Government Intervention in Macao’s Economy

Abstract

Although the Macao government claimed during the colonial days that it followed the free-market approach in managing the Macao economy, historical evidence shows that it played an active and important role in the city’s economic development. A wide range of intervention strategies (including industrial regulation, immigration and labour policies, partnerships with businesses, and diplomatic ties with European countries) were employed by the government to stimulate and shape Macao’s economic growth, especially in the gambling and tourism sector. After Macao’s reunification with China in 1999, the SAR government was faced with the challenges of economic restructuring and China’s WTO accession. In response, it has stepped up its intervention, including using fiscal policies, strategic industrial liberalisation, and public investment in upgrading economic infrastructure and human capital, to steer the Macao economy towards the next stage of development.

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Newman M K Lam

Newman M K Lam is an Associate Professor in the Faculty of Social Sciences and Humanities in the University of Macau