Denationalization of urban physical development: The experement in the Shenzhen Special Economic Zone, China

Abstract

In socialist China, where state ownership dominated, economic reform aimed at national modernization has called for the participation of varied non-state interests. Urban physical construction is not immune from this fundamental change, though it was traditionally a public domain in this country. Fast economic growth was increasingly handicapped by insufficient land development and inadequate infrastructure building. Non-state sectors were consequently recognized as indispensable forces in urban construction. However, the denationalization of urban physical development has been conducted with great caution as the inertia of the old system remains powerful. This paper will elaborate the experience of non-state participation in land and property development in the Shenzhen Special Economic Zone during the 1980s, aiming to reveal, via case studies, how non-state interests have gradually been penetrating this high-risk and high-reward business, despite many expected and unexpected difficulties. Finally, their contribution to facilitating economic growth and their impact on the capture of inward investment is elaborated. Copyright © 1996 Elsevier Science Ltd.