Integrating Environmental Considerations into the Economic Decision-Making Process
Modalities for environmental assessments
East and Southeast Asia China (Shanghai) Index
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I. URBAN DEVELOPMENT AND ENVIRONMENTAL PROBLEMS

[ I-A | I-B | I-C | I-D | I-E | I-F ]

B. The formation of an international metropolis

[ B | B-1 | B-2 ]

2. Birth of an international metropolis in the Far East

After the Sino-Japanese War in 1895, foreign capitalists, especially monopolists, swarmed in with their capital and forced their way into establishing various factories at the trading ports along China's coast. Thus modern industries in Shanghai blossomed. In 1897 alone, 4 cotton mills of large scale were set up. Later on, western and local entrepreneurs started many enterprises in a variety of industries such as ship-building, ironwork, tobacco, sawmills, soap-production, wine-making and printing. Between 1895 and 1911 foreign entrepreneurs had invested much more capital and set up far more plants in Shanghai than in all the other provinces of China. Of the 91 enterprises with more than 100,000 yuan of foreign capital in China, 41 were located in Shanghai, and Shanghai attracted 20,903,000 yuan out of the total 48,554,000 yuan of foreign investment. Understandably, foreign investment in Shanghai determined Shanghai's role as China's modern industrial centre. At the same time, many enterprises were set up using domestic capital of which 83 owned capital over 10000 yuan, but they were invariably light industries such as cotton, printing, dyeing and food production. -

Shanghai's industries developed and more than doubled after the Opium War. Its industrial techniques and equipment, administration of enterprises and technical competence were also predominant in China. Those enterprises formed Shanghai's early industrial zones distributed along the Suzhou River, the Huangpu River and in the west of the city. They developed into the industrial blocks of today.

The development of modern industry in Shanghai promoted its commerce, finance, transportation, and municipal construction. The financial centre in the Bond and the railways of Shanghai-Nanjing and Shanghai-Hangzhou expanded to new growth areas where residential quarters for workers and new commercial centres emerged. Caojiadu Fare and Zhabei are two good examples of districts which took advantage of the railways to become prosperous. The old city walls of Shanghai were demolished and a new town appeared after Zhabei, the settlement, the Chinese Town, and Nanshi, connected and were able to communicate freely.

The population in Shanghai reached 1,185,859 in 1910 and 2,980,650 in 1930 and Shanghai had become the largest financial centre and industrial city in China and the Far East. From 1840 to 1949 Shanghai had experienced colonial invasion, civil war and economic splendor but its urban development could not be sustained. There were numerous deficiencies and such hidden troubles both in industrial structure and allocation and in urban infrastructure construction as:

No general plan in its urban development as the city grew in disorder without proper land use;

Infrastructures, roads and drainage system were in disorder and contrasted sharply within and outside settlements. Living conditions were terrible in the slums in the Chinese district where contagious diseases frequently broke out due to unhealthy hygienic conditions;

Factories were located in the centre of the city and the waste discharge damaged the ecological environment. The Suzhou River was sacrificed in that it changed from a clear river abounding in fish to black and foul water due to serious pollution resulting from the rapid growth in population and industries.

When we contemplate Shanghai's development and also the disasters brought to the environment by the ceaseless pursuit of material pleasures promoted by industrial revolution and civilization, it should be helpful to understand the relationship of environment and development.

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