A Lesson From China on Reclamation

Both Shanghai¡¯s Pudong development and Korea's Saemangum reclamation project were launched in 1991, however, the present situation of these two projects is far from similar. President Jiang Zemin and Prime Minister Zurongi launched the Pudong development project in 1989, when they were the Secretary General of the ruling party and Shanghai Mayor, respectively. Their plan was to build a Chinese version of Manhattan in Shanghai, soon to become a world financial center.

With the completion of the second phase of the construction, Pudong has changed dramatically. The world's largest road, two underwater tunnels, and two subway lines are in place. At the center of the city, a 130-storie building is under construction and half of the world's 100 largest multi-national companies have moved their Asia Pacific headquarters to the city. Some 6,000 investment agreements have already been concluded with foreign investors.

The international airport, due for completion by 2005; the 24 hour trade information service center; the first Chinese free trade area; the construction of the Jangang high-tech center; and the international Shimsu harbor are some of the projects currently in progress. When Chinese people were reluctant to participate in the project due to high levels of uncertainty, President Jiang forcefully ordered to build at least one huge building in each of the thirty districts. This is how the "to-be historical project" is being carried out.

The Saemangum project is the world's largest reclamation project, which aims to expand Korean territory by what is equivalent to 14 times Yoido. The original plan was to construct an international airport and harbor, but since it was drafted in the late 1980's, the project passed through three presidents. Up to May 1999, some W1.1385 trillion has been injected into it, completing about 60% of the project, which has been halted since then. This was because environmentalists urged a halt to the project for environmental reasons, splitting public opinion into supporters and opponents. Meanwhile, the government is postponing making a final decision with President Kim Dae-jung saying he is in a stalemate when it comes to the project. The problem is that most domestic problems end up similarly, that is, in indecision. The central government and the key figures are indecisive about what to do with this project, which will consume an additional W3 trillion. Politicians, civic groups, academia, and religious circles take extreme views, failing to see what is best for the future of the country. Monday's public hearing about the Saemangum project clearly showed this problem.

Currently, China's Shanghai project is taking enthusiastic steps forward. When a US company submitted a business plan to build a semiconductor chip factory with an annual US$1 billion in production, permission was issued in just two hours, with an attachment reading that its banks will provide the loans for the project.

The development project in Shanghai is serving as a role model to the Saemangum reclamation project, clearly demonstrating what is a real reform, what should a decision maker do, and what is the difference between painstaking globalization compare to a nominal one.