China has finally put a price tag on its massive plan for urbanization, and it’s a big one. The cost of bringing an additional couple of hundred million people to cities over the next seven years? Some 42 trillion yuan ($6.8 trillion), announced an official from China’s Ministry of Finance last week.
“The flaws in the previous model, in which urban construction mostly relied on land sales and fiscal revenue, have emerged in recent years, and the model is unsustainable,” warned Wang Bao’an, vice minister of finance, on March 17. His comments came one day after China’s State Council and the Central Committee of the Communist Party released the “National New-type Urbanization Plan (2014-2020),” which aims to lift the proportion of Chinese living in cities to 60 percent by 2020, from 53.7 percent now.
A timely report issued by the World Bank and the Development Research Center of the State Council provides suggestions as to how to pay the big bill. Released today, Urban China: Toward Efficient, Inclusive and Sustainable Urbanization, is the second joint effort by the two organizations, coming just over two years after the publication of an earlier report on economic reform called China 2030.
via A $6.8 Trillion Price Tag for China’s Urbanization – Businessweek.
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