Making of an urban water regime in China : development of public private partnerships in Jiangsu Province, 1994-2014

다국어 초록 (Multilingual Abstract)

This study focuses on the water Public Private Partnerships (PPPs) in the Jiangsu province from 1994 to 2014 to examine the following two questions. First, how were the political economic changes developed on the PPP mechanism in the Chinese urban water sector? Second, how did the state reassert its control over the PPP mechanism in the Chinese urban water sector? This study deploys the urban regime theory and the growth machine theory for exploring the governing coalition in Jiangsu water PPP projects based on the growth coalition. Examining the changes of governing coalition’s feature in the water PPP market, the study argues that the Chinese urban water regime has developed the “developmental state water regime” in the transitional period. Political economic changes in China resulted in shaping Chinese urban water regime under the authoritarian culture. The study also argues that the governing coalition members interdepends in the water PPP project at the local level and the development of governing coalition toward local state-led governing coalition in the Jiangsu province.

목차 (Table of Contents)

• Ⅰ Introduction 1
• Research Purpose 1
• Scope of the Study: Period and Region 2
• Data and Information Collection 3
• Structure of the Thesis 5
• Ⅱ Literature Review 7
• 1 Literature Review 7
• 1.1 Previous Research 7
• 1.2 Public Private Participation 10
• 1.2.1 Historical Perspective of Private Sector Participation 10
• 1.2.2 Definition and Function of Public-Private Partnership 12
• 1.2.3 Actors of Public Private Partnership 16
• 1.2.4 Classification of Public Private Partnership 19
• 1.3 Public Private Partnership Projects in the Global Water Market 26
• 1.3.1 Globalization and Public-Private Partnerships 26
• 1.3.2 The Global Water Market and Water Public Private Partnerships 27
• 1.4 Public Private Partnership Projects and the Chinese Water Sector 28
• 1.4.1 Chinese Water Sector and Private Sector Participation 28
• 1.4.2 Chinese Public Private Partnerships and the Water Sector 30
• 1.4.3 The Relationship between the Central and Local Governments in China 35
• 2 Theoretical Framework 37
• 2.1 The Urban Regime Theory 37
• 2.1.1 Definition 37
• 2.1.2 Hypothesis 39
• 2.1.3 Coalition and Power 42
• 2.1.4 Classification 44
• 2.1.5 Urban Water Regime and Chinese Public Private Partnerships 47
• 2.2 The Growth Machine Theory 49
• 2.2.1 Definition 49
• 2.2.2 Growth Coalition 50
• 2.2.3 Water Infrastructure and Public Private Partnership in the Growth Coalition 53
• 2.2.4 The Key and Indirect Interest Groups in the Governing Coalition 57
• 3 Summary 64
• Ⅲ Political Economic Change and Impacts on the Chinese Water Sector 66
• 1 Marketization 66
• 1.1 The Chinese Culture and Authoritarian Culture 66
• 1.2 Changes in Chinese Financial and Land Market Triggered by Marketization 68
• 1.2.1 Inflow of Foreign Direct Investment 71
• 1.2.2 The Financial Reform 73
• 1.2.3 The Land Reform 76
• 2 Urbanization and the Development of Urban Water Infrastructure 77
• 2.1 Definition of Urbanization and China 78
• 2.2 Infrastructure and the Chinese Urbanization 80
• 3 Fiscal Decentralization and the Formation of Urban Water Regime 84
• 3.1 Prior to the Fiscal Reform in 1994 86
• 3.2 The Fiscal Reform in 1994 87
• 3.2.1 The Fiscal Reform in 1994 87
• 3.2.2 Political and Economic Effects on Local Governments of the Fiscal Reform 89
• 4 Summary 94
• Ⅳ Development of the Chinese Water Sector 96
• 1 Water Management Challenge 96
• 1.1 Water Shortage 96
• 1.1.1 Geographical Water Shortage 96
• 1.1.2 Economic Development and Water Shortage 98
• 1.2 Water Pollution 100
• 1.2.1 Water Pollution 100
• 1.2.2 Overexploitation of Groundwater 102
• 2 Water Sector Reform 104
• 2.1 The Water Reform 105
• 2.2 Water Supply and Wastewater Treatment Infrastructure in China 109
• 2.3 Public Private Partnership Projects in Water Infrastructure 114
• 3 Structure of Water Resources Management 115
• 3.1 Government Structural Framework 115
• 3.2 Legal Framework 119
• 3.2.1 Chinese Legal Framework and the Water Public Private Partnership Project 119
• 3.2.2 Challenges in China’s Legal Framework and the Impact on the Water Growth Coalition 125
• 4 Summary 129
• Ⅴ Chinese Water Public Private Partnerships Projects and Developers 131
• 1 Development Pattern of Water Public Private Partnerships in China 132
• 1.1 Water Public Private Partnerships by Mode 133
• 1.2 Water Public Private Partnerships by Region 135
• 2 Response from the Private Sector 138
• 2.1 Development of Chinese Water Companies 140
• 2.2 Foreign Water Companies 142
• 2.2.1 SUEZ Environment 143
• 2.2.2 Veolia Environment 145
• 2.2.3 China Water Affairs 147
• 2.2.4 Thames Water 148
• 2.3 Chinese Local Water Companies 149
• 2.3.1 Beijing Capital Group 150
• 2.3.2 Beijing Sound Environmental Engineering 151
• 2.3.3 Anhui Guozhen Environmental Protection Science & Technology 153
• 2.3.4 Chongqing Kangda Environmental Protection Industrial 154
• 3 Summary 155
• Ⅵ Case Study: Water Public Private Partnership Projects in the Jiangsu Province 156
• 1 The Jiangsu Province’s Economy 158
• 2 Political Economic Changes in the Jiangsu Province 162
• 2.1 Private Actor Participation and Marketization 162
• 2.1.1 Economic Reform and Economic Strategy 162
• 2.1.2 The Characteristics of Foreign Direct Investment 164
• 2.1.3 Township and Village Enterprises and Economic Development 167
• 2.2 Land-based Development and Urbanization 170
• 2.2.1 Urbanization 170
• 2.2.2 Urbanization and Economic Development Policy 174
• 2.3 Fiscal Decentralization 177
• 2.3.1 Increasing Expenditure 177
• 2.3.2 Off-budget Resources and Local Government Financing Vehicles 179
• 3 Overview of the Jiangsu Water Sector 186
• 3.1 Water Management Challenges 186
• 3.1.1 Water Resources 186
• 3.1.2 Water Pollution 187
• 3.1.3 Tai Lake Accident in 2007 and its Implications 189
• 3.2 Water Sector Reform 191
• 3.2.1 The Jiangsu Government’s Policy and Investment in the Water Sector 191
• 3.2.2 Water Public Private Partnership Projects 195
• 3.3 Structure of Water Resources Management 198
• 3.3.1 Government Structure in the Jiangsu Government 198
• 3.3.2 Local Legal Framework of the Jiangsu Government 201
• 4 Governing Coalition in the Jiangsu Water Sector 205
• 4.1 Urban Water Regime and Water Public Private Partnership 205
• 4.2 Governing Coalition and Water Public-Private Partnership 206
• 4.2.1 Key Interest Group: Water Industry Firms 209
• 4.2.2 Key Interest Group: Financiers 216
• 4.2.3 Key Interest Group: Politicians 222
• 4.2.4 Key Interest Group: Property Rentiers 224
• 4.2.5 Indirect Interest Group: Local Media 225
• 5 Summary 225
• Ⅶ Implications 227
• 1 Urban Water Regime and Public Private Partnership in the Chinese Water Sector 227
• 1.1 Urban Water Regime and the Chinese Water Sector 227
• 1.2 Urban Water Regime and the Jiangsu Province 232
• 2 Governing Coalition and the Chinese Water Public Private Partnerships 235
• 2.1 Governing Coalition and the Chinese Water Sector 235
• 2.2 Governing Coalition of the Water Public Private Partnerships and the Jiangsu Province 239
• Ⅷ Conclusion 243
• Bibliography 247