The case of Shanghai, China by ZHU Linchu and QIAN Zhi Contact: ZHU Linchu and QIAN Zhi Source: CIA factbook The Development Research Centre of Shanghai Municipal Government, No. 200 People's Avenue, Shanghai, 200003, P. R. China Tel.+86 21 63582710 Fax. +86 21 63216751 [email protected] [email protected] I. INTRODUCTION: THE CITY A. CHARACTERISTICS AND TRENDS IN THE URBAN DEVELOPMENT OF SHANGHAI The pace of urbanisation in China since 1978, Shanghai, one of the largest cities in China, sits together with the implementation of the Economic midway down China's coastline, where the country's Reform and Opening Up Policy and rapid economic longest river, the Yangtze, or Chang Jiang, pours into growth, has been fairly fast. Cities - big, medium-sized the sea. The city, at the mouth of the Yangtze River and small - have all undergone a period of construction delta, has the East China Sea to its east, the Hangzhou and redevelopment. Bay to the south, while behind it is the vast span of China's interior landmass. Shanghai's geographical location facilitates all forms of transport, with first-rate Figure 1: Urbanisation in China sea and river ports combined with the huge water trans- portation network, well-developed railways and roads, and two large international airports, which no other Chinese city has. The total area of Shanghai at the end of 2001 was 6,340.5 km2, covering 18 districts, one county, 144 zhen, 3 xiang, 99 sub-districts, 3,407 residents commit- tees, and 2,699 village committees. Shanghai occupies 0.06 per cent of the national area and houses 1.31 per cent of the national population, producing 5.16 per cent of national income. Its GDP per capita has reached US$4,510, which is 4.96 times the national average. Urban Slums Reports: The case of Shanghai, China 1. Physical Geography the Shanghai Zhen was established. In 1260 -1274 (in Shanghai has a typical North Asian subtropical the Jing Ding Reign and Xian Chun Reign of the Song monsoon climate, mild and moist, with four distinct Dynasty), Shanghai Zhen had already become a very seasons and plenty of sunshine and rain. Spring and important seaport. In 1292 AD (the 29th year of the Zhi autumn are relatively shorter than summer and winter. Yuan Reign of Yuan Dynasty), Shanghai City was In 2001 the annual average temperature was 17.7C, formally established. During the 16th century, in the there were 276 frost-free days, and annual precipitation middle of the Ming Dynasty, Shanghai came to be known was 1,594.3 mm. as a national cotton textile handicraft centre. In 1685 (the The Shanghai area is criss-crossed by rivers and 24th year of the Kang Xi Reign of Qing Dynasty), the streams. The surface area of the water bodies in the city customs house was established. At this time Shanghai is 697 km2, 11 per cent of the total area. The main rivers had become a city of two hundred thousand residents. are the Yangtze, the Huangpu and the Suzhou. In the 80 years or so after 1843, especially after 1927 Shanghai sits on the flat silt plain of the Yangtze Delta, when Shanghai was designated as a Special City, with a small number of hills, the average altitude being municipal development was very rapid. 1934 saw 4 metres above sea level. Shanghai's population increase to 3.4 million, and the city was called the financial centre of the Far East, rank- Figure 2: Geographical Location of Shanghai ing fifth after London, New York, Tokyo and Berlin. At that time, the statistics showed that foreign trade and indus- trial output in Shanghai accounted for more than half of the China total. More than 80 per cent of the residents of Shanghai were born elsewhere. At the peak of foreign intervention, there were more than 150,000 expatriates living in Shanghai from nearly 40 countries including Great Britain, France, the United States, Japan, Germany, Russia, Italy, Poland, Czechoslovakia and India. Such a host of immigrants from the world as well as other parts of China greatly enriched the local culture of Shanghai and facilitated the intercourse between Shanghai and many other countries of the world. 3. Population Structure and Demographic Changes Shanghai is among the cities with the largest popula- tions in the world. Its total registered population in 2001 was 13.3 million, which is 2.6 times larger than that of 2. Development History 1949, with a density of 2,093 people per km2. The ratio of urban to rural population is 75.3:24.7. The male to The development curve of Shanghai is unique in the female gender ratio is 50.4:49.6. The non-resident popu- history of China's urban development. In 751 AD (the lation has grown very rapidly with socio-economic 10th year of the Tian Bao Reign of the Tang Dynasty), expansion. According to the fifth census conducted in the jurisdictional set-up of Huating County came into Shanghai, the city now has a non-resident population of being in what is now the Songjiang District, covering the 3.9 million. land to the north of what is now Hongkou District, south Shanghai was the first Chinese city to experience of the coast, and east of the town of Xiasha. In 991 AD negative natural population growth, starting in 1993. In (the 2nd year of Chun Hua Reign of the Song Dynasty), 2001 the birth rate of residents was 4.3 per thousand and the death rate 7 per thousand, with the nega- Figure 3 Population Change in Shanghai tive growth rate being minus 2.7 per thousand. The fifth census also found that the proportion of residents with tertiary education accounted for 11.4 per cent of all those residents older 6, which is 4.3 per cent higher than in 1990. The proportion of resi- 14000 dents with only primary education or less dropped 12000 by 11.1 per cent during the same period. 10000 8000 Total 6000 4000 non agric 2 UNDERSTANDING SLUMS: Case Studies for the Global Report on Human Settlements 2003 4. Municipal Management System the non-state sector increased from 10,000 in 1990 to Shanghai has a two-level government and three-level 170,000 in 2000. management system. That is to say, governments at the municipal and district/county levels. The municipal 3. The rapid expansion of the foreign investment government takes care of city macro-planning, regula- sector. The opening up of the economy, with the Pudong tions, industrial sector management and market order development the leading the way, foreign direct invest- maintenance. The district/county government is devoted ment (FDI) and foreign trade increased day by day, to to local construction, management and administration make Shanghai the most open city in China. Foreign and law enforcement. The two levels of governments investment funds in the 1990s came to US$45.6 billion, are co-ordinated and reinforce each other. In addition, about the same as the GDP of India. There are now the third arm is sub-district zhen and xiang administra- 250,000 businesses with foreign investments in tion that performs local community management, such Shanghai, among which 54 are foreign financial firms. as cleaning and sanitation, traffic order, neigh- bourhood safety and environmental protection. The agency responsible for the city water Figure 5: FDI in Shanghai supply is the water supply section under the 60 municipal bureau of water affairs. Its responsibil- 50 ities are municipal water use planning, water 40 FDI(US$ 100 million) conservation, use of underground water, includ- 30 ing mineral water, license issuing and day to day 20 care, together with running water pipe construc- 10 0 tion and protection and supervision of private 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 water facilities. The running water supply is entrusted to four municipal water companies in Minhang, Pudong, Shibei and Shinan. The municipal power supply is managed by the Shanghai Power Company. SPC has four sub-compa- 4. Since the 1980s, Shanghai has undertaken major nies for power distribution. infrastructure projects like the fast mass transit system, the expressway network connection with neighbouring areas, an international airport and international info-port. 5. Economic Development Aspects of Ten major cultural constructions like the Oriental Pearl the 1990s TV Tower were also built. The city's environment has Shanghai's economic take-off and systemic transfor- made marked progress with a green belt circling the city mation occurred to a large extent in the 1990s, when the and a number of fairly large green parks. The forestation Pudong New District development began, as the rate of the city has gone up steadily. Several huge "dragon head" for the Yangtze River Basin develop- construction projects are under way at this moment, ment. such as the deep water container port in Yangshan, the The main aspects of this process were: phase two construction of the Pudong international 1. Stable and sustained economic growth. During the airport and the world's first commercial magnetic levita- 1990s, Shanghai's economy experienced a two digit tion railway line. growth, with little fluctuation. 2. The steady development of a market economy. 6. Future Developments Thanks to the market reforms, the debt to assets ratio of The early years of the 21st century have become a the state owned enterprises (SOEs) dropped from 78 per critical time for Shanghai to develop as an international cent to below 50 per cent.