‘One country-two systems’ governance in Macao

Macao has a history of more than 400 years as a bridge between the West and the East

Macao is one of the fastest growing economies in the world

Macao is a special administrative region (SAR) and is located on the southeastern coast of China and borders Zhuhai in Guangdong Province. It has a population of 676,000 and an area of 32.989km2. It became a Portuguese colony after China leased the territory as a trading port in 1557. Portugal ruled this territory until 1999 when it was transferred back to China. Known as Monte Carlo of the East, Macao is a famous gambling city.   

‘One country-two systems’ is a form of governance introduced by former leader Deng Xiaoping of China for Hong Kong and Macao. These two areas were governed by European nations for a few centuries. As a result of the life pattern, socio-economic systems and culture were totally different from the people living in mainland China. English received prominence in Hong Kong and Portuguese language is popular in Macao. Even the currencies used in these two regions were different from mainland China. They also have free ports. 

China did not want to change the life pattern or the existing capitalist economic systems of these regions after the takeover. They came forward to introduce a system of government where people could run their own affairs in the said regions. One country- two systems came into being as a result of that. This act of China was greatly appreciated by the world community and the transfer took place without shedding a drop of blood. This system came into effect on December 20, 1999 in Macao. 

Under this system, Macao has its own local government, legal and financial systems. According to their laws, gambling is legalised. This region has been granted the power to select its own chief executive officer. He is being selected by a political body of the region. This selection body comprises politicians and members of the business community numbering 400. Only defence and foreign affairs are being controlled by Beijing. 

Macao has a history of more than 400 years as a bridge between the West and the East. The integration of Chinese and Western cultures in the city has made it a well-known tourist destination. Major attractions in Macao include St. Paul’s ruins, Casino Lisboa, A-Ma temple, memorial house of Dr. Sun Yat Sen and Gua hill. Regional convention and exhibition centres are created to streamline the inflow of tourism. Last year, it received more than 35.8 million visitors, a big leap from fewer than 8 million in 1999. Tourism and related industries have brought economic benefits and created jobs for 380,000 people. 

Another important economic system created by China is the formation of an inter-state linkage among the Portuguese-speaking countries with Macao to improve trade relations. A platform between China and Lusophone countries through Macao were included in China’s twelfth and thirteenth five-year plans to appreciably diversify the region’s economy. Two years ago, the ‘China-Portuguese Speaking Countries Cooperation and Development Fund’ was founded in Macao. Macao is regarded by the World Trade Organisation as one of the most open economies for trade and investment and thanks partly to its free port, low tax rate and close connection with Portuguese-speaking countries. 

The outline development plan for Guangdong, Hong Kong, Macao Greater Bay area – unveiled by the central government in February 2019 – listed Macao as one of the four core engines for the region’s development. In June 2019, it released an annex to Macao’s five-year development plan that was dedicated to Macao’s participation in the Bay Area construction, covering a wide range of issues including social welfare, education, youth entrepreneurship, technology, infrastructure and culture. Macao is able to diversify its industry and better integrate into mainland economic plans under this new scheme. Macao will be connected to Hong Kong and nine neighbouring cities in Guangdong  Province to form an economic powerhouse. 

China has recently opened a new express sea way connecting Hong Kong, Zhuhai and Macao. The sea bridge connects mainland China with Macao and has made it easy for personal and goods transportation. The central government thinks Macao is “Window and Bridge” connecting China to the world. As a node city of the 21st Century Maritime  Silk Road, it has a special role in promoting mutual understanding between the East and West. 

Macao is willing to enhance interaction with international organisations to build a platform for China to participate in global governance by using its free port to take advantage in order to attract more global organisations to set up branches in the city, which will further enhance cooperation and communication among China and international organisations. 

We witnessed the large, rapid changes Macao has experienced since its return to the motherland. The region’s once depressed economy has grown continuously during the past 20 years with its GDP soaring to Patacas 444.7 billion (USD 55.4 billion) in 2018 from Patacas 51.9 billion in 1999. Today, Macao is one of the fastest growing economies in the world and China’s richest city with its per capita GDP of USD 82,600 in 2018 being the second highest in the world. 

Chinese President Xi Jinping highly commended Macao’s successful development in the last 20 years in his speech on December 20, 2019 at the 20th anniversary celebration of Macao’s return to the motherland. He said the central government would fully support the new government of Macao SAR led by CEO Ho Lat Seng. Xi underlined the need for leaders to pursue a people-centred approach and urged them to take people’s well-being seriously. 

Ho Lat Seng, incoming chief executive of Macao SAR, recently said he would work together towards one goal, which was to build a more prosperous and beautiful Macao and ensure the ‘One country-two systems’ principle went far and remained steady. “Love for the motherland and love for Macao and ‘One country-two systems’ have become the core values of the Macao society,” he said.  

Jinith de Silva, 
 Vice President, 
 Sri Lanka-China Society