Macao: Tiny Town or Global City?

Macao is similar to a small Chinese town in terms of geographic size and population. However, this magical little place brought Western civilization to China. The whole south of China once relied on Macao as a gateway to the outside world. This helped China to understand the Western world from many angles including commerce, militarization, language and culture. Macao has played an extremely important role in the modernization of China. Throughout the history of the West’s engagement with China, Macau has not been seen as a small town, but rather a global city and gateway.

Macao’s Significance to the Modernization of China

Although the Portuguese were the primary occupants of Macao, many Western countries have utilized it to facilitate trade with China. As a result, Macao has become a natural diplomatic and commercial ground for countries to trade with China. This “market” became an important launch pad for ancient China to grow and learn from their interaction with the world. This history is also responsible for Macao’s multicultural character. Macao is still quite diverse today and the majority of the population is happy thanks to steady economic progress. This may be one of the reasons why its population has one of the highest life expectancies in the world.

Macao has been a key node for China’s access to the world since the 16th century. At that time, China was quite isolated from other countries and had neither understanding nor interest in the West. Due to this introverted system, China failed to realize the dramatic changes that were coming to commerce, technology, warfare and political institutions. Macao was the first city to welcome foreigners, many of whom set up trading outposts or embassies. In this way, it became the first gateway to China. This laid the foundation for Macao to gain a significant position in Chinese history as well as thrive from urbanization and economic progress.

Bottlenecks in Macao’s Development

Macao’s development has not been without difficulty. When the British established Hong Kong as a colony in 1841, Macao lost its place as China’s only outlet to the world. The British worked hard to colonize and implement their own rule of law, while Portugal primarily used Macao as an outpost for long voyages. Due to this difference, Hong Kong became the preferred gateway for foreigners to do business in China. This decline was a very heavy blow to Macao. Today, a tremendous amount of goods, services and capital enter China via Hong Kong. In this way, the SAR acts as a bridge between China and the world. While Macao introduced the world to China, Hong Kong solidified the relationship. In this way, Hong Kong has replaced Macau as a primary gateway to China.

Despite cultural and economic diversification, Macao has not fully realized the opportunity of industrial development. If it could achieve broader industrial development, Macao would be able to expand its influence in China and the rest of the world. Macao’s economy and society have not made nearly the same progress as Hong Kong. Before Macao was returned to China in 1999, there was an environment of depressed industrial development and poor public security. The gambling industry was a dominant force in the city. Macao did not enjoy the developed judicial system that Hong Kong had, meaning that gangs flourished. Since 1999, Macao has been given a real chance to develop. The free flow of mainland Chinese into Macao has given the gambling industry a huge financial boost. The development of a tourism and exhibition industry has helped its society to become more diversified and enriched. Macao has the added benefit of keeping its Chinese identity as its industries primarily serve the population of Mainland China. This is different than Hong Kong, which primarily caters to foreigners.

Macao’s Opportunity for Contribution to the Greater Bay Area

The Pearl River Delta has historically been one of China’s richest regions. The setback for the Delta has been its inability to form a cohesive strategy for external development. The region of Guangdong has long been dependent on the success of Macao and Hong Kong. Macao has had a difficult time utilizing its linkage to Mainland China in order to achieve influence on the outside world. This can be attributed to many factors including Macao’s promotion of certain industries and lack of trade infrastructure. The Chinese Central Government has a strategy that will certainly help Macao. The Guangdong-Hong Kong-Macao Greater Bay Area aims to make the Pearl River Delta the most livable region in China through infrastructure investments. This will attract large amounts of foreign and domestic talent and capital to the region, including Macao.

With its diverse and inclusive culture, Macao is destined for growth in the 21st century. The question becomes, what is the first step to achieving this growth? There are many opportunities for the city, but not without challenges. There is a lack of occupational diversity that is attributable to the limited industries in Macao. While the hospitality and tourism talent is some of the best in the world, Macao is lacking in scientific and technological fields. Only by creating more diverse industries, can Macao truly realize the vast opportunity that awaits. Thelack of occupational diversity can be solved partially by developing higher education.

While Macao has a large number of universities compared to its population, the universities do not actively attract professors who are renowned in their fields. The faculty teams at universities are too small to attract top international students. There is a large gap between the size and scale of universities found in Macao versus Hong Kong. As a result, Macao cannot develop its financial, scientific or technological industries as fully as Hong Kong. If Macao could recruit a diverse set of professors, it would develop better talent to form and grow these important industries.

Investment in higher education will act as a seed for the development of industry, infrastructure and social improvements in Macao. From the establishment of a stock exchange to the construction of a premier international airport, Macao can become the outlet to the world that it once was. Funding and supporting local higher education will not only allow Macao to bolster its position domestically, but it will also give it the opportunity to export new products, technologies and capital. Diversifying the economy of Macao through the development of newer industries and higher education will have many benefits. The Greater Bay Area will be strengthened and the local population will continue to prosper. Macao can once again be the small land mass that has huge impacts on China and the world.