A Model of Decentralized Development: Border Trade and Economic Development in Yunnan

Abstract

The rapid development of border trade in the late 1980s and early 1990s has provided Yunnan with an unprecedented opportunity to pursue a model of decentralized development which emphasizes utilizing its local advantages. This new model of development has produced transformative effects on Yunnan’s economy. First, it has structurally changed the province’s pattern of economic growth. For the first time in modern history, its traditionally poverty-stricken border counties have become the focal point of international economic contacts. Second, the model of decentralized development has vastly enhanced its quality of growth. Consumerism is set at the center of economic activities, the living standards of border residents have been raised, and living conditions have been improved.