Although China has established the state for only 60 years, its development is outstanding. Especially in recent 10 years, the goods labeled 'Made in China' entered innumerable families. China's international position is also increase sharply during the last twenty years, especially after China successfully held in the 2008 Beijing Olympics and 2010 Shanghai World Expo. During the development of China, two policies have played a key role – One country two systems and Economic reform.
In this essay, it focuses on discussing the question- "for developing countries, good results from growth strategies depend on implementation of policies that begin with questions appropriate to the country concerned".
Two cases in China are mainly discussed in this essay. They are One country two systems and Economic Reform in China. During the discussion, it finds that both policies have some advantages and shortcomings. But, it is clearly that when implemented these two policies, the Chinese really considered the condition of the country at that particular time. And both of them have positive impact on the development of China in the overall level. More explicitly, it concludes that for developing countries, good results from growth strategies do depend on implementation of policies that begin with questions appropriate to the country concerned. The information contained in this essay is mainly from Internet, and some of them are from Chinese websites.
Policy cycle is the idea that policy proceeds in distinct stages from policy formulation to implementation and it can be used to understand and structure policy development. In this case, it focuses the seventh step- Implementation. It is after "decision" and before "evaluation" and it usually very important in Policy Cycle, because the cycle does not conclude with a cabinet decision. Implementation must follow, in which the policy is given expression through legislation or a program, in pursuit of the goals agreed by ministers (Bridgman and Davis, 2004, p28). People are informed of the choice, policy instruments are created and put in place, staff instructed, services delivered, money spent, and bills prepared for parliament. The machine of government smoothly implements cabinet's with- in theory. However, the story of implementation does not always run so well. The gap between intention and outcome may be large (Bridgman and Davis, 2004, p119).
In this essay, the discussions are all around the idea "for developing countries, good results from growth strategies depend on implementation of policies that begin with questions appropriate to the country concerned". And there will talk about two Chinese cases. Firstly, the one country two systems, it is about when the Chinese implemented the policy, how they consider the condition of Chinese mainland and Hong Kong, Macau, and why it can get good results. Secondly, the Economic reform in China can also support the content of this idea.
"One country, two systems" is an idea originally proposed by Deng Xiaoping, the Paramount Leader of the People's Republic of China (PRC), for the reunification of China during the early 1980s. He suggested that there would be only one China, but areas such as Hong Kong, Macau and Taiwan could have their own capitalist economic and political systems, while the rest of China uses the "socialist" system.
The aim is to achieve peaceful reunification of the motherland and maintain stability and prosperity in Hong Kong, Macao and Taiwan. "One country is the premise and basis of the two systems," and recognition of the principle means recognition of the premise of "one China" that refers to the PRC, and that the main body of the nation will maintain the socialist system with Chinese characteristics. The policy is an important component of the socialism with Chinese characteristics. (China facts and figures, 2006)
Taking into account the special status of Taiwan, the Chinese Government has pursued to solve the Taiwan issue with the basic principle of "peaceful reunification and one country, two systems." That is, after the reunification of both sides across the Taiwan Strait, Taiwan's current socio-economic system, its way of life, as well as economic and cultural ties with foreign countries will remain unchanged. As a special administrative region, Taiwan will enjoy a high degree of autonomy, including administrative and legislative powers, an independent judiciary and the right of final adjudication on the island. It will run its own party; political, military, economic and financial affairs may conclude commercial and cultural agreements with foreign countries and enjoy certain rights in foreign affairs. It may retain its armed forces and the mainland will not dispatch troops or administrative personnel to the island. On the other hand, representatives of the government of the special administrative region and those from different circles of Taiwan may be appointed to senior posts in the Central Government and participate in the running of national affairs.
The development of Hong Kong and Macao since their return to the mainland testifies to the fact that the policy of "one country, two systems" is correct and has strong vitality. (China facts and figures, 2006)
Background of one country two systems
Hong Kong, as a British colony, after experienced the violence in the late 1960s, Hong Kong government adjust the policy of Chinese into decision-making mechanism, in order to reduce harm the possibility of British rule (in the early 1970s). In 1973, by oil crisis, Hong Kong has undergone a big economic recession, but since 1974 began more than 20 years of growth. In the 1970s, Hong Kong metro started, the commission against corruption, started the nine-year education, and free forced further expansion plans, such as public housing building plans and 10 couples have their plans for Hong Kong's future, "economic miracle" basis. (China facts and figures, 2006),
In the early 1970s, due to the New Territories land contract, the Hong Kong government forced to consider the future of Hong Kong. The British government had insisted that the PRC government continue, but the New Territories leases for the PRC government refused. In the early 1980s, the United Kingdom had proposed spin-off of Hong Kong's "sovereignty" and "governing authority", the former owned by The People's Republic of China, but Britain retained the right to rule. On 22nd September, 1982, British Prime Minister Margaret Thatcher put forward the principle to Beijing to Hong Kong to continue the governance, but the Chinese leader Deng Xiaoping strongly disagreed. He said Hong Kong people can enjoy a high degree of autonomy, "Hong Kong people administrating Hong Kong".
In 1984, signed by both the government of the People's Republic and the government of the United Kingdom of Great Britain and Northern Ireland on the question of Hong Kong joint declaration, referred to as the Sino-British joint declaration. According to the statement, the British in 1st July 1997 handover of Hong Kong's sovereignty will of the People's Republic of China, Hong Kong, and of the People's Republic of China is become a special administrative region.
Consideration of Chinese Government
As we know, Hong Kong was under British colonial rule from 1842 to 1997, over 150 years. Similarly，The Portuguese occupation of Macau lasted 112 years. The "Capitalist" system had been implemented in Hong Kong and Macau Over a century. Since 1970s, with the rapid development of economy, Hong Kong had become one of Asia's biggest bustling metropolises. If the Chinese Government suddenly decided to carry out socialist transformation of Hong Kong, it will inevitably lead to social unrest in Hong Kong and affect the future social development of Hong Kong. (Hu Ding, 2009)
Hong Kong, as Asia's financial center, is a window open to the outside world. The smooth reunification of Hong Kong, it will link mainland China and the world, promote China's economic development and the integration of the world.
Since World War II, the world is divided into two camps, the capitalist and socialist. China, as a typical developing socialist country can strengthen communication and cooperation with other developed capitalist countries, if Hong Kong retained the capitalist system. Meanwhile, Hong Kong people also need time to get used to the mainland's socialist system. On the other hand, taking into account the British Government's tough, peace talks may not succeed, if insisting on reform of socialism. In the negotiations, concessions and compromises are necessary. The successful solution of the Hong Kong issue will lay the foundation of solving the issue of Macau. It also provides a reference for the Taiwan issue. Therefore, the Chinese government must resolve the issue of Hong Kong properly.
March 1979, the British sent the Governor MacLehose to Beijing to sound like to extend the lease for the Hong Kong's New Territories. On 29th March, Deng Xiaoping met MacLehose. MacLehose said that if Hong Kong's New Territories, the British government granted the land lease cannot exceed 1997, may affect Hong Kong's future prosperity. (China Young News, 2007)
Deng Xiaoping was aware of the intention of the United Kingdom government. He expressly disagreed with MacLehose's opinion about the Hong Kong's New Territories still under British administration after June 1997. He said" We always believe that sovereignty belongs to People's Republic of China in Hong Kong. However, there is the special status of Hong Kong, even to solve this issue in 1997. We will respect the special status of Hong Kong". He also said" In this century and the beginning of the next century for a long period of time, Hong Kong may still practice capitalism, we engage in our socialist in mainland. There is no affection on their investment interests in Hong Kong, when the political status of Hong Kong will change in 1997".
16th September, 1982, during a conversation, Deng Xiaoping made a decision on solving problems of overall program on Hong Kong issue. In summary, the approach to negotiations set by the Chinese government was "Hong Kong's reunification with China must be achieved smoothly in 1997.
Without prejudice to the premise of national sovereignty to preserve Hong Kong's capitalist system unchanged." Deng Xiaoping was in accordance with the words "we must focus on the return of Hong Kong and the establishment of Hong Kong Special Administrative Region." He added "We must arrange everything after careful consideration of possible instability" and " If something happens in this process, we are forced to make new considerations on the approach and time of Hong Kong's return." (China Young News, 2007)
This shows that from the beginning to solve Hong Kong issue, the Chinese central government made preparations on both hands. On one hand, the central government hopes to resolve Hong Kong issue through dialogue and negotiated settlement. On the other hand, central government is prepared to force to resolve the Hong Kong issue. Chinese central government demands British government to admit that Hong Kong's sovereignty belongs to People's Republic of China firstly, and then the negotiations on Hong Kong's stability, prosperity and transfer of sovereignty will be started by the two governments.
The British government believed that the negotiations should not be any preconditions. The issue of Hong Kong's sovereignty should be discussed only as a broader, more specific part of a package deal. After more than a dozen rounds of talks, on 1st October, 1984, the British government finally compromised and the reunification of Hong Kong was decided on 1st July, 1997.
In Hong Kong, the system has been implemented through the Basic Law of Hong Kong, which serves as the "mini-constitution" of the region, and consistent with the Sino-British Joint Declaration. Similar arrangements are in place with Macau. Under the respective basic laws, the Special Administrative Regions have a high degree of autonomy and enjoy executive, legislative and independent judicial power, including that of final adjudication. They formulate their own monetary and financial policies, maintain their own currencies, formulate their own policies on education, culture, sports, social welfare system, etc. within the framework of the basic laws. (Hong Kong Government, 2008)
As stipulated by the basic laws, while the central government of the People's Republic of China is responsible for foreign affairs and defense in relation to the Special Administrative Regions, representatives of the Government of the Special Administrative Regions may participate, as members of delegations of the People's Republic of China, in diplomatic negotiations that directly affect the Regions. In other international organizations or conferences limited to states and affecting the region. For those international organizations and conferences not limited to states, the Special Administrative Regions may participate using the names in the form of Hong Kong, China and Macau, China. As separate economic entities, both Special Administrative Regions of Hong Kong and Macau are members of the World Trade Organization. Hong Kong is also one of the member economies of APEC. The basic laws also provide constitutional protection on various fundamental human rights and freedoms. Specifically, the International Covenant on Civil and Political Rights is given a constitutional status through the basic laws. (Hong Kong Government, 2008)
Some international critics and human rights organizations have expressed doubts about the future of the relative political freedoms enjoyed in Hong Kong, and about the People's Republic of China's pledge to allow a high degree of autonomy in Hong Kong. They considered, for example, that the proposals in Article 23 of the Basic Law in 2003 (which was withdrawn due to mass opposition) might have undermined autonomy.
Nonetheless, the government of the People's Republic of China and government of Hong Kong Special Administrative Region both consider the principle to have been successfully implemented, quoting official reports of both the United Kingdom and the United States. (Hong Kong Government, 2008)
Evaluation of one country two systems
-Hong Kong Special Administrative Region (After Hong Kong back to China)
On July 1, 1997, Hong Kong returned to the mainland after 150 years of British colonial rule. It entered into a new historical era of "one country, two systems" and "Hong Kong governed by the Hong Kong people with a high degree of autonomy."
In the nine years since the handover, the Central Government has supported the chief executive and the government of the Hong Kong Special Administrative Region (SAR) to administer the region in accordance with the Basic Law, Hong Kong's mini-constitution, and promoted its stability and prosperity. Hong Kong continues to maintain the characteristics of a free port and its status as a center of international trade, finance and shipping.
Hong Kong has shaken off the economic slump caused by the financial crisis in 1997 and is on a steady economic upturn. With its increasing inner dynamism and capacity to withstand external crises, Hong Kong is optimistic about its economic future.
-One country two systems- Common development
On 1st July, 2009 is the 12th anniversary of the reunification of Hong Kong. Many Hong Kong media published articles that the "One country, two systems and Hong Kong people ruling Hong Kong" has been successfully implemented in Hong Kong, Hong Kong can give full play to "one country two systems" advantages. It is Hong Kong's new start and the common development with mainland China.
In the case of the past 13 years, "One country, two systems and Hong Kong people ruling Hong Kong" has been successfully implemented in Hong Kong, which is globally acknowledged. Hong Kong still has her advantages, especially the "one country, two system", it makes Hong Kong a better tomorrow.
The success of reunification of Hong Kong shows that under the "One country, two systems", Hong Kong has no fear of economic challenges, maintains social harmony, keeps cohesion and flexibility, develops with mainland society and takes off with the great east China Dragon. Hong Kong people's understanding and feelings of the country, has never been so in-depth and substantive. (Qi Yi, 2007)
Also, more and more Hong Kong people have realized that efforts to create and maintain good relations between Hong Kong Special Administrative Regions government and Chinese central government , in order to further the formation of "One country, two systems" complementary advantages, mutual benefit and win-win situation. (Hua Xia, 2007) The more Hong Kong people can understand the relationship between Hong Kong and the country, it is increasingly clear that Hong Kong obtains many important opportunities in past 13 years thanks to China's reform and opening to the outside world. In the next three decades, with the country's development of a new round of opening up, Hong Kong can play an active role, be more important opportunity. (Hong Kong Government, 2008)
Over the past year, Hong Kong people have a stronger sense of belonging to the motherland. Meanwhile, the Special Administrative Regions government's administration in the public also has been further recognized. The Special Administrative Regions Government is adhering to the effective experience of administration before and after the reunification, gradually builds up experience between the new balanced requirements. The improvement of Special Administrative Regions government policy is not only the improvement of administrative efficiency and, more importantly, it reflects the Hong Kong people. The people and public opinion in the Special Administrative Regions government has occupied an increasingly important and clear position.
This policy has been promised by Chinese central government that it will not be changed for 50 years, but after 50 years, it is hard to say, China and Hong Kong and Macau are facing new problems. Despite Deng Xiaoping said that Hong Kong's capitalism system still does not change after 50 years, but after all, it is not statutory. After 50 years, the mainland could re-construct the new system for Hong Kong's society. In the future, Hong Kong people may have to make some sacrifices if they want to enjoy true "One country, two systems". Hong Kong people must resolutely safeguard the "one country" premise. (China law, 2004)
For example, the Chinese government may have to make the following requirements in Hong Kong:
- Establish Internal Revenue Service in Hong Kong, collection of state taxes, the tax rate equal with the Mainland provinces
- Implement "The People's Republic of China Military Service Law" in Hong Kong, Hong Kong and the Mainland-age youth as equal military service-age youth to participate in Chinese People's Liberation Army
- Hong Kong's investment in the mainland should give up privileged treatment and receive national treatment
- Hong Kong people should firmly adhere to the bourgeois liberalization in Hong Kong, at the same time obey the rules of mainland China when they investment in. (China law, 2004)
Although this policy may not perfect, it is still can conclude that the successful of implementing one country two systems based on the Chinese government consider much at the country's condition.
The successful solutions of Hong Kong and Macau issues are great reference for Taiwan issue. Taiwan issue can argue the actual operation by this method, but more complex than in Hong Kong and Macau. Taiwan is now ruled by another party "Nationalist party". "Nationalist party" ruled mainland China for half a century-long before the Chinese Communist Party. So, the Taiwan issue is the conflict between the two political parties within one country. (Qi Yi, 2007)It is another kind of historical problem different from Hong Kong issue. In the case of Hong Kong, there was an unequal treaty had been signed by Qing government after the British military occupation of Hong Kong. After the expiration of the treaty, the United Kingdom returns Hong Kong to China. But there is no such treaty between the two parties. In the future, the implementation of "One country, two systems" in Taiwan can be more open and transparent. As China's resumption of sovereignty over Hong Kong, a symbol of the central government to station troops in Hong Kong. But Taiwan can retain its armed forces. Meanwhile, after the reunification of Taiwan, the central government not only sends no executives to Taiwan, but also sets aside a certain proportion of places in the national government agencies for people of all circles of Taiwan to participate in national management.
Moreover, as early as 8th January, 1979, Deng Xiaoping put forward in answer to the American guests' question "Do you want a future period of intense change Taiwan's status quo, the implementation of the Communist regime in Taiwan?" He made it clear that "The future implementation of any system in Taiwan could be decided according to the will of the people of Taiwan，whatever they want. If people in Taiwan feel that their existing system to maintain a hundred years, this is acceptable. I always say a hundred years, a thousand years, it means long-term, we will not use force to change the way it is." (Hu Ding, 2009)
On 26th August, 1981, Deng Xiaoping also said to a foreign celebrity, such as the peaceful settlement is impossible; do not rule out using force to resolve the Taiwan issue. Even if resolving Taiwan issue by using the force, the status quo on Taiwan may not be changed. Taiwan could continue to have its own political system, legal, military, economic and financial affairs, including commercial and cultural agreements with foreign countries, and would enjoy "certain rights" in foreign affairs. (Hu Ding, 2009)
In this part, it will briefly talk about the Reform and Opening-up Policy plays a huge role in promoting economic development in China.
As we all know, China is a developing country. Although there is not a precise, uniform and scientific definition of developing countries for people generally accepted, but the general concept of the convention countries: Contrast with developed countries, there is relatively economically backward in these developing countries. Some of them are called under developed countries. Usually refers to the Third World countries, including Asia, Africa, Latin America and other regions more than 130 countries, representing 70% of world's land area the total population. Most of the developing countries have vast territory, large population, a huge market and abundant natural resources. There are many strategic locations, in terms of economy, trade, or from the military, the developing countries have played pivotal strategic position.
These countries are also called "backward countries". Apparently this formulation is wrong, because it not only contains the "lower" means, but also it seems that these countries have been lagging behind, poverty will continue. Since then these countries are known as "less developed countries" or"underdeveloped countries". Intended to emphasize economic growth in these countries is still low-level stage. Compare to those economically developed countries, they are still underdeveloped. People's Republic of China is the largest developing country in the world.
Since 1st October, 1949, China entered the Mao's era after the foundation of People's Republic. China just suffered eight-year war of against Japan's invasion from 1937 to 1945; three years of civil war from 1946 to 1949 and the Korean War in1950.All neglected matters were yet to be dealt with. Chinese economic characteristic of this period was fundamentally a product of economic, real-asset Economy. The Production purposes were to meet the objectives of Nation-building and practical needs of people living. The biggest Dilemma for Chinese central government was to solve the food problem for hundreds of millions of people in China. There was a clear policy "economic development, to ensure supply" during the special period of time.
Be stated that between 1950 and 1976, under the leadership of Mao Zedong, there were a series of political movements carried out, mainly including the anti-rightist campaign in 1957, the case of Peng Dehuai's group anti-Party incident in 1959, the Cultural Revolution from 1966 to 1976. Especially the Cultural Revolution, Mao Zedong used his prestige of individuals and the worship of the leader in masses, he launched a campaign to remove political opponents.
There were not new theories and new cultural achievements in the campaign, but it caused serious damage of Chinese education, science, culture and health. The endless chaos and disaster caused by Cultural Revolution was brought to the Chinese people. The Chinese economy was in the verge of collapse.
Consider the basic national conditions of China's listed above, also draw on the experience of some developed countries' economic development, in order to save the Chinese economy on the brink of collapse and build China into a modern power, Communist Party of China (the ruling party) made a strategic decision on reform and opening up in the Third Plenary Session. This is the first basic national policy since the foundation of People's Republic of China.
Its main contents are: abandon the class struggle in China, guided errors. The policy of vigorous economic development had been made as the central principle of the national development of productive forces. Carried out the economic reform in the cities' and rural areas and developed the four Chinese southern coastal cities of Shenzhen, Zhuhai, Shantou and Xiamen, as the special economic zones, the open windows of China to the world. (Naughton, 2007)
The decision fully corrected the errors of "Cultural Revolution". The country's focus was drive up to socialist industry, agriculture, science technology and national defense modernization. There were several policies had been implemented: reopen the college entrance examination; contract land to farmers; economical reform and opening up to strengthen international exchanges and cooperation; establish the four special economic zones in southeast coast areas in 1980. In 1988, Hainan Province was approved as the fifth special economic zone. The foreign capital and technology was introduced to develop domestic economy in China. (China Economic, 2009)
On one hand, the purpose of reform and opening up is the liberation and development of productive forces, to achieve the four national modernizations (socialist industry, agriculture, science technology and national defense). On the other hand, is to construction and development of socialism system with Chinese characteristics. In the past 30 years, the policy of reform and opening up stimulates the vitality of Chinese businesses to continue to develop the productive forces. New cities are established, many major scientific and technological achievements are developed and used, many major projects are completed, and the accession to the World Trade Organization is a symbol of China's rising. (China Economic, 2009)
Especially the Chinese GDP increased year by year achieved an unprecedented long-term, sustained, rapid, steady growth. In the base case of greatly improved, China's GDP grew by 9.8% from 1979 to 2007. There is 3.7 percentage points higher than the average annual growth rate of 6.1% from 1953 to 1978, the average annual growth rate increased by 60%. The economic growth rate is 10.4% in the first half of 2008. According to studies of some foreign scholars, since the 50s of last century, there are 11 countries and regions have average annual economic growth of 7% or more in a 25-year period. After reform and opening, Chinese economy has been achieved an average annual growth rate of 9.8% in past 29 years. The figure is far above the world average rate of about 3.3% economic growth. (China Economic, 2009)
It appears that China's economic growth rate will continue for some time around 9%. The Chinese long-term economic growth, in the history of world economic development, is so unprecedented and it shocked the world. (The above figures from China Economic Times， 11th August , 2009) On 10th June, 2010, the World Bank released the latest "Global Economic Prospects 2010". It forecasts, the global GDP growth rate is around 2.9%~3.3% in 2010 and 2011, it will rise to 3.2%~3.5% in 2012. China's GDP will grow 9.5% in 2010. In 2011, it will slow to 8.5%.
The world's attention turned to China, China's economic development speed was called "China speed." All these achievements have fully demonstrated that only the implementation of reform and opening-up policy to adapt to China's national conditions, will serve to promote the significant role of China's economic take-off.
At the end of the discussion of the economic reform case, something needs to be emphasized. The reform and opening-up policy is not always the panacea in the manufacture of "Chinese speed". It also created serious problems such as environmental pollution, Resource depletion，corruption in government agencies, differentiation in both rich and poor class and lack of fairness and justice in modern society, etc. The solution of these shortcomings is not only a new topic for the future development of China's economy. It will also directly affect the pattern of world economy. As the media reports, the GDP per person in the eastern China is 10 times than that in western China. From the policy of Economic Reform, it main figure out why the different between eastern and western China is so huge. According to the policy, the government will develop the eastern first. And the six special economic zones are all in the eastern China. Another reason is geography. The eastern China is next to the sea, and the transportation is more convenient than western. And the province in western, such as Tibet, its development is limited by the geography. And this problem is not in China, some other country also face it. For example, Australia, to develop or build Alice Spring is harder than that in Melbourne because of geography. So, the differences between different areas among the country are normal problem, but 10 times different is unusual. (China Economic, 2009)
As the implementation step is very important, the governments implement the policy need to consider many issues. In this essay, it is particularly focused on the question of "for developing countries, good results from growth strategies depend on implementation of policies that begin with questions appropriate to the country concerned". And there were two Chinese cases mentioned in this essay, the one country two systems, and the Economic reform in China. Although during the implementation of the policies, there were some problems came out together, and the policy received some criticisms. For example, Taiwan still not return to China, after 50 years, how about Hong Kong under the one country two systems policy, and how the government improve the policy in the future. But in the overall level, the two policies have great positive impact on the development of China. And if Chinese government can focus more on the problems and unsolved issues more, the Chinese people can live for a better live than before.
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