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New cities were attempted in Europe without much success. In the United Kingdom the Barlow Commission Report of 1940 stimulated interest in new towns. Between 1947 and 1968, Britain created 26 new towns to control the growth of London and stimulate development in Scotland and Wales. In 1965 France followed a similar program—nine towns, five in the Paris area and four in lagging areas, were constructed. These programs soon were interrupted and put aside as unsustainable. The new towns never reached their targeted population, nor did they forestall the growth of London or Paris. The experience in developing countries has been mixed.

Failure in the Arab Republic of Egypt

Egypt’s program of new cities is the world’s largest. In 20 years Egypt has built 20 new cities and is preparing for 45 more. The first set of 24 cities was launched in 1974–75 as a manifestation of the political commitment to conquer the desert and ensure sustainable growth.
Large industrial zones were created and generous tax incentives were given to the private sector. Land was virtually free. The “first generation” of new towns included six towns, each with its own industrial base and large target populations.(a) Ten years later—by the mid-1980s—the next program based on satellite settlements was launched, and nine second-generation settlements were launched around Greater Cairo. A third generation included twin towns close to provincial capitals, such as New Thebes.

The performance of the six cities created 30 years ago suggests a mixed record at best. Cities closer to Cairo have attracted businesses and people, though much fewer than anticipated. Cities distant from Cairo (including Sadat City, supposedly the new capital) remain unattractive for skilled labor due to lack of amenities and transport links. The new cities have no more than 1 million inhabitants (1 percent of Egypt’s population), compared with the 5 million target set for 2005. The program was also costly: 22 percent of the Ministry of Infrastructure’s investment under the Fourth Plan (1997–2001) was spent in these new towns. This will increase if the government continues its policy of developing the urban fringes. The emphasis on attracting investment was not balanced by the need to make cities attractive for skilled labor and accessible from the established urban centers.  Eventually, the creation of the new cities had little impact on decongesting greater Cairo.

Success in China

China’s approach recognizes the need to create cities with access to major markets and transportation networks. Shenzhen was the first special economic zone (SEZ) to be approved by Deng Xiaoping in 1980. From a small town with 30,000 inhabitants, it grew to 800,000 in 1988 and 7 million in 2000. The new residents include the best-trained professionals in the country, attracted by high salaries, better housing, and education opportunities for their children. GDP per capita increased more than 60 times.

Shenzhen owes its success to its nearness to Hong Kong, China; its connectedness within the area and with other cities in China; and its urban form:

• Access to foreign markets. Locating the SEZ close to the city of Hong Kong, China, facilitated foreign investment, technical assistance, and access to foreign markets.
  
• Connectedness within the area. To spread the fruits of development, the boundaries of the municipality were expanded to extend the benefits of the city to all workers. The rural hukou was abolished in the municipality, and all urban services became accessible to all residents. Placing the Shenzhen city-area in the Pearl River Delta area ensured the best possible links to its hinterland and other urban nodes in the Delta regions. Complementary decisions to ease the mobility and integration include investments in transport infrastructure and a shift from a road-based to a rail-based system.
  
• Functional urban form. The comprehensive plan for Shenzhen envisions a polycentric metropolis that connects the SEZ to urban nodes through efficient transport.

Sources: WDR 2009 team; Stewart 1996; and World Bank 2007k.
a. For example, Sixth of October had an original target population of 500,000, which was raised in the late 1980s to 1 million, and currently the target is 2.5 million. The actual population is probably less than 200,000.