Although it has reemerged as China's economic powerhouse, Shanghai still lags behind world-class cities, or world cities, such as New York, London and Paris, said Zhang Shengman, managing director of the World Bank Group. Zhang was speaking at the Shanghai Forum on Monday.
Over the past two decades, Shanghai has worked its way to become China's economic engine. The municipality is now eager to take its place on the world stage, and already has its next five-year plan in place.
In a recent World Bank survey of preferred investment environments involving 23 Chinese cities, Shanghai achieved an "A plus." More than 300 of the world's top 500 enterprises have made investments in Shanghai.
Although all cities have their distinguishing features, there are at least three characteristics world cities share: a strong influence as economic hubs on neighboring cities, highly-concentrated service sectors, and enhanced governance to support an environment conducive to trade and industry.
According to Zhang, Shanghai is where it is today because of central government policies, and historical and geographical factors. He added that Shanghai still needs to expand its markets, develop a world-class service sector, and nurture the culture of innovation.
He suggests that Shanghai, a city that makes 30 percent of its GDP from the manufacturing industry, cannot rely on industrial development alone. It needs to cultivate its information and knowledge industries by attracting more foreign talent. At the same time, it must continue to develop and maintain its cultures and traditions.
Zhang also noted that Shanghai's potential to become a world city is closely linked to the rise of the Yangtze River Delta economic zone. "If a smoothly-run rail system can be set up, there is a (ready-made) market with 600 million people in the Yangtze River Delta region," said Zhang. He added that with 65 percent urbanization, Shanghai is contributing to its neighbors' development, and the development of the whole region.
Speaking cautiously but still optimistically, Zhang said that if China's economy can maintain its pace of growth, and Shanghai can develop its competitive edge, Shanghai will surely become China's first world city.
(Xinhua News Agency May 17, 2005)
