The purpose of this paper is to clarify the state of the dual structure of regional economy in the western part of China and to discuss the relationship between the development of resources and regional development.
1) Outline of the region: Anning with a population of some 220, 000 is located about 40km south-west of Kunming, capitol city of Yunnan, and the surrounding areas have affluent natural resources. Because of the locational advantages, Chinese Government has continued the investment for development these 40 years and the region is the important focal areas of heavy industries and a large-scale regional development plan is proposed and expected to be a promising area.
The process of the industrialization by the big investment is divided into two phases; the first phase is the construction of material industry of heavy industries from the end of 1950s to the middle of 1960s, and the second phase is the appearance of machinary industry, mainly millitary industry from the end of 1960s to the end of 1970s.
2) The imbalance of regional economic structure: Although the regional society seems to be greatly industrialized, lots of problems exist. Firstly, there exists the great difference between the national economy and local economy. By the figures of the rate of economic growth, economic production of amount, productivity of labor and the proportion of industrial sectors, local economy has a farming-based characteristic. There is almost no relationship between the national big industries and local industries, i. e. the dual economic structure.
Secondly, the industrial structure of the region shows a great imbalance. Industrial sector has a share of 72.5% of the total production amount. Heavy industry is 97% in the industrial sector and specialized in the resource oriented heavy industry. On the other hand, the proportion of farming and commerercial/service industries are low. This shows that the total development of regional economy does not follow the development of large-scale industries.
Thirdly, it is a remarkable situation that there exists the inefficiency of industrial location and the closedness of the national industry toward the local areas. Location of industries in Anning is isolatedly dispersed. Since the administrative bodies are different between national industry and local industry and society, mutual flow of people and goods do not come out. The life of employees and their family of the national industry is restricted in the base of national industrial zone.
Although the non-farming population of Anning is increased by 46.8% through the investment for development, central places with urban function were not created and the dual structure is organized.
3) Factors of duality of regional econoimic structure: Firstly, development investment is directed only for the big industry and the local society is still remained in the phase of almost selfsustained farming economy. Social environment and accumulation of technology are not formed, therefore the national industry has to strengthen the limited society in the indurtrial zone.
Secondly, there exists the policy of central governments which ignores the choice and decision of local areas in order to achieve the planned economy for accumulation. Government constructed the industries which utilize only resources, but does not consider the total development of the comprehensive regional economy. Urban amenity and social welfare are institutionalized and implemented only for the employees of national industry, so the barriar between the national employees and local residents is created. The national industry and local areas are separated both economically and socially.
4) Future strategy for the economic development: Firstly, the regional industrial system should be established to connect the resource development and processing industry, heavy industry and light industry, industry and agriculture, etc.
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