ABSTRACT
China's most recent reform and development policy has attracted attention from around the world. Reform measures that break with the rigid economic model borrowed in the fifties from the Soviet Union are causing a radical restructuring of the Chinese economy. Greater freedom is being giving to market factors and private initiative, so-called "Special Economic Zones" have been set up that enjoy special economic conditions, and the door has been opened to foreign capital—all in the hope that these measures will bring life to the Chinese economy. However, experience is showing that even though a political program has been ratified in Beijing, its implementation in the provinces is not necessarily smooth and problem-free. The following sections illustrate the practical problems that centrally ratified reforms can cause for the provinces, using as an example the southwestern, multinational province of Yunnan. Yunnan is one of the poorest provinces of China and, despite abundant natural resources, is burdened by an unfavorable terrain and location. A development program tailored specifically to the region is therefore especially needed here.
