What next for Shenzhen?
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As China's first "special economic zone" (SEZ), Shenzhen is a symbol of the country's 30 years of opening up and economic reform. This year marks the 30th anniversary of the Chinese government's initiative to create coastal SEZs. Now the government is mapping out what Shenzhen can do next to further political reforms to match its economic development.
Shenzhen is expected to lead a new round of administrative reform, as the government realizes that, without further political reform, China could jeopardize its economic achievements and face serious political risks.
Strengthening institutions should be the top priority for China's political reforms. China needs to build effective supervisory mechanisms by building institutions. After 30 years of the open-door policy, institutions are more important than ever for ensuring sustainable growth. By learning from its neighbors, especially Hong Kong and Singapore, Shenzhen can play a leading role in building a well-functioning administration as the basis for further political reform.
Repositioning the role of government is another vital concern. For decades, strong and centralized government was the key feature of the Chinese political system. But since the creation of Shenzhen's "free-enterprise system", both the nature and extent of government involvement in the economy have been challenged. By definition, the government's role includes that of service provider as well as regulator. As economic opening-up gathered pace, the role of government became a source of controversy in China, both within government circles and between the public and private sectors. Advocates of economic freedom prefer a low-profile role for government in virtually all aspects of economic activity. But striking the appropriate balance is a complex and difficult task facing China. Hopefully, repositioning the role of government can solve problems caused by over-concentration of power as well as contributing to creating fairer competition.
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