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URBAN CHINA URBAN URBAN CHINA CHINA TOWARD EFFICIENT, CITIES AND SUSTAINABLE INCLUSIVE, INCLUSIVE, AND TOWARD EFFICIENT, SUSTAINABLE URBANIZATION INCLUSIVE, AND BUILDING EFFICIENT, BUILDING EFFICIENT, SUSTAINABLE URBANIZATION The World Bank Development Research Center of the State Council, The People’s Republic of China ISBN 978-1-4648-0206-5 90000 9781464 802065 SKU 210206 Urban China Urban China Toward Efficient, Inclusive, and Sustainable Urbanization The World Bank Development Research Center of the State Council, the People’s Republic of China Washington, DC © 2014 International Bank for Reconstruction and Development / The World Bank and the Development Research Center of the State Council, P. R. China 1818 H Street NW, Washington DC 20433 Telephone: 202-473-1000; Internet: www.worldbank.org Some rights reserved 1 2 3 4 17 16 15 14 This work is a product of the staff of The World Bank and the Development Research Center of the State Council, P.R. China. 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License: Creative Commons Attribution CC BY 3.0 Translations—If you create a translation of this work, please add the following disclaimer along with the attribution: This translation was not created by The World Bank and should not be considered an official World Bank translation. The World Bank shall not be liable for any content or error in this translation. All queries on rights and licenses should be addressed to the Office of the Publisher, The World Bank, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625; e-mail: pubrights@worldbank .org. ISBN (paper): 978-1-4648-0206-5 ISBN (electronic): 978-1-4648-0386-4 DOI: 10.1596/978-1-4648-0206-5 Cover design: Critical Stages Library of Congress Cataloging-in-Publication Data has been applied for. Contents Foreword ............................................................. vxii Acknowledgments ...................................................... xix Executive Summary .....................................................xxiii Abbreviations .........................................................xxix Overview Introduction ......................................................... 3 Achievements and Emerging Challenges 1 China’s Urbanization Achievements .................................... 5 2 Efficiency ......................................................... 7 3 Inclusion .......................................................... 16 4 Sustainability ...................................................... 25 The Reform Agenda 5 A Strategy for Reform ............................................... 33 6 Reforming China’s Land Management ................................... 38 7 Reforming Hukou, Social Services, and Labor Market Institutions ............. 49 8 Reforming Urban Finance ............................................ 54 9 Promoting Greener Urbanization ....................................... 63 URBAN CHINA v vi URBAN CHINA 10 Ensuring Food Security ............................................. 69 11 Timing, Sequencing, and Risks ....................................... 71 Part II Supporting Reports 1 Urbanization and Economic Growth ................................ 81 Introduction ..............................................................81 Urbanization and growth at a crossroads .......................................83 Agglomeration, specialization, and mobility .....................................90 More efficient, inclusive, and sustainable urbanization and growth ..................106 China’s growth dividends from the new urbanization trajectory ....................111 Notes .................................................................118 References ..............................................................120 2 Planning and Connecting Cities for Greater Diversity and Livability ................................................... 123 Introduction .............................................................123 Enhancing efficiency and agglomeration economies in China. 125 Connecting people, linking businesses ........................................149 Financing China’s cities ...................................................162 Key actions moving forward ................................................167 Notes .................................................................172 References ..............................................................172 3 Inclusive Urbanization and Rural-Urban Integration ............... 177 Inclusive urbanization: Vision, major challenges, and key reforms ...................177 Ensuring equitable access to social services in urban areas .........................186 Social policy reforms and rural-urban integration ................................214 Strengthening institutions for an inclusive and productive labor market. 235 Notes .................................................................252 References ..............................................................256 4 China’s Urbanization and Land: A Framework for Reform .......... 263 Introduction ............................................................263 Land and urbanization in China .............................................268 International approaches and experiences ......................................284 China’s land pilots: Guidance for the national reform agenda .......................297 A framework for land policy reform ..........................................319 Notes .................................................................334 References ..............................................................335 5 China’s Urbanization and Food Security .......................... 337 Introduction ............................................................337 China’s food demand and supply projection in international comparison .............340 Resource constraints to agricultural production. 343 Supply, changing consumption, and demand ....................................355 Policy recommendations ...................................................365 Notes .................................................................367 References ..............................................................368 CONTENTS vii 6 Financing Urbanization .......................................... 371 Introduction .............................................................371 Urbanization in transition and its implication for financing ........................373 Financing urbanization in 2013: Key issues .....................................379 Reform considerations for China .............................................399 The reform agenda and expected payoffs ......................................432 Annex 6A A technical note on the urbanization finance model ....................436 Notes .................................................................441 References ..............................................................443 7 Green Urbanization ............................................. 447 Introduction .............................................................447 The challenge of sustainable urban growth. 450 The rising cost of environmental degradation ...................................451 Green governance must match China’s green ambitions ...........................455 Sustainable sector policies are closely aligned with green objectives ..................471 Cities where a billion people want to live and work ..............................524 Annex 7A Smart Greening ................................................526 Annex 7B Illustrative framework and analytical tools for urban energy and emissions reduction planning ......................................527 Notes .................................................................535 References ..............................................................538 Annex 7B References ....................................................547