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Enlightenment in Shenzhen's urban renewal, market-oriented and government guided (No135, 2014, Total 4634)


By Shao Ting, Market Economy Institute, Development Research Center of the State Council (DRC)

Report No135, 2014 (Total 4634)


The key to sustainable urbanization is getting rid of the violent demolition that follows government orders. The city of Shenzhen, Guangdong province, came up with Urban Renewal Methods, in 2009, and began a city update with urban village reconstruction at its core and it encouraged urban village property owners, the former rural economic collectives to look for independent or cooperative methods instead of just following the governments renewal methods which meant that government is responsible for land purchases, replacement and resettlement, and land sales, and established a sharing mechanism where all parties have equal and reasonable access.

Now, after 5 years of practice, the new market-oriented, government guided model is playing an important role in improving urban infrastructure, public services, and property incomes and, it helps to bring vitality to the city, and in particular, provides beneficial experience in dealing with the demolition process for other cities that are in the urbanization phase.