The aim of this study is to formulate short-, medium- and long-term plans for the development of the Kinmen island. During the years of high cross-strait tension, Kinmen’s geographical location made it an area of immense strategic importance for national defense; consequently, Kinmen was kept under military rule. Kinmen’s isolated location restricted its potential for economic development, as a result of which Kinmen is currently significantly less developed – both economically and socially – than most parts of Taiwan. Since the new administration took office in Taiwan in 2008, there has been a steady thawing in cross-strait relations. This increased openness has provided important new opportunities for the development of the Kinmen area. In the past, the chief obstacle to Kinmen’s economic development was the lack of clarity as to Kinmen’s status. One of the basic assumptions made in the present study is that if the drawing up of development strategies for Kinmen is not preceded by a clarification of Kinmen’s status, then the region’s economic development will continue to be retarded. In particular, if Kinmen is viewed as being some kind of “transshipment center” for links between Taiwan and China, then the outlook for Kinmen’s future development will remain bleak.
In terms of making the most of the opportunities presented by the new developments in cross-strait relations, the present study suggests that the question of Kinmen’s status can be viewed from three angles:
(1) Developmental positioning: Ensuring that Kinmen’s development maintains an appropriate balance between economic growth and environmental protection. The focus should be placed on four key development objectives: developing Kinmen as an “International Tourism and Leisure Island,” as an “Educational and Cultural University Island,” as a “Health and Wellness Island,” and as a “High-class Duty-free Shopping Island.”
(2) Regional positioning: Developing Kinmen as a “pilot project” and model for cross-strait collaboration based on mutual trust, with the aim of creating a win-win situation for both sides.
(3) Industrial positioning: Making the tourist industry the core element in Kinmen’s development, and leveraging Kinmen’s unique strengths, Taiwan’s resources, and the potential of the Chinese market, to build core competitiveness for Kinmen and stimulate the development of other industries.
The main problems that have been holding back Kinmen’s development are as follows:
(1) The lack of a powerful key industry that can lead the way in Kinmen’s industrial development.
(2) Inadequate higher education and medical facilities.
(3) The disparity in development between the main island of Kinmen and Liehyu (“Little Kinmen”).
(4) The “magnetic” attraction that China’s rapid economic growth has exerted on Kinmen and its inhabitants.
In light of Kinmen’s status and the challenges that need to be overcome, the emphasis in the future development of Kinmen should be placed on three key areas:
(1) Developing the tourist industry, promoting the growth of distinctive local industries, and developing Kinmen as a “duty-free island” to help establish Kinmen as a “International Tourism and Leisure Island”.
(2) Upgrading the educational sector to develop Kinmen as an “Educational and Cultural University Island.”
(3) Development of the medical and healthcare sector to build Kinmen into a “Health and Wellness Island”.
Besides focusing on the development of the key industries listed above, in the future efforts will also need to be made to achieve more balanced development between the main island of Kinmen and Liehyu. One of the preconditions for this will be the building of a Kinmen Bridge to link the two islands together. The research undertaken for the present study indicates that such a bridge would be highly cost-effective, making this a perfectly feasible project. In addition once Kinmen’s new industries have built significant competitive advantage, it would then be time to consider the construction of a bridge linking Kinmen to Xiamen in Mainland China, to help create a “Kinmen – Xiamen Joint Development Zone”, in which Xiamen would function as the industrial and commercial center, while Kinmen provided cultural, educational, leisure, tourism and residential functions. Xiamen would be able to supply Kinmen’s residents with the items needed for daily consumption, while Kinmen would provide high-end international and Taiwanese luxury goods. In this way, the relationship between Kinmen and Xiamen would be based on synergy rather than competition.
Finally, it is important to note that the effective implementation of short-, medium- and long-term development strategies will require “software” support in the form of ancillary measures and improvements. The main “hardware” projects will be the upgrading of Kinmen’s airport and harbor facilities, the building of the Kinmen Bridge, and the planning for the bridge to link Kinmen and Xiamen. On the “software” side, efforts will be needed to strengthen manpower cultivation and to direct private-sector investment to those areas where it is needed most. As regards legislative and regulatory changes, the Statute for Offshore Islands Construction will need to be revised to resolve the problems relating to land use, development of the educational sector, investment in healthcare, and the promotion of duty-free status, etc. It is also suggested that the restrictions governing visits to Kinmen by residents of the Mainland China region should be relaxed, as should the regulations governing establishment of duty-free shops on outlying islands.