Fruits of reform

The pomp and glitter accompanying the celebrations of the 20th anniversary of the country's largest special economic zone (SEZ) last Saturday have faded, but the debate on the merits of SEZs goes on.

China came up with an SEZ policy in 1980 in order to overcome old problems like bad infrastructure and bureaucratic bottlenecks. Hainan province, a tropical island at the country's southernmost, is one of the country's large industrial estates and a world-class enclave that is virtually free from the red tape. Such enclaves are typically big enough to have their own ports and airports, and provide world-class infrastructure that attracts world-class investment. Their success in manufacturing and exports has become legendary.

Until 20 years ago the island was considered one of the most destitute, impoverished regions of the country.