The National Capital Region Development Plan - Subjects of Comprehensive Discussion -

The National Capital RegionDevelopment Plan

- Subjects of Comprehensive Discussion -

Arthur D. Little Korea9th Floor, Leema Building146-1 Susong-dong, Chongro-KuSeoul, Korea 110-755

Tel. 720.2040Fax. 720.2100

Comprehensive Discussion

2

Agenda

11 Directions of DevelopmentDirections of Development

2 Subjects of Discussion

3

Directions of Development Benchmarking of Overseas City-Regions

To grasp the present status of the National Capital Region and draw directions of development, 6 City-Regions are selected for benchmarking.

1) Source: the analysis of Benchmarking, ADL

Overseas City-Regions for Benchmarking Comparisons of Main Indexes1)

Metropolitan Areas including main cities and their neighborhood areas are selected for benchmarking

Europe and America

Asia

- Shanghai - Municipal city

- Greater London- South East

Region

- BeijingMunicipal City

- Tokyo city- Saitama,

Chiba, Kanagawa

- New York City- Part of New Jersey- Part of

Connecticut

-Il-de-France

The Capital

Region

New York

London

Paris

Beijing

Shanghai

Tokyo

Size of Land

2,154

1,4561,711

3,444

1,113

1,549

2,213

1,949(Average)

33,728

16,800

6,341

13,28112,012

20,590

11,770 16,360(Average)

(unit: km2)

The NationalCapital Region

London Paris New York Tokyo Beijing Shanghai

The NationalCapital Region

London Paris New York Tokyo Beijing Shanghai

Population

(unit: 10000 persons)

4

Directions of Development Strategic Model Matrix

The development strategies of selected City-Regions are all treating economic, environmental and social matters. The features, however, are shown as different by the degree of economic development and social variety.

Strategic Model Matrix Features of Strategies According to Models

1) MA: Metropolitan Area

Low

Developing Advanced

Hig

h New York MA

London MA

Paris MA

Sustainable Growth

Growth by Renovation

Economy Driven Growth

C B

A

So

cial

Var

iety

Economic Development

Tokyo MA

• Degree of Economic Development - Advanced: GRDP more than USD 400billion- Developing: GRDP less than USD 400billion

• Degree of Social Variety- High: various races and high international quality- Low: racially homogeneous and in progress of globalization

Beijing

Shanghai

Sustainable Growth

Growth by Renovation

Economy Driven Growth

B

C

A

• Pursuing both the economic growth and the improvement of living quality

Priority order: economy = environment > society

• Economic growth has priority over improvement of living quality, and unity of society is not important

Priority order: economy > environment > society

• Pursuing harmonious development of economic growth, environmental factors like living quality, and unity of society

Priority order: economy = environment = society

5

Directions of Development Competition Factors

Competition factors to draw specific directions of development are defined by economic growth, attractiveness of social and physical environments, and efficient system of governance.

Competition Factors of Global City-RegionEconomic Growth vs.

Environmental Attractiveness

Mutually Sustaining Relationship

Improvement of

infrastructureImprovement of residential and cultural environment

Increased inflow of high quality and foreign labor force

High value-added oriented

reorganization of industry structure

Increased labor productivity

Increasedreinvestment

to come by talented HR

Supply of high quality

labor force

Increase of foreign

investment

Economic Growth


Increased local development

business

Increased innovative activities of business

Active relationship

among industry, education and

R&D

Formulation and

development of Cluster

Economic Growth

1

2

3


Efficient Governance

Establishment of industrial base for best output by high productivity

Physical comfort and social stableness to attract high quality labor forces and investment

Close cooperation among central government, local government and private organization for decentralization

Highly CompetitiveCity-Region

Economic Growth


Efficient System of Governance

1 2

3

6

Directions of Development Evaluation of Competitiveness Economic Growth

Economic growth can be divided into two sections; the competitiveness of private enterprises of the region, and the efficiency of industry structure supporting the enterprises.

Details of Economic Growth

Details Contents

Economic

Growth

Competitiveness of

separate enterprises

Infrastructures

productivity

Efficiency of innovation

Globalization of economy

Development of specialized industry

Advance degree

industry structure

Efficiency of infrastructure

• How high degree of output per labor input do the enterprises in the region have?

• Is there active innovation to make higher value-added?

• Did it achieve the globalization of economic activities which are essential for competition in the globalized world?

• Does it have any specialized industry or cluster that can represent the region?

• How much portion does the high value added industry have in total industry structure of the region?

• Does it have international or regional transportation and communication infrastructures supporting better business?

7

Directions of Development Evaluation of Competitiveness Environmental Attractiveness

Environmental attractiveness can be divided into two parts; comfort of physical environment, and social unity. (stableness)

Details of Environmental Attractiveness

Details Contents

Environmental

Attractiveness

• How are the conditions for convenient life like residence-employment relations or optimum house supply and price?

Comfort of physical

environment

Social unity

(stableness)

Comfort of living environment

Culture resources

And tourist attraction

Quality of educational environment

Convenient facilities

Gaps between regions

Social stableness

• How is the status of possession and maintenance of cultural resources and tourist attractions for leisure activities?

• Are there enough facilities for education, and high education to supply high quality labor force?

• Does it have good public service facilities like transportation, communication, utilities?

• How much gap among regions does it have due to income and living environment conditions?

• How is the crime rate and employment rate? • Is there enough support for social cohesion?

8

Directions of Development Evaluation of Competitiveness Governance

To reinforce the competitiveness of City-Region, efficient Governance system is essential, and getting more importance due to recent decentralization.

Role of Governance to reinforce City-Region Recent Governance Trend

Reinforce Competitiveness

of City-Region

Economic growth

Environmental attractiveness

Competitiveness of

enterprises

Infrastructures

Comfort ofEnvironment

Social unity

Roles • Support for fostering high quality labor force

• Support for innovation activities of business

• Establish base of collaboration among industry, education and R&D

• Support for cluster formulation

• Construct Transportation infrastructure- Roads, port,

harbor, train• Establish

Communication infrastructure

• Encourage specialized industries

• Old-town redevelopment project

• Establish efficient public transportation system

• Effort for Less pollution

• Develop Cultural resources

• Create employment opportunities

• Promote poverty conquest program

• Reduce the gaps between regions

1

Globalization&

Decentralization

2 3

Increased needs for transparency in decision making

increase of autonomy of local government(financial autonomy)

Deepened discordance between administrative and functional districts in City-Region

• Reform the national administrative system to reinforce the control structure of broad area

• Construct public finance for new administrative system• Estimate the effect of policies by evaluating

modernization and achievements of local government• Instead of the old stratified system, build a horizontal

and vertical cooperation system• Transparency and autonomy in decision making

process• Develop a framework for long term strategy

9

Directions of Development Evaluation of Competitiveness Result of Evaluation

The National Capital Region is concluded to be in an emergency, having a still wide gap with advanced City-Regions, no absolute comparative advantages over near City-Regions in competition.

Result of Comparison Key Findings

Low High

Low

High

New York MALondon MA

Tokyo MA

Paris MA

The National Capital Region

BeijingShanghai

Global major city-region

Regional major city-region


Eco

no

mic

Gro

wth

• The National Capital Region is showing a wide gap of competitiveness, compared with global major City-Region like New York, Paris, and London Area

- The gap is shown in both economy and environment

• Inferiority to Tokyo area, which is in the same economic bloc, should be caught up immediately

• The gap with Beijing and Shanghai area, which are rapidly developing, is not that wide. Thus, it may be a threat to the status of the National Capital Region

10

Directions of Development Gap between National Capital Region & Advanced City-Regions

To reach the To-be Status, it is important to confirm the gaps of each factor and the reasons.

Gap between As-Is and To-Be

Economic Growth – Competitiveness of Enterprises Economic Growth – Infrastructures

Environmental Attractiveness – Healthy Environment Environmental Attractiveness – Social unity

1

2

Gap

As-Is To-Be

1

2

3

4As-Is To-Be

Gap

1

2

3

4As-Is To-Be

Gap

12

1 2 34

12

34

As-Is To-Be

1 2

Gap

1

2

Poor productivity represented by GDP Per Capita

Insufficient innovation activities for value added of enterprises in knowledge based society

Insufficient globalization of economic activities

Poor development of specialized industry representing the National Capital Region

Relatively low portion of high value added industry

Need for improvement and maintenance of infrastructure

Gap between regions

Social security network for social unity

Need for stabilization of population and drastic improvement of living environment

Lacking development of cultural/tourism resources and connection with industry

Insufficient educational conditions

Low rate of public transportation use, and lack of broad transportation system

11

Directions of Development Directions

The National Capital region has to establish strategic objectives to overcome the gap between itself and the advanced City-Regions abroad.

Strategic

Objectives

Descriptions

Maximize the economic output of regional separate

enterprises

Construct the idealinfrastructure for

supporting businessactivities

Build a healthy living environment

Pursue the social unity by guaranteeing equal opportunity for

all

Reinforce the competitiveness of City-Region

Economic

GrowthAttractivenessof Environment

• Build a system to support innovation activities of enterprises

• Raise high quality labor force and set up the device for its good supply

• Project active interchanges among enterprises, educations and institutions

• Reform the industry structure as high value added oriented

• Development of specialized industry representing the National Capital Region

• Build a base for attracting foreign investment

• Improve the functions of infrastructures including airport and harbor. And revitalize the Surrounding areas

• Prevent thoughtless development by the principle of plans first, development later

• Expand cultural facilities and improve the pollution problems

• Revise Broad transportation system and rate of public transportation use

• Overcome the gap between regions by redeveloping old-town

• Develop border line areas

• Build a social security network for the poor

12

Subjects for Discussion

Globalization of the National Capital Region

Expansion of Historical and Cultural Space

Construction of Healthy Living Environment

Construction of the Convenient Transportation Infrastructures

Knowledge-based Industrialization

Establishment of Communities in which Residents Participate

Restoration of Cities and Balanced Development

Directions of Development Detailed Subjects and Subjects for Discussion

To achieve the strategic objectives, Detailed Tasks are drawn.

Directions of Strategy

Maximize the economic output of regional

separate enterprises

Construct the ideal infrastructure for

supportingbusiness activities

Build a healthy

living environment

Pursue the social unity by guaranteeing equal opportunity for all

Detailed Subjects

Reinforce the competitivenessof industry and constructinfrastructure for innovation

Improve living environments

Efficient infrastructures

Encourage Culture & Tourism

Promote balanced Development in region and restoration of city

1

2

3

4

5

6

7

13

Agenda

1 Directions of Development

22 Subjects of DiscussionSubjects of Discussion

14

Subjects Overview

Overview of Subjects.

Key QuestionsSubjects

Globalization of the National Capital region

Knowledge-based Industrialization of the National Capital Region

Construction of Healthy Living Environment

• How is the present condition of the international transportation network, like international airport, harbor and etc., in the National Capital region? And in what way should it be improved?

• To attract foreign enterprises and investments, how can it revitalize the free economic zone?

• How can it foster strategic industries functioning as a center of regional economy?• What is necessary to improve the living environment of foreigners?

• To foster industrial clusters, how can we revitalize the collaboration of industry, education and research institute?

• What is necessary to lead high value added of traditional industries? • How can we foster the knowledge-based high tech industry appropriate for local

characteristics?• How can we foster services and venture industries?

• What is required to improve the quality of air and water condition at the level of OECD countries?

• What is necessary to build ecological greenbelt axis, to construct parks, and to restore the nature ecosystem?

15

Subjects Overview

Overview of Subjects.

Key QuestionsSubjects

Construction of Convenient

Transportation Infrastructures

Expansion of Historical and Cultural Space

Restoration of Cities and Balanced Development

Establishment of Communities in which Residents Participate

• What are the methods to activate the distribution of roles and the collaboration of the central government, broadband municipalities, and local municipalities?

• How can we activate the communities in which residents participate?

• What are the alternative plans to construct convenient transportation infrastructures except the existing ones?

• For convenient transportation infrastructure, what should we improve among the factors of existing infrastructures?

• How can we shorten the transportation time to enter urban areas? • What are the plans to reduce the needs for transportation?

• What is required to restore the historical and cultural space in urban areas?

• What are the plans for the expansion of cultural facilities like museum, library, and etc.?

• How can we ensure the nature-friendly facilities of culture and tourism?

• How can we coordinate the interested parties when promoting projects for restoration of cities and balanced development?

• How can we revitalize the private capital investments in business?

16

Subjects Globalization of National Capital region

Subject 1. Globalization of National Capital region.

1

Backgrounds

Key Questions

• To achieve economic growth in the age of globalization, it is essential to globalize the National

Capital region by attracting foreign investments and enterprises, functioning as a center of regional

economy, and etc.

• The advanced City-Regions abroad have functions of international center, and promote various

supporting policies to attract foreign investments and enterprises

• How is the present condition of the international transportation network, like international airport,

harbor and etc., in the National Capital region? And in what way should it be improved?

• To attract foreign enterprises and investments, how can it revitalize the free economic zone?

• How can it foster strategic industries functioning as a center of regional economy?

• What is necessary to improve the living environment of foreigners?

17

Subjects Globalization of National Capital region

Subject 1. Globalization of National Capital region – Overseas Case.

1

Rear Complex Revitalizationin Shanghai Pudong Airport

Reinforcement and maintenance of traditionalrepresentative industry (case of London)

‘Rear complex Network’

Ryujatui- Finance and Trade Area

Jangchang- Science and TechnologyArea

Waigaochao- Bonded Area

Jinchao- Processing andExport Area

Pudong Airport

• Success in early rear complex revitalization

- 972 Bonded Area Distribution companies (As of end of `03)

- Host of UPS Asia Hub (2007)

• Offering incentive to move-in company

- Offering One-stop service to Foreign Company investment

- Benefit of low rent and corporate tax

• Maintenance and reinforcement of Financial industry

- Clear recognition of it as foundation of growth of London area also in the future

- Eliminated all the regulations that disturb international money trades

- Divide two parts of world stock market with New York by occupation of 30% of stock trade of whole world

Background of Financial Industry Development in U.K

• Self-generated by historical background- Early inflow of world’s liquid money by industrialization and

colonization

• Fully opened the market and eliminated regulations

• Competition to attract investment at local level by

perfect settlement of local autonomy

18

Subjects Knowledge Based Industrialization of the National Capital Region

Subject 2. Knowledge-based Industrialization of the National Capital Region.

Backgrounds

Key Questions

• The advanced City-Regions abroad regard the knowledge-based industries with high value added

as an engine of future economic growth, because they see the limited growth of traditional

industries. To foster the knowledge-based industries, central governments are reinforcing political

and administrative supports

• To ensure the competitiveness, it is essential to select and foster the knowledge-based industry

appropriate for the environment and the ability of the National Capital region

• To foster industrial clusters, how can we revitalize the collaboration of industry, education and

research institute?

• What is necessary to lead high value added of traditional industries?

• How can we foster the knowledge based high tech industry appropriate for local characteristics?

• How can we foster services and venture industries?

2

19


Subject 2. Knowledge Based Industrialization of the National Capital Region – Overseas case.

2

Practical Operation of CooperationRevitalizing Program (case of IDF)

Establishment of Cluster Policy (case of IDF)

• The central government established polices to foster clusters (in 2002)- Selected ‘Pole of competitiveness’

– Complex of enterprise, R&D center and education center. To develop innovation project, integrated in specific area

– Evaluation and management by 3 kinds: World dimension ①pole World vocation pole National/local pole② ③

• Development strategies of each cluster is connected with the strategies of each region

• Set up supporting policies for selected R&D project- Government subsidy : 400 million euros for 3 years- Reduction & exemption of tax : 300 million euros for 3 years- Payment of Public incentive

Competitiveness Poles Map

Source : ADL Benchmarking research

• Academic-Industrial Cooperation program

- Recruitment Partnerships: forum event for universities and enterprises

- Apprenticeship tax : impose apprenticeship tax on the enterprises which had participated in technical and special training

Role of Each Subject

World vocation or national pole

World dimension pole

7

6

56

3

4 2

1 2 3

3

6 7 8

2 1646

4

22

1 1

2

Central

Government

Consular Chamber

• Build networks of public education

• National Education Department leads the consulting of program and information with expert consulting firms

• Overall evaluation of Competitiveness pole, considering industry, education, R&D center and etc.

• Collection and distribution of Apprenticeship tax

20


Subject 2. Knowledge Based Industrialization of the National Capital Region – Overseas case.

2

Organizing a Task Force to Support Knowledge Based Industry (London MA)

• By establishing Creative London and Bio London under LDA2) , administrative and financial supports through the whole industry of Creative Industry and Bio-technology are unified

• Background and achievement of Raising Creative Industry- Background

– Faced a limit of growth just with traditional specialized industry like financial and service industry

– In 2003, through the research for 6 months, direction for raising ‘Creative Industry’ was set up

- achievement– In 2004, created a market of £21bn and about 500,000 job

opportunities

Main Policies

Organizing a Task Force Under LDA

London Development Agency (LDA)

Bio London1) Creative LondonBusiness Link

for London

• Task of raising Creative Industry in London- Administrative, financial and political support- Public relations for domestic and foreign

investment to Creative Industry- Reflect the interests of Creative Industry

when national main plans are set up

• Task of encouraging Bio industry in London area- Set up a supporting function of LDA to encourage Bio

industry

1) By establishing London Biosciences Innovation Centre(LBIC) in 2001, Bio industry is encouraged in London area

• Establish Creative Hub- 10 centers serving working environment, education, display

facility and etc.

• Set up Seed fund- £50million fund for support in the first stage

• Devise Sponsorship system- General support for more than 40 special projects

21

Subjects Construction of Healthy Living Environment

Subject 3. Construction of Healthy Living Environment.

Backgrounds

Key Questions

• Quality of Life has become one of main criteria to estimate the competitiveness of regions. All the

City-Regions abroad, thus promote the improvement of living environment as a strategic objective.

• Compared with other City-Regions, the National Capital region has lower quality of air and much

lower access to park, green lands, and leisure facilities.

• What is required to improve the quality of air and water condition at the level of OECD countries?

• What is necessary to build ecological greenbelt axis, to construct parks, and to restore the nature

ecosystem?

3

22


Subject 3. Construction of Healthy Living Environment – Overseas Case.

3

Environment Improvement Directionof London area

Environment Improvement Directionof Shanghai area

• Concentrate on solving pollution problems rather than regulating centralization- Stated to reform industrial structure to solve pollution problems

– In case of industries with excessive energy consumption and low price automobile manufacturing industry, it is planned to liquidate them to outside Shanghai before 2010 World Expo.

- Policy reinforcing air standard– Set up “No Coal” area (in 2003, 114 sq. m,) – Reinforce the standard of auto exhaust from Europe II to III– Plan to invest more than 3% of GRDP to protect

environment

• Acknowledging the centralization, the main focus is put on the environment improvement in region1) , and the balanced development (case of London)- Set up a strategy for the expected increase of population (from

7300 thousands in 2001 to 810 thousands in 2016)- The plan of balanced development is specified in ‘The London

Plan(2002)’- Set up 5 separate strategies for environment improvement

– Air quality strategy, noise pollution strategy, biological diversity strategy, energy strategy, and waste strategy

Main Policies

1) The most serious air pollution in U.K leads to the death of 1,600 premature infants in this area annually.

Increase the supply of new

housings

• In East London and Thames Gateway region development

• Planning to make higher population density per size of land

Environment improvement

• Unified 16 organizations dealing waste matter to London Single Waste Authority

• Specified environment improving plan by establishing Recycle London in 2003

• The efforts to improve the air pollution had a little achievement. But, continued centralization leads to remaining problems and side-effects- Temporary improvement of congestion was achieved by

reinforcing standards, but the it returned to the first place , due to drastic increase of automobiles

- Reinforcing the air standards temporarily damaged on automobile industry in the region

23


Subject 3. Construction of Healthy Living Environment – Overseas Case.

3

Connecting Leisure Facilities with Tourism Area (case of Paris)

Green area Policy(case of Shanghai)

• Required to build green area, more than specific standard- The size of population in central part of Shanghai is limited to 8

millions- Quantitative object of building green area in Shanghai area by

2020– Green area size per person : 10m2– Portion of green area in city : more than 35%

- Build environment protection areas near main reads and riverside

- Severe application of environment protection standard, when constructing New Town2)

• Taking the advantage of the largest tourism region in Europe, it has constructed leisure facilities around tourism area- Simultaneous consideration for the convenience of residents and

tourists

Main Area of Tourism and Leisure in Paris

Standard of Building Green Area

1) Total 44 million tourists visited Paris in 2002, and it contributes to 10% of GRDP and the creation of 250 thousand employment.2) To resolve the overpopulation of central part of Shanghai, total 11 New Towns are planned to locate around the central part with 200~300 thousand

populations for each. Other surrounding areas at a long distance, 22 Key Towns are planned to locate with 50~100 thousand population for each

Tourism poles

Amusement parks

Regional leisure bases

Zoo

Central area of city

• Duty of at least 4ha per district

• Duty of at least 1ha per Sub-district

New Town • Duty of at least 3ha per new town

24

Subjects Construction of Convenient Transportation Infrastructures

Subject 4. Construction of Convenient Transportation Infrastructures.

Backgrounds

Key Questions

• The convenience of transportation infrastructures is one of important factors consisting the Quality of Life. The City-Regions abroad, therefore, are trying to raise the usage rate of transportation in urban areas, and are pursuing the efficient operation of broadband transportation networks covering metropolitan areas and their surroundings (e.g. construction of broadband transportation network based on railways)

• Despite the expansion of subway, the percentage of transportation is not increasing and the congestions like traffic jam leads the great economic loss. There is a particularly heavy traffic jam on the roads connecting the outer areas, and it shows the need to improve the broadband transportation network of the National Capital region

• What are the alternative plans to construct convenient transportation infrastructures except the existing ones?

• For convenient transportation infrastructure, what should we improve among the factors of existing infrastructures?

• How can we shorten the transportation time to enter urban areas?

• What are the plans to reduce the needs for transportation?

4

25

Subjects Construction of Convenient Transportation Infrastructures

Subject 4. Construction of Convenient Transportation Infrastructures – Overseas Case.

4

Tokyo Area Beijing Has Set Ambitious Plan to Adopt BRT

WideArea

RailwayFacilities

OperationMethod

• JR, Tokyo Metro

- JR : 876.4km

- Tokyo Metro : 996.2km

• Generally formed as a Radial shape centered on Tokyo downtown, 3 Lines are Ring Shape

• Pursuit of operational efficiency by attracting private entrepreneur

- JR : Privatization of past National Rail

- Tokyo Metro : Composed of over 20 Private entrepreneur

• Various Operations to provide commuters with convenience by increasing direct running distance

- Normal : Stop at all station

- Express : Skip some station

- Super express : Stop at main city

• First Phase 5 km was open on Dec.25, 2004, second phase is scheduled to open by the end of 2005

• Forecasted 100,000 daily ridership

• Beijing transportation commission has spearheaded the BRT development

• Strong supports from the mayor and other top decision makers

• Develop a BRR network with total length 200 km and complete 60 km BRT network by 2008

• Increase the share of public transport from 26% to 40% by 2010

Current status

Key ingrédient for

the initial success

Vision

26

Subject 4. Construction of Convenient Transportation Infrastructures – Overseas Case.

Subjects Construction of Convenient Transportation Infrastructures4

Congestion Charge of London

Back

ground

Solution

Results

• Traffic congestion increase due to increasing commute of suburban residents• Limitation of increasing Public Transportation use by investing additional

facilities

• Decision to impose 8 pounds’ congestion charge on vehicles entering London (2003.1)

Private cars entering charging zone(7:30~18:30)

0

50000

100000

150000

200000

250000

Spring2002

Autumn2002

January2003

Feb/Mar2003

Spring2003

Spring2004

Started to impose Congestion charge

(Number of car)

• Huge decrease of cars entering Metropolitan Area (5thousands)• Reinvestment funds founded by congestion charge in Underground and Bus

system improvement • Recent increase of congestion charge(12.5 pounds)

• Reduce number of cars entering inner parts of the city and

• Raise extra £130m each year to enhance public transport

• Makes use of a computerised network of CCTV cameras linked to a central database

• Heavy criticism by lobbying groups, most notably by retailers continues to date

27

Subjects Expansion of Historical and Cultural Space

Subject 5. Expansion of Historical and Cultural Space.

Backgrounds

Key Questions

• Due to the quantitative growth by rapid economic growth, the expansion of historical and cultural

space showing the tradition of the National Capital region is relatively insufficient.

• The City-Regions abroad are well revitalizing the tourism industry, by developing local cultural and

tourism resources. And they optimizes the economic ripple effect of convention industry by

connecting with regional tourism industry.

• What is required to restore the historical and cultural space in urban areas?

• What are the plans for the expansion of cultural facilities like museum, library, and etc.?

• How can we ensure the nature-friendly facilities of culture and tourism?

5

28

Subjects Expansion of Historical and Cultural Space

Subject 5. Expansion of Historical and Cultural Space – Overseas Case.

5

Convention Industry in ParisProtection of Cultural and

Tourism Facilities in Beijing

• Increased availability of tourism facilities

- Increase museum visits by reducing entrance fee for youth (some are free of charge) and establishing the education & activity bases in some museums

– Annual visits to Palace Museum amounted to 7 million person-times

• Preservation of cultural facilities

- Protect 6 heritages identified by UNESCO following the international standard

- Set up national level cultural protection area

– i.e. Forbidden city historical and cultural area

- Restore and protect the architecture with symbol of traditional Chinese culture

- Support and protect old and famous shops

– Quan Ju De, Tong Ren Tang, Wang Zhi He, etc.

Sud est IDF (Fontainebleau)

Auvers sur Oise

Vallée de la Chevreuse

Seine St Denis

Paris

Bords de Marne

Boucle de la Seine

Congress & exhibition centers

Tourism poles

• Convention Centers are linked with Tourism Complex, and spread all over the city

Paris is 1st ranked region which take 3%

share of world convention industry, and

this contributes largely to Tourism industry

revitalization with 10 mil annual visitors

29

Subjects Restoration of Cities and Balanced Development

Subject 6. Restoration of Cities and Balanced Development.

Backgrounds

Key Questions

• Compared with the urban areas and their surroundings, there exist relatively undeveloped areas in the National Capital region. It has become one of major issues to transfer facilities inappropriate for urban areas

• The City-Regions abroad try to revitalize their funds by coordinating interested parties and attracting private investment. And those projects are accompanied with ensured transparent process in restoration of city and transfer of facilities inappropriate for city.

• How can we coordinate the interested parties when promoting projects for restoration of cities and balanced development?

• How can we revitalize the private capital investments in business?

6

30

Subjects Restoration of Cities and Balanced Development

Subject 6. Restoration of Cities and Balanced Development – Overseas Case.

6

Public-Private Partnership for London Underground

Case of Persuading Interested Party (Beijing Area)

• Transfer inappropriate facilities and complex to outside of Beijing for pursuing Green city construction as well as for preparing Olympic in 2008

1) Steel company founded in 1919 which ranks 4th in China producing 10 million tons of steel product as of 2004

• Since 2003, the London underground has been operated as a Public Private Partnership (PPP)

• Companies are granted long-term, not permanent, concessions to operate and modernise the tube infrastructure

• Benefits sought by the Government

- The discipline and expertise of the private sector in managing large infrastructure projects

- More effective use of resources and faster implementation of the modernisation investment programme

• Results so far

- Pushed ahead by the UK Government despite strong resentment from the Mayor of London

- Some safety issues

- Difficulties in meeting performance targets

Agreement with Stakeholders

City of Beijing

Metropolitan Steel Group

City of Hebei

Central Government

• Concentration of steel producing area- Concentrate 50% of steel production in China to 10

big firms by 2010

• Agreement on the principle of distribution of tax income- Phrased conversion of tax income to the city of Heb

ei to prevent rapid decrease of tax income in the city of Beijing

Agreement

Agreement

31

Subjects Establishment of Communities in Which Residents Participate

Subject 7. Establishment of Communities in which Residents Participate.

Backgrounds

Key Questions

• What are the methods to activate the distribution of roles and the collaboration of the central

government, broadband municipalities, and local municipalities?

• How can we activate the communities in which residents participate?

• Compared with the National Capital region, the City-Regions abroad has relatively long history of

decentralization. Thus, the central and local governments have an obvious distribution of power

and roles. Also, the residents participate actively in establishing development plans of new towns

or industrial clusters.

• As the decentralization of the National Capital region is in progress, it is required to obviously set

up the roles of each subject.

7

32

Subjects Establishment of Communities in Which Residents Participate

Subject 7. Establishment of Communities in which Residents Participate- Overseas Case.

7

A historical Move to Increase Local Competencies (case of France)

1)The subsidiarity principle is a key decentralization guideline meaning : “to transfer to the superior decision level solely the decisions that the inferior level could not achieve in a more efficient manner”Note : detailed financial status in appendix

The financial status encompasses the principle of free administration and financial independence of local governments1

March 2nd 1982 law

1983 laws

1992 law

Constitution act (2003)

Decentralization law (2004)

• Promotes the gathering of communes into communities

• Integrates the region into the constitution just like other local governments for which it grants the financial independence from now on

• Asserts the decentralization and subsidiarity principles1, institutes the local referendum, experimentation and equalization

• Distribution of the competencies : consolidates certain competencies within the departments and regions, especially the economic development and professional training managed by regions and social action managed by departments ; it also transfers many harbors and airports in priority to regions or even the household waste disposal plans to departments ; downgrading of the national road network to the profit of the departments, likely to regard approximately 18 000 km out of the 28 000 km which remain a State belonging

• Promote the progress of intercity : possibility of amalgamation for communes gatherings, easing measures regarding the relationships between gatherings and communes

• Suppression of the wards control, control of the legality of the acts taken by local governments, the region becomes a local government

• Important transfers of competencies. Communes are responsible for urbanism, departments for social action, school transport, maintenance, high school building ; regions are responsible for high school building and maintenance, as well as professional training

The National Capital Region Development Plan - Subjects of Comprehensive Discussion -

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