Authorities are hoping to curb the frenzied pursuit of gross
domestic product (GDP) growth by local governments by assigning
individual counties either economic development or environment
protection duties.
According to a notice published by the National Development and
Reform Commission on Tuesday, most of the counties in the country
will be classified as one of four types of functional areas in a
bid to tackle unbalanced development and worsening environment
problems.
The sustainability of the local environment, density of economic
activity and development potential will be the three major criteria
used in determining the categories.?
According to the notice, economic activities will be mainly
confined to zones designated as optimal or key development areas.
Zones with fragile natural resources will be designated for limited
or zero development.
The latter two zones will be eligible for fiscal transfers and
ecological compensation funds to help ensure an equal standard of
living and public services, said the notice.
In addition, GDP growth will not be used as a criterion to judge
the latter two zones.
The plan, to be mapped out next year, is expected to help bridge
gaps in public services and allow for balanced development. It will
also help halt the deterioration of the environment, said the
notice.
The notice also says cities with similar backgrounds might be
categorized into a single development zone even if they are from
neighboring provinces, which breaks the existing administrative
framework of provinces and municipalities.
Development and performance evaluation policies will be applied
directly to the zones, helping to strengthen the macro-management
capacity of the central government, said the notice.
Experts said the move would help clear away development
bottlenecks.
"Given the environmental and resource constraints on the
country's development efforts, the plan will ensure a more
reasonable flow of population and market factors among regions,"
Zhang Keyun, an expert who participated in developing the plan,
said.
Many parts of China face water shortages, while the quality of
water has been deteriorating in many others. Meanwhile, the amount
of arable land is approaching the warning line.
Chen Xiuyun, dean of the Regional Economy Research Institute
under Renmin University of China, said the government should set up
complementary policies and supervisory organs to ensure the plan is
implemented. These measures should include population and fiscal
transfer policies.
"After all, it's an instructive plan and not legally binding.
Better coordination between the central and local governments
should be a key factor in getting it implemented," said Chen.
(China Daily August 3, 2007)