Boom time for Liaoning? Still no redress for workers in Liaoyang.

11 August 2003
11 August 2003


The Article below is taken from the South China Morning Post, and describes a potential economic boom for Liaoning Province. Meanwhile, despite over three years of protest and petitions, the workers from the Ferro-Alloy Factory - and indeed many other factories in Liaoyang - have not yet received the many months of missing wages and unemployment benefits they are owed. In the face of almost daily police harassment and the imprisonment of two of their representatives, the workers in Liaoyang have repeatedly called for the release of two of their representatives, Yao Fuxin and Xiao Yunliang, and continued their campaign relating to unpaid and missing wages and other benefits as well as their call for an investigation into alleged corruption at the Liaoyang Ferro-Alloy Factory which led to its bankruptcy.

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Liaoning is on the threshold of a development boom propelled by the national policy of revitalizing old industrial bases, Governor Bo Xilai said.

The national policy has paved the way for huge leaps in regional economic development in the past 20 years.

Development of Shenzhen in the 1980s and Pudong in the 1990s brought unprecedented prosperity to the Pearl River Delta and the Yangtze River Delta.

Now it was the turn of Liaoning, one of the three provinces in the so-called rust-belt in the northeast, Mr Bo said.

Foreign and domestic investors have already warmed up to Liaoning.

Mr Bo said the province aimed to raise foreign direct investment to US$5 billion a year, in addition to about 150 billion yuan (HK$141 billion) from domestic investment sources from capital-rich coastal provinces.

Premier Wen Jiabao has visited Liaoning three times this year to map out the development strategy.

Unlike the "go west" campaign launched in 1999, which will take years to lay the foundation for development in the hinterlands, payback time for revitalising the northeast is much shorter thanks to its excellent infrastructure and educated workforce.

Mr Bo said that by 2007, when the incumbent leaders summed up the achievements during their first five-year term in office, they would be able to point to progress.

"The leaders want to see results. In five years, I dare say the results will be there," the optimistic governor said.

The development plan will not only be based on state funds and preferential policies as Liaoning is seeking its own investments to diversify the economy. The province now relies mainly on heavy industry.

Mr Bo said he would like to see more money being channelled into areas such as agriculture, high technology and services.

After 50 years of exploitation of its coal mines, Liaoning is losing its edge as a resource-rich province, but Mr Bo is confident that the province can replace its depleting resources with imports and conservation.

He said Liaoning would make use of its long coastal lines to build power plants, fired by coal from Shanxi shipped by sea from Qinhuangdao.

Dalian is also building port facilities for 300,000-tonne tankers to refine imported crude oil.

And as old plants were upgraded, energy efficiency would free up more power.

After closing 1,800 small coal mines, the province still has 1,200 mines that could supply small power plants nearby.

Mr Bo admitted that the herculean task of providing for and finding jobs for laid-off workers was still continuing and the resources of the provincial government were severely stretched.

Though its revenue is just one-eighth that of Guangdong, Liaoning provincial government is directly and indirectly paying to support 7.6 million people.

In addition, the provincial government has assumed the responsibility for paying back-wages, which totalled two billion yuan last year.

Cleaning up the mess of a failed brokerage firm, where some people had invested their life savings and pensions, cost the government an additional 10 billion yuan, he said.

Mr Bo, who has worked in Liaoning since 1984, enjoyed great popularity as a long-serving mayor of Dalian before becoming taking over his new post.

Suave, capable and well-connected as the son of revolutionary elder Bo Yibo, he has frequently been tipped to be a candidate for state-level office.

But he declines to discuss his political future, insisting he is happy to be in Liaoning.
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