Reinventing the Hong Kong state or rediscovering it? From low interventionism to eclectic corporatism

Abstract

The low-intervention state of Hong Kong in colonial times did not originate from strong neo-liberal ideological convictions. It was an artefact of the colonial political configuration, a pragmatic governing strategy adapting to the political and economic needs at the time. Political changes, economic restructuring, divestiture and marketization of state institutions since the 1980s had brought a new state form after 1997. A new business and professional elite class, embedded in an eclectic corporatist structure, evolved and brought multilateral, ad hoc and particularistic bargaining, leading to more sectoral intervention after 1997. Fragmented state institutions nonetheless weakened state capacity, making it difficult for the post-1997 state to be highly penetrative, transformative or developmental.

Keywords:

• low-intervention
• eclectic corporatism
• Hong Kong
• role of state
• sectoral intervention
• organizational feudalism

Notes

1. As a representative organization indirectly elected by the indigenous people in the New Territories, the Heung Yee Kuk has been the largest interest group that represents the interests of rural dwellers and landlords in the New Territories.

2. For an analysis of the composition of the Election Committee, see Holliday, Ma and Yep (2002).

3. At least six seats, or 10 per cent of the legislature, are ‘reserved’ for representatives of designated business or financial associations. In these sectors, only the members of designated chambers of commerce or business associations (mostly corporations) are eligible electors, giving privileged representation to these organizations.

4. Civil servants who entered the government after 1987 could choose to set their retirement age at 60.

5. The current regulation under the Pensions Ordinance is that senior government officials cannot take up any employment for a ‘sanitization period’ of twelve months after retirement. In the second or third year after retirement (length depends on rank), any employment needs to be approved by an Advisory Committee on Post-retirement Employment. The latter is appointed by the Chief Executive, currently consisting of officials from the Civil Service Bureau, business and professional elites, and chaired by a judge. See the government paper to the Legislative Council, LC Paper No. CB(1)295/05-06(03). Retrieved on 9 April 2008 from: http://www.legco.gov.hk/yr05-06/english/panels/ps/papers/ps1121cb1-295-3e.pdf.

6. Note that the salary scales and fringe benefits of Hong Kong civil servants are among the most remunerative in the world.