Risk, Regulation and Policy
Chapter 12: “A tale of three zones” and financial reforms
After the Communist Party of China’s (CCP) Third Plenum of the 11th Congress in 1978, the Chinese government instituted some political changes: four special economic zones were established in 1979, the development of the coastal region was set forth as national policy in the Sixth Five-Year Plan (1981–1985), 14 coastal cities were opened in 1984; three deltas, the Lower Yangtze delta, the Pearl River Delta and the Xiamen-Zhangzhou-Quanzhou Triangle, were declared as Coastal Economic Development Zones, and Hainan was established as a special economic province. These measures of selective territorial deregulation including special economic zones, coastal open cities and central economic cities allowed more than two dozen sub-provincial cities to implement more autonomous and preferential economic policies. The key objective of the set-up of special economic zones is to attract foreign investment, capital and technology. A series of preferential policies has been granted to the special economic zones in the past three decades so that they can attract more foreign investment, advanced technology and managerial skills. The underlying rationale of the economic zone model is a “trickle-down” strategy not only diffusing growth but also governance or policymaking experience from the coastal to other areas. Therefore, these zones are labeled as “windows” to implement more liberal and deregulatory economic policies, and are used as “corridors” through which developmental ideologies and experiences can be diffused into other localities.
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.