HONG KONG’S RETURN TO CHINA: AN INTERNATIONAL PORT’S SUCCESS--

HONG KONG’S RETURN TO CHINA: AN INTERNATIONAL PORT’S SUCCESS(2)

2007-06-14 13:24:09 [ Big Normal Small ] Mark Berthold 　Comment

Recalling earlier turmoil many Hong Kong residents in the lead-up to 1997 went abroad to such countries as the US, Canada and Australia to obtain a foreign passport. They then gratefully returned to Hong Kong’s booming economy and stable society. Often in time for the hand-over. By the 1990s Hong Kong was producing far more graduates to serve its needs and most expatriate government officers had their contracts localized. They contributed much to Hong Kong’s success and some remain.

Indeed Hong Kong, with merely 6 million people was by the 1980s already an international financial centre. The key word I think is “international”. British rule internationalized this steamy port with no other natural resources to speak of. Hong Kong Island’s hilly terrain was a mixed blessing. It contributes to Hong Kong’s spectacular harbor setting but greatly diminishes the number of suitable building sites. The colonial government turned this predicament into a revenue source through carefully controlled land sales and its swelling coffers funded one of the world’s great public housing projects. The prevailing philosophy though of its efficient bilingual-speaking public service was laissez faire capitalism. So Hong Kong is a duty-free port and its economy continues to be rated as the world’s most open. Local talent with good degrees were fast-tracked into a modern mandarin class and they were transferred between postings ever three years to provide them an overall understanding of how a public service functions. Naturally the British had brought with them their legal system and its predictable ways and independent judiciary won the confidence of the international business community. So many foreign companies set up offices there. enabling Hong Kong to function as the “gateway to China” when the mainland had not yet opened-up as it is increasingly doing now. Another thing the English Rule of Law achieved is that it broke the stranglehold of bribery and corruption endemic in much of Asia and so inimical to international investment and fair administration. This was achieved by confronting the problem head-on by establishing a special police force known as the Independent Commission Against Corruption. Its operation was assisted by strict laws that even made it an offence to own property whose acquisition could not be explained by the officer’s official salary. It proved so successful that Australia’s largest state of New South Wales has copied these measures and they must be highly relevant to the PRC’s efforts on this front. Similarly China commenced drafting a law to protect personal data in 2003 and Hong Kong enacted an internationally accepted law addressing this in 1996. For Hong Kong has in effect functioned as an international economic laboratory. If its success proves anything it’s that it is beneficial to adopt lessons learnt elsewhere. Hong Kong provides an invaluable resource for China’s broader development and is hopefully being recognized as such.