Macau Forum January 2010

In December 2009, Macau marked the 10-year anniversary of the return to Chinese rule. As the one destination in China where gambling is legal, an influx of tourists from mainland China has ensured that Macau’s economic growth has soared in the past decade. This is been further assisted by Beijing’s dismantling of the local gambling cartel, formerly controlled by Stanley Ho. The territory’s reliance on gambling as its economic mainstay is not openly acknowledged in political fora however. Recently elected Fernando Chui, Macau’s chief executive, instead emphasised economic diversification and further regulation of the gambling industry in his inaugural speech. This is despite the gambling industry’s liberalisation having been the key to Macau’s economic rise.

As with the rest of China however, such rapid growth has not come without its cost, nor has it been balanced growth. Macau recently scored 130 out of 194 in the 2010 ‘Quality of Life Index’ conducted by International Living. Although some researchers argue that the assessment criteria of this index are biased and consequently present a skewed picture of Macau’s reality, the index resonated for some. Lawmaker Pereira Coutinho said that 'this comes to prove once again what we have been saying over the time, i.e. the gap between the rich and the poor has worsened, as well as the general quality of life for Macau residents. Macau has lost much of its quality of life, which has to do with a number of items, including the environment, the level of transparency and honesty in the government, medical care, which includes public hospitals and the guarantees of citizens rights.' A recent commentary in Macau Daily seems to agree with aspects of this view, pointing out the lack of communication between government departments and the mass media, making it difficult to keep the public informed.

Despite these concerns voiced locally, it seems that China’s central government is more focused on the strategic role Macau can play in China’s international outreach. 'Since its return to the motherland, Macau has played an unique and positive development regarding economic ties between the mainland and Portuguese-speaking countries,' Qin Gang, spokesman for the Chinese Ministry of Foreign Affairs stated at the Macau 10-year celebrations. The International Institute of Macau (IIM) marked the 10-year anniversary by launching a book ‘Macau and China/Portuguese-speaking Countries Economic Relations: 1999–2009 – Ten Years of Growth’ complied by a group of journalists from the Macaulink media group in collaboration with Delta Edições. At the launch, an old chestnut, the so-called ‘China Development Model’ and its relevance to other countries’ development was hotly debated. This underlines the lack of clarity that exists broadly in terms of what China’s ‘development model’ is and whether it is in fact replicable.

On 19 November 2009, Chang Hexi was appointed the new secretary-general of the permanent office for the Forum for Economic and Trade Cooperation between China and the Portuguese-speaking Countries, also known as Forum Macau. Seconded from the Chinese Ministry of Commerce (MOFCOM), Chang has served at the Economic Counsellor’s desk of a variety of embassies in Portuguese countries, Angola being the most recent, and has been involved in Forum Macau since its inception. On 1–2 February, Chang Hexi, together with the accredited ambassadors from the rest of the Macau Forum members, will sit down to strategise future cooperation strategies at the forum’s fifth regular meeting of the Macau Forum Permanent Secretariat. Chief among these may be ways in which to deepen financial interactions between members. Xia Xiaoling, economic counsellor the Chinese Embassy in Portugal, had a few months earlier pointed to the underdeveloped nature of links between the banking sectors in Macau Forum member states. With this in mind, it appears that China Development Bank, taking advantage of the China–Portugal 2005 Strategic Partnership, has since visited Portugal to assess the feasibility of joint projects with its Portuguese counterparts.

The triennial Ministerial Meeting of Forum Macau, postponed due to Macau’s 10-year celebrations, will be held in May this year.

Closer ties are being developed between Portuguese-speaking countries generally. Angola looks set to expand its regional grasp. Sonangol, the Angolan state-owned oil company, in December began preparations for the upgrading of São Tomé e Príncipe’s port, with plans to expand the island state’s international airport to follow. Sonangol’s support for the refurbishment of Port Ana Chaves, to the value of US$2 million, is part of a memorandum signed at the beginning of 2009. Angola’s ambitions are largely funded by oil receipts. Angola remains an important source of oil for Beijing, logging in as the second-biggest supplier of oil to China in the first ten months of last year, behind Saudi Arabia, providing around 15 per cent of the Asian country’s oil imports. However, Angola is increasingly being seen as a promising investment destination as well. The Angolan Consulate in Macau in November announced its intention to petition for jurisdiction in Guangzhou, citing the increasing number of southern Chinese businessmen seeking opportunities to invest in Angola.

Brazilian investors are also looking to African countries with new eyes. A forum for the promotion of investments scheduled for 30 November to 1 December in Salvador da Bahia, Brazil, aimed to develop partnerships between small and medium companies from Angola and Brazil's manufacturing industry and agriculture. Angola’s delegation was headed up by deputy Minister of Industry Kiala Gabriel. According to Brazilian investment agency APEX, Brazilian investors are increasingly aware of the potential of African markets, particularly where the Portuguese language is an advantage, such as Angola, Mozambique and Cape Verde. APEX is cognisant of Chinese investors’ success in these countries where Brazil should have a natural advantage and has recognised that ‘there is a lot to do’.

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* Lucy Corkin is the Macau Hub analyst for Fahamu's China in Africa programme and a research associate at the Africa Asia Centre, SOAS, University of London.
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