Building Connections to Markets
This chapter examines the impact of road construction on economic growth and poverty reduction in Yunnan and Guizhou. Yunnan leaders' road construction policy focused resources on building highways, which stimulated the exports of the province and supported the development of the tourism industry. The Guizhou government, on the other hand, concentrated on rural roadways, becoming in the process a leading province in the density of such roadways. The policies of both provinces fall into the category of market facilitation because the intention of each roadway was to expand market opportunities and access. Although the two provinces adopted a similar role for the state, they nevertheless did so while following different strategies. Yunnan leaders adopted a strategy that most clearly emulates the developmental state, promoting large-scale construction intended to maximize economic growth largely through industry. Guizhou leaders, in contrast, focused on small-scale activities and poverty reduction, which is more consistent with a micro-oriented state.
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