©Copyright 2012 Hong Chen “Villages-in-the-City” and Urbanization in Guangzhou, China Hong Chen A dissertation !submitted in partial fulfillment of the requirements for the degree of Doctor of Philosophy University of Washington !2012 Reading Committee: Kam Wing Chan, Chair James W. Harrington William B. Beyers Program Authorized to Offer Degree: Geography University of Washington Abstract “Villages-in-the-City” and Urbanization in Guangzhou, China Hong Chen Chair of the Supervisory Committee: Professor Kam Wing Chan Geography This dissertation examines the relationship between urbanization and the dual structure in China by focusing on “villages-in-the-city” (chengzhongcun). The dual structure of rural-urban divide is the foundation of Chinese urbanization. It is the hukou, dual land ownership, and the dual structure of housing ownership that fundamentally shapes the rural-urban divide and sets Chinese urbanization apart from other countries. At the local level, city governments have shown characteristics of “local growth politics” and use a “land-revenue” strategy to stimulate local economic development. There were “half-urban-and-half-rural” hybrid outcomes in state-led and multi-dimensional urbanization process; migrant workers and “villages-in-the-city” are one of the hybrids. Without the essential reforms of the dual structure, though, Chinese attempts to eliminate the dual structure will not succeed as new chengzhongcun may emerge. This dissertation examines Guangzhou, a municipality with about 138 chengzhongcun, and investigates the dual structures of hukou, land, housing, administrative system and local governance in relation to chengzhongcun since 2000. Two chengzhongcun, Liede and Yangji, were examined. They have displayed different outcomes in response to the rapid urbanization and the radical redevelopment project of the Guangzhou Municipal Government. Liede was completely demolished and redeveloped while the redevelopment of Yangji was halted because of resistance from local villagers. The dissertation also examines the social stratification within chengzhongcun that stems from the interplay between the dual structure and urbanization. The case study reveals that both formal institutions, such as hukou, land, local governance and public finance, and informal institutions, like clans, traditions, and other local historically rooted cultural factors and social relations, have influenced the process of redevelopment of chengzhongcun in Guangzhou. The dissertation bridges gaps in the urbanization literature by analyzing chengzhongcun from the lens of China’s dual structure. The study on institutional reforms, physical redevelopment, and the roles played by different actors including local governments, village committees, native villagers, and migrants in chengzhongcun opens a new path to examine urbanization in China. TABLE OF CONTENTS Page List of Figures ............................................................................................................................ iv List of Tables ............................................................................................................................. v Glossary ...................................................................................................................................... vi Preface ........................................................................................................................................ viii Introduction ................................................................................................................................ 1 Chapter I: Literature Review .................................................................................................. 18 1.1 Introduction ........................................................................................................................... 18 1.2 Urbanization .......................................................................................................................... 20 1.2.1 Socialist Urbanization ................................................................................................. 20 1.2.2 Rural-Urban Relation................................................................................................... 22 1.2.3 Hukou Policy and the Incomplete Urbanization .......................................................... 26 1.2.4 The McGee-Ginsburg Model: “Desakota” .................................................................. 32 1.3 Central-local Relation ........................................................................................................... 33 1.3.1 Decentralization ........................................................................................................... 35 1.3.2 The Changing Local Governance ................................................................................ 37 1.4 Ownerships and Collectivization in Rural China ................................................................... 42 1.4.1 Property Rights and the “Common-Property Resource” ............................................. 42 1.4.2 Collectivization of Land Ownership in Rural China ................................................... 45 1.4.3 The Ambiguity of Collective Ownerships in Rural China .......................................... 47 1.5 Chengzhongcun: Villages-in-the-City ................................................................................... 51 1.6 Summary ................................................................................................................................ 55 Chapter II: Analytical Framework and Research Methodology .......................................... 58 2.1 Research Objectives .............................................................................................................. 59 2.2 The Formation of Chinese Rural-urban Divide ..................................................................... 59 2.2.1 Hukou: the Dualist Structure of Population ................................................................ 60 2.2.2 Land: the Intentional “Ambiguity” of Land Price ....................................................... 63 2.2.3 Housing Market: the Exclusion of Peasants ................................................................ 69 2.2.4 Fiscal Reforms in Urban and Rural Areas ................................................................... 72 2.2.5 Local Governance in Urban and Rural Areas ............................................................. 77 2.2.6 The Relationships between Dual Structure and Chengzhongcun ................................ 83 2.3 Research Questions ................................................................................................................ 86 2.4 Analytical Framework ........................................................................................................... 87 2.4.1 The “Big” and “Small” Dual Structures ...................................................................... 88 2.4.2 The Four Dimensions of Chinese Urbanization .......................................................... 90 2.4.3 The Matrix of Analyzing the Rural-Urban Divide and Chinese Urbanization ........... 91 2.5 Study Area ............................................................................................................................. 94 2.6 Definition ............................................................................................................................. 100 2.6.1 Guangzhou Urban Area, Guangzhou Districts, and Guangzhou Municipality ......... 100 2.6.2 Chengzhongcun ......................................................................................................... 105 2.6.3 Native Villagers ......................................................................................................... 105 2.6.4 Zhujiang New Town .................................................................................................. 106 2.7 Data Sources and Methodology ........................................................................................... 106 Chapter III: Urbanization in Guangzhou Municipality ...................................................... 111 3.1 The Economy of Guangzhou Municipality.......................................................................... 112 i 3.2 Urbanization in Guangzhou Municipality........................................................................... 115 3.2.1 Institutional Reforms in the hukou System .............................................................. 116 3.2.2 The Interplay of Population Growth, Land and Housing Development................... 120 Population Growth.................................................................................................... 120 Increase of Land Development and Generation of Land Revenue .......................... 125 Establishment of Land Market ................................................................................. 130 Housing Development .............................................................................................. 134 3.3 Retrospect and Summary .................................................................................................... 140 Chapter IV: Formation and Redevelopment of Chengzhongcun ...................................... 142 4.1 The Formation of CZC ........................................................................................................ 143 4.2 Redevelopment of CZC ......................................................................................................