Learning from Chengdu
The most important characteristic of developing countries is a distinct dual economic structure: the coexistence of advanced modern sectors and traditional backward sectors and of prosperous cities and traditional backward rural areas (Lewis, 1954). The main task of developing countries is to achieve structural transformation and upgrade their economies by expanding the proportion of modern sectors and cities and reducing the proportion of traditional sectors and rural areas, while simultaneously transforming traditional sectors and rural areas and promoting their modernization. To achieve an orderly development process and ultimately to modernize, traditional society must be restructured so that factors of production flow in fundamentally different ways. The labor force must shift from rural to urban occupations, capital must increasingly flow into modern urban enterprises, and more land must be devoted to urban as opposed to rural uses. Unlike other regions in China, Chengdu has established institutions and mechanisms to promote the proper movement of population, capital and land between urban and rural areas as part of its coordinated urban–rural development program.
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