IntroductionFollowing economic reforms since the 1980s, China has seen a unique pattern of rural-to-urban migration. This uniqueness is due not only to the large scale of such migrationöbeing described as the largest population movement in human history (Yardley, 2004)öbut also to the hukou policy, (1) which has functioned as a`passport' for controlling peasants' migration to the city (
With the increase of global integration, the peri-urban area (PUA) of megacities in Asia has become a favourite destination for foreign direct investment (FDI). This paper uses the PUA of Shanghai as a case study to investigate the impact of global forces on the urban expansion of the city, and the link between urban growth and sustainable development in this mega-urban context. Shanghai has grown impressively during the past two decades in terms of economic and physical transformation. Much of this transformation has rested on the unbridled exploitation of land and other environmental resources in its peri-urban area. This is characterised by the designation of development zones and the concentration of manufacturing FDI, resulting in dispersed growth and environmental degradation. The disruption of the physical environment, combined with the concentration of the urban poor in these areas (in particular 'temporary migrants'), has turned the PUA into a potential crisis point threatening the social and economic development of the city.
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