<i>SEZs, industrial clusters behind Chinese 'miracle' </i>
In the past three decades, China has achieved phenomenal economic growth, an unprecedented development “miracle” in human history, says the World Bank (WB).
It puts in a report, “The special economic zones (SEZ) and industrial clusters have made crucial contributions to China's economic success.''
“Foremost, the SEZs, especially the first several, successfully tested the market economy and became role models for the rest of the country to follow.”
Alongside countless industrial clusters, the SEZs have significantly contributed to China's gross domestic product (GDP), employment, exports, attraction of foreign investment and adopting modern management practices, says the report.
As of 2007, the WB estimates, China's SEZs including all types of industrial parks and zones accounted for about 22 percent of China's GDP, around 46 percent of foreign direct investment (FDI), and some 60 percent of exports.
China also faces many challenges to sustaining their success despite the great achievement of its two important engines of development, the SEZs and industrial clusters.
The hurdles include moving up the global value chain, the sustainability of the export-led growth, and environmental and resource constraints, says the report.
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