Since 1989, the Hong Kong government has implemented a programme of public sector reform that is based on the principles of "new public management'. The reforms initially focused mainly on financial management reform. In 1993, the government realized that further civil service reform was necesary to suport the reforms. The government proposed to delegate more authority to department heads on personnel matters; give managers more freedom to manage personnel; and simplify personnel regulations and procedures. In Hong Kong, however, the reforms have been proposed and carried out in an environment of considerable political turbulence which has both facilitated and hindered their implementation. Because of the declining legitimacy of the colonia...