Tashkent, Uzbekistan (UzDaily.com) -- Experts from the Institute for Forecasting and Macroeconomic Research (IPMI) studied the experience of the famous Chinese province of Guangdong in developing small businesses and private entrepreneurship.

In 2022, Guangdong’s GRP was 12.8 trillion yuan (approximately US$1.9 trillion). According to this indicator, it is on the same level or even surpasses such countries as South Korea, Canada, Australia, Brazil and a number of other developed countries. It is amazing that the province has reached such a level in such a short time. What is the secret of Guangdong’s success?

The results of the study showed that the secret lies in bringing infrastructure, entrepreneurs, workforce, knowledge, institutional environment and financial resources together in a small area. In particular:

1. Created special areas or villages fully provided with public services for the needs of entrepreneurs (the state created an ideal infrastructure in a small area).

2. A "three in one" project was developed (in order to attract labor from neighboring villages, three-story buildings were built: a store or warehouse was located on the 1st floor, production on the 2nd, housing for workers on the 3rd).

3. Roads passing through special areas have been widened and railway stations have been built - now it takes less than three hours to reach any city in Guangdong.

4. State subsidies were provided to enterprises for the construction of additional dormitories.

5. Toll roads were built and high-speed trains were introduced. Market and credit mechanisms were used to finance this infrastructure.

Due to the influx of investments and new technologies, Guangdong began to supply the whole country with clothing, ceramics, electrical appliances, furniture, food, heavy equipment and cars. Due to the fact that the state paid special attention to the construction of infrastructure in Guangdong, the city served as a gateway to China for foreign companies.

Guangdong received the status of a special economic zone, in which all the conditions for doing business were concentrated. This motivated the inhabitants of the Celestial Empire abroad to invest in it. In addition, the proximity of Guangdong to Hong Kong has opened an additional avenue for the inflow of financial resources.

In conclusion, the secret of Guangdong’s success was first to move human capital towards infrastructure, and in the next stage, infrastructure towards human capital.