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

Overview• Border divides

Hong Kong and Shenzhen

• Amplifies political differences

• Complicates urban challenges

• Requires collaboration

Image courtesy of RFA

Symposium Commission Funding Mechanism

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:

StepStepStep

Contextual DilemmasConsiderations special to the Hong Kong &

Shenzhen caseCollaboration can be a successful tool however, there are special considerations that need to be made when looking at Hong Kong.Mistrust in Governme

nt

Immigration

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

● 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

2015 2016 2017 2018 Future

Proposal Timeline Symposium

Framework

Chief Executive Election

Commission

Funding Mechanism

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

SymposiumHow 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

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

Image courtesy of Institute of Biological Chemistry

Step 2: CommissionCreate 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

• 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 Commission Funding Mechanism

Commission Example Case study: Central Policy Unit in Hong Kong

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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

Image courtesy of George W. Bush Whitehouse Archives

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 Commission Funding Mechanism

Step 3: Funding MechanismCreate 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

Hong Kong Government

Shenzhen Government

Symposium Commission Funding Mechanism

Hong Kong Government

Shenzhen Government

Joint Government

Fund

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

projectsThe proposed blueprint would establish stronger communication and collaboration between Hong Kong and Shenzhen, increasing their combined

effectiveness in the Pearl River Delta