Hong Kong and Zhujiang Delta Regional Development

HK is a world city Hong Kong is a small village 100 years ago. It is still classified as a third world city in 1987 in a book written by David Drakakis-Smith

Shenzhen grows rapidly It grows rapidly due to Hong Kong ’ s help. The studying cycle of it is shorter as it absorbed the capital, technology, and people from Hong Kong.

Future of Hong Kong, will it be similar to Liverpool, or Venice? Liverpool is a break-of-bulk points in middle England. The hinder land of it is Manchester and Birmingham, the biggest industrial in UK. However, the relationship is changed due to the globalization

Liverpool Manchester

Local Economic Development Infrastructure, Planning & Development Economic Policy Financial Trade R & D Globalization

Advantage Loss in Hong Kong Taiwan ← China Open door in 1978 Globalization

Interaction between Hong Kong and Pearl River Delta (PRD) Pre-1978: No interaction : Front shops, back factories : Diversification of HK investment, to tertiary and property development in PRD 1997-: Rapid growth of industry and service, competition and cooperation between PRD and Hong Kong

Stage One: Pre PRDHK Policies & Changes Self-reliancePositive non- intervention( 積 極不干預 ) Economic Development AgricultureIncrease of manufacturing and service ManpowerFarmerSkilled workers Cross border flow Import and export of food

Stage 2: PRDHK Policies and changesOpen policy, economic reform in 1978, 1984 Positive non- intervention Economic development Labour intensive processing industry Massive development of manufacturing industries Decline in manufacturing Marked increase of service industries, especially producer sercvices ManpowerUnskilled cheapExpensive manager and professional Cross border flowHK-PRD: people, goods, technology and capital PRD-HK: Food and manufactured goods Role of Hong KongLeading the manufacturing, provide market and service

Stage 3: PRDHK Policies and Changes Land reform, Peng ’ s tour to South China Positive non- intervention Economic development Further industrialization Property boom Tertiary sector began to pick up Continuous decline in manufacturing Continuous increase in producer service Property boom ManpowerCheap skilled worker & manager Expensive manager and professional Cross border FlowHK-PRD: People, capital, freight traffic PRD-HK: Food, manufactured good, tourists Role of HKDiversification of investment to tertiary and property development in PRD, major property developer

Stage 4: After 1997 PRDHK Policies and ChangesCooperation between two sides of government Globalization and China entry to WTO and IT development Three links between Mainland and Taiwan Keener competition in region Economic developmentIT industry on the top agenda formation of agglomerate economic & industrial linkage Property development Improving & cheap service GPD growth dropped Highly depends on producer services Decreased in competitiveness in service industry ManpowerMore mature technology and better and cheaper talent Expensive manpower, less competitive Cross border FlowMarked increase in cross border passenger and traffic HK-PRD: capital but dropped, people, freight traffic PRD-HK: food, tourist and visitor Cooperation at various aspect “ Front shops, back factories ” is under challenge Role of HKDiminishing role of HK

The competition between HK & PRD Graph showing GPD of Hong Kong and PRD Graph showing GPD of each people in China Conclusion: They will be ahead of us

China & WTO Opportunities: Market expansion Market access Middleman ’ s new role of HKSAR Challenges: Mainland ’ s barriers and constraints Increasing competition Diminishing gateway function of HKSAR

Growing local strength of PRD Stronger industrial network and agglomerated economy Better manpower More mature technology Improved service quality

Hong Kong ’ s strength The producer service is mature Good financial and legal system Efficiency International connections High quality service One country, two systems

Future attraction High-order goods & service Attraction from tourist in whole China The peak of tourism in 2005 as the Disneyland is built

Example to Follow London and Paris Only small proportion of international tourist but most of them come from their own countries It is hard to displace their goodwill and scale

Improvement of HK Study the system of Mainland China Decrease the cost Improvement of population policy Cannot only depends on tourism, it is temperate Become a regional centre, similar to London and Manhattan