Hong Kong should adopt a new governance mindset
Since major stock markets around the world plunged in synch in October 1987, the global economy — especially the financial market — has been rocked by a manmade disaster every decade. In 1997 it was the Asian financial crisis and in 2007 it was the US subprime mortgage debacle.
The subprime disaster heralded the “financial crisis of the century” in the US the following year. The impact of the 2008 financial crisis is unmatched in recent history and still felt today. Since the 2008 crisis triggered the latest global recession, another decade has gone by and the big shock is no longer limited to the financial sector.
From 1987 through 1997, Hong Kong experienced the transition from British rule to becoming a special administrative region of the People’s Republic of China. However, because of an emphasis on “smooth transition”, the governance mindset in Hong Kong remained more or less the same as that of the 1980s.
The “positive non-interventionism” adopted by the British Hong Kong government as the guiding principle on economic policies, though shaken by the fourth-term chief executive in 2012, did not budge when it came to the making and execution of specific policies due to overwhelming resistance from many corners of society. The current-term Hong Kong government has shown a proactive work style but is under more pressure than its predecessor to change the old governance mindset.
The old governance mindset consists of three parts: First, the government must refrain from intervening in the economy as best it can; second, the government must remain above ideological debates of local society; and three, the government must maintain a cordial relationship with both the Chinese mainland and the West.
As far as the first part is concerned, the current administration has only followed up the minor changes initiated by the previous government, particularly in increased funding for innovative-technology development. However, it is still committed to “positive non-interventionism”, and has not considered issuing guidelines for intermediate and long-term development of the economy or establishing an investment company to take part in the development of specific industries. The problem is that the fast-changing external situation does not allow this governance mindset to continue. On Aug 10, Secretary for Commerce and Economic Development Edward Yau Tang-wah said in an interview with RTHK and Commercial Radio that Hong Kong’s response to the USChina trade disputes so far can be described as a No 1 tropical storm warning in the weather forecast. Hong Kong’s internal and external economic and financial situations are changing dramatically as we speak and the SAR government must think hard about challenges to the city’s long-term prosperity and stability.
Regarding the second part, in order to defeat pro-independence advocacy, the SAR government has started the process of terminating the operation of the “Hong Kong National Party” according to Section 8 of the Societies Ordinance, which has been met with desperate resistance from opposition parties in the name of free speech. The government must not only make the political and legal limits to free speech absolutely clear, but also guide Hong Kong society toward embracing the fundamental values of respecting the country’s political system and accepting the central government’s overall jurisdiction over the Hong Kong SAR.
Hong Kong acquired its “traditional” core values under British rule and they do not sit pretty with the reality that Hong Kong is now an SAR of China. The local government is required by the Basic Law to ensure Hong Kong residents’ basic rights and freedoms, but it is also obligated to educate the public about the fundamental truth that “one country” is the prerequisite of “two systems”.
As for the third part, before the current US government adjusted its predecessor’s global strategy and declared China as one of its main rivals, Hong Kong society was under the impression that the city not only can but also should continue acting as a deal-maker between China and the West. Some Hong Kong residents even believed Hong Kong’s strong suit under “one country, two systems” is its strong links to Western societies, including the capitalist system and Westernized lifestyle adopted in the past.
Today, however, the Belt and Road Initiative put forward by President Xi Jinping in 2013 is now in full swing; the HKSAR needs to do more to show it is serious about seizing the opportunities created by the BRI. That is why it needs to adopt a brand new governance mindset without delay.