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Urbanization in remote areas: A case study of the Heilongjiang Reclamation Area, Northeast China Shiwei Liu a, b , Pingyu Zhang a, * , Kevin Lo c a Northeast Institute of Geography and Agroecology, Chinese Academy of Sciences, Changchun 130102, China b University of Chinese Academy of Sciences, Beijing 100049, China c Department of Resource Management and Geography, University of Melbourne, VIC 3010, Australia Keywords: Urbanization Resettlement Heilongjiang Reclamation Area abstract In a remote part of Northeast China, thousands of villages have disappeared from the map. Their in- habitants, more than 600,000 farmers, have been instructed by the government to relocate to nearby towns and commute to their farms to work. By concentrating the dispersed rural population in a small number of urban cores, the government hopes to improve housing conditions and accessibility to ser- vices, stimulate economic development, and free up more land for farming. This paper analyzes this kind of urbanization, which is distinct from the much-studied city-centered urbanization and in situ urban- ization in coastal China. In addition to the resettlement program, this urbanization process is driven by agricultural modernization and economic liberalization. Urbanization has produced a ruraleurban hybrid settlement system where urban construction coexists with a mostly agrarian economy. Urbanization has also improved the livelihood of many rural households, but there are signicant social, economic, and environmental challenges. Ó 2013 Elsevier Ltd. All rights reserved. Introduction It is commonly accepted that urbanization in post-reform China is primarily driven by ruraleurban migration and the growth of existing cities (Chan, 2010; Zhang, 2008; Zhang & Song, 2003). Since 1978, the discontinuation of collective farming and the commune system, the relaxation of ruraleurban migration control, and uneven geography of economic development have created what is often coined the largest human migration in history. In 2011, there were 230 million migrant workers, approximately 80% of which were from rural backgrounds (Wang & Fan, 2012). These migrant workers typically go to eastern seaboard regions of Guangdong, Zhejiang, Shanghai, Beijing, Jiangsu, and Fujian, where economic opportunities are abundant. Rural migrant workers signicantly contribute to the rapid growth of cities in these areas, but are still subjected to socioeconomic, institutional, and cultural discrimination that renders them second-class citizens (Wong, Li, & Song, 2007). At the same time, the expansion of cities leads to the conversion of agricultural land into development zones (Yang & Wang, 2008; Zhang, 2011) and up-scale gated communities (Lo & Wang, 2013). In most cases, entire villages are uprooted, though occasionally they are left intact and become urban villages (Wang, Wang, & Wu, 2009). Landless farmers in these urban villages often embrace new livelihoods as landlords, renting out their property to migrant workers working in nearby factories (Wang, Wang, & Wu, 2010). Although important, city-centered urbanization is far from a totalizing phenomenon in China, and scholars have posited an alternative pathway to urban development known as in situ ur- banization (Zhu, 2000; Zhu, Qi, Shao, & He, 2009). In this model, rural settlements and populations gain urban elements without signicant spatial relocation of their residents. The role of local leaders in initiating rural industrialization through establishing township and village enterprises is often emphasized (Fei & Luo, 1998; Friedmann, 2006). Also known as urbanization from below,(Shen & Ma, 2005) the majority of these rural enterprises are privately owned, although many were registered as collective enterprises to prevent political persecution before Company Law was introduced in 1994 (Huang, 2012). Alternatively, some rural areas in China have successfully industrialized and urbanized through utilizing foreign direct investment (Zhu, 2000). A classic example of this so-called urbanization from outside(Sit & Yang, 1997) is Shenzhen in the Pearl River Delta. A neglected shing outpost during the Mao era, this dilapidated and depopulated village developed into a thriving metropolis and economic powerhouse with a population of over ten million people, primarily * Corresponding author. 4888 Shengbei Street, Changchun 130102, Jilin, China. Tel.: þ86 431 85542340; fax: þ86 431 85542206. E-mail addresses: [email protected] (S. Liu), [email protected] (P. Zhang). Contents lists available at ScienceDirect Habitat International journal homepage: www.elsevier.com/locate/habitatint 0197-3975/$ e see front matter Ó 2013 Elsevier Ltd. All rights reserved. http://dx.doi.org/10.1016/j.habitatint.2013.11.003 Habitat International 42 (2014) 103e110

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Habitat International 42 (2014) 103e110

Contents lists avai

Habitat International

journal homepage: www.elsevier .com/locate/habitat int

Urbanization in remote areas: A case study of the HeilongjiangReclamation Area, Northeast China

Shiwei Liu a,b, Pingyu Zhang a,*, Kevin Lo c

aNortheast Institute of Geography and Agroecology, Chinese Academy of Sciences, Changchun 130102, ChinabUniversity of Chinese Academy of Sciences, Beijing 100049, ChinacDepartment of Resource Management and Geography, University of Melbourne, VIC 3010, Australia

Keywords:UrbanizationResettlementHeilongjiang Reclamation Area

* Corresponding author. 4888 Shengbei Street, ChaTel.: þ86 431 85542340; fax: þ86 431 85542206.

E-mail addresses: [email protected] (S.(P. Zhang).

0197-3975/$ e see front matter � 2013 Elsevier Ltd.http://dx.doi.org/10.1016/j.habitatint.2013.11.003

a b s t r a c t

In a remote part of Northeast China, thousands of villages have disappeared from the map. Their in-habitants, more than 600,000 farmers, have been instructed by the government to relocate to nearbytowns and commute to their farms to work. By concentrating the dispersed rural population in a smallnumber of urban cores, the government hopes to improve housing conditions and accessibility to ser-vices, stimulate economic development, and free up more land for farming. This paper analyzes this kindof urbanization, which is distinct from the much-studied city-centered urbanization and in situ urban-ization in coastal China. In addition to the resettlement program, this urbanization process is driven byagricultural modernization and economic liberalization. Urbanization has produced a ruraleurban hybridsettlement system where urban construction coexists with a mostly agrarian economy. Urbanization hasalso improved the livelihood of many rural households, but there are significant social, economic, andenvironmental challenges.

� 2013 Elsevier Ltd. All rights reserved.

Introduction

It is commonly accepted that urbanization in post-reform Chinais primarily driven by ruraleurban migration and the growth ofexisting cities (Chan, 2010; Zhang, 2008; Zhang & Song, 2003).Since 1978, the discontinuation of collective farming and thecommune system, the relaxation of ruraleurban migration control,and uneven geography of economic development have createdwhat is often coined ‘the largest human migration in history’. In2011, there were 230 million migrant workers, approximately 80%of which were from rural backgrounds (Wang & Fan, 2012). Thesemigrant workers typically go to eastern seaboard regions ofGuangdong, Zhejiang, Shanghai, Beijing, Jiangsu, and Fujian, whereeconomic opportunities are abundant. Rural migrant workerssignificantly contribute to the rapid growth of cities in these areas,but are still subjected to socioeconomic, institutional, and culturaldiscrimination that renders them second-class citizens (Wong, Li, &Song, 2007). At the same time, the expansion of cities leads to theconversion of agricultural land into development zones (Yang &Wang, 2008; Zhang, 2011) and up-scale gated communities (Lo &

ngchun 130102, Jilin, China.

Liu), [email protected]

All rights reserved.

Wang, 2013). In most cases, entire villages are uprooted, thoughoccasionally they are left intact and become urban villages (Wang,Wang, & Wu, 2009). Landless farmers in these urban villages oftenembrace new livelihoods as landlords, renting out their property tomigrant workers working in nearby factories (Wang, Wang, & Wu,2010).

Although important, city-centered urbanization is far from atotalizing phenomenon in China, and scholars have posited analternative pathway to urban development known as in situ ur-banization (Zhu, 2000; Zhu, Qi, Shao, & He, 2009). In this model,rural settlements and populations gain urban elements withoutsignificant spatial relocation of their residents. The role of localleaders in initiating rural industrialization through establishingtownship and village enterprises is often emphasized (Fei & Luo,1998; Friedmann, 2006). Also known as ‘urbanization frombelow,’ (Shen & Ma, 2005) the majority of these rural enterprisesare privately owned, although many were registered as collectiveenterprises to prevent political persecution before Company Lawwas introduced in 1994 (Huang, 2012). Alternatively, some ruralareas in China have successfully industrialized and urbanizedthrough utilizing foreign direct investment (Zhu, 2000). A classicexample of this so-called ‘urbanization from outside’ (Sit & Yang,1997) is Shenzhen in the Pearl River Delta. A neglected fishingoutpost during the Mao era, this dilapidated and depopulatedvillage developed into a thriving metropolis and economicpowerhousewith a population of over tenmillion people, primarily

Fig. 1. The Heilongjiang Reclamation Area.

1 Chinese population is classified into either agricultural or non-agricultural; theformer group is entitled to land ownership and receives more lenient regulationwith regards to the one-child policy. The reason for the HRA farmers being clas-sified as non-agricultural is that the land in the HRA is owned by the state, not bythe peasants. Because the HRA farmers do not own land, they cannot be classified asagricultural.

S. Liu et al. / Habitat International 42 (2014) 103e110104

through investments from Hong Kong and Taiwan (Chan, 2011; Fei,1992; Ng, 2003). That most of the city’s inhabitants are migrantworkers reminds us that in situ urbanization and ruraleurbanmigration are not mutually exclusive, and the synergy of the twourbanization processes is referred to as ‘dual-track urbanization’(Shen, Feng, & Wong, 2006). In situ urbanization in China is limitedto rural areas neighboring existing metropolises and therefore canbe understood as an infiltration of urban activities into the sur-rounding countryside. Based on this understanding, scholars havedrawn similarities between in situ urbanization in China and theinfluential desakotamodel developed byMcGee (1991) based on hisobservations of Southeast Asian cities, such as Jakarta, Manila, andBangkok (Xie, Batty, & Zhao, 2007). However, these studies mainlyfocused on the eastern China, urbanization studies in remote areasof China have been neglected in some degree (Gu, Wu, & Cook,2012).

Reclamation areas (kenqu) in China are remote regions that wereformerly uninhabited wilderness areas designated for the purposesof agricultural reclamation and border security. These regions aredistributed widely within 31 provinces and municipalities in China,but those located in Heilongjiang, Xinjiang and Hainan provincesare the largest. Since most reclamation areas are dispersed inremote parts of China beyond the influence of existing metropol-ises, their experience with urbanization is distinct from the twomodels of ruraleurban transformation identified above. In thispaper, we take the Heilongjiang Reclamation Area (HRA) as a casestudy and examine the urbanization mechanisms and conse-quences in the region. We begin with a brief discussion of thecharacteristics, development history, and governance of the HRA.Then we explain the HRA’s urbanization mechanisms, followed byan analysis of the result of the transformation, which is a ruraleurban hybrid settlement system, and the main challenges of thistop-down urbanization process. This paper concludes with sug-gestions for future research.

The Heilongjiang Reclamation Area

The HRA is located in Heilongjiang, which is the northeastern-most province of China, bordering Russian Siberia for most of itsnorthern and eastern boundaries. The region earned the nickname

the ‘Great Northern Wilderness’ (beidahuang), reflecting theremoteness, inaccessibility, and sheer vastness of the area. Coveringapproximately 55,400 km2, the HRA is not continuous, but rathercomprises pieces of land distributed along the ChinaeRussia border(see Fig. 1). These are the largest reclamation areas in China and arefamous for their fertile soil and plentiful water resources. However,farming in these areas has always been hampered by long, harshwinters that rule out the utilization of multiple cropping sequencesprevalent in other parts of China. As of 2011, the most importantcrops in terms of areas planted were rice (46%), soybeans (22%) andcorn (22%).

HRA has a low population density, which is unusual for China’sagriculture-based rural areas. In 2011, the HRA’s population stoodat 1.71 million. The population density, at 30.9/km2, is very low byChinese standards. The low population density is a reflection of alow population growth rate since 1978, averaging to only 0.02%per year. The low population growth rate can be attributed to twocauses. First, the implementation of the one-child policy begin-ning in 1978 has had a significant effect on the country’s naturalpopulation growth rate, and the HRA is no exception. Most farmworkers in the HRA are classified as non-agricultural and there-fore do not enjoy the special allowance of a second child if thefirst child is a female.1 In 2006, the HRA’s natural populationgrowth rate became negative for the first time and continued todecline to �1.26% in 2010. Second, migration is another reason forthe low population growth rate. After 1978, a lot of volunteerswho came to HRA reclamation during the Mao’s era gradually goback to their hometown. What’s more, a lack of economic op-portunities in the HRA has triggered a out-migration in recentyears.

S. Liu et al. / Habitat International 42 (2014) 103e110 105

Development history

Most of the land in what would become the HRA was unin-habited wilderness at the end of the Second Sino-Japanese War.After the liberation of the region, from 1947 to 1955, soldiers sta-tioned at the frontier of Heilongjiang engaged in agriculturalreclamation during leisure time. By 1955, the region had estab-lished 63 farms and 2245 km2 of arable land, with a population of81,400. From 1956 to 1966, in an effort to speed up the reclamation,more than 100,000 demobilized soldiers and a large number ofvolunteers were sent to the HRA. In 1967, arable land increased tomore than 12,000 km2, the number of the farms increased to 124and the population increased to 960,000. During the early period ofthe Cultural Revolution (1966e1976), political upheaval distractedattention away from the reclamation, and the economy of the HRAsuffered from neglect and chaotic management. It was not until1971, when the government started to take some remedial mea-sures, that the situation improved. By the end of 1978, the numberof farms increased to 141 and the population reached 1.66 million.

The year 1978 was a watershed for the HRA. Before 1978, farmsin the HRA operated as state-owned enterprises under the centralplanning system. They did not have autonomy in production, hu-man resource management, or investment and were not respon-sible for their own loss and profit. This created inefficiency as thefulfillment of production targets, rather than market demand andprofit maximization, was the sole consideration of farm managers.In the 31 years of central planning, farms in the HRA made a loss in21 of those years; their net loss from 1967 to 1979 reached 1.435billion RMB. In 1978, the central government abandoned centralplanning in agriculture in favor of the household responsibilitysystem, which decentralized decision-making powers and financialresponsibilities to individual households through subcontracting(Krusekopf, 2002). In the HRA, the household responsibility systemreform meant that farmers no longer received wages from thefarms. Instead, they subcontracted a piece of land for a fee. This, inessence, broke the large state farms into numerous individualfarms. The role of the state retreated to that of a landlord and anagricultural service provider, including the provision of seeds, fer-tilizers, pesticides, and farming equipment. Elsewhere in China, thehousehold responsibility system has resulted in small and scatteredfarmland, which reduces the scale of agriculture and the level ofmechanization (Bramall, 2004; Mead, 2003). This is not the case inthe HRA, where individual farms created by the reform are large interms of area because of abundant land resources and a low pop-ulation density. Instead, the reform has been influential inimproving the HRA farms’ performance. Annual grain productionincreased from 2.35 million tons in 1978 to 20.37 million tons in2011, or 8.7 times the production in 1978.

Governance

Under China’s decentralized political system, local governmentsgained significant authority in local governance vis-à-vis the centralgovernment (Mertha, 2005). The HRA’s political system, however,is distinct from other regions in China. The HRA exists outside thejurisdiction of any municipal government and is instead governedby the Heilongjiang Reclamation Bureau (hereafter ReclamationBureau), which is a functional department of the HeilongjiangProvincial Government, but is also governed by the Ministry ofAgriculture of the central government. The Reclamation Bureau ishighly autonomous and governs through three tiers of local au-thorities. At the top tier are 9 regional branches (see Fig. 1 for thegeographic location of the regional branches). At the middle tier are113 state farms of various sizes; the largest is 1888.12 km2, and thesmallest is only 5.36 km2. At the bottom tier are approximately

2600 production teams. Before the household responsibility systemreform, the production teams served as the basic administrativeand economic units. The reform has hollowed out much of thefunctions belonging to the production teams, and recently theReclamation Bureau has begun to formally eliminate this tier ofadministration. According to the “Heilongjiang Reclamation AreaRegulation”, the Reclamation Bureau enforces the municipal gov-ernment’s administrative powers, whereas the regional branchesenforce the county government’s administrative powers. Since2000, under the guideline to separate enterprise from adminis-tration, state farms have functioned primarily as state-owned en-terprises and are responsible for their own management decisions,profits and losses (Han et al., 2002).

The driving forces of urbanization

Until recently, most farmers in the HRA lived in isolated villages,not unlike other rural areas in remote parts of China that have beenleft out of the urbanization process. This lack of urbanization beforethe resettlement program leaves little doubt that the resettlementprogram is the key driver of urbanization. In this section, in addi-tion to examining the resettlement program in detail, we furtherconsider two policy developments that may help explain therationale of the resettlement program.

Agricultural modernization

Agricultural modernization, especially agricultural mechaniza-tion, has been a long-term focus of the HRA. As early as 1948 theregion started to import farming equipment from the Soviet Union,the United States and other countries and in 1959 began to invest indomestic research and development. The Reclamation Bureau hasbeen the key driving force behind agricultural modernization byinvesting in technologically advanced farming equipment.Furthermore, in 1985, the Reclamation Bureau established theAgricultural Aviation Experimentation Station, which has sincedeveloped into a leading agricultural aviation company in China.Currently, the farming process in the HRA is highlymechanized andadvanced GPS, GIS, and remote sensing technologies are employedto optimize efficiency. The agricultural mechanization rate reaches97.5%, and the output of grain per farm worker is 46.8 tons. Theaverage cultivated area per agricultural worker in the HRA is 4.1 haper capita, which is about 20 times the national average(Heilongjiang Reclamation Area Bureau of Statistics, 2013). Themotivation for agricultural modernization is to increase produc-tivity, rather than to urbanize the area. However, the surplus laborcreated by agricultural modernization becomes an importantenabler to urbanization.

Economic liberalization

The HRA’s first attempt to urbanize through rural industriali-zation was driven by an imperative to solve the employmentproblem of surplus labor created by agricultural modernization. In1979, the Reclamation Bureau proposed all farms should promotesecondary industries to create jobs. However, progress was slow. In1990, the HRA had 1189 enterprises, compared to 737 in 1978. Mostfactories were poorly performing state-owned enterprises (SOEs)operating on a small scale and struggling to adapt to the marketeconomy. The situation began to change in 1993, when the centralgovernment initiated the economic liberalization reform. The gistof the reformwas to cease support to small, loss-making, and debt-ridden SOEs. Instead, underperforming SOEs were to be privatized,merged, or declared bankrupt. By 1995, the reformwas in full swingin the HRA, resulting in the rapidly diminishing number of SOEs in

Fig. 2. Number of the industrial enterprises in the HRA (1978e2011).

Fig. 4. Spatial structure after resettlement.

S. Liu et al. / Habitat International 42 (2014) 103e110106

the region (see Fig. 2). At the same time, private enterprises wereallowed to flourish. In 2002, the number of private enterprisessurpassed the number of SOEs for the first time. The emergence of aprivate economy stimulated the development of modern in-dustries, especially the food and agricultural products processingindustries, in the HRA. In 2011, private enterprises accounted for92% of the gross industrial output and 88% of total industrial jobs inthe HRA.

The liberalization of the economy has positively impacted ruralindustrialization. However, the HRA was unable to duplicate thesuccess of township and village enterprises elsewhere. In additionto the challenges of its remote location and low population density,another significant barrier to industrialization was the dispersednature of settlements in the HRA. Farmers lived in a great numberof small settlements, making it difficult for industries to attract asufficient workforce. This is one of the problems that gave rise tothe idea of using resettlement to stimulate urbanization.

Large-scale resettlement

Before the resettlement, the HRA was characterized bydispersed settlements. The majority of the population was scat-tered across approximately 2600 villages, known as productionteam settlements (see Fig. 3). A typical village had about a hundredhouseholds, mostly living in poor-quality houses (see Fig. 5). Thissettlement pattern derived from the need to reclaim and cultivatelarge areas of land, as well as for national security concerns tosafeguard the border against the Soviet Union. However, dispersedsettlements greatly increased the per capita cost of services andfacilities provided by the government, and were detrimental torural industrialization. To address this problem, the HRA started alarge-scale resettlement program in 1999. The overall goal of theprogram is to abolish the production team settlements andconcentrate the population in 5 core cities with more than 100,000

Fig. 3. Spatial structure before resettlement.

inhabitants each, 50 important towns with more than 20,000 in-habitants each, 50 general towns with more than 100,000 in-habitants each, and 500 communities with more than 1000inhabitants each (see Fig. 4). By concentrating the population in asmall number of urban cores, the government hopes to overcomethe shortcomings of scattered settlements; improve livelihoodsthrough better housing, employment and basic services; free upland for farming purposes; and stimulate the growth of urbanareas.

In general, there are two types of resettlements: voluntary andinvoluntary. Resettlement is voluntary if the affected population isgiven the choice to remain (Muggah, 2003). In Canada, for example,the federal government and the provincial government ofNewfoundland initiated an incentive-based, voluntary resettle-ment program to move people from remote fishing villages tolarger centers from the 1950s to the 1970s (Mayda, 2004). In China,large-scale rural resettlements are almost always involuntary, withcases such as the Three Gorges Project (over 1.2 million peoplerelocated), the South-North Water Transfer Project (over 300,000people relocated), and the environmental resettlement in InnerMongolia (over 200,000 people relocated) (Berkoff, 2003;Dickinson & Webber, 2007; Li, Waley, & Rees, 2001). Chineselegislation and regulation on involuntary resettlements advocatethe principle of development resettlement, meaning that the gov-ernment would act to maintain and enhance settlers’ living stan-dards and promote socioeconomic development (Mcdonald,Webber, & Duan, 2008). However, regulations do not alwaystranslate into actions in China, and so far the government hasapplied the principle of development resettlement to only onenational resettlement scheme: the Three Gorges Project (Mcdonaldet al., 2008).

For most part, the HRA resettlement program is involuntary.Thousands of villages have been uprooted and converted to farm-land with consulting the inhabitants, and negotiating and coming

Fig. 5. A production team settlement in Hongxinglong.

Table 1The progress of the HRA resettlement program by regional branches.

Regionalbranch

2007 2008 2009 2010 2011 2012 Number ofvillages to bepreserved

Number ofvillages

Villagesresettled

Villagesresettled

Villagesresettled

Villages resettled(planned)

Villages resettled(planned)

Baoquanling 391 12 60 102 90 29 98Jiansanjiang 531 27 88 163 90 67 96Hongxinglong 352 22 76 100 90 0 64Mudanjiang 358 13 65 102 90 7 76Beian 268 23 70 40 60 20 55Jiusan 277 64 66 28 60 27 39Qiqihaer 160 15 27 22 20 29 47Suihua 108 35 31 0 20 0 22Haerbin 32 7 14 0 8 0 3Bureau Territory 2 0 2 0 0 0 0Total 2474 218 499 557 528 172 500

S. Liu et al. / Habitat International 42 (2014) 103e110 107

to an agreement with them. Nevertheless, it remains the case thatthe success of the resettlement hinges upon the provision ofaffordable and adequate housing. Affected farmers are given thechoice to purchase a new home in consolidated communities(which is essentially a large village), towns, or core cities. To facil-itate the process of finding a new home, a number of policies havebeen implemented. The resettlers are given compensation by thelocal farm for the destruction of original dwellings. The compen-sation rate differs across farms, but on average is approximately200 RMB/m2 Furthermore, a subsidized housing scheme wasestablished jointly by the Reclamation Bureau and the centralgovernment. Each household is eligible for a subsidy between 100and 600 RMB/m2 for purchasing new houses and a relocationallowance of 1000 RMB. In addition, the central government gives7500 RMB to each household. The financial assistance is quitegenerous considering the cost of housing in the HRA, between 1000and 1600 RMB/m2, is well below the metropolitan area average. Forfamilies that could not afford to purchase an apartment, theReclamation Bureau built affordable housing units that can berented at a very low annual fee of 1000 RMB for three years. By theend of 2011, the HRA has resettled approximately 600,000 people(approximately one-third of the HRA’s total population) from 1648villages (People’s Daily, 23/12/2012). Table 1 shows that the HRA ison target to achieve the objective of resettling 1947 out of 2474villages (79%) before the end of 2012.

A ruraleurban hybrid settlement system

The most direct result of resettlement is the disappearance ofvillages. Approximately 400,000 ha of new arable land has been

Fig. 6. A new residential area in Mudanjiang, the HRA (photography by the authors).

created out of the demolished production team settlements. Theresettlement also triggered rapid urbanization, especially in theregional towns and cities. The result is a hybrid settlement systemwith both rural and urban elements, or in the words of the locals,‘live in the city, work in the field.’

Urban construction

The massive resettlement of the HRA’s rural population has ledto a construction boom that is showing no signs of slowing down atthis time. New residential communities, mostly low-rise apart-ments but also some semi-detached and detached houses, arepopping up inmost cities and towns in the HRA (Fig. 6). At the sametime, public facilities, notably hospitals, schools, and parks, andcommercial districts are being planned and constructed by theReclamation Bureau and its regional branches (Fig. 7). This is in facta significant reversal of the long term policy of suppressing in-vestment in housing and public servicesdconsidered under thesocialist economy as unproductivedto support development inmanufacturing and agriculture. Fig. 8 illustrates this reversal ininvestment priority. It was not until 2009 that the ‘non-productive’investment outstripped ‘productive’ investment. Investment inresidential housing has had particularly strong growth, reaching124 billion RMB in 2011, or 43.4% of the total fixed asset investment.

Urban construction has led to some improvements to livingstandards. Public facilities and commercial establishments,including hospitals, schools, parks, restaurants, and cinemas, arenow much more accessible to the farming population. Fei Xiao-tong’s idea of “transforming small towns into the service, culture,

Fig. 7. A new public and commercial area in Jiansanjiang, the HRA (photography by theauthors).

Fig. 8. Fixed asset investment in the HRA (1987e2011).

Fig. 9. GDP and economic structure of the HRA (1949e2011).

Fig. 10. Employment structure of the HRA (1978e2011).

S. Liu et al. / Habitat International 42 (2014) 103e110108

and education centres of the countryside” has found expression inthe regional towns and cities in the HRA (Fei, 1986).2 Moving fromvillages to towns or cities would logically result in less living space,however, the opposite is true. Because of underinvestment inhousing, per capita living space in the HRA was a mere 17.03 m2 aslate as 2005. The figure has increased to 28.21 m2 in 2011, animprovement of 65.6% over 6 years. The new apartments andhouses are not just larger, but are also better insulated and equip-ped with modern facilities, including central heating and flushtoilets.

Agrarian economy

Despite the hopes of the government, urbanization has nottriggered a rapid growth in the secondary and tertiary sectors in theHRA. Fig. 9 shows that although the total economic output of theHRA has grown rapidly, especially after 2000, the economic struc-ture has not changed substantially. At the start of the resettlementprogram in 2000, the primary industry, secondary industry andtertiary industry made up 54.3%, 16.9%, and 25.7% of the total in-dustry, respectively; in 2011, these proportions changed to 51.7%,23.8%, and 24.5%. Industries in the HRA are mostly limited to foodprocessing and manufacturing. The continued dominance of theagrarian economy is also reflected in the employment structure(Fig. 10). Agriculture has always employed more than half of the

2 We would like to thank an anonymous reviewer for this insight.

labor force, although its dominance declined from 67.4% in 2007 to62.6% in 2011. During the same period, the secondary sectorincreased slightly from 13.3% to 15.4%, whereas the tertiary sectorincreased from 19.3% to 22.0%.

The challenges of urbanization

Urbanization in the HRA is still an ongoing process. Yet, severalchallenges have emerged, including investing in public facilities,resettlers’ cost of living, job creation, institutional reforms, andbalancing environmental and economic concerns. These chal-lenges, if handled poorly, can lead to serious social, economic, andenvironmental problems that threaten the sustainability of theresettlement process.

Cost of living

Maintaining the living standards of resettlers is often a keychallenge of resettlement programs in China because of lack ofavailable farmland in the resettlement area (Duan & Wilmsen,2012). However, the HRA resettlers do not lose land. In fact, inmany cases they receive extra land as compensation, made possibleby the conversion of villages to farmland. Nevertheless, the reset-tlers face challenges due to the high cost of living associated withan urban lifestyle. Heating now costs resettlers thousands of RMBper season, depending on the size of their new house. Trans-portation is another new expenditure, as most farmers now need tocommute long distances to their farm. Moreover, before resettle-ment, most farmers grew vegetables and raised animals outsidetheir houses for domestic consumption or extra income. There isoften no space for them to do so in urban areas, especially if theymove to apartment blocks. Consequently, their income decreasesand the cost of living increases. Furthermore, despite governmentassistance, many resettlers have to take on amortgage to buy a newhome. These various costs add up to a considerable amount ofmoney and became a social issue that must be addressed urgently.

Investing in public facilities

One of the supposed benefits of resettlement is better access topublic facilities. However, the speed of resettlement, especiallysince 2008, means that in some cases provision of urban servicesand facilities lags behind the movement of the population. Newarrivals may find many promises unfulfilled, and existing urbandwellers may feel limited public resources are strained to theirlimits. The pressure to locate resources to address the funding gapfor public facilities has led some farms to substantially increase

S. Liu et al. / Habitat International 42 (2014) 103e110 109

their subcontracting fees, which further increases the cost of livingand its pressure on the resettlers.

Job creation

As mentioned previously, the goal of using urbanization tostimulate growth in the secondary and tertiary industries has notbeen fulfilled. Most existing and newly constructed towns remainpredominately agricultural service oriented. Within Heilongjiang,the industrial corridor of Harbin, Daqing, and Qiqihar is highlycompetitive and attracted 63.3% of the province’s total investmentin 2010. Although the increase in urban population in the HRA hassuccessfully attracted some investment in the retail sector, such assupermarkets, restaurants, and shopping malls, so far the scale ofthese investments has been limited and has not provided enoughurban jobs. Job creation and diversification away from agricultureare of critical importance to the economic sustainability of the HRA,yet, it remains difficult for the HRA to compete with the moreestablished metropolitan areas in Heilongjiang, let alone otherparts of China, for investment.

Institutional reforms

The fourth challenge is institutional. The Reclamation Bureau isat the same time both a governing authority and a state-ownedenterprise. Although this legacy institutional arrangement mayhave contributed to the smooth operation of the resettlementprogram, the bureau is not without serious problems. As a businessentity, the Reclamation Bureau must pay taxes to both local gov-ernments and the central government. At the same time, theReclamation Bureau is responsible for delivering public servicesand infrastructure. At present, with the exception of primary andsecondary education, which is fully funded by the central govern-ment, services such as public health, culture, sports, and agricul-tural assistance are all funded by local farms. In other words, theReclamation Bureau has a double burden, which further limits thefunding available for investment in public facilities. Additionally,the Reclamation Bureau and its subordinates do not have authorityover land management or tax collection. This has put the HRA at adisadvantage in attracting investments when other local govern-ments in China are able to offer incentives such as tax breaks andinexpensive land.

Balancing environmental and economic concerns

Urbanization may result in the degradation of natural and ruralenvironments (Morinière, 2012). In China, the emergence of thesustainable development discourse underpins the growing impor-tance given to environmental concerns. Environmental issues are ofparticular importance in the HRA because of the region’s role infood production and because it is home to a number of significantecological systems, including wetlands, grasslands, and forests.After decades of reclamation, cultivated land in the HRA hasreached 28,009 km2. The area of wetlands in the Sanjiang Plain,which covers four regional branches (Baoquanling, Hongxinglong,Jiansanjiang, and Mudanjiang) of the HRA, has dramaticallyreduced by 60% from 1949 to 2005. On average, the groundwaterlevel has declined by 2.5 m from 1997 to 2005. In some places, thegroundwater level has fallen by over 5.8 m (Su, Pu, & Fu, 2007).However, for many years environmental protection and ecologicalconservation were ignored, resulting in numerous forms of envi-ronmental degradation, including the increased use of marginallands, increased use of chemicals, and the rampant destruction ofecosystems (Muldavin,1997). The environmental debt accumulatedin the past thirty years means that the government must now act to

rebalance environmental and economic concerns. A particularlypressing environmental concern is climate change. Worldwide,cities are responsible for the majority of carbon emissions, andChinese cities are often carbon intensive (Wang, Zhang, Liu, & Bi,2012). Given the central government’s intention to control carbonemissions (Lo, 2014), city building in the HRA needs to implementclimate mitigation measures such as building energy conservation,deploying renewable energy, and controlling urban sprawl.

Discussion and conclusion

By definition, urbanization requires countries to uproot most oftheir rural population. This can be done by ruraleurban migrationor by in situ urbanization through rural industrialization. Both ur-banization models are relevant mainly to China’s coastal provinces,whereas the majority of rural areas in China’s remote inland are leftunderdeveloped and depopulated. This case study has shown thatit is possible for China’s remote areas to be urbanized. The HRA,situated in the remote hinterland of the country, is undergoing anurbanization process that is transforming the region from a typicalrural settlement systemda large number of small villages sur-rounded by farmlanddto a ruraleurban hybrid settlement system.The key difference between the HRA and other forms of in situurbanization in China is that the HRA urbanization process has littleinfluence from existing metropolises. In this regard, the HRAexperience is similar to the concept of a ruralopolis (Qadeer, 2000,2004). At the same time, the HRA is different from other rural-opolises undergoing the urbanization process. Instead of urbani-zation triggered by population growth and bottom-up initiatives,the urbanization of HRA has been underpinned by agriculturalmodernization, economic liberalization, and state-led resettlement.Given the decline in the local population, agricultural moderniza-tion plays an important role in creating surplus labor. Economicliberalization contributes to the growth of the private sector, whichis instrumental to the development of modern industries. Theresettlement program, which forcibly moves the rural populationinto newor existing urban centers, plays the role of a catalyst in thisurbanization process. Urbanization has improved the livelihood ofmany rural households in the HRA, but there are significant social,economic, and environmental challenges.

To what extent is the experience of urbanization in the HRArelevant to other rural areas in China? We have argued that one ofthe keys to success is an affordable and smooth resettlement pro-cess, and there are reasons to suspect that the relative ease ofresettlement is at least in part due to certain characteristics of theHRA. Chinese law puts great emphasis on the protection of peas-ants’ land rights. Residential land use rights are held by each familyin perpetuity (Tang, Mason, & Sun, 2012). Farmers in the HRA areconsidered workers and therefore do not enjoy the same landrights as Chinese peasants. This greatly simplifies the resettlementprocess, as well as keeps the cost of compensation down. Lowpopulation density and small population size also help minimizecompensation costs. Furthermore, the overwhelming power of theReclamation Bureau, which controls almost every aspect of the HRAfarmers’ lives, makes it almost impossible for the farmers to resistresettlement. Another characteristic of the HRA is the absence oflocal government in the area. Consequently, the governance of theHRA is highly hierarchical and militaristic, which makes theimplementation of government policies more effective. Finally, theHRA’s success in agricultural modernization can be attributed toboth historic and geographic factors. Not only does the region enjoya comparatively early start of agricultural modernization, its largefarm size and flat landscape are also conducive to such farmingmethod. These are preliminary thoughts, and further studies areneeded to systematically compare the differences between the HRA

S. Liu et al. / Habitat International 42 (2014) 103e110110

and other rural areas in China. These differences may include thedevelopment process, spatial characteristics, economic status,governance and institutions.

Studies are also needed to gain a more complete understandingof the urbanization process and its consequences. Urbanization is amultidimensional socio-spatial process, incorporating social, cul-tural, economic, political, spatial, and ecological dimensions(Friedmann, 2006). A multidisciplinary approach is needed tocomprehensively study these different dimensions. With respect tospatial organization, more studies are needed to look into the dis-tribution of urban settlements by their sizes, forms, functions andthe spacing and interlinking of these settlements. In the economicdimension, the most pressing research topic is to find a solution tothe job creation challenge. It would also be worthwhile to study theeconomic impact of urbanization on adjacent regions. Politically,there is an urgent need to reform the Reclamation Bureau. Moreresearch is needed to determine the best possible path of institu-tional reform. Ecologically, there has been a proliferation of eco-cities and low-carbon cities in China. To what extent are theseconcepts relevant to the urbanization of HRA? How can the townsand cities in the HRA become environmentally friendly, sustainable,and climate proof? With respect to social and cultural aspects, howdo the farmers understand and value the urbanization of theirlifestyle? What are the key challenges they face in their everydaylife? To what extent do they benefit or are disadvantaged by theresettlement program? Finally, we should remember that thesedimensions are distinct but also influence each other. In particular,balancing the often conflicting objectives of ecological protectionand economic development in an urbanizing context is crucial toensuring a sustainable mode of urbanization.

Acknowledgments

This work was supported by the National Natural ScienceFoundation of China (41071108, 41201159); The Knowledge Inno-vation Program of the Chinese Academy of Sciences (KZCX2-YW-342); The Knowledge Innovation Program of the Chinese Academyof Sciences “Grain security situation simulation study for northeastof China”; The National Key Technology Program (2008BAH31B06).

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