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Economy
See other Economy Articles

Title: More Deflation signs: China's Ghost Towns
Source: Worldbank.org
URL Source: http://blogs.worldbank.org/transport/node/526
Published: Aug 16, 2010
Author: Holly Krambeck
Post Date: 2010-08-16 14:23:54 by Nebuchadnezzar
Keywords: None
Views: 9328
Comments: 18

Rise of the Chinese Ghost Town Submitted by Holly Krambeck on Mon, 2010-07-12 11:17

In Chenggong, there are more than a hundred-thousand new apartments with no occupants, lush tree-lined streets with no cars, enormous office buildings with no workers, and billboards advertising cold medicine and real estate services – with no one to see them.

As my colleagues and I wandered, on–foot, down the center of Chenggong’s empty 8-lane boulevards and dedicated bus lanes, never seeing a single person, we marveled about the fiscal and political conditions that would have to exist to create something like this.

In February this year, Geoff Dyer wrote an article for the Financial Times, “China: No One Home”, in which he chronicled the eerie emptiness of this new town development near the city of Kunming, in southwestern China. He wrote: “Construction started in 2003 and the results are now apparent in 13 immaculate local government buildings, each clad in marble tiles. A high school boasts an impressive indoor swimming pool and several of the region’s main universities have built large campuses. Pristine high-rise apartment blocks stand in rows, their new windows glinting in the subtropical sun.

The one drawback: at the moment, Chenggong is almost completely empty. Its wide streets are all but bereft of traffic, a bank branch has no customers and leaves collect in the foyers of the municipal offices.”

In June, I accompanied a World Bank mission to Kunming, where the Bank is supporting the development of a new light rail system. Upon learning that two stations had already been built in Chenggong, my colleagues and I just had to go see for ourselves -- just what does a modern Chinese ghost town really look like? Well, here it is.

Chenggong springs from a typical development pattern seen throughout the country – cities that are rapidly growing in population and becoming increasingly congested develop satellite towns far from the urban core, relocating university, government, or other uses to kick-start the new town’s development.

It is hoped that these new towns will, in addition to alleviate urban congestion, spark further in-fill development in the expanse of farmland that sets the new town apart from the city center – a kind of pre-planned suburban sprawl. Funding for these new towns comes from the difference paid to compensate farmers to relocate (a calculation based on potential agricultural yields) and the substantially higher revenue generated from leasing the same land to developers.

So, while the development pattern is typical, the unusual feature about Chenggong is the stalled occupation. It seems, according to one local, Kunming government officials, surprisingly, do not actually want to relocate to this empty suburban town, and there are rumors that the multiple blocks that comprise the new government center will be scrapped and sold to private entities. But these are just rumors. In reality and in all likelihood, after the light rail lines are completed, it will not be long before Chenggong bursts into life, giving this ghost town its chance to live.

Chenggong’s interesting planning history and future aside, since this is a transport blog, let’s take a look at what has been built here and imagine, if the town were ever populated, what it would be like to get around. First, let’s take a look at these satellite images (taken more than a year ago) of the Chenggong government center (above) and a housing complex to the west of the center (below).

The landscape is characterized by long, 450-meter blocks, gated communities with limited access points, expansive intersections that may be challenging to cross on foot, and a segregation of uses that may require residents to travel great distances to work, buy rice, and to go out for romantic dinners – and compete with other residents for road-space, since the mega-block urban design requires everyone to funnel into the exact same roads. My gut tells me this is a worrisome pattern -- though, I haven't seen traffic forecasts or density plans, so I cannot say for certain what will come to be.

What you cannot see in these images are the new light rail stations (not supported by the Bank) that seem to be placed at a distance from development, in the center of an eight-lane boulevard that can only be safely crossed by bridge. I undestand the stations will not accomodate substantial scooter or bicycle parking, which means they would only be accessible by bus -- I hope this is not the case, where every light rail trip will require at least one transfer…we will see what happens.

The idea of Chenggong is in many ways a planner's dream -- here is a place where the local government had full development rights over a tremendous expanse of land and a seemingly limitless budget. They had the resources to build multiple light rail station connections and the power to move tens of thousands of government workers to this far-flung satellite. And the result....the result could be best characterized as a beautiful monument -- lush, imposing, impressive. Can this be a good foundation upon which to build a vibrant urban fabric? To give this ghost town a chance to live? Only time will tell.

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#1. To: All (#0)

I suspect China is in worse trouble than the US.

Being a Democratic shill means you check your humanity at the door.

Nebuchadnezzar  posted on  2010-08-16   14:24:17 ET  Reply   Trace   Private Reply  


#2. To: Nebuchadnezzar (#1)

So where is the evidence of deflation?

Any empirical evidence? (That's right, your dreams don't count.)

Democrats vs Republicans: The false paradigm of American politics
What paradigm? That is the type of response one would receive from the average voter in the United States today. It reflects the clandestine ignorance of the majority of the populace today. So the question becomes, why does the population continue to believe in the so called, left-right paradigm?

People continue to believe in fallacies like the left-right paradigm because they are inclined for some reason- to make decisions based on their feelings, rather than objective logic or rational thought unfortunately.

Capitalist Eric  posted on  2010-08-16   14:27:36 ET  Reply   Trace   Private Reply  


#3. To: Capitalist Eric (#2)

Any empirical evidence? (That's right, your dreams don't count.)

More insults from the king Troll.

Go away Eric. I don't care for any input you have.

Being a Democratic shill means you check your humanity at the door.

Nebuchadnezzar  posted on  2010-08-16   14:29:41 ET  Reply   Trace   Private Reply  


#4. To: Nebuchadnezzar (#3)

Many of these 'towns' were built by US business owners as a requirement by the Chinese for moving their operations there. Often the requirements were to build now to accompany future expansion of the work force and population, as well as the high expectations (and pocketbooks) of the local Chinese bureaucrats, so lots of empties are fairly normal.

Reading between the lines and doing a little research would not hurt you one bit Nebby.

"See in my line of work, you got to keep repeating things over and over and over again for the truth to sink in, to kind of catapult the propaganda." --- George W. Bush (Rochester NY, 5-24-2005)

mininggold  posted on  2010-08-16   15:13:03 ET  Reply   Trace   Private Reply  


#5. To: mininggold (#4)

Reading between the lines and doing a little research would not hurt you one bit Nebby.

He finds learning to be "boring." [His words.]

Democrats vs Republicans: The false paradigm of American politics
What paradigm? That is the type of response one would receive from the average voter in the United States today. It reflects the clandestine ignorance of the majority of the populace today. So the question becomes, why does the population continue to believe in the so called, left-right paradigm?

People continue to believe in fallacies like the left-right paradigm because they are inclined for some reason- to make decisions based on their feelings, rather than objective logic or rational thought unfortunately.

Capitalist Eric  posted on  2010-08-16   15:35:51 ET  Reply   Trace   Private Reply  


#6. To: mininggold (#4)

Is Chenggong one of those towns?

Also, my point is is that they are empty. EMPTY.

Being a Democratic shill means you check your humanity at the door.

Nebuchadnezzar  posted on  2010-08-16   15:39:28 ET  Reply   Trace   Private Reply  


#7. To: Nebuchadnezzar (#6)

Also, my point is is that they are empty. EMPTY.

The title says "More Deflation signs," which is NOT the actual title of the article you link to.

And while the substance of the article is interesting, I see nothing in it that says anything about deflation.

So again I ask the question: WHERE is the evidence of deflation, in this article?

No evidence, a manipulated title, no mention in the article... Hmmmm....

Are you related to "no gnu taxes?"

Democrats vs Republicans: The false paradigm of American politics
What paradigm? That is the type of response one would receive from the average voter in the United States today. It reflects the clandestine ignorance of the majority of the populace today. So the question becomes, why does the population continue to believe in the so called, left-right paradigm?

People continue to believe in fallacies like the left-right paradigm because they are inclined for some reason- to make decisions based on their feelings, rather than objective logic or rational thought unfortunately.

Capitalist Eric  posted on  2010-08-16   16:52:09 ET  Reply   Trace   Private Reply  


#8. To: Capitalist Eric (#7)

And while the substance of the article is interesting, I see nothing in it that says anything about deflation.

Of course you don't get it. You're not the sharpest tool in the shed if you don't understand the implications of empty cities.

Being a Democratic shill means you check your humanity at the door.

Nebuchadnezzar  posted on  2010-08-16   17:56:46 ET  Reply   Trace   Private Reply  


#9. To: Nebuchadnezzar (#8)

Of course you don't get it.

TRANSLATION: There is nothing in this article, that talks about my edited title regarding deflation.

You're not the sharpest tool in the shed if you don't understand the implications of empty cities.

TRANSLATION: There is nothing in this article, that talks about my edited title regarding deflation. How DARE you for noticing!!!

Thanks for playing! LMAO!

Democrats vs Republicans: The false paradigm of American politics
What paradigm? That is the type of response one would receive from the average voter in the United States today. It reflects the clandestine ignorance of the majority of the populace today. So the question becomes, why does the population continue to believe in the so called, left-right paradigm?

People continue to believe in fallacies like the left-right paradigm because they are inclined for some reason- to make decisions based on their feelings, rather than objective logic or rational thought unfortunately.

Capitalist Eric  posted on  2010-08-16   18:04:52 ET  Reply   Trace   Private Reply  


#10. To: Capitalist Eric (#9)

TRANSLATION: There is nothing in this article, that talks about my edited title regarding deflation.

You're not the sharpest tool in the shed if you don't understand the implications of empty cities.

TRANSLATION: There is nothing in this article, that talks about my edited title regarding deflation. How DARE you for noticing!!!

Thanks for playing! LMAO!

Do you think typing in red will distract the rest of us from understanding that you still don't get it?

Maybe if you type in caps that might distract Mad Dog, but I doubt the rest of us will fall for your misdirection.

Being a Democratic shill means you check your humanity at the door.

Nebuchadnezzar  posted on  2010-08-16   18:52:36 ET  Reply   Trace   Private Reply  


#11. To: Nebuchadnezzar (#6)

Also, my point is is that they are empty. EMPTY.

You forget this is still Communist China. The citizens there still have very few rights and liberties and submit entirely to the will of the state. Just ask any of the millions forced to move for the dam, many allowed to take only the clothes on their back.

"See in my line of work, you got to keep repeating things over and over and over again for the truth to sink in, to kind of catapult the propaganda." --- George W. Bush (Rochester NY, 5-24-2005)

mininggold  posted on  2010-08-17   12:02:18 ET  Reply   Trace   Private Reply  


#12. To: mininggold (#11)

Also, my point is is that they are empty. EMPTY. You forget this is still Communist China. The citizens there still have very few rights and liberties and submit entirely to the will of the state. Just ask any of the millions forced to move for the dam, many allowed to take only the clothes on their back.

Are you an ESL student? Don't you understand the implications of these cities not being occupied? It is irrelevant to this discussion about the political nature of the nation involved.

The point is they believed at one time in the past there would be a need for this city.

Now there is no need.

Being a Democratic shill means you check your humanity at the door.

Nebuchadnezzar  posted on  2010-08-17   12:17:44 ET  Reply   Trace   Private Reply  


#13. To: Nebuchadnezzar (#12) (Edited)

Are you an ESL student? Don't you understand the implications of these cities not being occupied? It is irrelevant to this discussion about the political nature of the nation involved.

YOU are nuts if you believe that those built from the ground up towns can be freely occupied in China. Has China's population decreased yet? Can you predict the future? The political structure of China has been requiring US and other country's businesses to build these ghost towns all over China. Yet you seem to have an inroad into their intent.

"See in my line of work, you got to keep repeating things over and over and over again for the truth to sink in, to kind of catapult the propaganda." --- George W. Bush (Rochester NY, 5-24-2005)

mininggold  posted on  2010-08-17   12:49:23 ET  Reply   Trace   Private Reply  


#14. To: mininggold (#13)

YOU are nuts if you believe that those built from the ground up towns can be freely occupied in China. Has China's population decreased yet? Can you predict the future?

Did you take Macro/Micro Econ? The predication of said study is to predict the economic future (needs) of an economy. They built that city with the understanding, flawed as it may have been, that there would be a need for the city.

There is no need for the city, obviously. They misread economic tea-leaves as the city sits empty.

That city probably cost billions of US$ to make. This is deflationary.

Being a Democratic shill means you check your humanity at the door.

Nebuchadnezzar  posted on  2010-08-17   12:54:55 ET  Reply   Trace   Private Reply  


#15. To: Nebuchadnezzar (#14)

Did you take Macro/Micro Econ? The predication of said study is to predict the economic future (needs) of an economy. They built that city with the understanding, flawed as it may have been, that there would be a need for the city.

And they will be occupied when the Chinese political structure, that you say makes no difference, decide they should be. They are patient and think in terms of centuries rather than minutes like us. Maybe for the next big project where more millions have to be moved. Do you know all their long range development plans?

Just good insurance and the taking advantage of a once in a century opportunity for the building of whole cities paid for mainly by US consumers.

"See in my line of work, you got to keep repeating things over and over and over again for the truth to sink in, to kind of catapult the propaganda." --- George W. Bush (Rochester NY, 5-24-2005)

mininggold  posted on  2010-08-17   13:05:17 ET  Reply   Trace   Private Reply  


#16. To: mininggold (#15)

And they will be occupied when the Chinese political structure, that you say makes no difference, decide they should be. They are patient and think in terms of centuries rather than minutes like us. Maybe for the next big project where more millions have to be moved. Do you know all their long range development plans?

So they didn't miscalculate here? Spending billions of dollars for empty buildings???

Whatever. I give up.

Being a Democratic shill means you check your humanity at the door.

Nebuchadnezzar  posted on  2010-08-17   13:16:28 ET  Reply   Trace   Private Reply  


#17. To: Nebuchadnezzar (#16)

So they didn't miscalculate here? Spending billions of dollars for empty buildings???

The US consumers bought the towns.

"See in my line of work, you got to keep repeating things over and over and over again for the truth to sink in, to kind of catapult the propaganda." --- George W. Bush (Rochester NY, 5-24-2005)

mininggold  posted on  2010-08-17   13:41:21 ET  Reply   Trace   Private Reply  


#18. To: mininggold (#17)

So they didn't miscalculate here? Spending billions of dollars for empty buildings??? The US consumers bought the towns.

Really? I thought those were Chinese towns! Care to explain?

Being a Democratic shill means you check your humanity at the door.

Nebuchadnezzar  posted on  2010-08-17   16:05:50 ET  Reply   Trace   Private Reply  


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