澳門 2020—未 來2 0 年遠景目標與發展策略2020Macau— THE LONG TERM OBJECTIVES AND DEVELOPMENT STRATEGIES IN 20 YEARS
澳門2020— 未來2 0年遠景目標與發展策略MACAU 2020— THE LONG TERM OBJECTIVES AND DEVELOPMENT STRATEGIES IN 20 YEARS作 者 :澳門發展策略研究中心、澳門經濟學會聯合課題組總 執 筆 :楊允中出 版 :澳門發展策略研究中心、澳門經濟學會英 文 翻 譯 :曾振邦 封 面 設 計 :吳衛堅 排 版 設 計 :堅藝策劃製作有限公司 印 刷 :新藝印務有限公司版 次 :二〇〇〇年十一月印 數 :2 0 0 0本定 價 :澳門幣8 0元I S B N : 9 9 9 3 7 - 4 1 - 0 1 - 9 P rin te d in M a c a o版權所有翻印必究
Chief Writer: ieong Wan ChongResearch Group Members (in alphabetical o r d e r ) :Canfeng Li Lao Pun LapChan Sau San, Benjamin Lei Hong KuongChan Siu Hung Lei Ngan LengChan Su W eng Liang Jun GangChan Wai Hang Lionel Vai Tac LeongChang Chak Io, Jack May LokChon Lai Seong Pang Siu InChui Sai Cheong Rosa WongEcho,Keng Hong Chan Sio Chi WaiHao Kuai Lam Sou Kit HongHo Chi Kong Tai lengHo In Mui U Kin ChoHo Kuai Leng U Man FongIeong Tou Hong Vong Sin ManKam Lok Nin Vong Veng HinKwan Yan Chi Wong Seng SonSponsors :Secretary for Economy and Finance, Macau Special Administrative Region of P.R.C. Secretary for Transportation and Public Works, Macau Special Administrative Region of P.R.C. Fundação para a Cooperação e o Desenvolvimento de Macau Fundação MacauPhotographs provided b y:Gabinete de Comunicação Social de Região Administrativa Especial de Macau
何厚鏵特首親自率團出席在福州舉行的 " 閩澳高層研討會 "C hief Executive M r Edmund Ho leads a delegation to participate in the Fujian - Macao High-Profiled Seminar held in Fuzhou讓外界及時瞭解澳門特區——何特首出訪新加坡C hief Executive M r Edmund Ho visits Singapore to promote the Special Administrative Region o f Macau
現代資訊產業將在澳門生根落戶Modern information industry will find its home in Macau一間有不低技術含量的光纖製造廠A hi-tech factory for production o f optical fibre
面臨配額制取消的貿易自由化趨勢,澳門的成衣製造業何去何從 ?A s the export quota will soon be cancelled, where docs Macau's textile industry go from here?隨着經濟全面復甦,南灣湖區勢將進入一個新的發展階段 。A s economy fully recovers, Lagos da Praia Grande will enter into a new development phase.
東西文化交匯有助於進一步發展觀光旅遊業A convergence o f the East and the West, Macau can further develop tourism.議事亭前地是遊客必到之地Largo do senado is a popular spot for tourists
2 0 0 0 年 5 月份舉行的 " 尤里卡計劃 (會合)亞 洲 ""Eureka (Meets) Asia " held in M ay 2000造 型別緻 的澳門觀音成為 新口岸新填海區的新景點A beautiful Chinese goddess statue has become a landmark o f NAPE
澳門國際機場有條件繼續拓展服務空間Macau's international airport has its space to expand水深不足的深水港是澳門發揮國際自由港功能的一大制約A shnllow port poses n constraint for Macau to perform its functions as tree trade port
澳門與新加坡兩地簽署航空合作協議書A viation agreement between Macau and Singapore is signed澳門與珠海兩地官員就加強雙方間的經貿合作進行討論Officials o f Macau and Zhuhai discuss how to strengthen the economic cooperation
推廣澳門——把友誼傳 出 去 ,把效益帶回來。Promote Macau — extend our friendship and enjoy economic returns澳門的明天令人鼓舞Tomorrow's Macau is promising
Illustrations...................................................................................................... IP re face ...........................................................................................................551. Foreword................................................................................................... 572. Assumptions.............................................................................................. 583. The Objectives......................................................................................... 604. The Externa丨 Environment....................................................................665. W here Does Macau Go from H ere ..................................................... 786. Development Strategies..........................................................................877. Factors to Ensure Future Rapid Growth ...........................................1028. Conclusion.................................................................................................. I l lSchematics............................................................................................... 113Appendix: Institutions and individuals consulted for this research report......124TABLE OF CONTENTS
PREFACEEdmund Ho, Chief Executive o f Macau Special Administrative RegionIt has been one year since M acau became officially reunited with the Motherland. During the year, the G o vernm en t o f M acau S pec ia l A d m in is tra tiv e R eg ion com m enced its adm inistration under Mr. Deng X iao Ping's principle o f "One Country, Two System s". It was also the year that saw the consolidation and recovery o f M acau's economy after suffering from a trem endous recession that the territory had never encountered before. In addition, this year has w itnessed the solidarity and assiduity o f M acau people. With the autonomy to exercise rights and m ake decisions, our residents have striven to m aster their destiny and geared up for development.To exem plify the success o f the innovative idea o f "One Country, Two System s" and accelerate the economic recovery, the Governm ent of Macau SAR has introduced a series of measures, which have received enthusiastic participation o f our residents. Although we have not yet been able to achieve any substantial accom plishm ents due to various constraints in the previous year, we are proud to say that the foundation laid by our concerted effort will definitely have a long lasting positive effect on the future rapid growth o f Macau.To expedite and coordinate our developm ents for the h ighest possible standard and grow th, we need to study seriously the com m on pattern o f the global econom y and the specific pattern o f M acau's economy, which has its unique social and historical backgrounds. With a good understanding of this and the use of our intelligent and scientific mind, we can identify a strategic direction that will best suit our unique strength and better position ourselves. This will also help us determ ine and m aster our future in an environm ent that is becom ing m ore com plex. E ncouragingly, all sectors o f our com m unity highly regard the study o fdevelopm ent pattern. We are also happy to see the em ergence of young entrepreneurs who
have both financial capab ility and business v ision , and the fo rm ation o f academ ic associations with strong research capability. Such developm ent can be evidenced by the publication of "Macau 2020 — The Long-term Objectives and Development Strategies in 20 Years", jointly compiled by the M acau Development Strategy Research Centre and the Macau Association of Economic Sciences. This report reflects a serious research undertaken by two non-governm ent organizations, after the hard work of num erous discussions and consultations in more than six m onths. In this report, you will find a lot o f insightful ideas, thoughts and viewpoints. This research report will not only provide a useful reference for the Macau SAR G overnm ent to form ulate new policies, but will also re-establish our confidence in M acau's bright future. Hence I would like to express my sincere gratitude towards the innovation and genuine effort o f the two organizations. It is also my hearty congratulations to the successful publication of this research report at such a critical time.M acau is our hometown, where we have developed and grown for many generations. A fter the reunion w ith the M otherland, we w ill continue to expedite, coordinate and enhance our system s to ensure the success o f our developm ent. We love today's Macau and have tremendous confidence in our tomorrow. Facing the rare opportunity created by history, with the support of the M otherland, with our hard work and intelligence, we shall be able to develop a new, stable and prosperous Macau that truly belongs to the Motherland and the people of Macau.On the E ve o f the First Anniversary o f M acau’s R eunion with the MotherlandD ecem ber 2000
1. FOREW ORD"A better tomorrow for Macau" is a familiar slogan to many local residents and the people who care about Macau. This is a very positive and correct message, yet its subject is interchangeable. It can apply to Macau after its reunion with the Motherland, and it can also apply to the entire nation including Taiwan as well as the whole world. Not only Macau, but all people and nations in the world shall have a better tom orrow . H ow ever, how can we realize this "better tomorrow"? Who should and how to strive for this? Clearly, the answer is the people of Macau. We need to strive for this goal with our perseverance and determination, not only with our hard work but also with our intelligence and wisdom.There is a Chinese saying that "Those who do not plan for the future will find trouble at their doorstep." As Macau is still struggling with its current econom ic recessio n , each com m unity m em ber should se rio u sly and systematically review the current situation and envision the future development. This will be critical to the administration of the Macau SAR Government and for the benefits of all the residents living here.How would the Special Administrative Region of Macau become in 20 years, after the first four terms of Chief Executives who may have different initiatives to develop the territory under the principle of "One Country,Two Systems"? Do Macau residents have a clear objective to pursue? What is the confidence level o f M acau people put in the SAR G overnm ent for its implementation of policies under the spirit o f "One Country,Two Systems"? How do our fellow citizens in the M ainland view the future development ofMacau? And what is the international view on the new Macau SAR Government?
All these actually point to a realistic and challenging issue - we can't arbitrarily draw a future plan, but must have a clear objective and mission. We should think in a scientific and rational manner,explore the future based on facts and strive persistently for decision making and control. We have every reason to create a bright future for Macau, with ourselves as the masters of our own under the spirit of "Macau to be governed by Macau people". There is no reason for us to ignorantly follow the trend set by other people. We have constraints for development, but there is plenty of room for expansion,with no concern of "absolutely fully developed". There is a Chinese saying that "A journey of thousand miles starts with the point where your feet presently stand". After setting our objectives, we should seriously explore, develop and strive towards them. We should highly com m it ourselves and perform our tasks carefully and efficiently.Based on the above understanding and after all the hard work of research, review, consultation and exchange of ideas, we have compiled this report. We hope it will invite further discussion by the talents of the community. With the combination of intelligent ideas, we can mutually formulate a strategy for Macau's future development and create a prosperous society that we, our sons and the future generations can happily enjoy and feel proud of.2. ASSUMPTIONS2.1 No uncontrollable natural disasters occur in Macau or the surrounding areas and there is no global economic recession in the next 20 years.
2 . 2 Taiwan can reunite with the Mainland and end the opponent status in the last five decades, which shall be a win-win situation for both. During the final peaceful reunification process,any external interference shall be suppressed and any irrational thinking of the leaders of both Taiwan and the Mainland shall be relinquished.2.3 The principle of ,’One Country,Two Systems’, and the Basic Law of the Macau Special Administrative Region can be implemented effectively.2.4 The financial and economic policies can be implemented smoothly with coherence by the Chief Executive and the Macau SAR Government from the first to the fourth term.2.5 A mutual understanding on the direction and strategy for Macau’s development can be reached among most Macau people,including the permanent and non-permanent, Chinese and non-Chinese,old and new residents; rich bosses and ordinary workers; the educated and uneducated; and members of existing interest groups and non-interest groups. This mutual understanding can drive the community forward.2.6 The community shall be truly governed by laws. There shall be no blind spots,dark areas or any obviously non-regulatory aspects in the policies of Macau Government that are not acceptable in a modern civilized society. All non-government organizations, business operators and community members should willingly adapt to the rules of an open
and fair competition and strive on their own to become leaders.2.7 A fair,open,clean and democratic principle to ensure the full utilization of all productive factors in a free market system,particularly those in the new economy such as information and intelligence,and that it can become a basic principle in all the transactions conducted in Macau.2.8 If the above assumptions cannot be entirely fulfilled, Macau's development will become uncertain. We hope that we are only overconcerned.3. THE OBJECTIVES3.1 The Main ObjectiveTo establish Macau as a medium-sized international city under the principle of "One Country, Two Systems" that is fully open in China as well as the Asia Pacific Region through the hard effort of 20 years.3.2 The Following Major Milestones should be Achieved by 20203.2.1 M ajor economic and developm ent indices approximate or equal to the average of developed cities or countries in the world. The overall GDP and the GDP per capita should increase by more than 1.5 to 2 times and 3 to 3.5 times at constant prices and current prices of 2000 respectively. This represents an annual real growth rate of 6%, based on an assumption that the total population of
Macau will only rise moderately (the maximum can be limited to 600,000 in 20 years). This also indicates a social structure with the middle income class as the core group in Macau. The income difference among the community members can be reduced, with the Gini coefficient maintained at 0.3 to 0.4.3.2.2 A positive leading role in the cooperation with Guangdong Province and Hong Kong.3.2.3 A leading city with an extensive international network that is highly regarded by the Asia Pacific Region and the world.3.2.4 A unique and com petitive system for tourism , in tegrated services, communication, off-shore finance, higher education and culture. Also, high competence and advanced development in new and value-added products for the manufacturing sector.3.2.5 An appropriate fiscal reserve, a better social welfare system, a higher capability to handle natural disasters and crisis management, and a higher competence for self development.3.2.6 A democratic political system based on a stable foundation. To become more involved in public administration, the middle-income professionals can properly perform their expected functions in terms of quality and quantity.3.3 The Practical Definition of a Prestigious International City3.3.1 A driving force in the national and regional development, with a high level of standard in the rationality of industrial structure, production efficiency, creativity and management that can match the international or regional standard.3.3.2 A rapidly growing territory that has the advanced infrastructure and fast communication to perform the functions of a global or regional centre.
3.3.3 A cultural exchange centre and international trading centre, with an extensive international network, a highly recognized image and a high-volume traffic of people, goods and communication.3.3.4 A well developed economic mechanism that is able to have sustainable development and maintain a high growth rate while keeping a low inflation and unemployment rate.3.3.5 A balanced development for the community, with fair competition, freedom of press, low crime rate, fair judicial system, and a comfortable and harmonious environment for the living and development of different groups of people.3.3.6 Distinctive and unique strength in certain areas of the economy,which can be developed into a highly competitive edge in the international market.3.4 Definitions of a Medium Sized City3.4.1 A population of 500,000 to 1,000,000. With the land area expanded by less than 100%, Macau's maximum population can grow to 600,000 in 20 years.3.4.2 An appropriate size of area. Based on a realistic assumption, Macau canexpand its area to about 35 to 40 square kilometres.3.4.3 The economic impact and potential surpass those of the nearby cities withsimilar size of land and population.3.4.4 A complementary role and transit centre for major international cities in the region.3.4.5 "Medium size" refers to the possession of basic resources, and does notrepresent a moderate development. As a prestigious world-class international city, its social and economic developm ent shall reach the high standard ofdeveloped countries.
3.5 Concepts and Results3.5.1 Based on the experience in China or other countries, there is a solid proof that we should from time to time adjust and revise our concepts and directions to achieve a better result.3.5.2 It is an optimization process of continuous learning as well as a scientific process of decision making to revise the development concepts, which should be a focal point of the Macau SAR Government as well as the entire community.3.5.3 "P ositive" and "neg a tiv e" , "open-m inded" and "narrow -m inded", "innovative" and "old fashioned" are pairs of opposite words that are not only different in meaning but also contrasting in principle. People often talk about "positive, open-minded and innovative", but may not actually or whole-heartedly be so. On the other hand, no one will admit that he is negative, narrow-minded, or old fashioned, but in fact he is. Hence there will be a mix of people who are superficially positive, open-minded and innovative with people who are actually negative, narrow-minded and old fashioned. They will co-exist in an organization, corporation or institution.3.5.4 A successful development is very often a result of a combination of various related factors. However, under the same conditions or constraints, some people may succeed while some may fail. This is true not only at the peak but also at the bottom of an economic cycle. Hence we should focus on improving the internal and subjective factors.3.5.5 For Macau’s future development, we may consider the following four types of strategies: (1) stable, (2) transforming, (3) expanding, and (4) innovative. From a conservative point of view, the order of preference should be (1)>(2) > (3) >(4). However, when considering effective returns, the order should be (1)
<(2) <(3) <(4). Actually, we cannot say that a stable strategy is totally wrong, asan innovative strategy may not be entirely correct. It depends on the timing of implementation. A stable strategy may be necessary at a certain period, while innovative strategy may be critical for certain issues. Hence the crux lies in the flexible implementation of various strategies. In summary, we believe that Macau should prim arily adopt an expanding and innovative strategy, with the complement of a stable and transforming strategy. In the beginning, Macau should execute a stable and transforming strategy, but in the long run, it should better adopt an expanding and innovative strategy.3.6 The Possible Economic Development during the Four Terms of Macau SAR Government3.6.1 The first term of the Macau SAR Government (2000-2005)The former Macau Government, under the ruling of Portugal, has governed this territory for a long period of tim e and left many unresolved issues. Unfortunately, when the Macau SAR Government commenced its administration, our econom y suffered a dow nw ard trend. H ence the first term of SAR Government has to make a tremendous effort in the first and second years to resolve the outstanding issues and build up a new foundation. This will help our economy turn around and grow rapidly in the latter three years (an annual real growth rate of approximately 5% to 8%). In summary, the objective for the first term of SAR Government is to initially build up a fiscal reserve and establish an appropriate strategy and foundation for Macau's long-term development.3.6.2 The second term of the Macau SAR Government (2005-2010)It is expected that the global economy will continue to grow steadily in the
first decade of the 21st century. As Macau has established a more stable foundation for its development, its economy will grow at a much faster pace in these five years. Also,there should be a substantial breakthrough in the reform of public adm inistration. However, as the export quota for textiles will be cancelled in this period, the manufacturing sector should properly prepare and adjust itself for that. If this is not handled properly, the Macau SAR Government will have to deal with another economic challenge.3.6.3 The third term of the Macau SAR Government (2010-2015)It is possible that the global economy may experience a periodic adjustment in these five years. However, by that time, the Pearl River Delta Region should become m odernized and Hong Kong should be a prestigious international metropolitan city in the region. This will be beneficial to Macau's development. Also, by that tim e,Macau should have established a new foundation for its economy, with a smooth government administration. Hence, Macau's economy should be able to maintain a fast and quality development in these five years. The gap with the developed countries will be further reduced. However, the Macau SAR Government and the community should always keep in mind the importance of crisis management, alertness, autonomy, and innovation.3.6.4 The fourth term of the Macau SAR Government (2015-2020)After tremendous effort to revise the original objectives of development, this term of the Macau SAR Government should be in a better position to further expand the economy. Given a better foundation, the Government should be able to enhance the social structure and steer the economic development in a correct track for a higher return. Macau's social and economic development should have a trem endous im provem ent, w hich will enable the territory to becom e aprestigious city in the region. However, we should not rule out the possibility
that the above objectives cannot be achieved and Macau will further lag behind Hong Kong and other nearby cities.4. THE EXTERNAL ENVIRONMENT4.1 The Global Economy in 2020In the first two decades of the 21st century, as driven by globalization, unification, internet networking and information technology, the global economy is likely to have a stable and rapid growth that has never seen in history. It is expected that the Asia Pacific Region, European Union and North A m erica will achieve outstanding performance. The global economic structure will undergo a fundamental change. With the new economy that based on information and knowledge as the core structure, the global economy will have a major change in the format as well as the driving force. The weightings of different regions in the global economy will also have a significant adjustment. New technologies and inventions, especially in the areas of high technology and its applications, will have a profound and significant impact on the living of human beings and the development of the whole world.As analyzed by the American academics, there are four major features of the "new economy": (1) The revolution of information technology originated in the US since 1980's has led the transformation of industrial structure and the growth of hi- tech oriented industries. The production efficiency has been significantly improved, and the improvement has provided a foundation for the continuous growth of nine years. (2) Knowledge plays a significant role in the new economy. Intellectual properties have become the driving force to sustain the economic growth. Presently in the US, about 60% of the labour force are knowledgeable workers and 80% new jobs are created
by knowledge intensive departments. (3) The new economy is in a form of global economy, as inform ation technology, particularly the internet, has significantly eliminated the geographical boundaries of the world. There is an increased mobility in the w orld 's capital, production capacity,managem ent, products, labour force, information and technologies. There are more cooperation in business trading and technical connection among corporations and nations. At the same time, competition has also become more intensified. (4) The new economy has smoothed out the economic cycle in four aspects. First, there is a longer period of expansion. Secondly, the recession period is shortened and the decrease in production is reduced as well. Thirdly, both the inflation and unemployment rate maintain at a low level during the expansion period. Fourthly, corporate investment significantly increases, as the economy expands.1 In summary, the old economy is relied on the availability of resources and the expansion of inputs, tangible products and assets. This has shifted to a new economy that relies on knowledge and information, the expansion of production and the increased transfer of intangible assets.There is a prevailing trend of e-Commerce (which may also be termed as e- Business or e-Trade) that operates on a new business model based on the utilization of internet, the interaction of two parties in the transactions, electronic payment gateway and customer data. In May 1998,132 member countries of the World Trade Organization signed the "Declaration of e-Com m erceM, which has signified the beginning of the new e-Commerce era. It is expected that by 2005,e-Commerce will expand its current share of total trading in developed countries from 20% to 70%. To many people in various countries and areas, the year 2020 will see a broad horizon of diversity,speed and selections.1. Li Jingwen, Overview of China's Economy in 2000, Beijing: Tuanjie Press, November 1999, p. 4.
Driven by know ledge, globalization, internet netw orking and inform ationtechnology, and in an environment of intense com petition,high returns, advanced technology and new concepts, the global economy in 2020 is expected to have a real growth of 1.5 to 2 times over that in 2000. As estimated by the World Bank, the share of China, Russia and other countries (excluding Japan, the European Union and the US) in the world economy will increase from 29.20% in 1998 to 42.30% in 2010 (Exhibit 5). It is expected that this figure will further rise by 2020.4.2 Asia Pacific and the Far East in Twenty YearsThe 18 member countries of the Asia-Pacific Economic Cooperation (APEC) have a total population of 2.2 billion, which is approximately half of that of the whole world. In mid 1990's, APEC has an aggregate GDP of US$12,000 billion and the inter regional trade made up 40% of the whole world. Led by the "four little dragons" (South Korea, Taiwan, Hong Kong and Singapore), the Far East's economy has undergone a significant change. With the implementation of open-door policy, China has also achieved an amazingly outstanding performance for its socialist market economy. As indicated by the "Declaration of Wealth" of APEC in 1994,the policies of free trade and free investment will be fully implemented among the countries in the Asia Pacific Region. Twenty years from now, the world's largest free trade zone will be established in the region. The combination of both economies of China and the Asia Pacific Region will undoubtedly take a major position in the global economy. As free trade is introduced, the region will become a leading economy in the world, both in terms of growth rate and development quality.The development in the Asia Pacific Region, primarily represented by the countries in the west Pacific Ocean, has been amazing. In a report released by the World Bank
about 10 years ago, it says, "Since the 1960's, the growth rate experienced by Asiancountries has been two times over all other countries, three times over Latin America, and five times over Africa's Sahara. It has also surpassed the industrial countries, North Africa and the petroleum-rich Middle East. During the period between 1960 and 1985, the real income per capita of Japan and the 'four little dragons' in Asia has increased more than four times,while the new industrial countries in the South East Asia have also gone up more than two times."2 The regional financial turmoil that occurred three years ago has made some Asian countries redefine their development strategies with a focus on quality and economic return. In twenty years, this region, including China, will no doubt become one of the largest and most active economic centre in the world.4.3 China's Economy in 2020"China has only spent the time of one generation and achieved a result that took many countries to accomplish for many centuries. As a country that has a population more than the aggregate of that in Africa and Latin America, China has achieved the most amazing development in our age."3China is now in the process of transforming from a traditional agricultural society to a modernized industrial society, and from a planned economy to a socialist market economy. "The transformation will create some strong whirlpool and turbulence, which may become an unpredictable factor that may affect the stability of the society."42. World Bank Report, The East Asian Miracle: Economic Growth and Public Policy, Oxford University Press and the World Bank, 1993, p. 2.3. The World Bank, China in 2020 - The Challenge of Development in the New Century; quoted from YangShujin, China: Reform, Development and Stability, China Development Press, January 2000, Preface, p. 1-2.4. The World Bank, China in 2020 - The Challenge of Development in the New Century; quoted from YangShujin, China: Reform, Development and Stability, China Development Press, January 2000, Preface, p. 1-2.
However, we have good reasons to believe that China will implement its future four five-year plans in a realistic and aggressive manner. When the second 10 years since the open-door policy completes,China's economy is expected to grow to a significant high level. The cities and provinces along the eastern coast will be the first areas that enjoy the status of moderately developed economies. Based on the studies conducted by the Development Research Centre of the State Council, China's economy will have an average annual growth rate of about 7.3% from 2000 to 2020. The GDP in 2020,at constant prices, will be more than two times over that in 2000. By then, China's GDP per capita will reach US$5,000, which is approximately the world’s average in 1997. In terms of total dollar amount, China's GDP will be ranked the third in the world, following the US and the European Union but ahead of Japan. By purchasing power parity (PPP), China's GDP will be approximate to that of the US at that time.5 By 2020, China's export over the world's total will jum p from 2.8% to 8.6%, representing a growth of more than two times. Foreign trade will make up 30% of China's GDP, which is very similar to that o f the developed countries. In the tenth five-year plan, Chairman Jiang Zemin said,"Our objective for the next century is that the GDP in the first ten years can increase 100% over that in 2000. Our people can enjoy a comfortable life in a better socialist market economy. Then after the hard effort of another ten years, when we celebrate the 100th anniversary of the founding of our party, China's economy can further develop and our systems can be even better...."Based on a relatively conservative estimate made by the Chinese Academy of Sciences, China's GDP per capita will reach US$2,125 (at constant prices of 1990) by 2020,with an annual growth rate between 4.9% and 7.2%. To maintain a sustainable growth, China should implement the strategies of "birth control, resources saving,5. Li Shantung et al, "The Prospect of China's Economic Growth," Macao Daily News, 26 April 2000, p. A4.
environmental protection, stability, and scientific decision making".6 In another report,"The Sustainable Economic Growth and Policy Reform in China", it says, "China's economy will maintain a real annual growth rate of over 6%. By 2020,China's GDP per capita will equal to that of middle-income countries, which will signify the end of poverty for China."7 In a report released by the Economic Research Centre of the State Planning Commission of China, it estimates that "China's GDP should be able to achieve a moderate growth rate of over 7% in the next 15 years, in view of the supply and demand condition and the contribution of technology advancement."8E-Commerce is now expanding at a fast pace in China. The latest survey in the beginning of 2000 has indicated that there are currently about 40,000 commercial web sites operating throughout the nation. The sales and transaction amount on the internet is expected to reach US$40 million this year and will grow to US$3.8 billion in three years, which will make China the second largest web market in the world. By September 2000,China’s telephone users will reach an aggregate of 200 million, of which 135 million are fixed telephone line subscribers and 65 million are mobile phone users. China's telephone network in terms of size and scale is ranked number two in the world. It is expected that mobile phone users will exceed 100 million by 2003,of which 30% will be internet users. By 2010,the total number of mobile phone users will grow to 200 million, of which 40% to 50% will be internet users. In the first quarter of 2000, China's internet population has reached 10 million, which is expected to become the second largest in the world in five years,following close behind the US. By 2020,the number of web sites and internet users in China will be in a leading position of the world.6. The Chinese Academy of Sciences, The Report on Sustainable Development Strategy for China in 2000, p. 8.7. Macao Daily News, 1 June 2000, p. A4.8. Wenhui Pao, Hong Kong, 10 June 2000, p. Al.
In the 15th Plenary Session of the Fifth Central Committee of the Chinese Communist Party, it stated, "The three missions to accomplish in the new century are: continuation of the modernization; reunification of China; and maintenance of the world's peace and mutual development." Recently, it further indicated that "the focus is on development, the key is in the economy, the momentum lies in the reform and technology advancement, and the principal consideration is on the improvement of living quality for our people."9 China has continuously intensified its reform and enhanced its unique socialist market economy. In 2000, China will officially join the World Trade Organization and commence extensive development for its western areas. By 2020,China is likely to become an emerging nation of super power and establish a solid foundation to become a modem socialist country in mid-21st century. Furthermore, under the principle of "One Country, Two Systems", if Taiwan and Mainland China can work out a new concept and model to realize a peaceful reunion,then the Greater China Region, consisting of the Mainland, Taiwan, Hong Kong and Macau, will be one of the most influential economic entities in the world.4.4 The Emergence of the Greater Delta Region of Pearl River4.4.1 The Greater Pearl River Delta RegionThe Greater Pearl River Delta Region covers an area of 42,700 square kilometres that includes Hong Kong, Macau and Guangzhou, of which the Delta Region encom passes 41,600 square kilom etres, Hong Kong 1,084 square kilometres, and Macau 23.6 square kilometres. The total population of this region is 27.6 million, of which the Delta Region has 20.56 million, Hong Kong 6.6 million and Macau 0.43 million. This economic entity may well be called the9. Macao Daily News, 12 October 2000, p. A4.
Great Triangle of Guangdong, Hong Kong and Macau. In the past, the three areas commonly shared resources, worked closely with intensive communication, and cooperated on a fair and mutually beneficial basis. Since China's reform in the previous twenty years, the three areas have developed a much closer economic cooperation . Follow ing the reunion o f Hong Kong and M acau with the Motherland, the three areas are now in a position to expand their cooperation on a mutually beneficial and complementary basis, which is expected to generate a better economic return. In view of the above, the Great Pearl River Delta Region has a promising future and will become a major growing area in the Asia Pacific Region and the Far East.4.4.2 The Pearl River Delta RegionThis covers the area in the lower stream of the Pearl River, which consists of 40 counties (including cities and regions at the county level) and nine cities in the Guangdong Province, such as Guangzhou, Shenzhen, Zhuhai, Dongguan, Zhongshan, Foshan, Jiangmen, Huizhou (including Huicheng, Huiyang, Huidong and Boluo), and Zhaoqing (including Duanzhou, Dinghu, Xihui and Guoyao). With the highest foreign investment in China, this delta region has the largest labour force of workers who come from various inland cities and provinces. As the industrial structure is rapidly improving, the region has a sophisticated transport and communication system. Its service industry and technical industry have already attained a relatively high level of standard. The difference between city and rural area has been significantly reduced and the region is moving upward to the status of a major city. This territory and the Delta Region of Yangtze River have become two driving forces for China's economy. Based on the current planning, some of the cities with a better foundation in the Pearl River DeltaRegion will be able to realize the goal of modernization between 2005 and 2010.
By 2020,led by the development in the region, the Guangdong Province is likely to reach the level o f a moderately developed country. It will implement the strategies o f "outward bound", "advanced technology" and "sustainable development" to transform the economic system and development model for its m ajor city, G uangzhou. As a result, Guangzhou will becom e a centre of m anufacturing , transpo rta tion , business and finance, new technology, communication, education, culture and tourism. As a modem city, Guangzhou will be a leading model of integrated services and innovative ideas. It will become one of the first moderately developed cities in China in the first decade of the 21st century.4.4.3 Zhuhai, physically connected by land and closely linked by economic cooperation with M acau, has built up a realistic foundation. It will further intensify reform , enhance the jud ic ia l system , and insist on sustainable development and new technology. It has established five development zones, including the New Industrial Zone, Zhuhai Free Trade Zone, Coastal Industrial Zone, Hengqin Economic Zone and Outward Ocean Zone. By 2007, it is expected that Zhuhai can realize the primary objectives of socialist modernization. Its future direction is to become a leading high-tech, information technology oriented industrial base, a prestigious research and development centre, a high value- added manufacturing base that can generate foreign currency, and a modernized regional city.1010. Zhuhai SAR Daily, 2 November 2000, p. Al.
4.5 The Positioning of Hong Kong Special Administrative Region4.5.1 Hong Kong has a Bright Future"The long-term objective of Hong Kong is not only to maintain its status as one of the major cities in China but also a leading metropolitan city in Asia." The dual goals are complementary to each other. "If Hong Kong becomes a truly international metropolitan city, it will contribute significantly to China's development. On the other hand,as a major city of China, Hong Kong enjoy special privileges that will consolidate its status as an international metropolitan city.’,11 The success of Hong Kong's dual functions is determ ined by the following seven major factors.4.5.1.1 A Truly Global Financial and Business CentreThe regulatory mechanism, technical infrastructure and facilities for the finance and commercial sectors should be maintained at a world-class standard. New financial products and services should be introduced from time to time. Related policies should be updated to keep in pace with the development of Hong Kong as a leading financial centre in the region. Innovation and efficiency should be maintained at all times.4.5.1.2 More Multi-national Corporations to Set up Regional Headquarters Hong Kong should adopt the best international practice and implementclearly defined strategies to attract foreign investors. It should enhance promotions to the M ainland's major corporations, particularly those hi-tech companies, and invite them to set up international headquarters in Hong Kong.11. Hong Kong Strategy Development Committee, Jointly Create a Bright Future with Mutual Vision, p.V-VI.
At the same time, however, Hong Kong should beware of the trend that many emerging enterprises, particularly those in the information service sector, are making use of computer technologies to operate their business and may not require the physical setup of regional headquarters.4.5.1.3 Tourism Significantly Contribute to the Overall EconomyNew scenic spots of Disney Theme Park and Wet Land Natural Park will be successively established. Business tours and Mainland visitors have been on the rise. As the first travelling stop to China and other Asian locations, Hong Kong will have a rapid growth in tourism, which will continue to significantly contribute to the overall economy of the territory.4.5.1.4 An Advanced Information Service CentreHong Kong should enhance the development o f electronic publishing, electronic education, multi media, news reporting, business telecommunication and computer software. It should continuously encourage the commercial sector to undertake major investment projects. The territory should further enable the development of the information service sector and open up competition for the telecom m unication industry. It should continuously provide a high quality telecommunication service at a competitive price, encourage major media and communication operators to expand their services in Hong Kong and develop the territory into a telecommunication centre that can provide diversified and value-added services.4.5.1.5 An Innovative and Advanced Technology Centre for Southern ChinaTo develop a knowledge-based economy, it is important for Hong Kong not only to provide the necessary infrastructure and facilities but also cultivate an innovative technology culture. Hong Kong should establish an encouraging business environment to assist companies that develop and apply innovative
ideas and technologies. Hong Kong should strengthen the cooperation with the Mainland. With the focus on the development of information technology, Hong Kong should also study the expansion in other sectors, which should include the application of new technologies to traditional industries.4.5.1.6 Maintain the Position as an International Business and Transport Centre and Become a Regional Logistics CentreHong Kong has long been a major international trade centre. It should continue to expand business trade, explore opportunities in the Mainland and other emerging markets, and actively develop related services such as logistics, law and accounting. Due to the rise of global trade and the development of the Pearl River Delta R eg ion,Hong Kong's position as an international transport centre will be further enhanced. To establish as an international aviation centre, Hong Kong should continuously seek partners to develop new traffic routes. With a busy container term inal, Hong Kong's container industry should concentrate on provision of value-added services. As an international transport centre,Hong Kong should improve and promote the services of Hong Kong Shipping Registry, develop shipping insurance market, and enhance cooperation with the shipping industry of the M ainland. In view of the future trend of electronic trading, Hong Kong should expedite the establishment of necessary infrastructure, develop related technologies and set up proper rules and regulations.4.5.1.7 Creative and Cultural Activities to Enhance Living QualityHong Kong's music, movie, television, and other design and entertainment productions have attained a very high standard. However, it should further promote local culture, encourage creative arts, and cultivate the youth's creativity.It should allocate resources to encourage more high quality creative and cultural
activities. It should also seriously enforce the laws to protect the intellectual properties.4.5.2 A Close Relationship between the Special Administrative Regions of Hong Kong and MacauThe idea of "One Country, Two Systems’丨 is invented by China, with no precedent in the world. Although Hong Kong and Macau are different in size and scale, development status and legal system, they are both examples of the "One Country, Two Systems" policy. The original social and economic systems of both cities shall remain unchanged for 50 years. Both free ports, the two cities are close to each other and have a broad base of cooperation. Hence,with reasonable exchange of productivity,Hong Kong and Macau can complement each other and may both gain tremendous mutual benefits.5. WHERE DOES MACAU GO FROM HERE5.1 Macau is a territory that has a combination of weak and strong economic features. It has achieved a rather high economic growth, yet it has a number of variables in its development.As a mini economy that has its unique industrial structure, Macau faces a challenge of economic liberalization, internationalized economic development, regional economic cooperation, intensive knowledge industry, servicing industry, tourism and casino business, upgrading manufacturing industry, diversified financial products, economic information, and competition for talented people. Hence, we need to properly positionourselves and scientifically design the future direction for Macau.
5 . 2 Major Contributors of Macau’s Future Economic Development5.2.1 Tourist and Casino CentreBy the authority prescribed by the Basic Law and the premise to safeguard the overall interest of the community, Macau shall formulate its policy for tourism and lottery business. By steadily, rationally and systematically open up the casino sector, we can introduce a competition mechanism and bring in new momentum of modernization and information technology for this old casino business. As the only city in China that is permitted to operate casinos, Macau will gradually become the major gambling centre that utilizes modem technology in the Asia Pacific Region. Being an integrated tourist centre, Macau will provide quality services at a reasonable price for different tourists who come for scenery spots, conference or leisure. As a result,the tourist business will attain a prestigious image and expand to a larger scale that make it truly becomes the core industry of Macau's economy.5.2.2 Diversified Intermediary Service CentreThe Macau SAR Government should strive in the next 20 years to establish the territory as an information, capital and logistics centre. Its diversified and integrated interm ediary services will be a com petitive edge. The existing industries of finance, insurance,law, accounting, consultation and education should be expanded to an international standard. Other industries such as e- Com m erce, publishing, advertising , im age design and packaging can be developed to provide quality services for surrounding areas. The real estate industry is expected to recover from recession and become thriving again.5.2.3 Product Development Shall Play a PartAfter a period of transformation and adjustment, Macau's manufacturing
industries that have unique local features can be re-established. There may bethree directions of development: First, to develop new appropriate products by M acau's own effort; second,to cooperate w ith the M ainland cities for development and conversion; and third, to bring in strategic partners from the European Union for joint development. Product development should be focused on those of small volume and high value-added such as cosmetics, fashion clothes, Chinese medicine, green food, upper-market toys, selected gift items, fashionable traveller's items and information related products. With correct direction and careful implementation, Macau can apply the results of research and development to production and modify the operation model of over 98% small and medium sized corporations. This will not be an easy task, but it's worth to pursue.5.2.4 Information Technology Is PromisingHeading into the 21st century, the world's economy is in a process of transformation. Every country is actively developing new industries that can best reflect the local conditions and features. The mutual concern among different countries is how to establish new growth points, how to expand a solid base for economic development and what is a sustainable development strategy. Macau SAR's Government, entrepreneurs and intellectuals should adjust their ideas and concepts rapidly, conduct discussions timely, and well prepare themselves. Based on the development of new industries in the surrounding areas and the potential advantages of local industries, we can courageously face the challenges in the new age. We should actively cultivate new industries for the local territory, particularly the information industry. We are excelled in business environment, geographical location, systems and finance. Our biggest constraint will be the pool of talented people in the field of information technology. However, if we can formulate an appropriate policy, this constraint will be relieved. Nevertheless,
we can still proceed in this direction with the understanding of our constraint. We should actively pursue this objective by adjusting ourselves to the common development pattern of the world and building up this new industry in a practical manner. After a period of time, we should be able to establish a foundation to develop new technologies and applications,and transform and transfer the results of research and development into production. It is possible for us to develop an entirely new horizon of economy.5.3 Advantages and OpportunitiesIn view of its strengths, Macau's economy has a number of advantages and opportunities.5.3.1 Our society is highly stable, with a smooth transition of sovereignty. Our citizens highly recognize the return of sovereignty to the Motherland and have a strong sense of belonging, which is an important asset for our development.5.3.2 The principle of "One Country, Two Systems" and the protection of the Basic Law shall continue to be effective. The Special Administrative Region of Macau is highly recognized and supported by the Central Government of China.5.3.3 Macau has already achieved a rather outstanding development status. Since 1995,Macau has been included by international organizations in the list of high income countries and areas that ranked the top group in terms of the world's mini economy.5.3.4 Macau's capability of adapting to the changes of the international market and its innovative ability should not be underestimated. Our younger generation of entrepreneurs are courageous in developing new business, and our citizens and young civil servants are hardworking and industrious who will strive forbetter results.
5.3.5 We have quite a long history in absorbing different religions, languages and people in a harmonious manner. We have a high degree of absorption and can learn the strengths of other people to improve ourselves.5.3.6 We have an extensive overseas connection. There are thousands of overseas Chinese who have a strong relationship with M acau, which is an excellent network that will be continuously beneficial to us. There are also many macaense: Portuguese born locally and spread around the world. They will be a useful resource to Macau.5.3.7 Macau's status as an international free port and its low taxation system are still a valuable asset that can be further utilized.5.3.8 We can continue to contribute in bridging and soothing the relationship between the Mainland and Taiwan. This is an important function that will provide significant opportunities to Macau, not only for the time being but also a long period of time in future.5.3.9 Macau is situated at an excellent geographical region that is rapidly growing in terms of the world's economy. It can learn from the experiences of the four "little dragons" (South Korea, Taiwan, Hong Kong and Singapore) and the countries in the South East Asia. It can also rely on the full support of China with rich resources across the border.5.3.10 The historical connection with the European Union is an advantage to Macau. After the reunion with the Motherland, Macau can continue to play an active and important role to promote the relationship and cooperation between China and the European Union.5.3.11 In the long run, there is a tremendous potential to develop relationship with Portuguese speaking countries. In the 21st century, Brazil will likely become aleader in the economy of Latin America. Mozambique and Angola in Africa will
also rise to a more important position. We should cherish the development with these countries.5.4 Overcome the Constraints by Fully Utilizing Our StrengthsIn view of its weaknesses, Macau's economy has various difficulties and constraints that should not be overlooked.5.4.1Macau has been suffering from economic slowdown for seven years since 1993 and negative growth for four years since 1996. The continuous negative growth has thrown a shadow over the confidence in our economy and will have an adverse psychological effect on investors and consumers.5.4.2Due to limited land area, small population and insufficient resources, which is difficult to improve fundamentally, Macau can hardly take the advantage of the economies of scale.5.4.3Due to the lack of a large deep water port, Macau is not able to develop modem ocean cargo business, which is a handicap to its performance as a free port.5.4.4The modem integrated transport network has not been completed. It hinders Macau's development into a modem logistics and distribution centre.5.4.5The overall education level of Macau people remains at a low level. The Government's Employment Survey of the First Quarter of 1999 indicated that 74.8% of the total 200,000 workers have an education below junior secondary level. This will become a major constraint to our economic growth in the age of new economy of information industry.5.4.6Traditional operation model has its pros and cons, and is not mutually exclusive of the modem model. Hence it is appropriate to preserve and promote
the traditions while accelerating the modernized process. It is not fair for some people to view tradition as an equivalent of conservation, since not every traditional organization is conservative while some non-traditional organizations may be so. There are always people who are obsessed by money and power and will pursue such by all means. However, they will be ultimately discarded by the com m unity. There is no one in M acau who may claim that he is a representative of purely modern productivity. Due to the unique background and environment of Macau, we all have a different degree of conservation. Some may be conservative in one aspect while others may be so in another area. Some may be more conservative and some may be less. All in all, it is more critical for us to overcome the constraint of conservation.5 . 5 Objectives that should be Accomplished in Short Term5.5.1 A highly efficient, clean and accountable Macau Government that has a team of civil servants who work in accordance with the law ,within their authorized power and have a strong sense of serving the citizens.5.5.2 A prestigious image of Macau that is highly recognized by the world, especially the surrounding countries and areas,with a complete judicial system, law protection and a consciousness of legal system among citizens and relevant government departments.5.5.3 A united, open minded and hardworking community, in which residents will not only consider their own interests but also others. People will not only be innovative but also cooperative. In addition, people will not only be willing to strive together to overcome difficulties but will also be happy to share successful results.
5.5.4 A team of modem entrepreneurs who have the courage and modem business philosophy to ride on the tide of new economy.5.5.5 A well determined and practical concept and direction of development, with a m utual understanding am ong M acau people to insist on exploring the appropriate development pattern. The formulation of development strategy should not be the privilege of a chosen few.5.6 Seriously Resolve Some Major Issues5.6.1 Coordinate and synchronize both the economic and community developmentAs M acau's econom y has established a solid foundation, our humandevelopment index (HDI) is generally maintained at a good level, with 0.86, 0.86 and 0.85 in 1995,1996 and 1997 respectively. However, our culture, education, income, social security and health services have not caught up with the above index. Our residents are also weak in modem concepts, which require immediate attention for enhancement.5.6.2 Focused versus diversified developmentThe recession in recent years has weakened the confidence of many people in Macau's future development. Our casino business has been one of our major economic contributors, and will further improve and grow. However, in the long run, it is not wise to focus on one single industry only. We should diversify our industries. A lthough there are difficulties and risks to develop other businesses, yet the advantages will still outweigh the drawbacks to make such a change.5.6.3 Weak foundation and technology transferMacau has multiple strengths and yet various weaknesses. The critical issue
at present is our weak manufacturing foundation and insufficient capable workers. However, we can make use of our advantages and attract the M ainland's corporations and research institutes to apply their inventions and technologies to productions in Macau.5.6.4 The relationship between internal and external environmentTo expedite our development, we should fully utilize all possible internal and external resources. It is reasonable to assume that the external environment will continuously improve. However, the Government and people of Macau should primarily build up the success on the effective use of internal resources. This should be our determined belief.5.6.5 The relationship between economic and non-economic measuresEconomic development significantly relies on the correct understandingand application of the basic economic principles as well as the implementation of legal and economic measures. However, it has been proved that some noneconomic measures are also very useful and should not be overlooked. These include the elevation of the cultural and moral quality of the citizens and the strengthening of their confidence in the future development.5.6.6 Physical strength versus intellectual powerAs we are heading into the age of a new knowledge-based economy, there is a change in the value between physical strength and intellectual power. We need to create a suitable environment to rapidly train up our local talents. On the other hand, we need to give a green signal to attract more capable persons to come to work in Macau. While we recognize the importance of intellectual power, we should not consciously or unconsciously underrate the labour workers. We should, as far as possible, provide opportunities for local young workers to upgrade themselves.
5.6.7 The relationship between the government and the communityDuring econom ic recession, every sector of Macau suffers. It is thus understandable to see the community have a high expectation and demand on the autonomous SAR Government. However, to really improve the economy, we need a joint effort of government guidelines and community support.5.6.8 Traditional belief versus new economic conceptIn the unique environment of Macau, every sector and household inherit the traditional belief and at the same time face the impact of new economic concept. Traditional values such as hardworking, industriousness, honesty and cooperation will never become obsolete. However,we should also pay attention to the main direction, basic principles and special features of the new economic concepts and thoughts. We have to actively adapt ourselves to the new environment, or we will be eliminated in this competitive market.5.6.9 The relationship between boundless development and limited knowledge There should not be a developm ent limit or absolute saturation for anycoun tries or econom ic en tities. The only lim it is our know ledge and understanding. We should therefore strive to advance this limitation and cultivate a consciousness of adaptation to the ever-expanding development pattern.6. DEVELO PM ENT STRATEGIES6.1 Strategy One — Better Utilize Our Strengths6.1.1 Casino businessCasino business is the most important contributor to Macau's economy and a trump card of the Government. Under Article 118 of the Basic Law of the
Special A dm inistrative R egion of M acau, it says, "The M acao Special Administrative Region shall, on its own, make policies on tourism and recreation in the light of its overall interest." This indicates that the casino business can be further developed and enhanced. Also, in view of safeguarding the overall interest of the com m unity, the Macau SAR Government has the full autonomy to formulate relevant policies. The casino business is now being operated in the form of franchise. This can ensure effective government control, but at the same time it has produced adverse effects. Due to the lack of competition,the business operator will be reluctant to modify its operation model but inclined to shift its profit and overlook the overall interest of the community. As the license right will soon expire, the public has strongly urged the Government to open up competition. It is expected that introducing a competition mechanism will promote the casino business,generate higher returns,increase government revenue, and create significant chain actions that will lead the territory into a new economic growth cycle. Hence, opening up the casino sector will be a significant test to the Government's ability in policy making as how to enforce effective supervision over this industry. We feel that three principles should be adhered: (1) Observe the authority prescribed by the Basic Law; (2) Respond to the overall interest of the Macau community; and (3) Improve rapidly the casino industry to international standard with Macau's unique features. As the casino business is so important to our overall economy, we should be careful in handling its future development.6.1.2 A new and special administration modelAs Macau had been ruled by Portugal for a long period of time, many social and economic issues remained unresolved when the territory reunited with China and the Government of Macau SAR commenced administration. We
need to set up a procedure to solve the remaining problems and handle the new issues. With the support of the Central Government and the authorization of the Basic Law, the Macau SAR Government is able to and must adopt an entirely new development concept. With its unique features,Macau should fully utilize its position in the global market and build up a new international cooperation and connection network. Also, in the overall interest of the community, the Government should establish a civil service that is for the people and convenient to the people. It should be innovative and creative to develop a new model of administration for the territory.6.1.3 Mini economyMacau is a typical mini economy. "For a mini economy,its scale can be small but its economic effect can be large. It has tremendous constraint in resources, but it can position itself in the international market. It has its own strengths, but it should not overlook its weaknesses. It should beware of its limitation, but it can overcome that by persistently improving and enhancing itself with its own hard effort. It may not have sufficient talented people, but it can intelligently deploy and fully utilize its existing manpower by creating an environment of fair competition and innovation. In summary, the development of a territory may not necessarily be bound by limited land resources or small population. For a mini economy, it should pursue a development based on its limitation of being small. As this fundamental limitation may not be changed, a mini economy should develop in a more delicate and concentrated manner with high quality and education so that it can earn the respect of other people."12 The current critical issue is to maintain, vitalize and increase the existing productive12. Ieong Wan Chong, The Mini-Economy: Its Orientation and Development, p. 36.
factors. In the new development process, high growth rate and high quality are equally important. We need to elevate the quality of economic growth as well as our living standard.6.1.4 Unique cultureAs a cultural exchange centre, Macau has its unique culture, which should be carefully developed and protected. The territory itself is a big museum and has a rich collection of both Chinese and European culture. As Macau has been a converging point of the East and West for a long period of time, it is qualified to apply to the United Nations for the title of 'T he World's Cultural Heritage". We should completely revise our city plan and mingle the historical zones with the newly developed districts. We should also turn the city into a tourist centre that is highly elegant and efficient, with multiple functions and themes. For example, we can develop a shopping, entertainment and food centre at Avenida de Almeida Ribeiro and its intersection with Rua dos Mercadores, Rua de Cinco de Qutubro, Rua das Estalagens, Rua da Felicidade, Praca de Ponte e Horta, and Praca do ex-Casino Flutuante. We can develop an integrated traditional cultural centre at the district from Rua de S. Paulo, Rua da Palha to Rua de S. Domingos. We can develop a conference and exhibition centre and an integrated modem Chinese and Western cultural centre at NAPE (Zona de Aterro do Porto Exterion), Sovereignty Hand-over Square, Centro Ecumênico Kun lam and Parque Dr. Carlos D'Assumpcao. Also, we should fully utilize the relics and remains of the celebrities such as Dr Sun Yat Sen, Cheng Guan Yin and Luis de Camões. We should scientifically categorize different districts in the city and add statues, galleries, flowers, lawn and pedestrian zones. We should develop more scenic spots, shopping cen tres, and fac ilities and venues o f food,exhibition, entertainment and leisure. We should rapidly establish Macau as a tourist centre
that has rich cultural contents. We should also expedite the development of Lagos da Praia Grande as a new shopping, cultural and tourist district that can generate economic benefits.6.2 Strategy Two - · Promote Regional Cooperation6.2.1 Promote a fair and mutually beneficial cooperation with the Pearl River Delta Region that has Guangzhou as the centreWe should properly and flexibly position ourselves in the Pearl River Delta Region. We should serve the surrounding areas and achieve a complementary effect. As seriously limited by the physical environment, Macau should promote cooperation and fully utilize the advantages of the region. For example, we can make use of the region's cheap labour, transportation and com m unication network, educated and trained personnel, tourism resources and new economy such as the rapidly growing information industry. These advantages can make up for our shortfalls.6.2.2 Macau and Zhuhai are born to be partners. Both cities can complement each other and have a broad base of mutual benefits. The two cities can expand their existing cooperation in infrastructure, tourism, business, trading, new industries development and personnel training. As the cooperation is mutually beneficial to both cities, we should adhere to the principle of "proper allocation of resources, interactive business development and mutual benefits", which will fulfill the common objective of residents in both cities.6.2.2.1 We should enhance the understanding of mutually beneficial cooperation between Macau and Zhuhai, quickly determine the cooperation base and select testing points for breakthrough. The joint development of Hengqin Island by
both cities is critical and urgent. If Hengqin can be established as a special region within the Special Administrative Region and has its rights of ownership and administration separate, Macau and Zhuhai can fully cooperate and develop this island. It will have tremendous positive impact to both cities. Also, Macau and Zhuhai should strive to enhance the cooperation in free trade zones, export processing zones and new industrial development zones.6.22.2 Zhuhai is actively developing its higher education, which will be a challenge as well as an opportunity to Macau that has recently developed its higher education. If Macau can enhance its research and management capability and combine the unique strengths of both, the higher education of Macau and Zhuhai will become a mutual advantage for both cities.6.2.2.3 Macau and Zhuhai should work together to improve the customs procedures. As an entity under the policy of "One Country, Two Systems", Macau should have its own customs and inspection points. However, the customs procedures should be simplified as much as possible to ensure an efficient flow of man, goods and information.It is undeniable that Hong Kong is a very important city. Due to variousfactors such as geographical proximity, historical background and social system, Macau and Hong Kong can fully cooperate. The key for Macau is to flexibly position itself, properly perform its role and actively cooperate on the allocation and coordination of resources, technologies and trained personnel.6.2.4 Fully cooperate with TaiwanMacau has been the place where Dr Sun Yat Sen started his revolutioncareer. Also, it is the second special administrative region in China that guaranteesthe im plem entation of capitalism for another 50 years. With the existing6.2.3 Actively cooperate with Hong Kong and play a complementary role
cooperation base, Macau can properly position itself under the principle of "One Country, Two Systems" and further enhance the cooperation with Taiwan.6.2.5 M acau should properly borrow and utilize the capital, technologies, information and management experience from Asian developed countries like Japan, South Korea and Singapore.The above three countries have different strengths in econom y and technologies. We can, under the name of "Macao China" as prescribed by the Basic Law, actively develop connection with them to expand our external network.6.2.6 Develop cooperation with ASEAN and other regions and countries in Asia A strong and united entity, the Association of South East Asian Nations(ASEAN) has become a significant member of APEC. Due to the geographical proximity and the well established cooperation base, Macau should further enhance the economic and business cooperation with the ASEAN.6.3 Strategy Three - - Enhance Ties with the European Union andExplore the Portuguese World6.3.1 Due to the historical background, Macau has long been connected with theEuropean Union. Its unique status is highly recognized by the European Union. "For the European Union, Macau shall continuously perform a more significant role than Hong Kong."13 There is a well established cooperation base between Macau and the European Union on business and trading, personnel exchange,13. See European Commission, The EU and Macau: Beyond 2000, COM (1999) 484 final.
languages, religions,cultures and arts. We should strive to consolidate and further expand the cooperation with the European Union.6.3.2 There are more than ten countries or regions that speak Portuguese. With the same language, Macau has an advantage to link up with them. Occupied half of the area and population of the Latin America, Brazil is a developing country that has tremendous potential. To rapidly establish a stable cooperation with Brazil should be Macau’s chosen tactic.6.4 Strategy Four - · The Critical Issue to Enhance InternationalCompetitiveness6.4.1 "The future com petition is a com petition for talented people and a competition of the quality of people among different countries."14 Hence,when considering how to improve our international competitiveness, we should first of all focus on how to effectively enhance the quality of our people. In a competitive environment and a competitive age, we should have the courage and intelligence to participate in the competition. In a lawful environment and society, we should have the courage to compete with other people at an equal starting point.6.4.2 Refresh our entrepreneurs' thinkingThrough the hard work of over two generations, Macau has achieved an outstanding performance for many years. Our new generation of entrepreneurs who are active in many sectors have mostly received post secondary education.14. "Conversation between Chairman Jiang Zemin and American Reporters", People's Daily (Overseas Edition), 18 May 2000.
They have a good understanding of the international market and can easily adapt to the new econom y. However, as a traditional society, Macau has many corporations that are still managed mainly in a family style. They are limited by many factors, in particular the operation scale. Generally, most established and leading entrepreneurs are more conservative. However, the present situation is urging them to actively upgrade themselves, change a new way of thinking, and keep up with a sense of competitiveness, risk management, law spirit, innovative ideas and international vision. Also, it urges them to cultivate a modern and unique Macau m anagem ent style, and introduce new concepts, ideas and philosophy. With Macau's present environment and conditions, we should by the timeline set by this report nurture and train up a group of new entrepreneurs who have a solid financial strength (with assets worth over MOP 100 million) and the knowledge of modem management. They will significantly contribute to Macau's future economic development.6.4.3 Professionals to make insightful suggestionsMacau is not highly developed yet and has only a limited number of professionals in different sectors. Fortunately, some young entrepreneurs are professionals people themselves. Also, in the last twenty years, a group of academics and experts have come to Macau and made here as their home. They are the community's valuable assets, yet their contribution has not been fully recognized. Under Macau's new environment, they will have a much bigger room to make contribution. If they can actively voice out their opinions and make insightful suggestions, they will be gradually recognized by the community. "Basic research is the driving force of civilization, and the origin and support of
technology advancem ent and economic grow th."15 This principle will be understood and accepted by the community of Macau.6.4.4 Workers of all industries to upgrade themselvesDue to the new model of economy, our society is undergoing a dramatic transformation and new industries that are technology oriented, such as the information industry, have accelerated their development. Under such situation, all workers in different sectors, whether looking for jobs or planning future careers, should strive to upgrade themselves. They should continuously learn new knowledge and enhance their skills. In addition to basic working skills, they should also learn and master foreign languages, computer knowledge and technical skills such as driving and maintenance work. This will help them upgrade themselves and enhance their value to the companies.6.4.5 Promote the ethical, cultural and professional quality of Macau people We should strive to upgrade our young and middle-aged workers to seniorsecondary or even higher education level in 20 years. This should be done by providing training and evaluation for the working population through various levels and channels. The Government, private organizations and individuals should work together to improve our education and administration system. In accordance with the Basic Law, we should introduce 12 years free education for our children in the near future and prevent undesirable dropouts in primary and secondary schools. We should also raise the ethical and cultural standard of Macau people to enrich the quality of our pure and simple community. This can be achieved by introducing appropriate rules and regulations, law enforcement and self-restraint.15. "Conversation between Chairman Jiang Zemin and American Reporters", People's Daily (OverseasEdition), 18 May 2000.
6.4.6 Care about the less privileged community membersWe are striving towards the goal o f establishing Macau as a prestigious international city. We need therefore to ensure the administration of the society is in a fair, orderly and efficient manner. We should also care about the less privileged community members, reduce the proportion of the low income class, and help more people become rich. These are critical issues that we should seriously deal with.We have recently expanded our social welfare services through both the Government and private organizations, which has alleviated the difficulties of the low-income families. However, due to economic recession, they are still suffering tremendously. This may easily cause new social problems. We should therefore system atically handle all the social issues such as providing the minimum social security and children education and arrangement of re-entry into the community for the low income families, the handicapped, mentally retarded, victims of industrial accidents, and families with relatives in prison.6.5 Strategy Five · · Promote English Learning and Build up an Environment for the Development of New Economy6.5.1 Promote English learning and create a better environment for communication As the most popular language in the world, English has established a superior status in international business and cultural exchange. For countries that wish to go internationalized, English proficiency has become an important key. During the ruling of Portugal, Macau has failed to establish an English environment. However, ignoring the importance of English today means losing tremendousbusiness opportunities. Also, without an English environment, Macau is unlikely
to go internationalized. Hence, we should put forward this issue for public discussion and encourage every household to place emphasis on learning English. In fact, promote English and appropriately develop Portuguese education are not contradicting to each other. However,if we have to choose between English and Portuguese, we should prefer English.6.5.2 To adapt to the age of new economy, Macau should further improve relevant factors to cope with the changes.6.5.2.1 The Macau SAR Government should introduce simple policies and clearly defined rules. It can study the features and procedures of commercial activities in Hong Kong and revise the commercial law accordingly.6.5.2.2 The Government should enhance the quality of the civil servants and systematically provide training for the senior officials. It should improve the efficiency of administration and improve the service quality. By adopting flexible and effective measures, it should actively attract foreign investment, technologies and talented people. To attract more professionals, the Government can consider allowing the highly educated professionals, such as those with Master degrees or above in information technology, to become permanent residents of Macau immediately upon their application.6.5.2.3 The Governm ent should establish institutions, such as Technologies Development Council, to focus on the development of science and technologies. It should also consider the setting up of investment fund for new industries, which can expedite the development in this area and enhance the territory's function of modern financial services. In addition, we urge the Government to quickly inform the public its policy on the establishment of international schools and services to cope with the need of expatriates and foreign investors.6.5.2.4 We should invite academic and research institutions, such as University of
M acau and M acau Productivity and Technology Transfer Center, to set upresearch centres for the study of information technologies and biochemical technologies. This will nurture capable persons for Macau's new economy. In addition,it will expedite the application of the results of research and development conducted inside and outside of the territory.6.6 Strategy Six — Professionally Plan the Reclaimed Area of Coloaneand Taipa6.6.1 The reclaimed area will soon make Coloane and Taipa become connected as one single piece of land, which will be approximately one fourth of the total area of Macau. When fully developed, this new city can become an area that concentrates on commercial activities. This will clearly define the functions of different districts in Macau and strengthen its image as a prestigious international city. The Macau SAR Government should quickly define the objectives and functions of this new city. When these are determined, the Government should proceed with global public tender and commence development for the new city as early as possible.6.6.2 To co incide w ith the above developm ent, the G overnm ent should simultaneously urge Zhuhai to jointly develop Hengqin Island. It should also urge the construction of a transport network of express train, light rail and highway in Guangzhou and Zhuhai.6.6.3 To synchronize with the above development, the Government should actively discuss and negotiate with Hong Kong on the building of a bridge connecting Coloane of Macau and Lantau Island of Hong Kong, which has the shortest distance between the two cities.
6.7 Strategy Seven — Expand Higher Education for New Growth Points6.7.1 Education is an investment that generates two-fold benefitsA lmost every modern and developed country has a well established education system, and their higher education that aims to train up professionals of different disciplines is an industry that may generate tremendous economic benefits. Western countries, such as the US, do not only receive large amount of revenue from foreign students, but also recruit the distinguished students to join their working population. It has become a steady supply of talented people to these countries and they can thus continue to extend their cultural influence to other countries.6.7.2 Emerging higher education in MacauMacau currently has various higher education institutions, including the University of Macau, Instituto Politécnico de Macau, Escola Superior das Forcas de Segurança de Macau, Instituto de Formacao Turística, Asia International Open University (Macau), Inter-University Institute of Macau, Universidade de Ciência e Tecnologia de Macau, Kiang Wu Nursing College of Macau, and Macau Institute of Management, with a total o f about 10,000 registered and active students. With a population of 430,000, Macau has each year about 2,000 secondary school graduates. Over 80% of them can pursue local university degrees or overseas studies in the Mainland, Taiwan or other countries. On the face of it, there seems no more room for Macau to expand its higher education. However, we can study the issue from another angle. There is a high dropout rate in the local primary and secondary schools, but with the joint effort of the community, we can prevent this and expand the number of senior secondary students. In addition, we can look beyond the local community. The Mainland
has been actively expanding its higher education. Yet each year there are about 50% Mainland students, a figure of thousands and millions, that cannot enroll in universities. If we can better design our syllabus and programs, improve our teaching quality and enhance our image, we should be able to attract a few thousands of students from nearby cities to come to study in Macau.6.7.3 Develop into an integrated professional training baseThere are two directions for developing course programs for our higher education. First,we can utilize our strengths and set up professional programs in the disciplines of business management, tourism and econom ics,social sciences, Portuguese language and literature, Portuguese law, and media com m unication. Secondly, we can selectively set up new programs in the disciplines of international relationship, Latin language, foreign languages and literature, history, economics of Hong Kong and Macau, regional economics, and even literary theories, philosophy, information technology, fashion design, and modem advertising production. The qualified institutions and organizations should set up training centres and introduce new higher degree programs and short-term part-time certificate courses for the working professionals. The objective is to make Macau become a leading professional training base in the Far East and Asia Pacific Region in 10 years that may cultivate talents for the local community and surrounding areas. With our hard effort, this should be an achievable goal.6.8 Strategy Eight -■ Fully Support Small and Medium Sized Enterprises6.8.1 Macau is a typical mini economy, which can be reflected by the fact that small and medium sized enterprises make up 98% of the total 15,000 corporations.
These small and medium sized enterprises have made significant contribution to Macau's economy in the past, and will still be a major contributor in the future. However, they are currently suffering from the economic recession.6.8.2 To assist the small and medium sized enterprises will therefore create a positive effect for economic recovery, social stability and improvement of unemployment. To this end, the Government may properly reduce tax, provide loans at a low interest rate (the interest difference can be compensated by the Government), re-design the function of each district, centralize training, and share resources. The Government should form a dedicated department to follow up on these.7. FACTORS TO ENSURE FUTURE RAPID GROWTH7.1 Enhance the Quality of Macau People and Establish a System thatBased on People,Knowledge and Technologies7.1.1 High quality of people and community groups are the major driving force for the future economic and social development. It's also the resources for a community to compete in the international market. Thus, a modem society should recognize and care about the community members and their living quality. It should also provide equal opportunities for each individual and firmly establish the belief of "every one has his value" among the community members. It should, as far as possible, upgrade the community members so that they can devote their intelligence, make more contributions and share the fruitful results with the society.
7.1.2 To realize one’s own value, an individual has to continuously seek new knowledge and insist on studying the modem information system. This shall be a continuous process and is particularly important in this information age. It applies to both successful persons and those in an adverse situation.7.1.3 We should master the time, modem technologies and our own destiny. We can do this, as we have only used our brain in a very limited manner. Based on the quality of each person, we should try to develop our potentials. In the face of the overwhelming information in this age, we should not be resisting, offending or rejecting. We should understand that the ability in m astering science, technologies and other knowledge varies with different persons. As long as we try our best effort, we should all be able to master our lives and expand the room of development.7.1.4 Based on the forecast in Exhibits 1,2,3 and 4,if we wish to attain the status of a moderately developed country in 20 years as measured by the index stated in Section 3.2.1,we have to maintain an average annual growth rate of over 5.8% and control our population in the range of 500,000 to 600,000. If the average growth rate of GDP is below 4.5% and the population increases by 2.5-3% or above, then our real growth of GDP per capita will be very insignificant. Thus, we must focus on the enhancement of the quality and composition of our people and a major breakthrough in our products and services.7 . 2 The Co-existence of Multi Cultures is a Unique Feature andValuable Asset of MacauWe have a long history and a rich culture of languages, religions, arts, food andcustom in M acau. Com bined with an international free port, we have a relaxed
community that harmoniously mingles the traditions of the East with the West. As we move forward into a new age and a new environment, this harmonious combination can promote the sense of belonging and enhance the confidence among Macau residents. We should not overlook or eliminate this positive factor, instead we should try to enhance it from time to time.7.3 Continue to Utilize the Foundation Established by Traditional Organizations7.3.1 Both traditional business organizations and workers organizations have made undeniable significant contribution to Macau's steady development. During the transition period and in the initial stage when Macau returned to the Motherland, these organizations have performed as a steady force of the community. As we are now moving into the information age of new economy, they will no doubt continue to play an important role.7.3.2 As many new organizations have emerged to compete in the market in this new age, the old organizations should rapidly and continuously adjust and respond to the new situation. They should introduce new talents to im prove the management and make the organizations more active. On the other hand, the Government should promote fair competition and introduce a mechanism that encourages relaxed and harmonious cooperation. Under the principles of "Macau to be governed by Macau people" and constructing Macau in a scientific and systematic manner, we should promote solidarity, concerted effort and joint development. In addition, we should not feel complacent about the current system of allocation of benefits and lag behind the trend of new thoughts.
7.4 Cultivate and Expand the Middle Income Class7.4.1 The experience of modem countries, particularly those developed countries, has clearly indicated that as a society makes progress, its major composition will naturally shift from low income class to middle income class. The middle income class in all developed countries does not only expand in numbers but their vitality and functions are also fully recognized by the society. The major contribution of the middle income class does not come from their economic strength but their professional know ledge, w hich they can enhance the competitiveness of a community. They are the group of people that are most innovative, and can significantly contribute to their corporations, organizations, countries and regions.7.4.2 After the implementation of open-door policy for over twenty years, China has seen a new group of middle income class. Six out of the ten categories of rich people in China as defined by the theorists are those professional people with expertise and special skills. They are: senior executives of multi-national corporations; project managers of non-financial or real estate companies; contractors and shareholders with technologies; actors, singers, fashion models, writers and athletes; lawyers, managers, advertising producers and accountants; and economists and senior government officials who frequently deliver lectures and provide evaluation services. There are also a few people who have become rich through inappropriate means, such as those illegal operators and corrupted governm ent officials. It is expected that those who utilize knowledge and technologies to become rich will expand in numbers and ultimately become the majority of the community. This will drive the country towards the goal of mutually rich among the people.
7.4.3 Does Macau have the middle income class? Will they become the leading force of the society? It is a topic that worth to study and it's a very practical issue. There are not a large number of rich people in Macau, as can be seen in the fact that small and medium sized enterprises make up 98% of the total 15,000 corporations. Most operators of which do not have a large quantity of assets, and regardless of whether it's measured by dollar amount or professional training, they are far from the definition of the middle class. Those qualified are people who have the post secondary education with professional qualifications, such as those who have completed overseas studies and the second generation of young entrepreneurs. The group also consists of lawyers, medical doctors, engineers, accountants, auditors, surveyors, advertising designers, painters, teachers of secondary schools and universities, singers, editors, reports, academics, middle and senior government officials, and those who become successful by self study. They exist in our community and are quite active. Some of them are very successful and have been recognized by the society. However, generally, the middle income class of Macau has not fully developed. They are still scarce in number and their overall quality remains to be improved. Also, they are not active enough to project an outstanding image in the community. In the next 20 years, as Macau's economy transforms into a higher status, our middle income class will also become the most active group. They will not only become the backbone in the government and commercial sector, but also the leading force of the workers organizations.
7 . 5 Recognize the Importance of Innovation7.5.1 Innovation means the best allocation and utilization of existing resources and the transformation of human intelligence. It is also the major force to promote competitiveness in the international market. Without innovation, we will not be able to transform the structure of our economy, and our society will not be able to develop. We should apply innovation in all areas, from systems to technologies and from management to concepts. Innovative concepts are particularly important for us to maintain our advantages in a competitive market.7.5.2 Innovation is not just purely creating something new. Rather, it's a natural response to the new challenges and environment. If we adopt Don Quixole’s attitude of nihilism to handle our current issues, we will not achieve anything. Hence, we should adopt a more positive and active attitude. If we cannot adapt ourselves completely to the new situation, we should at least change partially. If we cannot obtain immediate results, at least we should do something now.7.5.3 It is not practical to demand every manufacturing and service sector in Macau to initiate innovation for breakthroughs. However, our mission should be establishing a brand new school of thoughts and promoting innovative ideas.7.6 Resolve Ecological Issues7.6.1 We shall build up a green city. Economic growth should not be in the expenseof damaging the environment or lowering the environment standard. We have a serious air, sea and noise pollution in Macau. Our trees have been damaged and we are short of greenery space. We should urge the Macau SAR Government to enact and enforce the law for environmental protection. We should also liaise
with the surrounding areas to jointly protect the sky and the earth. Our next generations should have a quality environment to live.7.6.2 We should alert the community of the imbalance of ecological system and its consequences. By the theory of Green GDP, our real annual growth is the GDP less the intangible loss in environment (such as pollution and deterioration) and the intangible loss in society (such as disease, unemployment, crime, uncontrolled population growth and mismanagement). These two intangible losses cause serious damage to Macau every year. In this information age, we should introduce new orientation and standard to the traditional concept of economy, development, environment and representation. A serious study of the green issue will provide enlightenment for us. Therefore we suggest the statistics department of the Government to consider the application of the Green GDP theory.
The Relationship between Cultural Development and Representation\ S ta g eItemHunting Agriculture Industry InformationPeriod2 Million B.C.- 1,000 B.C.1,000 B.C. - the mid-18th centuryThe mid-18th century - the 20th centuryPresent---SocialDevelopmentPrimitive society; small populationFeudal society ;growing populationCapitalism society and Socialism society; booming populationHarmonious and sustainable development among natural environment, economy and society. During economic growth, carefully control birth, protect environment and natural resources, and enhance living qualityEconomicDevelopmentSurvival as the primary objective;fishing and huntingSelf sufficient; self supplyMarket economy and planned economy; Pursue GDP growthEcologicalSystemLow utilization of natural resources; primitive environmentRelatively low utilization of natural resources; harmonious environmentHigh consumption of non-recoverable resources; environment seriously deterioratingAttitude towards natureWorshippingnatureNature shall conquer manMan shall conquer natureNature and man harmoniously co-existEnvironmentalproblemsNon-existentWoods chopped ;soil fertility reduced ;soil erodedFrom global environmental pollution to global environmental disastersGlobal environmental disasters remain to resolveRepresentationLiving together; physical strength; barbarousReligions; population; morality; power; nature; superstitionMachines;natural resources; science and technologies; transport; marketInformation; innovation; quality of people; environmental protection; sustainable developmentBased on the table compiled by Zhou Yongzhang, "Regional Sustainable Development Requires Image Representation" in Anthology of the Seminar on Sustainable Development - Cooperation among Guangdong, Hong Kong and Macau, April 2000, p. 210.
7 . 7 Establish a New Generation of Chinese EnterprisesIn the past, Chinese enterprises have played a significant role in Macau's economy, as they constituted a major portion in many leading industries.State-owned enterprises and joint ventures of Chinese and local capital are now both facing a new challenge. Being the operating entities that have interface with the international market, they need to pursue economic returns as well as exploring the global competition pattern. In addition,they are critical for the steady and stable development of the Special Administrative Region of Macau, which adopts the policy of "One Country, Two Systems". To accommodate with the new environment, we should re-define the Chinese enterprises. Besides the traditional Chinese enterprises, the Government should encourage more non-state owned enterprises to extend their operation to Macau, which should gradually become the core group of future Chinese enterprises. On the other hand, Chinese enterprises should actively position themselves and perform their functions for further development.7.8 Motivate the Talents of the Community and Establish a Professional Research Centre of Government Policies7.8.1 The Government should establish a modern consultation mechanism and make the policy-making procedures more systematic, pragmatic and visionary. This is critical in modem politics and public administration.7.8.2 The G overnm ent should enhance the accuracy and fairness of the administrative procedures. Also, it should seriously try its best effort to collect public opinions and effectively establish a mechanism that can motivate the talents of the community.
7.8.3 Inherited the original structure from the previous Portuguese and Macau government, the current SAR Government has streamlined and realigned its structure. However,there is still room for improvement. On the other hand, the Government has not yet set up a policy research centre, which is a very important organization that can strengthen the government administration. This deserves serious study by the Government.7.8.4 Reorganize and re-establish various consultation committees to assist the Government to discover and realize the potential of the community. However, this should be synchronized with the establishment of a professional policy research centre to achieve the best results.8. CONCLUSIONThis report compiles our studies on Macau and its future development, in view of the new age and the new environment. The whole project, from planning to action and from the beginning to its completion, has integrated the devoted effort of both the management and the members of the Macau Development Strategy Research Centre and the Macau Association of Economic Sciences. It has also consolidated valuable comments from people in all sectors who care about Macau and its development. Hence, the value of this report is that it reflects an actual collective study on various local issues. It also represents a result of a highly autonomous action taken by Macau people who wish to master their own destiny by exercising the democratic rights under the principle of "Macau to be governed by Macau people". This report serves as a basefrom which they can build up a brand new culture and school of thoughts.
As the development pattern cannot be fully understood yet, we can only attempt to accomplish our goal by prudently exploring. Hence this report should only be viewed as an instrument to test the water. It is far from precisely identifying the depth of the issues or determining the correct direction. There are still a lot of work that need to be done. However, we sincerely hope that this report can motivate more talented people to voice out their insightful opinions and the community can soon reach a mutual understanding. Then, under the leadership of the Macau SAR Government, we can very soon walk out of the deep valley of recession and move forward to a new plateau of economic growth and social development.F inally , we are deeply indeb ted to A E conom ia e F inancas de Regiao A dm inistrativa Especial de M acau, Os Transportes e Obras Publicas de Regiao Administrativa Especial de Macau, Fundacao Para a Cooperacao e o Desenvolvimento de Macau, and Fundacao Macau that have fully supported this research. We wish to thank relevant government departments and all community members who have provided assistance to this study. We would also like to express our appreciation for all the people who have substantially contributed to the community. Tomorrow's Macau belongs to every one of us, so let us strive today to build a better tomorrow that we will all feel proud of.
Exhibit 1.1 Forecast of M acau,s GDP Growth (2000 · 2020)Year PopulationGDP (at market prices)GDP (at constant prices)Total (MOP 100 Millions)Per Capita (MOP)Total (MOP 100 Millions)Per Capita (MOP)2000 442,857 524.09 119,062 533.72 121,2522001 448,214 558.15 125,277 557.74 125,1842002 453,571 594.43 131,834 582.84 129,2632003 458,929 633.07 138,755 609.07 133,4942004 464,286 674.22 146,059 636.47 137,8822005 469,643 718.04 153,768 665.12 142,4342006 475,000 764.72 161,906 695.05 147,1552007 480,357 814.42 170,496 726.32 152,0532008 485,714 867.36 179,565 759.01 157,1332009 491,071 923.74 189,139 793.16 162,4032010 496,429 983.78 199,247 828.86 167,8702011 501,786 1,047.73 209,921 866.15 173,5412012 507,143 1,115.83 221,191 905.13 179,4242013 512,500 1,188.36 233,093 945.86 185,5282014 517,857 1,265.60 245,663 988.43 191,8612015 523,214 1,347.87 258,938 1,032.91 198,4312016 528,571 1,435.48 272,960 1,079.39 205,2482017 533,929 1,528.78 287,771 1,127.96 212,3222018 539,286 1,628.16 303,417 1,178.72 219,6612019 544,643 1,733.99 319,945 1,231.76 227,2772020 550,000 1,846.69 337,406 1,287.19 235,180Accumulative GDP Growth (compare with 2000)352% 283% 241% 192%Notes:1. GDP of 1999 is used as the base figure, representing MOP 51.074 billion at constant (1996) prices and MOP 49.21 billion at market prices. The population of 1999 is 437,500.2. Assume the population by 2020 as 550,000, annual real growth rate of GDP 4.5% and annual GDPdeflator growth rate + 2 %.
Exhibit 1.2 Forecast of Macau’s GDP Growth (2000 - 2020)Year PopulationGDP (at market prices)GDP (at constant prices)Total (MOP 100 Millions)Per Capita (MOP)Total (MOP 100 Millions)Per Capita (MOP)2000 442,857 531.47 120,739 541.38 122,9922001 448,214 573.99 128,830 573.87 128,8042002 453,571 619.90 137,484 608.30 134,9102003 458,929 669.50 146,739 644.80 141,3252004 464,286 723.06 156,639 683.49 148,0662005 469,643 780.90 167,229 724.49 155,1502006 475,000 843.37 178,559 767.96 162,5942007 480,357 910.84 190,681 814.04 170,4162008 485,714 983.71 203,652 862.88 178,6382009 491,071 1,062.41 217,531 914.66 187,2792010 496,429 1,147.40 232,385 969.54 196,3622011 501,786 1,239.19 248,282 1,027.71 205,9102012 507,143 1,338.33 265,297 1,089.37 215,9462013 512,500 1,445.39 283,510 U 54.73 226,4982014 517,857 1,561.02 303,006 1,224.02 237,5912015 523,214 1,685.91 323,879 1,297.46 249,2552016 528,571 1,820.78 346,226 1,375.31 261,5182017 533,929 1,966.44 370,154 1,457.83 274,4142018 539,286 2,123.76 395,775 1,545.29 287,9752019 544,643 2,293.66 423,212 1,638.01 302,2362020 550,000 2,477.15 452,595 1,736.29 317,235Accumulative GDP Growth (compare with 2000)466% 375% 321% 258%Notes:1. GDP of 1999 is used as the base figure, representing MOP 51.074 billion at constant (1996) prices and MOP 49.21 billion at market prices. The population of 1999 is 437,500.2. Assume the population by 2020 as 550,000, annual real growth rate of GDP 6.0% and annual GDPdeflator growth rate + 2 %.
Exhibit 1.3 Forecast of Macau’s GDP Growth (2000 - 2020)Year PopulationGDP (at market prices)GDP (at constant prices)Total (MOP 100 Millions)Per Capita (MOP)Total (MOP 100 Millions)Per Capita (MOP)2000 442,857 538.85 122,416 549.05 124,7322001 448,214 590.04 132,434 590.22 132,4752002 453,571 646.09 143,292 634.49 140,7192003 458,929 707.47 155,063 682.08 149,4962004 464,286 774.68 167,823 733.23 158,8442005 469,643 848.28 181,658 788.23 168,7982006 475,000 928.86 196,659 847.34 179,4002007 480,357 1,017.11 212,927 910.89 190,6922008 485,714 1,113.73 230,569 979.21 202,7202009 491,071 1,219.54 249,704 1,052.65 215,5342010 496,429 1,335.39 270,459 1,131.60 229,1852011 501,786 1,462.25 292,974 1,216.47 243,7292012 507,143 1,601.17 317,400 1,307.71 259,2272013 512,500 1,753.28 343,901 1,405.78 275,7402014 517,857 1,919.84 372,655 1,511.22 293,3382015 523,214 2,102.23 403,858 1,624.56 312,0942016 528,571 2,301.94 437,720 1,746.40 332,0832017 533,929 2,520.62 474,470 1,877.38 353,3892018 539,286 2,760.08 514,358 2,018.18 376,1012019 544,643 3,022.29 557,654 2,169.55 400,3122020 550,000 3,309.40 604,655 2,332.26 426,123Accumulative GDP Growth (compare with 2000)614% 494% 425% 342%Notes:1. GDP of 1999 is used as the base figure, representing MOP 51.074 billion at constant (1996) prices and MOP 49.21 billion at market prices. The population of 1999 is 437,500.2. Assume the population by 2020 as 550,000, annual real growth rate of GDP 7.5% and annual GDPdeflator growth rate + 2 %.
Exhibit 2.1 Forecast of Macau’s GDP Growth (2000 - 2020)Year PopulationGDP (at market prices)GDP (at constant prices)Total (MOP 100 Millions)Per Capita (MOP)Total (MOP 100 Millions)Per Capita (MOP)2000 445,238 524.09 118,741 533.72 120,9242001 452,976 558.15 124,280 557.74 124,1892002 460,714 594.43 130,117 582.84 127,5792003 468,452 633.07 136,266 609.07 131,1002004 476,190 674.22 142,746 636.47 134,7552005 483,929 718.04 149,574 665.12 138,5492006 491,667 764.72 156,769 695.05 142,4872007 499,405 814.42 164,352 726.32 146,5732008 507,143 867.36 172,344 759.01 150,8142009 514,881 923.74 180,767 793.16 155,2142010 522,619 983.78 189,645 828.86 159,7792011 530,357 1,047.73 199,003 866.15 164,5152012 538,095 1,115.83 208,869 905.13 169,4292013 545,833 1,188.36 219,269 945.86 174,5252014 553,571 1,265.60 230,234 988.43 179,8112015 561,310 1,347.87 241,796 1,032.91 185,2942016 569,048 1,435.48 253,987 1,079.39 190,9812017 576,786 1,528.78 266,842 1,127.96 196,8802018 584,524 1,628.16 280,400 1,178.72 202,9982019 592,262 1,733.99 294,699 1,231.76 209,3432020 600,000 1,846.69 309,780 1,287.19 215,924Accumulative GDP Growth (compare with 2000)352% 260% 241% 179%Notes:1. GDP of 1999 is used as the base figure, representing MOP 51.074 billion at constant (1996) prices and MOP 49.21 billion at market prices. The population of 1999 is 437,500.2. Assume the population by 2020 as 600,000, annual real growth rate of GDP 4.5% and annual GDPdeflator growth rate + 2 %.
Exhibit 2.2 Forecast of Macau’s GDP Growth (2000 - 2020)Year PopulationGDP (at market prices)GDP (at constant prices)Total (MOP 100 Millions)Per Capita (MOP)Total (MOP 100 Millions)Per Capita (MOP)2000 445,238 531.47 120,414 541.38 122,6602001 452,976 573.99 127,806 573.87 127,7802002 460,714 619.90 135,692 608.30 133,1522003 468,452 669.50 144,107 644.80 138,7902004 476,190 723.06 153,086 683.49 144,7082005 483,929 780.90 162,668 724.49 150,9182006 491,667 843.37 172,894 767.96 157,4352007 499,405 910.84 183,810 814.04 164,2752008 507,143 983.71 195,462 862.88 171,4542009 514,881 1,062.41 207,903 914.66 178,9892010 522,619 1,147.40 221,185 969.54 186,8992011 530,357 1,239.19 235,369 1,027.71 195,2012012 538,095 1,338.33 250,517 1,089.37 203,9162013 545,833 1,445.39 266,695 1,154.73 213,0652014 553,571 1,561.02 283,976 1,224.02 222,6692015 561,310 1,685.91 302,437 1,297.46 232,7532016 569,048 1,820.78 322,160 1,375.31 243,3402017 576,786 1,966.44 343,233 1,457.83 254,4572018 584,524 2,123.76 365,752 1,545.29 266,1302019 592,262 2,293.66 389,817 1,638.01 278,3882020 600,000 2,477.15 415,538 1,736.29 291,260Accumulative GDP Growth (compare with 2000)466% 345% 321% 237%Notes:1. GDP of 1999 is used as the base figure, representing MOP 51.074 billion at constant (1996) prices and MOP 49.21 billion at market prices. The population of 1999 is 437,500.2. Assume the population by 2020 as 600,000, annual real growth rate of GDP 6.0% and annual GDP deflator growth rate +2%.
Exhibit 2.3 Forecast of M acau,s GDP Growth (2000 - 2020)Year PopulationGDP (at market prices)GDP (at constant prices)Total (MOP 100 Millions)Per Capita (MOP)Total (MOP 100 Millions)Per Capita (MOP)2000 445,238 538.85 122,086 549.05 124,3962001 452,976 590.04 131,381 590.22 131,4222002 460,714 646.09 141,425 634.49 138,8852003 468,452 707.47 152,281 682.08 146,8152004 476,190 774.68 164,016 733.23 155,2402005 483,929 848.28 176,703 788.23 164,1932006 491,667 928.86 190,420 847.34 173,7082007 499,405 1,017.11 205,254 910.89 183,8202008 507,143 1,113.73 221,297 979.21 194,5682009 514,881 1,219.54 238,651 1,052.65 205,9932010 522,619 1,335.39 257,425 1,131.60 218,1402011 530,357 1,462.25 277,737 1,216.47 231,0542012 538,095 1,601.17 299,717 1,307.71 244,7852013 545,833 1,753.28 323,505 1,405.78 259,3872014 553,571 1,919.84 349,251 1,511.22 274,9152015 561,310 2,102.23 377,121 1,624.56 291,4322016 569,048 2,301.94 407,294 1,746.40 309,0002017 576,786 2,520.62 439,963 1,877.38 327,6882018 584,524 2,760.08 475,339 2,018.18 347,5702019 592,262 3,022.29 513,651 2,169.55 368,7242020 600,000 3,309.40 555,147 2,332.26 391,233Accumulative GDP Growth (compare with 2000)614% 455% 425% 315%Notes:1. GDP of 1999 is used as the base figure, representing MOP 51.074 billion at constant (1996) prices and MOP 49.21 billion at market prices. The population of 1999 is 437,500.2. Assume the population by 2020 as 600,000, annual real growth rate of GDP 7.5% and annual GDPdeflator growth rate + 2 %.
Exhibit 3.1 Forecast of Macau’s GDP Growth (2000 - 2020)Year PopulationGDP (at market prices)GDP (at constant prices)Total (MOP 100 Millions)Per Capita (MOP)Total (MOP 100 Millions)Per Capita (MOP)2000 447,619 524.09 118,422 533.72 120,5992001 457,738 558.15 123,300 557.74 123,2092002 467,857 594.43 128,443 582.84 125,9382003 477,976 633.07 133,865 609.07 128,7892004 488,095 674.22 139,580 636.47 131,7662005 498,214 718.04 145,602 665.12 134,8702006 508,333 764.72 151,948 695.05 138,1052007 518,452 814.42 158,636 726.32 141,4752008 528,571 867.36 165,681 759.01 144,9842009 538,690 923.74 173,105 793.16 148,6352010 548,810 983.78 180,925 828.86 152,4332011 558,929 1,047.73 189,165 866.15 156,3832012 569,048 1,115.83 197,846 905.13 160,4882013 579,167 1,188.36 206,993 945.86 164,7542014 589,286 1,265.60 216,629 988.43 169,1862015 599,405 1,347.87 226,782 1,032.91 173,7892016 609,524 1,435.48 237,479 1,079.39 178,5692017 619,643 1,528.78 248,751 1,127.96 183,5322018 629,762 1,628.16 260,629 1,178.72 188,6852019 639,881 1,733.99 273,145 1,231.76 194,0322020 650,000 1,846.69 286,336 1,287.19 199,582Accumulative GDP Growth (compare with 2000)352% 242% 241% 165%Notes:1. GDP of 1999 is used as the base figure, representing MOP 51.074 billion at constant (1996) prices and MOP 49.21 billion at market prices. The population of 1999 is 437,500.2. Assume the population by 2020 as 650,000, annual real growth rate of GDP 4.5% and annual GDPdeflator growth rate + 2 %.
Exhibit 3.2 Forecast of Macau’s GDP Growth (2000 - 2020)Year PopulationGDP (at market prices)GDP (at constant prices)Total (MOP 100 Millions)Per Capita (MOP)Total (MOP 100 Millions)Per Capita (MOP)2000 447,619 531.47 120,090 541.38 122,3302001 457,738 573.99 126,798 573.87 126,7722002 467,857 619.90 133,947 608.30 131,4402003 477,976 669.50 141,568 644.80 136,3452004 488,095 723.06 149,690 683.49 141,4982005 498,214 780.90 158,348 724.49 146,9102006 508.333 843.37 167,577 767.96 152,5942007 518,452 910.84 177,416 814.04 158,5612008 528,571 983.71 187,906 862.88 164,8262009 538,690 1,062.41 199,090 914.66 171,4032010 548,810 1,147.40 211,016 969.54 178,3062011 558,929 1,239.19 223,734 1,027.71 185,5512012 569,048 1,338.33 237,297 1,089.37 193,1552013 579,167 1,445.39 251,764 1,154.73 201,1362014 589,286 1,561.02 267,195 1,224.02 209,5112015 599,405 1,685.91 283,658 1,297.46 218,3012016 609,524 1,820.78 301,222 1,375.31 227,5252017 619,643 1,966.44 319,963 1,457.83 237,2052018 629,762 2,123.76 339,963 1,545.29 247,3652019 639,881 2,293.66 361,307 1,638.01 258,0272020 650,000 2,477.15 384,090 1,736.29 269,218Accumulative GDP Growth (compare with 2000)666% 330% 321% 220%Notes:1. GDP of 1999 is used as the base figure, representing MOP 51.074 billion at constant (19%) prices and MOP 49.21 billion at market prices. The population of 1999 is 437,500.2. Assume the population by 2020 as 650,000, annual real growth rate of GDP 6.0% and annual GDPdeflator growth rate + 2 %.
Exhibit 3.3 Forecast of Macau’s GDP Growth (2000 · 2020)Year PopulationGDP (at market prices)GDP (at constant prices)Total (MOP 100 Millions)Per Capita (MOP)Total (MOP 100 Millions)Per Capita (MOP)2000 447,619 538.85 121,758 549.05 124,0612001 457,738 590.04 130,344 590.22 130,3852002 467,857 646.09 139,606 634.49 137,0992003 477,976 707.47 149,598 682.08 144,2282004 488,095 774.68 160,378 733.23 151,7972005 498,214 848.28 172,010 788.23 159,8332006 508,333 928.86 184,564 847.34 168,3662007 518,452 1,017.11 198,115 910.89 177,4262008 528,571 1,113.73 212,742 979.21 187,0462009 538,690 1,219.54 228,535 1,052.65 197,2622010 548,810 1,335.39 245,589 1,131.60 208,1102011 558,929 1,462.25 264,007 1,216.47 219,6312012 569,048 1,601.17 283,901 1,307.71 231,8682013 579,167 1,753.28 305,392 1,405.78 244,8642014 589,286 1,919.84 328,613 1,511.22 258,6702015 599,405 2,102.23 353,704 1,624.56 273,3362016 609,524 2,301.94 380,823 1,746.40 288,9172017 619,643 2,520.62 410,135 1,877.38 305,4722018 629,762 2,760.08 441,823 2,018.18 323,0632019 639,881 3,022.29 476,085 2,169.55 341,7572020 650,000 3,309.40 513,133 2,332.26 361,625Accumulative GDP Growth (compare with 2000)614% 421% 425% 291%Notes:1. GDP of 1999 is used as the base figure, representing MOP 51.074 billion at constant (1996) prices and MOP 49.21 billion at market prices. The population of 1999 is 437,500.2. Assume the population by 2020 as 650,000, annual real growth rate of GDP 7.5% and annual GDPdeflator growth rate + 2 %.
Exhibit 4.1 Correlation between Population and GDP GrowthPopulationAnnual GDP GDP Growth GDP GrowthRemarkGrowth Rate (at current prices) (at constant prices)4.5% 283% 192%550,0006.0% 375% 258%7.5% 494% 342% best possible growth4.5% 260% 179%600,0006.0% 345% 237%7.5% 455% 315%650,0004.5%6.0%242%330%165%220%worst possible growth7.5% 421% 291%Note: Assume quality of people remains constantExhibit 4.2 Correlation between Population and GDP GrowthAnnual GDP Growth RalePopulationGDP Growth (at currcnt prices)GDP Growth (at constant prices) Remark550,000 283% 192%4.5% 600,000 260% 179%650,000 242% 165% worst possible growth550,000 375% 258%6.0% 600,000 345% 237%650,000 330% 220%550,000 494% 342% best possible growth7.5% 600,000 455% 315%650.000 421% 291%Note: Assume quality of people remains constant
(1998 · 2010)Exhibit 5 Economic Forecast of Major Countries in the Worldcountry1998 2010AccumulativeGrowth(%)VariationinWeighting(%)GDP (US$ 100 millions)Weighting in the world(%)GDP (US$ 100 millions)Weighting in the world(%)USA 82,304 28.60 113,310 24.60 37.67 -4.00EuropeanUnion83,369 29.00 114,776 24.90 37.67 -4.10Japan 37,830 13.20 47,414 8.20 25.33 -5.00China 9,590 3.33 21,600 4.70 219.08 + 1.37Russia 2,766 0.96 3,944 0.86 87.56 -0.10OtherRegions71,770 24.91 168,491 36.74 134.76 + 11.83Source of Data: The World Bank; figures reorganized based on the article released by the New China News Agency (Fujian Daily, 5 September 2000).
Associacao Comercial dos Conterrâneos de Fukien Macau Associação das Senhoras Democráticas de Macau Associação de Educação de Macau Associação de Pequenas e Médias Empresas de Macau Associação dos Exportadores e Importadores de Macau Associação dos Fretadores de MacauAssociação dos Industriais de Tecelagem e Fiação de Lã de Macau Associação Geral dos Operários de Macau Associação Industrial de MacauAssociação Promotora das Ciências e Tecnologias de Macau Associação Promotora do Desenvolvimento de Macau Association of Macao Tourist AgentsAssociation of Property Agents and Realty Developers of Macau Association of Real Estate Sector of Macao E-Commerce Association of MacauMacao Association of Building Contractors and DevelopersMacau Entertainment & Service AssociationMacau Hotel AssociationMacau Junior ChamberMacau Management AssociationMacau MBA AssociationMacau Productivity and Technology Transfer CenterMacau Society of AccountantsMacau Society of Social SciencesMacau Travel Agency AssociationMacau Association of Retailers & Tourism ServicesMacau Computer AssociationMacau Construction AssociationOversea Chinese Association MacauThe Japan Alumni Society of MacaoThe Macao Chamber of CommerceThe Macau Association of BanksThe Macau Chinese Enterprises AssociationThe Macau Financial Markets AssociationAppendix: Institutions and organizations consulted fo r this research report(in alphabetical order)The Macau Institution of EngineersUnião Geral das Associações dos Moradores de MacauUniversity of Macau, Faculty of Business Administration
A lex L au Lao Pun LapA o Peng K ong Lau B un L eungC han C han A o Lau Kin H ouC han Sau San, B en jam in Lei H ong K uongC hang C hak I o ja c k Lei N gan LengC harles C hien Y ing C hen Leong M an IoC harles, D ik K ong C han Li Sheng LiC hau K ai Chi Lionel Vai Tac LeongC heong C hi M an Lo Seng C hungC hong Sio K in M ou L eong K unD anny W ong Pang Vai K amD avis, F ong K a C hio Pedro L eongE cho, K eng H ong C han Sam uel YeungF rederick , Yip W ing Fat S hunkichi O gataH ung M ei Y ing S io C hi W aiIp K in W a S tephen , C .F . LaiIu Iu C heong Tai lengIv o n e,Iao Sok Soi U K in C hoJohson C han U ng C hoi K unK am L ok N in Vong Sin M anK ok L am W ai Tong K uanK w an Yan C hi W ing-K eung AuL am H eong Sang W ong Seng SonLao K eng K in Y eung K a KeL ao K in K ok Z hang Z uo W enLao N gai Individuals consulted for this research report (in alphabetical order)