also viewed as a long term weakness - see Section 2.4

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the need to reform the environmental regulatory system has, however, now been recognised);

1

Rubbish dumped by roadside

During the period 1982 to 1990, there have been enormous movements of people into these areas (particularly to the east bank of the Pearl River Delta). Non-agricultural employment as a proportion of total employment in 1982 and 1990 is illustrated on Figures 2.10 and 2.11. The rapid changes to the economic structure in the area of the Pearl River Delta are clearly illustrated by this data.

2.24 The 1990 distribution of average wage levels is shown on Figure 2.12. There is a great unevenness. Much higher wages are paid in the area of the Pearl River Delta the highest being found in the two Special Economic Zones of Shenzhen and Zhuhai. Wages in these areas are over twice the average paid in the poorest parts of the province.

2.3

Provincial Strengths

General

2.25 The Consultants' assessment of the strengths of the province are listed on Table 2.1 at the end of this section. They are mainly concerned with:

(a)

its geographic position;

(b)

(c)

(d)

(e)

the skills of its people - their flexibilty and keen determination to do well;

the new competitive, market oriented attitude to business;

its early tackling of the problems of inadequate infrastructure and, in the initial absence of good highways, the use that it has been able to make of the delta waterways;

its willingness to accept low environmental standards and high levels of pollution in order to attract industry at least during these first stages of rapid growth (note, this is however

(f)

the new planning and business freedoms;

(g)

(h)

an emerging property market (note though that the continued lack of a systematic framework for property deals and the inconsistent approach to valuing much property would be a severe weakness - see Section 2.4); and

the new political and institutional freedoms.

2.26 Further economic development in the province is likely to depend much on the province's internal ability to innovate. A stonger producer services sector is clearly required. Hong Kong expertise can, and the Territory is of course uniquely positioned to, assist with this process.

2.27 The section concludes with a brief mention of the advantages that cheap labour and land may continue to bring to the province.

Geographic Position

2.28 The province's geographic advantages lie mainly in:

(a)

(b)

its close proximity to Hong Kong, which has good ports, a sophisticated service industry and other connections with the rest of the world; and

its position close to the centre of the economically advancing Asia Pacific Rim.

2.29 Other advantages are, however, its links with the overseas Chinese world and the fertility of its delta regions. The fertile delta allows a basic self sufficiency in food crops and frees large numbers of

New highway west of Dongguan

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