China's cities should learn from Detroit's bankruptcy

China's cities should look on Detroit's bankruptcy as a lesson to pay more attention to city planning and industry structure, said an article in Beijing Youth Daily (excerpts below).

Detroit filed for the largest municipal bankruptcy in history on July 18.

The city's debt of $18 billion is too heavy for the city government to afford, and if the US Federal court approves, municipal revenue will be taken over by the state government.

Detroit, located in eastern Michigan, rose in the early 18th century as a center for large-scale industry due to abundant coal and iron resources and cheap river transportation.

In the 20th century, Detroit boomed as a hub for the automotive industry playing an important role in the US economy and putting it on the map as one of the country's top cities.

But in only half a century, Detroit started to decline, and the city faced a heavy burden of debt due to unsuccessful industry structure and a global financial crisis.

City management in Detroit has also been a serious problem. For years, Detroit's municipal services, traffic and public security have been far less than satisfactory, driving many citizens to desert the city and move to the suburbs.

On the contrary, as US' second-largest commercial center, Chicago maintains its vitality because of balanced economic structure and good city planning. Chinese cities should learn from Detroit and pay more attention to city management and industrial layout.