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A Chinese province as a reform experiment : the case of Hainan (English)

This study reviews the context of and prospects for China's only Special Economic Zone (SEZs) that covers an entire province. When Hainan became a province in 1988, the central government wanted to make it a special zone that would go far beyond even the other (SEZs in system reform. It was to have a small government and large society, implying very little state-operated enterprise and minimal government. Despite its essential backwardness, pockets of absolute poverty, inadequate infrastructure and other difficulties, Hainan has made progress in economic development, attracting investment from both the mainland and overseas. Its economy, previously dominated by state-owned rubber and iron ore industries, has diversified through substantial growth in services and small-scale enterprise, including export-oriented joint ventures. However, the pace of reform and investment slowed during the national austerity program from early 1989 to late 1991, calling into question the ambitiousness of some of Hainan's plans to lead the way in reform experiments in agriculture, industry and human resource development. Recently, though, the reform agenda seems to have regained momentum, as Hainan deals in greater depth with the trade, investment and fiscal modernization that could propel it into prosperity. This study also suggests ways in which the province's reform agenda might be accelerated as the next key steps are identified and opportunities seized by both Beijing and Haikou.

Details

  • Author

    Cadario,Paul Michael, Ogawa,Kazuko, Yin-Kann,Wen

  • Document Date

    1992/07/31

  • Document Type

    Publication

  • Report Number

    WDP170

  • Volume No

    1

  • Total Volume(s)

    1

  • Country

    China,

  • Region

    East Asia and Pacific,

  • Disclosure Date

    2010/07/01

  • Disclosure Status

    Disclosed

  • Doc Name

    A Chinese province as a reform experiment : the case of Hainan

  • Keywords

    township and village enterprise;direct foreign investment;Agricultural Bank of China;annual per capita income;public investment program;per capita income level;economic and sector work;Primary and Secondary Education;average rate of taxation;liquified natural gas;regulation of financial institution;primary school age child;iron ore;foreign joint venture;number of migrants;foreign private sector;urban credit;foreign investor;Private Sector Growth;public sector involvement;capital investment program;Public Enterprise Reform;information technology revolution;program of support;Climate for investment;economic development plan;land use control;student loan program;trade and investment;state asset management;Natural Resource Management;hydroelectric power potential;natural gas reserves;foreign exchange retention;maintenance of facilities;rural economic activity;human resource development;land tax base;land use right;foreign exchange certificate;national monetary policy;production of rubber;high value uses;verge of extinction;financial sector reform;fees for road;flexible labor market;subject to confirmation;environment for investment;central government investment;high value crops;combination of land;government financial support;species of fish;high school graduate;urban housing reform;commercial crop;comparative advantage;provincial income;tropical crop;social security;grain price;market economy;fiscal expenditure;free market;market principle;absolute poverty;retail price;Natural Resources;irrigation facility;financial system;skilled labor;production input;government intervention;tropical island;farmer cooperative;provincial status;preferential policies;Tax Exemption;grain sector;productive sector;real sector;urban resident;foreign tourist;austerity program;land-use rights;investment climate;market-oriented economy;financial organization;agricultural activity;rural area;commercial development;banking system;international market;international level;market information;banking standard;equitable access;industrial product;long-term credit;land owner;productive investment;personnel training;approval process;market price;agricultural employment;consumption demand;subsidized grain;personnel cost;research result;domestic trade;legal framework;agricultural tax;forest product;contract fee;living expense;irrigation management;institutional model;price signal;overseas markets;basic transport;urban dweller;administrative measure;government fund;tropical climate;military force;financial profit;targeting mechanism;cash payment;provincial authority;heavily dependent;vegetable grower;market segment;agricultural growth;food requirement;Investment priorities;average yield;land survey;commercial product;irrigation infrastructure;effective systems;water charge;indirect taxation;alternative use;productive land;budgetary expenditure;labor input;wage adjustment;water conservation;agricultural transformation;explicit subsidy;fiscal account;production decision;wage increase;central management;agricultural land;agricultural taxation;targeted subsidy;edible oil;investment priority;rural enterprise;Rural Sector;controlled price;consumer subsidy;commercial production;aquaculture product;steel plant;coal mine;proven reserve;Gas Export;unit price;annual production;open pit;water resource;price set;magnetic separation;ownership status;marketing system;financial model;industrial workforce;domestic export;energy resource;geological survey;environmental concern;international cooperation;special care;government directive;marine life;regenerative capacity;animal species;fresh water;land area;commercial forestry;agricultural product;food industry;plantation development;soil erosion;plant species;natural forest;sustainable catch;fish resource;private service;budgetary fund;credit management;trade performance;Medical Insurance;Fiscal Reform;fiscal resource;vegetable plot;rice paddy;existing population;market regulation;restructuring plan;additional revenue

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Citation

Cadario,Paul Michael Ogawa,Kazuko Yin-Kann,Wen

A Chinese province as a reform experiment : the case of Hainan (English). World Bank discussion papers,no. WDP 170. China and Mongolia Department series Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/827791468746711508/A-Chinese-province-as-a-reform-experiment-the-case-of-Hainan