More or less? Welfare provision amidst economic downturn – the Hong Kong experience

Abstract

Hong Kong has experienced the historic transfer from a British colony to a special administrative region of China in 1997 and faced the challenges of Asian economic crisis in 1997–1998, the first incidence of ‘bird flu’ and the severe acute respiratory syndrome epidemic in 2003. All these have aggravated the economic downturn. The government, in the wake of these challenges, has devised remedial measures in social welfare, yet painstakingly maintaining its low profile, as it is restrained constitutionally by both its mini-constitution and its adherence to liberal market economy. These characterize a ‘developmental state’ or ‘productivist state’. The government had selectively devoted more resources in pro-market social policies but less in social security for a marginalized group. However, the government has to strive for a proper balance among individual, employer and state responsibilities in fund contribution. This balance is also couched upon the dynamic interaction between economic and social developments.

Keywords:

• Hong Kong
• shared responsiblity of welfare
• developmental state

Notes

1. This scheme was actually launched in June 1997 before the handover. The new SAR government carried on this programme to promote homeownership.