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Regular version of the site

Moscow and Shanghai Have Much in Common

A delegation from the Strategic Consultation Committee of the Shanghai Government visited the Higher School of Economics and met with HSE experts on urban development on July 19th.

Moscow and Shanghai have much in common. Both cities are among the largest financial and trade centers in the world. Even the heat in Moscow this year is just like the climate that Shanghai citizens are used to. And both Moscow and Shanghai are leading national educational centers. The Higher School of Economics is developing ties with Fudan University, the University ‘Huadong Shifan'and the Shanghai Jiao Tong Univeristy.

During the visit of the HSE delegation to Shanghai in June,Vice Rector Andrey Klimenko met representatives of the Strategic Consultation Committee of the Shanghai Government. This meeting took place as part of the all-China seminar on ‘Studying Europe and Asia on an Interdisciplinary Background'', organized by the Institute of International Relations and Regional Development at the University ‘Huadong Shifan'. And following this, a representative Chinese delegation headed by Lee Huaxin, Deputy Secretary-General of the Committee, has visited Moscow and initiated a meeting with HSE experts in urban development.

In his opening speech Andrey Klimenko expressed his belief that Chinese representatives would be interested in a dialogue with HSE experts on the problems of urban development which are are shared by both Moscow and Shanghai. The positive dynamics in Shanghai development over the last 3 or 4 years exists, according to A.Klimenko, thanks to ‘the right solutions in urban policies, which are also of interest for Moscow'. But both Moscow and Shanghai have certain problems, and their experiences in solving these issues can be useful for both sides.

A topical discussion was started by Vladimir Korolev, Deputy Director of the HSE Institute of Public Administration and Municipal Management. ‘Every government has always faced the question of how to better use public and municipal property and how to attract resources to give the population the highest quality services with the least costs and maximum effect. We have been studying the Chinese experience of the organization of interaction between the government and business for about 20 years. This relates to the creation of special economic zones and development of road construction in China. Russian governmental bodies of all levels are also facing the task of attracting private capital to urban infrastructure development as well as provision of transport, energy, educational, medical and other services'.

To attract private capital, the Shanghai government proposes a project of cooperation using market conditions in transport - roads, railroads, sea and river ports - and the social sphere - hospitals, clinics, school service companies etc. There are special departments within the government of Shanghai which are responsible for these issues, and there are items of expenditure in the budget which let them implement such projects. Russian budgets do not have such items of expenditure. And this is one of the problems that needs to be solved. All of this also leads us to a practical conclusion:it would be good if the HSE experts could take fact finding trips and internships in the Shanghai municipality to see how this mechanism works. And Russian representatives could come to the HSE and share their experience on courses of continuing education for public and municipal officials on the problems of interaction between government and business. It would be a useful exchange of experience and knowledge.

Elena Shomina, Deputy Head of the HSE Department of Local Administration, told the guests about the experience of local administration and housing reform in Russia. This municipal reform was aimed at bringing municipalities closer to the population and its needs, to make municipalities financially independent and to involve citizens in the discussion of local problems. The new system of local administration consists of two levels:cities and villages, and above them - regions and city districts. And only two cities - Moscow and Saint Petersburg - are subjects of the federation. ‘But a big city lives according to its own more complicated rules, and we think that in Moscow the local self-administration is not as developed as people would like it to be'- Elena Shomina said.

Elena Shomina also spoke about the problems of housing reform in Russia, which was very interesting for the Shanghai representatives where there is, on average, about 30 square meters of residential housing per citizen, The main problem in Russia is that about 60 percent of houses were built before 1960, and 20 percent of houses still have no mains drainage and water supply. In addition to that, after privatization one apartment building can be inhabited with owners of flats as well as with municipal renters. According to the new Housing Law, the inhabitants should solve all their problems with their houses and apartments themselves. ‘The inhabitants should negotiate and come to common solutions, but this turns out to be very difficult'- Shomina said and mentioned that processes of municipalization and privatization of residential spaces also took place in China. But, for example, in Moscow, while old buildings are demolished, new multi-storey buildings are constructed, and for families with many children small cottages are built in new city districts, while there are no such policies in Shanghai.

Sun Fuxin, Deputy Head of the Shanghai Consultation Committee, told the audience about the problems of modern Shanghai:‘Over the last 10 years, the problem of global urban development has come to the foreground. The worldwide challenge is how to make the city more beautiful and comfortable for living'. Shanghai previously had a construction boom, but if earlier big industries formed the basis of the city, now the focus is on light industry and the service sector. But the city is densely inhabited, and there is a lack of vital resources, such as land and water. In this sense Shanghai and Moscow are very similar.

The Chinese administration is willing to turn Shanghai into a city with a unique environment where East and West can unite. After the global crisis, issues of innovative development and modernization have become the focus of reforms. Much attention is paid to export and attracting foreign investments. The success of these initiatives depends largely on the urban infrastructure.

After the HSE meeting, the delegation from the Shanghai government visited the government offices of Moscow, took a trip around Moscow and went to Saint Petersburg, Shanghai's sister city, where meetings with Alexander Hodachek, Director of the HSE Saint Petersburg Branch, and other experts, were held.

Nikolay Vukolov, HSE News Service

Photos by Nikita Benzoruk