Macau or Macao (澳門) – Officially the Macao Special Administrative Region of the People’s Republic of China is a special administrative region on the western side of the Pearl River estuary in southern China
With a population of 667400 and an area of 32.9 km2 (12.7 sq mi), it is the most densely populated region in the world
Macau was formerly a colony of the Portuguese Empire, after Ming China leased the territory as a trading post in 1557
Portugal governed the area under titular Chinese sovereignty and authority until 1887, when it was given perpetual colonial rights for Macau
The colony remained under Portuguese rule until 1999, when it was transferred to China. As a special administrative region, Macau maintains separate governing and economic systems from that of mainland China
Originally a sparsely populated collection of coastal islands – the territory has become a major resort city and the top destination for gambling tourism
It is the ninth-highest recipient of tourism revenue
Its gaming industry is seven times larger than that of Las Vegas
Although the city has one of the highest per capita incomes in the world, it has severe income inequality
Its GDP per capita by purchasing power parity is one of the highest in the world and higher than any country in the world in 2014 according to the World Bank
Macau has a very high Human Development Index
The government of Macau calculates its own HDI
Macau has the fourth-highest life expectancy in the world
The territory is highly urbanised and most development is built on reclaimed land
Two-thirds of total land area is reclaimed from the sea
Government and politics of Macao
The legislature meets in the Legislative Assembly Building in Sé
Macau is a special administrative region of China, with executive, legislative, and judicial powers devolved from the national government
The Sino-Portuguese Joint Declaration provided for economic and administrative continuity through the transfer of sovereignty, resulting in an executive-led governing system largely inherited from the territory’s history as a Portuguese colony
Under these terms and the “one country, two systems” principle, the Basic Law of Macao is the regional constitution
Because negotiations for the Joint Declaration and Basic Law began after transitional arrangements for Hong Kong were made, Macau’s structure of government is very similar to Hong Kong’s
The regional government is composed of three branches :
Executive: The Chief Executive is responsible for enforcing regional law can force reconsideration of legislation and appoints Executive Council members, a portion of the legislature and principal officials
Acting with the Executive Council, the Chief Executive can propose new bills, issue subordinate legislation and has authority to dissolve the legislature
Legislature: The unicameral Legislative Assembly enacts regional law, approves budgets, and has the power to impeach a sitting Chief Executive
Judiciary: The Court of Final Appeal and lower courts whose judges are appointed by the Chief Executive on the advice of a recommendation commission, interpret laws and overturn those inconsistent with the Basic Law
The Chief Executive is the head of government, and serves for a maximum of two five-year terms
The State Council (led by the Premier of China) appoints the Chief Executive after nomination by the Election Committee, which is composed of 400 business, community, and government leaders
The Legislative Assembly has 33 members, each serving a four-year term: 14 are directly elected, 12 indirectly elected, and 7 appointed by the Chief Executive
Indirectly elected assemblymen are selected from limited electorates representing sectors of the economy or special interest groups
All directly elected members are chosen with proportional representation
Twelve political parties had representatives elected to the Legislative Assembly in the 2017 election
These parties have aligned themselves into two ideological groups : the pro-establishment (the current government) and pro-democracy camps
Macau is represented in the National People’s Congress by 12 deputies chosen through an electoral college and 29 delegates in the Chinese People’s Political Consultative Conference appointed by the central government
The Macau Government Headquarters is the official office of the Chief Executive
Chinese national law does not generally apply in the region and Macau is treated as a separate jurisdiction
Its judicial system is based on Portuguese civil law – continuing the legal tradition established during colonial rule
Interpretative and amending power over the Basic Law and jurisdiction over acts of state lie with the central authority, however, making regional courts ultimately subordinate to the mainland’s socialist civil law system
Decisions made by the Standing Committee of the National People’s Congress can also override territorial judicial processes
The territory’s jurisdictional independence is most apparent in its immigration and taxation policies
The Identification Department issues passports for permanent residents which differ from those of the mainland or Hong Kong, and the region maintains a regulated border with the rest of the country
All travellers between Macau and China and Hong Kong must pass border controls, regardless of nationality
Chinese citizens resident in mainland China do not have the right of abode in Macau, and are subject to immigration controls
Public finances are handled separately from the national government, and taxes levied in Macau do not fund the central authority
The Macao Garrison is responsible for the region’s defence. Although the Chairman of the Central Military Commission is supreme commander of the armed forces the regional government may request assistance from the garrison
Macau residents are not required to perform military service and current law also has no provision for local enlistment, so its defence force is composed entirely of nonresidents
The State Council and the Ministry of Foreign Affairs handle diplomatic matters, but Macau retains the ability to maintain separate economic and cultural relations with foreign nations
The territory negotiates its own trade agreements and actively participates in supranational organisations, including agencies of the World Trade Organization and United Nations
The regional government maintains trade offices in Greater China and other nations
Cotai, the area of reclaimed land connecting Taipa and Coloane, contains many of the newer casinos and resorts established after 1999
The region’s jurisdiction over the surrounding sea was greatly expanded in 2015, when it was granted an additional 85 km2 (33 sq mi) of maritime territory by the State Council
Further reclamation is currently underway to develop parts of the Macau New Urban Zone
The territory also has control over part of an artificial island to maintain a border checkpoint for the Hong Kong–Zhuhai–Macau Bridge
Economy
Macau has a capitalistservice economy largely based on casino gaming and tourism
The regional economy is heavily reliant on casino gaming
Macau’s gaming industry is the largest in the world, generating over MOP195 billion (US$24 billion) in revenue and about seven times larger than that of Las Vegas
Although Macau has one of the highest per capita GDPs, the territory also has a high level of wealth disparity
The vast majority of government funding (79.6 per cent of total tax revenue) comes from gaming
Gambling as a share of GDP peaked in 2013 at over 60 per cent
The vast majority of casino patrons are tourists from mainland China
Casino gaming is illegal in both the mainland and Hong Kong, giving Macau a legal monopoly on the industry in China
Casino gambling was legalised in 1962 and the gaming industry initially operated under a government-licensed monopoly granted to the Sociedade de Turismo e Diversões de Macau
This license was renegotiated and renewed several times before ending in 2002 after 40 years
The government then allowed open bidding for casino licenses to attract foreign investors
Along with an easing of travel restrictions on mainland Chinese visitors, this triggered a period of rapid economic growth
From 1999 to 2016, Macau’s gross domestic product multiplied by 7 and the unemployment rate dropped from 6.3 to 1.9 per cent
The Sands Macao, Wynn Macau, MGM Macau, and Venetian Macau were all opened during the first decade after liberalisation of casino concessions
Casinos employ about 24 per cent of the total workforce in the region
Export-oriented manufacturing previously contributed to a much larger share of economic output, peaking at 36.9 per cent of GDP in 1985 and falling to less than 1 per cent in 2017
The bulk of these exports were cotton textiles and apparel, but also included toys and electronics
At the transfer of sovereignty in 1999, manufacturing, financial services, construction and real estate, and gaming were the four largest sectors of the economy.
Macau’s shift to an economic model entirely dependent on gaming caused concern over its overexposure to a single sector, prompting the regional government to attempt re-diversifying its economy
The government traditionally had a non-interventionist role in the economy and taxes corporations at very low rates
Post-handover administrations have generally been more involved in enhancing social welfare to counter the cyclical nature of the gaming industry
Economic growth has been attributed in large part to the high number of mainlander visits to Macau, and the central government exercises a role in guiding casino business growth through its control of the flow of tourists
The Closer Economic Partnership Arrangement formalised a policy of free trade between Macau and mainland China, with each jurisdiction pledging to remove remaining obstacles to trade and cross-boundary investment
Due to a lack of available land for farming, agriculture is not significant in the economy. Food is exclusively imported to Macau and almost all foreign goods are transshipped through Hong Kong