09/09/10 - The fifth Expo Theme Forum opened today in Shaoxing, China, focusing on the topic of pursuing economic transformation in cities while maintaining harmonious urban-rural relations, a critical aspect of realizing a "Better City, Better Life," the overarching theme of the World Expo currently held in Shanghai.

A central question of the two-day forum is how to achieve a balanced development that does not favor growth of urban areas at the expense of rural areas – a challenge that is common to both developed and developing countries and key to meeting important global development objectives of our time.

At this morning's opening ceremony, James Adams, World Bank Vice President for the East Asia and Pacific Region, emphasized this notion, stressing the importance of a balanced growth in urban and rural areas in an era in which urbanization defines the local, regional, and national development patterns.

James Adams, World Bank Vice President for East Asia and Pacific Regions delivers an opening speech

Yet, China's recent experience of rapid economic growth – thanks to the forces of globalization – provides an example where equitable growth has not been achieved: China's economic success has brought with it a situation of substantial increase in income inequality between urban and rural areas, which, as a matter of fact, goes against conventional international trade theory, explained Professor Eric Maskin, 2007 Nobel Laureate in Economics and Professor of Social Science at Princeton University. However, the inequality is merely a temporary phenomenon that globalization will correct in the long run but which will require "patience, hard work, and job-training [for rural low-skill workers]" to overcome eventually, he said.

Eric Maskin, Nobel Laureate in Economics 2007 and Professor of Social Science at Princeton University

Li Yang, Vice President of Chinese Academy of Social Sciences, also sounded an alarm at the serious income gap in China and discussed efforts of the Chinese central government for a more equalized distribution and development.

Li Yang, Vice President of Chinese Academy of Social Sciences

Furthering the discussion of economic transformation in our globalized world, the need for a low-carbon and resource-efficient economic model to combat climate change and achieve a true sustainable development in the 21st century was highlighted by former Foreign Minister and Vice Chancellor of Germany, Joschka Fischer. In this global shift towards a green economy, China would play a critical role, he said.

Joschka Fischer, former Foreign Minister and former Vice Chancellor of Germany

Another important message of the forum was the need for equalizing public services across urban and rural areas in order to lift the development divide between the two, with cities generally enjoying better access to public services in our current model.

Cities must also move away from the traditional growth model to achieve sustainable development. This was the message echoed by a panel of speakers, including Chen Huan, Deputy Director-General of China Clean Development Mechanism Fund Management Center, Ministry of Finance in China. Vikram Nehru, Chief Economist at the World Bank, for his part, called for an urbanization that is inclusive and that can meet the challenges of globalization, energy efficiency, and poverty reduction, arguing that when well-managed, urbanization can be made compatible with sustainable rural development.

Federica Busa, Advisor of the Secretary-General and Director of Communication at the BIE, also discussed the role of Expos in driving public entrepreneurship and economic transformation in the global world, raising the cases of past and present Expos including Shanghai 2010.

Organized jointly by the National Development and Reform Commission of China, Executive Committee of Expo 2010 Shanghai China, the World Bank, and the Shaoxing Municipal Government, this forum is welcoming over 600 participants from the academia, governments, international organizations, business community, and the media.

The host city, Shaoxing, situated in the northeast of Zhejiang Province, boasts a rich cultural and historical heritage dating back 2,500 years. Considered a modern economic powerhouse in China, Shaoxing has been designated by the World Bank as one of the country's six "golden cities" for its strong investment environment.

(Photos courtesy of EXPO Shanghai 2010 website – www.expo2010.cn)