Asian and African observers of the Yantian miracle
- By Zhou Lin
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Officials from developing countries visit the Yanghua Digital Technology Co., Ltd. [File photo] |
"Attracting such a level of foreign direct investment was the turning point of the village," Chakra Prasad Paneru, an official of Nepal's Revenue Investigation Regional Office, said. "These foreign-invested enterprises brought a large amount of substantive earnings for villagers, including the money needed to rent land and premises."
Hassan Mohamed Haji, an officer with the Tanzanian police force, is convinced that it's a win-win situation. Enterprises with investments from Hong Kong, Taiwan and foreign countries have enjoyed Yantian's unique geographical advantages, preferential policies and low-cost labor force, and have also brought opportunities for the small village, including abundant capital, advanced technology, marketing information, and management expertise.
In 1994, Yantian Village featured on China's prominent economic village list. By the end of 2014, the total assets of Yantian Village reached RMB 2.83 billion, with a net asset of RMB 2.34 billion. In 2014, the village collective net income was RMB 190 million, among which RMB 72.36 million was given to individuals as dividend, and the per capita dividend was as high as RMB 24,000. According to an investigation several years ago, villagers' dividend took up 25 percent of their total income. Thus, the villagers' net income per capita was about RMB 100,000; one farm household's annual net income reached RMB 350,000.
Inland migrants: More opportunities and better insurance
With abundant foreign enterprises and inland companies, Yantian Village's demand for labor has increased. A village with 3,000 permanent residents has developed into a business center with a population of nearly 100,000. Apart from around 1,500 local villagers engaged in the non-farming economy, 60,000 laborers from around the nation have found job opportunities in the small village. The migrants work and live in Yantian and have contributed to its status as a prosperous town.
The expanding population has increased the demand for medical and health care services. A diversified welfare structure has hence been formed, in which the government, the private sectors, and the village collective participate in various modes. Currently, there is a public hospital, a public community health station, a large private hospital, and 17 private medical institutes, jointly providing medical services to all Yantian residents, locals and migrants alike.
Indeed, today one of the most famous hospitals in Yantian is the well-equipped private Southern Medical University Guangji Hospital, which has top medical apparatus and instruments, and a team of doctors selected from renowned hospitals around China. A new health insurance system especially for migrants guarantees inexpensive medicines and the same level of care as for locals.
Isaac Barimah Amponsah from Ghana's Ministry of Energy attributed the "Yantian Miracle" to the decisive role of the private sector, pointing out that in Yantian Village it has addressed some of the developmental challenges via economic growth, job opportunities, poverty reduction, public services, and contributions to local taxation.
"The Yantian Miracle is an outstanding merit not only of village authorities but also of a hardworking migrant labor force. People from nearby areas and inland provinces have found a second home in Yantian and are able to support their families at home by sending money back," said Sardarbek Mairykov from Kyrgyzstan, a finance assistant of the United Nations World Food Program.
Vannasy Phonehanheuang, an official from the Ministry of Planning and Investment of Laos, agreed and offered an indepth analysis on the impact of migration. It is generally recognized that a large number of people moving from the countryside to the city, from economically underdeveloped areas to developed areas, are influenced by such factors as "expected earning opportunities," "personal development aspirations," and "urban lifestyle." However, migrants in Yantian are quite different since they have moved from big cities to the rural village. Yantian offers migrants more opportunities and better social insurance.
Apelu Ioasa, a principal auditor from the Ministry of Education of Samoa, told the reporter that the idea of setting up private schools or private hospitals following the Yantian model would be a suitable strategy to improve the economies of developing countries like Samoa. As Samoa's main source of income is from agriculture and tourism, and these sectors are facing bigger challenges, Samoa must try to promote the service sector. Samoa is vulnerable to natural disasters like tsunamis, typhoons and floods which pose severe harm to agriculture and tourism. Also, overseas economic shocks can easily affect Samoa's economy in terms of reduction in remittances from Samoans who live overseas.
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