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          Central China to get a steering panel

          (China Daily)
          Updated: 2007-01-16 08:37

          The report said the six central provinces have for many years worked at cross-purposes, and regional protectionism has prevailed. And the industries that are active within the individual provinces tend to be similar to those in other provinces, rather than complementing them, according to the report, which was released two weeks ago in Beijing.

          "Unity is strength, and coordinated they will rise," Fan said. "Unity and coordination are realistic choices that will lead to the revival of the central region."

          He said the central provinces should step up regional integration by reforming their administrative systems to facilitate market competition and curb the amount of government interference in business.

          Public finance

          Fan said the region should set up a sound system of public finance to ensure local governments have the funds they need without having to make money by meddling in the affairs of businesses or closing local markets to outsiders.

          Local-level leaders should realize the importance of mutual coordination and strive to build the central region into a unified market, where resources can cross provincial boundaries and flow freely to where they are most needed, he said.

          By implementing a coordinated development strategy, the six provinces can standardize the design and construction of infrastructure projects, eliminate redundant production capacity and avoid cut-throat competition. Such steps will help the central provinces narrow the gap between themselves and the eastern coast, he said.

          Zhao Lingyun, president of the Hubei Provincial Academy of Social Sciences, said he expected the coordinating body to come up with concrete policies for the growth of the region, perhaps by implementing some of the preferential policies used to boost development in West China and Northeast China.

          Fan said that numerous supportive policies were in the pipeline for the central region, and that joint meetings among officials from the six provinces and other regional economic cooperation mechanisms were on the horizon.

          However, even with outside support, the central provinces must rely on themselves to attain prosperity, he said.


          (China Daily 01/16/2007 page3)


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          (For more biz stories, please visit Industry Updates)



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