The contrasting development experience of two regions in China provides fresh insights into the role of and interaction among history, location, and policy. The Pearl River Delta (PRD) in Guangdong Province in the southwest has had the good fortune to grow at an average of over 16 percent per annum since 1979.1

No other country or region in the world has matched this pace of GDP growth in the past 50 years. Moreover, this growth shows little sign of slackening. Suitably managed, the PRD has the economic momentum to continue expanding at double-digit rates for the balance of the decade and beyond.