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New Industrialization Strategy of Hunan Province

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New Industrialization Strategy of Hunan Province New Industrialization Strategy of Hunan Province Hunan Development Strategy Asian Development Bank July 2010 © 2010 Asian Development Bank All rights reserved. Published 2010. Printed in the People's Republic of China The views expressed in this book are those of the authors and do not necessarily reflect the views and policies of the Asian Development Bank or its Board of Governors or the governments they represent. The Asian Development Bank does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use. Use of the term “country” does not imply any judgment by the authors or the Asian Development Bank as to the legal or other status of any territorial entity. Abbreviations ADB Asian Development Bank Bi-Pattern Society Resource Saving and Environmental Friendly Society BOT Build-Operate-Transfer Chang-Zhu-Tan Changsha, Zhuzhou, and Xiangtan CPC Communist Party of China EA Executive Agency EITEP Euro Institute for Information and Technology Transfer in Environmental Protection GDP Gross Domestic Product HNASS Hunan Academy of Social Sciences HNDEP Hunan Department of Environmental Protection HNDOF Hunan Department of Finance HNDRC Hunan Development and Reform Commission HNEIC Hunan Economic Information Center HNIPSR Hunan Institute of Policy and Science Research HR Human Resources IER Institute of Economic Research, NDRC IMF International Monetary Fund IITE Institute of Industrial and Technological Economics, NDRC MIAO Mechanical Industry Administration Office, Hunan Province MOF Ministry of Finance, PRC NDRC National Development and Reform Commission OECD Organization for Economic Cooperation and Development PRC People‘s Republic of China PPP Private-Public-Partnership R&D Research and Development RIFS Research Institute for Fiscal Science, MOF SAT State Administration of Taxation, PRC SC Steering Committee SOEs State-Owned Enterprises TA Technical Assistance TOT Transfer-Operate-Transfer UNDP United Nations Development Program WB World Bank 10FYP the 10th Five-year Plan (2001-2005) 11FYP the 11th Five-year Plan (2006-2010) i 12FYP the 12th Five-year Plan (2011-2015) 13FYP the 13th Five-year Plan (2016-2020) CNY Yuan $ US Dollar € Euro ii Acknowledgements The People‘s Republic of China (PRC) is facing many contradictions in the course of industrialization, such as the contradiction between the upgrading of industrial structure and the expansion of its scope, the contradiction between demand for upgrading of industrial structure and insufficient labor supply, and the contradiction between the rapid growth of industrial sectors and their environmental and social responsibilities. The new industrialization road is a new thought presented in terms of the PRC‘s actual situation and the world development trend of industry. The new industrialization is in essence an industrialization mode selected in the country making use of modern technologies and as propelled by economic globalization under the background of high population pressure, resource constraint and environmental restriction, in view of the catch-up strategic objectives. The technical assistance (TA) project Development Strategy of Hunan Province (hereinafter referred to as ―the project‖) is a part of the ADB TA project TA 7036 PRC: Provincial Development Strategies for Selected Provinces in the Central Region， aiming to help the Party Committee and Government of Hunan Province to formulate a long-term development strategy. The project examines closely the new industrialization strategy of Hunan Province, aiming to explore a good and fast strategic approach to achieve economic and social development goals in such a traditional agricultural area as Hunan Province. No matter in 12FYP period or 13FYP period or even in a longer period of time afterwards, to promote new industrialization is of top priority among all jobs in Hunan Province. Basic ideas and strategic measures presented in the project outputs will constitute an important basis for decision making during 12FYP for Hunan Province. In addition, the project outputs will have a bigger impact and play a greater role in the development of Hunan, in the central region, and even in the development of the whole country in the long-term. It will provide experience for the transition of the development pattern in the PRC. This project was prepared by the IER, NDRC of the PRC. The consulting team consists of international consultants, national consultants, and independent consultants. The project outputs include: (i) the main report New Industrialization Strategy of Hunan Province; (ii) subreport 1 Strategy for Equipment Manufacturing Industrial Development of Hunan Province; (iii) subreport 2 Strategy for Coordinated Development of the logistics industry of Hunan Province; and (iv) subreport 3 Strategy of Energy Conservation and Environmental Protection in Hunan Province. The main report was prepared by Chen Xinnian. The subreport 1 was prepared iii by Zeng Zhize and Sun Xuegong. The subreport 2 was prepared by Luo Boyang and Zhou Zhenhong. The subreport 3 was prepared by Liu Shan. Mr. Klaus Ritter (International consultant) provided international experience and case study in energy development relevant to Hunan. Mr. Chen Langnan (International Consultant) provided international experience and case study in equipment manufacturing and logistics relevant to Hunan. Tang Yuwen offered recommendations on investment and financing strategy and policy. Liu Shangxi (Independent Consultant) and Zeng Jianguang (Independent Consultant) prepared fiscal reforms and policy design for new industrialization in Hunan. Besides, other experts who were involved in field study and discussion include: Xiang Wei, Wang Yun, Yang Juan, Chen Shaoqiang, Chang Hong, Chen Guo, Chen Wen, Sun Jianjun, and Wang Qian. The consulting team got strong support from the Steering Committee (SC) and executive agency (EA) for our research, and also benefited from opinions given by experts with NDRC (e.g. Liu Fuyuan, Fan Hengshan, Chen Dongqi, Ma Xiaohe, Chang Xiuze, Zhang Yansheng, Guo Xiaopei, Zang Yueru, Yang Xiaobing, Wang Yueping, and Wu Xiaohua); and experts in Hunan Province (e.g. Liu Maosong, Wu Jinming, and Dai Leping). The instructions given by those experts have broadened the research mind of the consulting team and ensured the quality of the project. We want to give special thanks to all these experts. We would like to thank Ms. Kanokpan Lao-Araya (Economist, ADB) and Mr. Zhuang Jian (Senior Economics Officer, ADB) who are the TA task managers, Ms. Gan Mei (Assistant Project Analyst, ADB) who helped administer the TA finance. Finally, we want to thank Mr. Klaus Ritter who reviewed, edited and polished the final reports, and Ms. Wang Yun who helped with reviewing and editing. iv Contents Executive Summary ........................................................................................................................ 1 I Basic Ideas of New Industrialization Strategy of Hunan Province .................................. 2 II Policies and Measures to Promote Hunan Province‘s New Industrialization Strategy .... 5 III Investment and Financing Strategies and Local Fiscal Reforms and Policy Design for New Industrialization of Hunan Province ................................................................................. 8 IV Strategies for the Three Focused Areas ........................................................................... 9 Chapter I Research Background and Objective ..................................................................... 12 I General Introduction of Hunan Province ....................................................................... 12 II Introduction of TA Project ............................................................................................. 13 III Research Scope and Achievements ................................................................................ 13 IV Assignment of Responsibility ........................................................................................ 15 V Inputs and Schedule ....................................................................................................... 18 VI Research Purpose ........................................................................................................... 19 VII Methodology .................................................................................................................. 21 VIII Main Theories in Documentation .................................................................................. 26 Chapter II Background and Basic Requirements for the Proposal of New Industrialization28 I Background for the Proposal of New Industrialization .................................................. 28 II Basic Requirements of New Industrialization Mode ..................................................... 29 Chapter III Basic Condition Analysis for New Industrialization of Hunan Province ......... 32 I Current Status and Characteristics of the Economy Development of Hunan Province . 32 II Comparative Advantages and Favorable Conditions of Hunan Province ...................... 43 Chapter IV Opportunities and Challenges for Hunan Province in Promoting New Industrialization ............................................................................................................................ 48 I The International Economic Environment has Undergone Profound Changes, Presenting both Opportunities and Challenges ......................................................................
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