Hainan Economic Development: Distribution of Benefits and Economic Efficiency

Wang Wenchang and Meng Yanyan

Chinese Economy, 1992, vol. 25, issue 4, 79-90

Abstract: There is no doubt that Hainan, a relatively independent economic region, has unified interests as a region. The unitary principle that guides Hainan's economic development objectively requires overall regional interests to be taken into account in planning and plan implementation. It calls for unified arrangements and staggered development so that areas with sound foundations where quick results are possible can get priority. This unitary policy faces the problem, however, of whether benefits are evenly distributed. The more uneven the overall benefit structure, the less stable the foundations for a unitary policy. Although the region currently enjoys the status of a Special Economic Zone, because of the wide disparities in income distribution and the lack of a relatively balanced overall structure, the wish for unitary development objectively comes up against pluralistic options advanced by different interest groups. If the price of unification is violation of the interests of one party or another, then the whole process will be jeopardized.

Date: 1992
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