Asian and African Observers of the Yantian Miracle.docx

Asian and African Observers of the Yantian Miracle.docx

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AsianandAfricanObserversoftheYantianMiracle

AsianandAfricanObserversoftheYantianMiracle

　　YANTIANVillageofDongguanCityinsouthernChina’sPearlRiverDelta，whichhasbeentransformedfromvastpaddyfieldsintoathriving，manufacturingcenter，iscomingintosharpfocusasitridesonthewaveofChina’srise.In2012，ProfessorAnthonySaichfromHarvardKennedySchoolandProfessorHuBiliang，deanoftheEmergingMarketsInstituteofBeijingNormalUniversity（BNU），jointlywroteabookentitledChineseVillage，GlobalMarket：

NewCollectivesandRuralDevelopment，whichvividlydescribesYantian’stransitionoverthepastthreedecades.

　　Twenty-eightofficialsfrom14developingcountriesstudyinganIMBAprogramatBNU’sEmergingMarketsInstituteconductedafieldinvestigationinYantianVillageinJune2015andsharedtheirobservationsanddiscussionsonitsdevelopment.TheirinformedperspectivesgiveusaclearerpictureofthedramaticchangesthathavetakenplaceinChinasincethepolicyofreformandopening-up，andcanhelpforecastthenation’sfutureprospects.

　　ForeignDirectInvestmentfromtheGlobalMarket

　　YantianVillageislocatedinthesouthernmosttownofFenggangofDongguanCityinGuangdongProvince，withShenzhenCitytoitseast，south，andwest，andcoversanareaof24squarekilometers.Itisjust30minutes’drivefromLuohuCheckpointandShenzhenBao’anInternationalAirport.Thevillagehasadministrationoverninevillagergroupsandapopulationof3，000registeredpermanentresidents.

　　AftertheestablishmentofShenzhenSpecialEconomicZonein1980，thelivesofYantianvillagerstotallychanged.Theadvantageouslocationofthevillage，adjacenttobothShenzhenandHongKong，anditscheaplandandworkforcemadeitapreferentialdistricttoattractforeigndirectinvestment，especiallyformanufacturingenterprisesinHongKong.

　　In1980，LüZhengfu，abusinessmanborninHuiyangCityofGuangdongProvincewholatermovedtoHongKong，wasconsideringinvestinginhishometown.However，herealizedthattheconditionstherewerenotright；thetownwasnotmatureenoughforwhathehadinmind.Then，onhiswaybacktoHongKong，hehappenedtodiscoverthatYantianVillagehadamuchmoreconvenientmarketandincentivepolicies.HeopenedZhengxinWoolMillinYantian’s60-meter-long，10-meterwidevillagemeetinghall，givingbirthtothefirstHongKong-invested“Threeplus-one”trading-mixenterprise，whosemajorbusinesscomesfromcustommanufacturingwithmaterials，designsorsamplessupplies，andcompensationtrade.ThisbusinessmodelwascreatedwhentheChinesegovernmentadoptedthepolicyofreformandopening-upwiththeintentionofattractingforeigninvestmentinvariousforms.ThefirstyearZhengxinWoolMillwasinoperation，ithadgoodeconomicperformance：

thevillagecollectivegainedanetincomeofRMB250，000.Later，from1992to1995，YantianVillagebuilt180factoriesandfiveindustrialparks.Onits24squarekilometersofland，enterprisesinthefieldsofelectronics，computers，machine-building，clothing，toys，andwristwatchesspranguplikemushroomsafterrain.　　ThesuccessofZhengxinWoolMillhasfurtherinspiredYantian’svillagers，whoarekeentoattractmoreforeigninvestment.IthasalsosetagoodexampleforentrepreneursoftheDengfamilyinHongKong，whoseforefathersformedthebiggestclanofYantianVillageandwhoseoffspringstillholdadominantroleinthevillagetoday.Traditionally，overseasChineseeventuallyreturnhomeafterretirementtoliveouttheirdays，seenasahomecomingtotheirwiderfamilies.Therefore，from1981，DengclanmemberswhowenttoHongKongtoescapethepovertybeganreturninghome，bringingtheirsuccessfulbusinesseswiththem.Bytheendof1985，therewere10suchforeign-fundedcompanies.Theseentrepreneurs’endeavorspavedthewayformoreinvestorsfromHongKong，Taiwan，Japan，Germany，andtheU.S.，andbytheendof1998，thetotalnumberofforeign-investedenterprisesreached430.Meanwhile，entrepreneursfromacrossthecountrybegantoinvestinYantian，andthetotalnumberofprivateenterprisesreached700.

　　“Attractingsuchalevelofforeigndirectinvestmentwastheturningpointofthevillage，”ChakraPrasadPaneru，anofficialofNepal’sRevenueInvestigationRegionalOffice，said.“Theseforeigninvestedenterprisesbroughtalargeamountofsubstantiveearningsforvillagers，includingthemoneyneededtorentlandandpremises.”

　　HassanMohamedHaji，anofficerwiththeTanzanianpoliceforce，isconvincedthatit’sawin-winsituation.EnterpriseswithinvestmentsfromHongKong，TaiwanandforeigncountrieshaveenjoyedYantian’suniquegeographicaladvantages，preferentialpoliciesandlow-costlaborforce，andhavealsobroughtopportunitiesforthesmallvillage，includingabundantcapital，advancedtechnology，marketinginformation，andmanagementexpertise.

　　In1994，YantianVillagefeaturedonChina’sprominenteconomicvillagelist.Bytheendof2014，thetotalassetsofYantianVillagereachedRMB2.83billion，withanetassetofRMB2.34billion.In2014，thevillagecollectivenetincomewasRMB190million，amongwhichRMB72.36millionwasgiventoindividualsasdividend，andthepercapitadividendwasashighasRMB24，000.Accordingtoaninvestigationseveralyearsago，villagers’dividendtookup25percentoftheirtotalincome.Thus，thevillagers’netincomepercapitawasaboutRMB100，000；onefarmhousehold’sannualnetincomereachedRMB350，000.

　　InlandMigrants：

MoreOpportunitiesandBetterInsurance　　Withabundantforeignenterprisesandinlandcompanies，YantianVillage’sdemandforlaborhasincreased.Avillagewith3，000permanentresidentshasdevelopedintoabusinesscenterwithapopulationofnearly100，000.Apartfromaround1，500localvillagersengagedinthenon-farmingeconomy，60，000laborersfromaroundthenationhavefoundjobopportunitiesinthesmallvillage.ThemigrantsworkandliveinYantianandhavecontributedtoitsstatusasaprosperoustown.

　　Theexpandingpopulationhasincreasedthedemandformedicalandhealthcareservices.Adiversifiedwelfarestructurehashencebeenformed，inwhichthegovernment，theprivatesectors，andthevillagecollectiveparticipateinvariousmodes.Currently，thereisapublichospital，apubliccommunityhealthstation，alargeprivatehospital，and17privatemedicalinstitutes，jointlyprovidingmedicalservicestoallYantianresidents，localsandmigrantsalike.

　　Indeed，todayoneofthemostfamoushospitalsinYantianisthewell-equippedprivateSouthernMedicalUniversityGuangjiHospital，whichhastopmedicalapparatusandinstruments，andateamofdoctorsselectedfromrenownedhospitalsaroundChina.Anewhealthinsurancesystemespeciallyformigrantsguaranteesinexpensivemedicinesandthesamelevelofcareasforlocals.

　　IsaacBarimahAmponsahfromGhana’sMinistryofEnergyattributedthe“YantianMiracle”tothedecisiveroleoftheprivatesector，pointingoutthatinYantianVillageithasaddressedsomeofthedevelopmentalchallengesviaeconomicgrowth，jobopportunities，povertyreduction，publicservices，andcontributionstolocaltaxation.

　　“TheYantianMiracleisanoutstandingmeritnotonlyofvillageauthoritiesbutalsoofahardworkingmigrantlaborforce.PeoplefromnearbyareasandinlandprovinceshavefoundasecondhomeinYantianandareabletosupporttheirfamiliesathomebysendingmoneyback，”saidSardarbekMairykovfromKyrgyzstan，afinanceassistantoftheUnitedNationsWorldFoodProgram.

　　VannasyPhonehanheuang，anofficialfromtheMinistryofPlanningandInvestmentofLaos，agreedandofferedanindepthanalysisontheimpactofmigration.Itisgenerallyrecognizedthatalargenumberofpeoplemovingfromthecountrysidetothecity，fromeconomicallyunderdevelopedareastodevelopedareas，areinfluencedbysuchfactorsas“expectedearningopportunities，”“personaldevelopmentaspirations，”and“urbanlifestyle.”However，migrantsinYantianarequitedifferentsincetheyhavemovedfrombigcitiestotheruralvillage.Yantianoffersmigrantsmoreopportunitiesandbettersocialinsurance.　　ApeluIoasa，aprincipalauditorfromtheMinistryofEducationofSamoa，toldthereporterthattheideaofsettingupprivateschoolsorprivatehospitalsfollowingtheYantianmodelwouldbeasuitablestrategytoimprovetheeconomiesofdevelopingcountrieslikeSamoa.AsSamoa’smainsourceofincomeisfromagricultureandtourism，andthesesectorsarefacingbiggerchallenges，Samoamusttrytopromotetheservicesector.Samoaisvulnerabletonaturaldisastersliketsunamis，typhoonsandfloodswhichposesevereharmtoagricultureandtourism.Also，overseaseconomicshockscaneasilyaffectSamoa’seconomyintermsofreductioninremittancesfromSamoanswholiveoverseas.

　　VillageCollectiveDevelopmentwithChineseCharacteristics

　　AccordingtoOrtomDavidTerdoo，directorofOracleBusinessLimitedofNigeria，thereasonwhyforeigndirectinvestmentcanboostYantianVillage’sdevelopmentliesinitsstrongleadership，transparentinvestmentpolicy，convenientinfrastructuralfacilities，andtechnologicaldevelopmentandinnovation.

　　TheDengclanplaysadominantroleinthevillage’seconomicandpoliticallife.Theirsuccessiveandsuccessfulleadershiphasbecomethesustainablemomentumofthevillagecollectiveeconomydevelopmentandtheydominatealmosteveryaspectofundertakings.ThetopvillageleaderhasalwaysbeenaDengclanmember.Theclanheadsmostlocalenterprisesandhastakenchargeofthevillagers’committeeandthestockholdingcooperatives，thelatterofwhichactuallycontr