quality in the Greater PRD region, the concerned cities should co-ordinate among themselves in setting regional environmental standards and air quality objectives. Focus should be put on the prevention and control of air pollution in the Hong Kong-Shenzhen, Guangzhou-Foshan and Macao-Zhuhai Metropolitan Areas, and tightening the control over automobile exhaust emissions. Regarding the management of water quality, based on the principle of balancing between duties, rights and benefits, the concerned cities in the Greater PRD City-region as well as the entire catchment area of Pearl River should strive together for stronger cooperation in the control of water pollution of Pearl River and tackling the problem of water shortage induced by deterioration of water quality. All concerned cities should jointly protect the eco-security of Pearl River Estuary and establish quality ecology/environment for a liveable Bay Area .

3.3.3 To ascertain the environmental protection responsibilities of each city through effective cooperation

All cities should observe closely their respective responsibilities in the protection of environment and the comprehensive eco-security system. The relevant authorities should protect the major ecological nodes under their jurisdictions according to the comprehensive eco-security system. They should also strive together for the control over the regional ecology/ environment and the implementation of relevant technical measures to raise the standard of environmental protection in the region. Furthermore, they � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �� Chapter 3 Development Strategies � should work together on the implementation of common environmental �� objectives to protect the regional ecology and environment. Specific tasks include:

(1) To establish ecological zones with clear demarcation of protection responsibilities: to faciliate implementation of the comprehensive eco-security system, the Greater PRD City-region should be divided into three ecological zones, namely the East Bank, West Bank and Central Ecological Zones, each with distinctive focus of protection and clear demarcation of protection responsibilities among the concerned cities. The East Bank Ecological Zone comprises Hong Kong, Shenzhen, Dongguan and Huizhou. The focus is to protect the eco-functional origins such as the mountain ranges stretching from eastern Huizhou (Lianghua Mountain) to Shenzhen (Maluan Mountain and Wutong Mountain) and northern Hong Kong (Pat Sin Leng and Tai Lam Country Parks). The West Bank Ecological Zone comprises Macao, Zhuhai, Zhongshan and Jiangmen. The focus is to protect the eco-functional origins such as Wugui Mountain in Zhongshan and Fenghuang Mountain in Zhuhai. The Central Ecological Zone comprises Guangzhou, Foshan and Zhaoqing. The focus of protection is the eco-functional origins such as the Dinghu Mountain in northern Zhaoqing and the hills surrounding the Liuxihe Reservoir in northern Conghua.

(2) To strive together for the control over regional ecology and environment and the implementation of relevant technical measures to raise the standard of environmental protection: cities located in the Greater PRD City-region should focus on comprehensive control and prevention of the pollution caused by acid-rain, sulfur dioxide, nitrogen oxides, tiny particles, volatile organic compounds, industrial emissions, urban sewage, agricultural activities, etc. to raise the standard of environmental protection in the region.

(3) To implement common environmental objectives to protect the regional ecology and environment: all concerned authorities should fully implement the regional environmental objectives set forth in their respective environmental plans (such as the "Environmental Protection Plan for the Pearl River Delta") and those agreed between the governments to safeguard environmental protection in the Greater PRD City-region.