Jörn Gottwald

• In 1988, the Government of the People’s Republic of China established the island of Hainan as a province and made it a Special Economic Zone. While the hope for a spectecular economic take off was the main driving force behind this decision, it provided China with an area where far reaching trial-and-error politics could be. Hence the new provincial government was granted the privilege of setting its own legal framework for administering the special economic policies and establishing a governmental structure guided by the principle of "Small government, big society". Although some of the efforts to reduce the administration in terms of scope and resources, to develop and strengthen non-governmental organizations and provide economic actors with a minimum of freedom and reliability proved successful, the overall results are mixed: While well-being and opportunities for self-fulfillment clearly grew, political participation is still confined to areas defined by the Communist Party.