Preliminary Observations on Hainan's Strategic Development Plan

Between June 22 and July 5, 1988, a three-man RAND team visited Hainan and Beijing as the initial step in providing advisory services envisioned in an agreement concluded between The RAND Corporation and the National Research Center for Science and Technology for Development (NRCSTD) of the People's Republic of China. This Note presents preliminary observations that summarize the RAND team's initial work. Its principal points include the following: (1) strategic development planning in Hainan should be construed in the sense of planning policies rather than planning projects; (2) the Hainan government should focus on producing "public" goods and providing a suitably compelling market environment; (3) substantial decisionmaking authority and responsibility should be delegated to the Hainan government; (4) diverse sources and uses of financing should be appropriately matched; (5) the military may be able to play a positive role in Hainan's development; and (6) further RAND/NRCSTD activities might include additional advisory services, selected research studies on specified topics, and staff training.