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102 13 Guangdong’s Practice Demonstrates the Success of the Policy of Reform and Opening Up1 September 28, 1992 Guangdong has developed quite quickly these past few years, and it’s achieved a great deal in reform and opening up. After this on-site visit, I sense even more deeply how much it has developed and changed. I’d like to discuss three thoughts and a hope here. My First Thought Guangdong’s practice since reforming and opening up demonstrates the success of Deng Xiaoping’s theory of socialism with Chinese characteristics. It demonstrates not only the success of the policy of reform and opening up, but also the success of the special economic zones policy. These achievements have been acknowledged both at home and abroad, indeed throughout the world. For one thing, Guangdong has solved the problem of agriculture well. Agriculture is the foundation of our national economy. If agriculture doesn’t improve, the other sectors of the economy won’t be able to develop. In accordance with Deng Xiaoping’s thinking, the development of agriculture started with reforms in the rural areas. Now agriculture in Guangdong has truly moved in a high-yield, high-quality, and high-efficiency direction. Many places have gone from being unable to meet their own needs in grain to being self-sufficient and having a surplus. This is a very important foundation for Guangdong’s economic development. In fact, Guangdong’s industrial sector has undergone restructuring and improved productivity. I remember coming to Guangdong in the 1980s and hearing local people talk mainly about how to grow the “3 + 1 industries.”2 Subsequently they focused on using foreign capital and importing technology to remake their existing enterprises . Now Guangdong’s industrial restructuring has taken another step and is 1. These remarks were made by Zhu Rongji during an inspection tour of Guangdong after listening to work reports by the provincial Party committee and provincial government. 2. Translator’s note: that is, industries that process imported materials, process imported samples , assemble imported parts, and engage in compensation trade. Guangdong’s Practice Demonstrates the Success of the Policy of Reform and Opening Up 103 moving gradually toward modernization, large-scale production, and advanced technology.After undergoing internal adjustments and reorganization, industry is moving up to a higher level of development. This is something worth celebrating. With the growth of industry and the flourishing of the market sector, infrastructure construction is becoming more and more important. These past years, Guangdong has put a lot of effort into transportation construction. Without infrastructure construction, your land won’t be worth much money. If you want to sell your land for a good price, you’ll have to build roads and railways. Places near the sea or close to rivers also have to build ports, and airports must also be built. After infrastructure is built up, the economy will grow even more quickly. Places all over Guangdong have also paid a lot of attention to urban development . Many cities and towns that I visited five years ago now look completely different. I think that in urban planning, we still have to depend on “one person, one pen, and one map” and control it thoroughly. If you listen to this idea and then to that idea, things will get out of hand, and you definitely won’t be able to do a good job. So one person has to be in charge, and that person has to be the Mayor. When I was in Shanghai, I was the one in charge—I had the “one pen”; I was the only one who could sign off on land sales. Land is extremely important to Guangdong because it can be used to attract foreign capital. You all have to seriously study and consider every aspect of questions about how to incorporate land development into urban and transportation planning, how to make full use of land–rent differentials, how to turn raw land into finished land, and how to integrate long-term and short-term considerations to make a piece of land more valuable. This won’t work if several pens are involved—you’ll be big losers. After seeing these places in Guangdong, I feel strongly that if we continue down the path of reform and opening up that Deng Xiaoping has guided us along, our economic growth can be speeded up, the lives of our people can be continuously improved, the Party will enjoy prestige, and the people will support us...


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