Table 2.2 Provincial Development Weaknesses (cont'd)
Strengths
Inappropriate Regulations
The proper legal framework to control the financial services sector and sanctify contracts does not yet exist.
There is no proper market in housing or land.
No proper market for labour - many workers are employed directly by the joint venture partners - often a local collective.
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A weak and unstable national currency with, as yet, no free exchange.
Any Spatial Implications and Other Comments
Much that goes on is of dubious legality. Private enterprise initiatives are often frustrated by reversals of policy, the revoking of credit lines and the discontinuation of their access to local capital.
Foreign investors prefer areas where the market for land is best developed.
Weak Local Planning Controls
Ribbon development have been allowed to get out of control.
Social amenities must be provided as part of the main development and by the developer.
There are no provincially accepted planning standards.
Ribbon development is likely to get worse. This is likely to lead to road congestion and high road transport costs.
The developer has to be trusted to provide what was initially agreed.
Everything must be negotiated at the time that the development is first proposed. Many of the standards are ad hoc and there is little real control. Few sanctions are available against those who do not comply with agreements.
The financing of new projects is very largely dependent on maintaining investor confidence.
Many areas are taken out of agricultural production and prepared for industrial development in the mere hope that they will soon be used
Environmetal
General unawareness on environmental matters at a non-official level.
Environmental controls are ineffectively applied
There is a danger that irreversible damage may soon be done to the environment.
Many of the new power stations will be coal fired and in coastal locations. The monsoon winds will blow air pollutants onto the forested northern mountain slopes.
The quality of water in inland waterways which are the source of much domestic and irrigation water cannot be allowed to deteriorate.
There is a lack of proper sewage treatment facilities.
Competition
Competition from other south-east Asian nations with even cheaper land and labour costs may reduce the number of new foreign investors
Competition from other parts of China with lower labour and land costs may lead foreign investors to prefer to invest in these areas.
Industries which require clean air and/or water may be detracted from the province.
It is, however, possible that these up and coming areas could be developed into large markets for Guangdong's newly established industries.
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