Implications of the development of Shenzhen municipality.

The attempt is made to examine closely the aims and objectives of the modernization effort in Shenzhen and to assess the political social economic and environmental implications of these recent developments to Shenzhen itself to China and to Hong Kong. The contribution of the Special Economic Zones to the overall development program of China can only be described as moderate considering the immensity of the country. For 1980 the total gain through foreign exchange at Shenzhen Special Economic Zone amounted to only about 53 million Hong Kong dollars of which about 8 million must be paid back to outside investors. On the other hand the Special Economic Zones profited directly from the injection of foreign investments importation of technology and the creation of employment opportunities. The primary objectives of opening up the Special Economic Zones are not for short-term gains or to bring about a quick changeover from backwardness to development. Instead they are to observe and to understand capitalism at work and to follow the trend of modern economic development in the capitalistic world to test different policies and to acquire modern technology and management methods. Possibly it is still too early to make any concrete evaluations concerning the failure and success of the Shenzhen Special Economic Zone. The attraction of the zone for foreign investments is very real. It is hoped that the development in Shenzhen will bring about not only economic growth but also social metamorphosis capable of developing latent human capabilities. As workers in Shenzhen generally receive higher wages than the average worker in China they will soon be a distinguished group of Chinese both economically and behaviorally. The success of the capitalist-socialist system of the Special Economic Zone will shatter the faith of many Chinese regarding the superiority of socialism.