"Western development" has become a buzz phrase since the concept was formally put forward five years ago. Since then, it has evolved from a concept on paper to the implementation of the nation's policies, which significantly benefit the vast but economically backward region.

As the central government called on the nation to help speed up the development of the northeastern region last year, people for a time had jitters about the future of the west, fearing the new policy focus would divert attention and capital away.

The fear has not proved to be well founded. Foreign direct investment (FDI) in western China is expected to register US$3 billion this year, a 70 per cent increase year on year, said Du Ping from the western development office under the State Council.

The two regions can actually develop in a coordinated way. The key is for the western region to gradually make itself capable of sustainable development on the basis of indigenous resources instead of just outside help.

This is a strategic solution for the region's future as well as a question that needs an answer from policy-makers.

The high-profile conference on western development, the ongoing Western Forum of China held in Nanning of South China's Guangxi Zhuang Autonomous Region, is expected to provide an answer.

More than 300 economists, investors, government officials and diplomats are all at the gathering to discuss "agriculture, industrialization, service industries and co-operation between eastern and western China." The topics are not solely economic, but include social issues, which reminds us that so-called "western development" is not a purely economic perception, but involves all-round development.

Personnel, environment and marketization are all factors behind the long-term and self-sustainable growth of the region.

Large-scale fiscal transfer to the relatively backward region is necessary at least in the near future. But this makeshift solution aiming to enhance local capabilities should not be seen as the panacea.

(China Daily November 19, 2004)