New book on Shenzhen highlights role of innovation

NAIROBI - Shenzhen's rise in the last four decades has much to do with its knowledge-based industry, said an urban development expert in Africa who has co-authored a new book on the city in Guangdong province in South China.

Aloysius Mosha, professor and dean at the faculty of the Built Environment, Ba Isago University in Botswana, said Shenzhen has attained the status following its decision to disregard the "business as usual" management approach.

"The city is a clear blue print of how to handle fast urbanization through the adoption of innovative financing strategies," Mosha said on May 27 during the launch of a book titled The Story of Shenzhen-Its Economic, Social and Environmental Transformation that is published by UN Habitat.

Mosha said Shenzhen was originally a small fishing village, not very far from Hong Kong. After frenetic development over the last four decades, it has emerged as China's Silicon Valley. It has become famous for using traditional and innovative strategies to finance infrastructure development.

The scholar observed that the city has gone beyond the traditional funding streams and ventured into innovative strategies, such as land value capture, issuance of municipal bonds, foreign direct investment, project finance, public-private partnerships, special purpose vehicles and tax incentive financing.

He noted the city has moved from normal city financing to innovative financing and encourages and finances entrepreneurs interested in industrial development as well as providing many incentives to woo local and international investors.

"Shenzhen has proved that good governance can be achieved through appropriate policies, regular reforms and innovative approaches," he said.

The city has proved that even though fast urbanization is inevitable, its consequences and adverse impacts can be managed through integrated and sustainable urban planning.

"Looking at the achievement, for this four-decade-old miracle to continue, the old Chinese practice of long-term thinking needs to be practiced," Maimunah Mohd Sharif, executive director of the United Nations Human Settlement Program (UN Habitat)," said in her foreword in the book.

She said Shenzhen is truly a remarkable success story and existing cities, upcoming cities and special economic zones can learn from its experience.

Sharif observed that the city's remarkable economic and social development has been built on high-tech, manufacturing and service industries.

The UN official said sustainable development must be pursued in order to address current global challenges of rising poverty, social inequality, environmental degradation and climate change in the rapidly urbanizing world.

Lawrence Scott, one of the authors of a chapter in the book, noted that his study suggests Shenzhen is turning out to be China's center of modernization, due to its advancements in science and technology.

"The city shows that the future belongs to complex high technological responses to its challenges," he said.

Scott said the city is a test case for how the challenge of governance or of civil society will be handled in the years to come.

He observed that China's State-owned Assets Supervision and Administration Commission plays a double role in both overseeing and facilitating State-owned enterprise projects.

"This role is attributed to apparently magical quality of success and harmony within firms rather than market pressure," he said.

Chen Jinhai, deputy executive director-general at the Shenzhen Association for International Culture Exchanges, said Shenzhen is building, in accordance with the Chinese government's decisions, the Guangdong-Hong Kong-Macao Greater Bay Area, a global regional cultural central city, and an international cultural, innovative and creative pioneer city.

Chen said the city is also taking the lead to steadfastly deepen reform and expand opening-up.

"I believe that many cities, towns and special economic zones in other countries can draw inspiration from Shenzhen's experience in urban development."

Chen said the book will contribute to the body of knowledge on urban development, and benefit city leaders, urban planners, academics and economists.

The book shows Shenzhen's local economy is driven by knowledge-based industries and is ranked the third highest among 659 Chinese cities. According to the 2017 Global Financial Centres Index, Shenzhen is the 22nd most competitive financial center in the world.

It covers an area of 1,997 square kilometers, with a population of more than 20 million, whose average age is 33.

Shenzhen has achieved tremendous economic and social development within the last four decades since the establishment of Shenzhen Special Economic Zone in 1980.

Xinhua