Modernization in China : the experiment of Shenzhen Special Economic Zone 1979-1984

Abstract

The Special Economic Zones have been designed by the Chinese Government as a two-pronged strategy in its ‘open-door’ policy: expanding exports and encouraging foreign technology imports. Also, they are intended to be test-grounds for hybrid socialistcapitalist experiments - a reflection of the country’s search for efficient methods of production to bring about the country’s much-delayed modernization. The Shenzhen Special Economic Zone, in particular, has been given a pivotal role, because it is planned to incorporate both a full -fledged economy and a well-developed urban area. Its progress, therefore, has attracted much attention. The assessments of Shenzhen’s initial performance have, however, resulted in polarized opinions. Yet a detailed evaluation of Shenzhen's progress as an export processing zone - a phenomenon similar to those in other developing countries - has not been made. Hence, this study has undertaken the task. Industrial performance and social conditions within the zones have been perennial themes of export processing zone studies. As a result, the economic progress of Shenzhen is measured in this study against its specific planning goals and directives. Particular attention is centred on industrial performance and the outward-orientation of the Zone’s economy - the twin objectives of its economic development. Then the ‘well-being’ of Shenzhen’s population, specifically income and accessibility to social goods, is canvassed. In turn, the economic and social developments are evaluated with reference to the performance of other export processing zones. Finally, Shenzhen’s initial contribution and its potential to promote modernization in China as a large coastal city possessing export processing facilities are estimated. Show more