China, the New Development: Shenzhen, Plan with a Global Vision

This chapter contradicts Nobel Laureate Friedrich Hayek’s argument that even when incentives were not a problem, central economic planning (i.e., socialism) would fail largely because the planners cannot have the information to plan an economy well. This chapter details Shenzhen city urban planning and industrial development policies in four stages since 1979. It explains how China’s first special economic zone has developed into a technopole, led by Shenzhen local government: local autonomies granted to Shenzhen government officials by the central government are significant in its economic development and technological innovation.