Student Presentation - USC Price School of Public Policy

“One Metropolis, Two Systems”

Contextual Policy Recommendations for Enhanced Metropolitan Cooperation between Hong Kong and Shenzhen

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PPD 613 International China Lab June 6, 2014

Overview • Border divides Hong Kong and Shenzhen • Amplifies political differences • Complicates urban challenges • Requires collaboration

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Potential Solution • Improve communication and collaboration • Develop more effective regional partnerships • Keep in mind the complexities of the border and the pervasive and inherent dilemmas

Recommend the region adopt a Three-Step Blueprint for improving cross border collaboration which includes: Step

Symposium

Step

Commission

Step

Funding Mechanism

Contextual Dilemmas Considerations special to the Hong Kong & Shenzhen case Collaboration can be a successful tool however, there are special considerations that need to be made when looking at Hong Kong. Mistrust in Government

● Fear of Beijing’s influence on government ● Officials are not democratically elected ● 2017 questions

Immigration

● Difficulty in accepting mainland China immigration and economic involvement ● Exacerbates the existing burden on Housing, Education, Health Care Services and Social Services

Strain on Services

● ● ● ●

Transportation congestion High rental prices Long wait lists for Public Housing Lengthy timeframes to receive medical care

Shenzhen & Hong Kong Partnership • Shenzhen has been given more economic freedom than elsewhere in China (ex. Shenzhen Special Economic Zone) • Similarities between Shenzhen and Hong Kong • Beijing open to allowing innovation Image courtesy of China Daily

Proposal Timeline Commission

Symposium

Funding Mechanism

2015

2016

2017

2018

Framework Chief Executive Election

Future

Step 1: Symposiums Initiate a series of symposiums to: • Improve regional collaboration between Hong Kong and Shenzhen by fostering dialogue and the sharing of research and innovation concerning cross-border issues Symposiums will convene quarterly to cover sectoral issues that affect both sides of the border such as Housing, the Environment and Social Services. Use universities on both sides to avoid the public distrust associated with working through government Symposium

Commission

Funding Mechanism

Symposium How it will function as an operating body • Where: Hosted at the universities and could alternate between Hong Kong and Shenzhen campuses • How: Funding from universities and local charities, and/or private foundations

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The symposium would be used as a starting point to establish a regional commission

Step 2: Commission Create a commission to address the fragmented and sporadic communication problems that hinder cross-border collaboration: • •

Synthesize and streamline communication between existing bodies Build a systematic database to coordinate the exchange of information and best practices between Hong Kong and Shenzhen

Once the commission is established, the symposium will shift its focus to providing a constant metropolitan dialogue to address issues including Housing, Health Care Services, Transportation, Education and Social Services

Symposium

Commission

Funding Mechanism

Commission Example Case study: Central Policy Unit in Hong Kong • Similarity: serve as a database of knowledge for analysis and recommendation • Differences: CPU is funded by government while commission is funded by the universities; CPU is Hong Kong-centric while commission focuses on cross-border issues. Symposium

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Commission

Funding Mechanism

Commission Example Case study: United States and Mexico Health Commission While Hong Kong is unique in some respects, it could benefit from a cross border collaboration scheme exemplified throughout the world A partnership agreement created at an international border for the purposes of: ● Protecting citizens ● Facilitating and expediting legitimate cross border travel and commerce ● Creating better quality of life ● Resulted in the creation of an international NGO Symposium

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Commission

Funding Mechanism

Step 3: Funding Mechanism Create a funding mechanism to implement collaborative metropolitan projects recommended by the commission: • Establish stable and reliable financial support • Support both public and private sector initiatives • Implement cross-border projects benefiting Hong Kong and Shenzhen

Symposium

Commission

Funding Mechanism

Funding Mechanism Option 1 • Option 1: Hong Kong – Shenzhen Development Bank (HSDB) • Government Led and Funded • Purpose: Provide Loans and Grants • Benefit: Provides Funding to Public and Private Industry • Ex: North American Development Bank • Relationship with Commission • Funds Projects Approved by the Commission

Symposium

Commission

Funding Mechanism

Funding Mechanism Option 2 • Option 2: Hong Kong – Shenzhen Foundation • Non-Government Led • Purpose: Provide Grants • Ex: The Asia Foundation • Benefit: Receives Funding from Multiple Sectors • Relationship with Commission • Similar to Development Bank • Funds Projects Approved by the Commission Symposium

Commission

Funding Mechanism

Funding Mechanism Option 3 • Option 3: Hong Kong – Shenzhen Fund • Government Led and Funded • Purpose: Provide Grants • Ex: The European Regional Development Fund • Relationship with Commission

• Commission Operates as an Advisory Board • Funds Projects Approved by Government • Benefit: Each Governmentt Will Have More Say in the Allocation of Funds for Projects Symposium

Commission

Funding Mechanism

Joint Government Fund Joint Government Fund Hong Kong Government Hong Kong Government

Shenzhen Government Shenzhen Government

Symposium

Commission

Funding Mechanism

Next Steps • 2015: Initiate symposiums • Confirm attendees and format • 2016: Symposium recommendation • Framework for commision • 2017: Chief Executive election

• 2018: Establish commission • Confirm members and procedures • Future (2022): Create funding mechanism • Confirm approach and governance

Conclusion Despite ongoing collaboration between Hong Kong and Shenzhen, the two cities have yet to attain a meaningful process to coordinate joint efforts. • Distinct political systems continue to cause complications The Three-Step Blueprint presented can be used as a guideline to enhance coordination and communication: • Creation of a symposium • Establishment of a commission • Initiating a funding mechanism to implement projects

The proposed blueprint would establish stronger communication and collaboration between Hong Kong and Shenzhen, increasing their combined effectiveness in the Pearl River Delta