Macau, a 27 square kilometers territory in south china, bordering Guangdong province and located in the Pearl River delta, west of Hong Kong, is a Chinese territory which administered by Portugal from the sixteenth century until 19 December 1999.
Basically in Macau, the current political and institutional framework, similar to that of Hong Kong, with different legal traditions, both are named as Special Administrative Regions. Based on the 1987 Sino-Portuguese Joint Declaration – an international treaty between Portugal and China, it applies until 2049. In other words, “remain unchanged for 50 years”, which with the principle “one country, two systems”, and high degree of autonomy are the basic thoughts of Basic Law. In this report, I will mainly analyze the economy changes comparisons before and after the returning of Macau by using the economy concept of Basic Law. In the chapter 5 of the Basic Law, there are 18 articles which stated kinds of, which ensure the economy of Macau can stably developing. As we knows, Economy is the large set of inter-related economic production and consumption activities which aid in determining how scarce resources are allocated, while Economic system is the system of production and distribution and consumption.
Macau still is one of the most open economies in the world since its reversion to China in 1999. One of the most important reasons is the effects of Basic Law. The Macau economy is based largely on tourism (including gambling) and textile and fireworks manufacturing. Efforts to diversify have spawned other small industries - toys, artificial flowers, and electronics. Negative growth for 4 years in succession before coming back, although the territory was hit hard by the 1997-98 Asian financial crisis and the global downturn in 2001, its economy grew 10.1% in 2002, 14.2% in 2003, and 28.6% in 2004. Leap-type increases year after year, the local total output value of Macao attracts people's attention, meanwhile, the...
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