The Hong Kong economy : a 1985 review

In Section One we will examine some key economic indicators of Hong Kong. We will assess the economic performance of Hong Kong against the criteria of economic growth, stability, and income distribution. Section Two will examine the industrial structure of the economy in relation to changing comparative advantage. A discussion of the forces behind these changes will throw light on the future course of the Hong Kong economy. Section Three will look at the role of the government in the development of the Hong Kong economy. We will spend some time on the highly controversial question of whether the government should take a more active role in shaping the future of the economy. We will illuminate a few potential areas where more active government participation will be fruitful. At the same time we will maintain that the philosophy of “positive non-intervention” is good for Hong Kong and should be adhered to. In Section Four we will see that notwithstanding Hong Kong‘s avowed philosophy of “positive non-intervention” the government does take up a most active role in shaping the development of the urban economy. The Hong Kong government has made a most conspicuous stamp on both transportation and housing. And it is also instrumental in the development of new towns such as Shatin, Taipo, and Tuen Mun. We will argue that while there are pitfalls in the administration of housing and transportation policies, the government’s active involvement in housing in particular has contributed to the prosperity and stability of the economy. Finally, Section Five will conclude with an overall assessment of the performance of the public and private sectors of Hong Kong