Red Capitalism in South China

Lawrence T. Woods is an associate professor of International Studies at
the University of Northern British Columbia and the author of
Asia-Pacific Diplomacy: The Nongovernmental Approach to Regional
Economic Co- operation.

This well-researched and handsomely produced study of the economic and
spatial transformation of China’s Pearl River Delta region (the Hong
Kong-Guangzhou-Macao triangle) makes the case that this region has
achieved the highest rate of growth in East Asia by pursuing strategies
different from those of other high-growth areas. Part 1 outlines the
theoretical and historical contexts (pre- and post–1978), while Part 2
focuses on three aspects of the Pearl River Delta case: rural
industrialization, transport development, and the influence of Hong
Kong.

The author, who conducted extensive field research, argues that the
region’s proximity to Hong Kong, abundant resources, and decentralized
economic decision-making have combined to enable the delta to move one
step ahead of the nation in attracting foreign investment. These
strategic advantages have fuelled the achievement of impressive growth
in the industrial and agricultural sectors, as well as a significant
rise in productivity, employment, and per capita income.

For Lin, the distinctive and dialectical local-global interaction
apparent in this development path, together with the decline of state
control, suggests a development process that runs counter to existing
endogenous or exogenous models. Small, rural, and labor-intensive
industry financed by local and foreign capital has been the primary
engine of growth, while agricultural production has persisted as a
result of commercializing and diversifying. Unique local conditions such
as excellent natural endowments, family traditions, and access to urban
and overseas markets have also played central roles. Worthy of further
study are Lin’s observations about young women being deprived of
education because of participation in the workforce, the impact of
development on the family unit, and the emergence of conflicts involving
female workers from outside the region.

Red Capitalism in South China is a must for scholars interested in
China and for anyone interested in the economic development strategies
that might be employed by rural areas in general.