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PPD 613 International China Lab June 6, 2014

“ One Metropolis, Two Systems ”. Contextual Policy Recommendations for Enhanced Metropolitan Cooperation between Hong Kong and Shenzhen. Image courtesy of China Southern Airlines Magazine . PPD 613 International China Lab June 6, 2014 . Overview. Border divides Hong Kong and Shenzhen

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PPD 613 International China Lab June 6, 2014

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  1. “One Metropolis, Two Systems” Contextual Policy Recommendations for Enhanced Metropolitan Cooperation between Hong Kong and Shenzhen Image courtesy of China Southern Airlines Magazine PPD 613 International China Lab June 6, 2014

  2. Overview • Border divides Hong Kong and Shenzhen • Amplifies political differences • Complicates urban challenges • Requires collaboration Image courtesy of RFA

  3. 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: Symposium Commission Funding Mechanism Step Step Step

  4. Contextual Dilemmas Considerations special to the Hong Kong & Shenzhen case Collaboration can be a successful tool however, thereare special considerations thatneed tobe made when looking at Hong Kong. • Fear of Beijing’s influence on government • Officials are not democratically elected • 2017 questions Mistrust in Government • Difficulty in accepting mainland China immigration and economic involvement • Exacerbates the existing burden on Housing,Education, Health Care Services and SocialServices Immigration • Transportation congestion • High rental prices • Long wait lists for Public Housing • Lengthy timeframes to receivemedical care Strain on Services

  5. 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

  6. Proposal Timeline Commission Symposium Funding Mechanism Framework Chief Executive Election

  7. Step 1: Symposiums Commission Symposium Funding Mechanism 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

  8. 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 Image courtesy of Institute of Biological Chemistry The symposium would be used as a starting point to establish a regional commission

  9. Step 2: Commission Commission Symposium Funding Mechanism 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 andSocialServices

  10. Commission Example Case study: Central Policy Unit in Hong Kong Commission Symposium Funding Mechanism • 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. Image courtesy of China Daily Asia

  11. Commission Example Case study: United States and Mexico Health Commission Commission Symposium Funding Mechanism 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 Image courtesy of George W. Bush Whitehouse Archives

  12. Step 3: Funding Mechanism Commission Symposium 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

  13. Funding Mechanism Option 1 Commission Symposium Funding Mechanism • 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

  14. Funding Mechanism Option 2 Commission Symposium Funding Mechanism • 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

  15. Funding Mechanism Option 3 Commission Symposium Funding Mechanism • 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

  16. Joint Government Fund Commission Symposium Funding Mechanism Joint Government Fund Hong Kong Government Shenzhen Government Hong Kong Government Shenzhen Government

  17. 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

  18. 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

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