(Question from East and West) Lei Dingming: What kind of system does Hong Kong need to be compatible with the market economy?
China News Service, Hong Kong, December 30. Title: Lei Dingming: What kind of system does Hong Kong need to be compatible with the market economy?
China News Agency reporter Zhang Xiaoxi
Recently, Lei Dingming, Honorary Fellow of the Hong Kong University of Science and Technology, Adjunct Professor of the Department of Economics, and Professor Emeritus of the Department of Economics, Lei Dingming talked about his views on Hong Kong’s economy and society in an exclusive interview with China News Service.
He believes that the most important thing in the development of Hong Kong is to clarify the relationship between the government and the market.
After the implementation of the Hong Kong National Security Law and the improvement of the SAR election system, Hong Kong's market economy continued to develop.
"Going our own way" and having a system compatible with the market economy is vital to the future development of Hong Kong, and it is also a truly long-term choice.
The summary of the interview record is as follows:
China News Agency reporter: Hong Kong implements a capitalist system under "one country, two systems". How do you view the development of Hong Kong? What are the advantages and problems?
Lei Dingming:
Generally speaking, according to the mainland's understanding of Hong Kong, economically, Hong Kong is regarded as a structure in which a free market is adopted and capitalists compete with each other; politically, it is regarded as a structure closer to liberalism. Democratic system.
However, economists generally focus on market competition. Whether Hong Kong must implement Western liberal democracy in the political system is somewhat controversial.
I personally think that liberal democracy or Western-style democracy is not necessarily a necessary condition.
If the focus is on market competition, some places in Hong Kong are very successful, but some places have problems.
Hong Kong’s success, or very much in line with the conditions of classic economic liberalism, includes: first, in terms of international trade, Hong Kong has basically no tariffs, and its import and export trade with other parts of the world is relatively free competition; second, There are basically no restrictions on the inflow and outflow of funds in Hong Kong. Third, in Hong Kong, government expenditure cannot and should not account for a high proportion of GDP. The government needs to ensure that SMEs participate in market competition in the process of market regulation.
The problems in Hong Kong, I think, on the one hand, the governance team used to be "bundled" by some laws in the past; on the other hand, the SAR government did not have much political power in the past, which made it impossible to implement some policies.
So sometimes there are problems in the Hong Kong economy, not necessarily the problems of the market economy itself.
China News Agency reporter: How is Hong Kong's market economy affected by the East and the West?
Lei Dingming: The
most important feature of Hong Kong is its free market, but it is hard to say whether the free market belongs to the West or the East.
The concept of "market" has a long history in China. The "Historical Records: Biographies of Commodities" has already explained some economic theories in great detail. Many of the contents are closely related to the current market economy, and they have been published in "The Wealth of Nations" with Adam Smith. A lot of concepts in the same.
In another Han Dynasty classic "Huainanzi", some places also talk about the market, and it is connected with the supply and demand of modern economics.
So whether Hong Kong’s free market is "East" or "West", I would not say that it is "West", nor can it be said that it is "East".
Hong Kong is under the influence of Western modern economic theories and market theories and concepts, but the Chinese people's concepts also have elements similar to the market economy. I think the two are combined in Hong Kong.
Victoria Harbour, Hong Kong.
Photo by China News Agency reporter Li Zhihua
China News Service reporter: What are the key points and difficulties of Hong Kong's governance? After the implementation of the Hong Kong National Security Law and the improvement of the SAR election system, has Hong Kong's governance changed?
Lei Dingming: For
the development of Hong Kong, what we have to figure out is the relationship between the government and the market.
Capitalism is not and should not be anarchism. The government has its reasonable functions.
In an efficient free market and society, the role of the government must be clear.
The most basic responsibility of the government is to ensure the rule of law and public order, and to protect private property rights.
In 2019, there was a "dark storm" in Hong Kong. The law and order was very poor, and some shops and subways were destroyed.
With the Hong Kong National Security Law, protection is much better.
Therefore, one of the functions of Hong Kong's National Security Law is to protect public security and thereby protect private property rights, which is tantamount to better protecting Hong Kong's market economy.
Another effect of the implementation of the Hong Kong National Security Law and the improvement of the electoral system is that it can make the SAR government’s policies less difficult to encounter in the Legislative Council.
The SAR government still acts in accordance with the rules and regulations, but it is believed that the adoption of some policies can be accelerated slightly.
On April 14, 2021, a publicity advertisement for "National Security Education Day for All" was broadcast on the big screens of the streets of Hong Kong.
April 15 is China's sixth "National Security Education Day for All People" and the first "National Security Education Day for All People" after the implementation of the Hong Kong National Security Law.
Photo by China News Agency reporter Zhang Wei
The Chief Executive of the Hong Kong Special Administrative Region Carrie Lam proposed in the 2021 policy address the construction of the northern metropolitan area and a number of measures involving long-term planning. I believe that this attitude is correct in itself. Hong Kong’s governance team should have a long-term perspective. To long-term development.
But what I am worried about is that there may be difficulties that need to be resolved during the implementation of the plan, because the northern metropolitan area is located in the New Territories and involves the interests of the indigenous residents of the New Territories and some developers. How to deal with these problems also needs to come up with a plan.
In addition, when the SAR government launches a new plan, it is also important to involve the market and private enterprises. Therefore, it is important to provide sufficient incentives.
China News Agency reporter: Xia Baolong, vice chairman of the National Committee of the Chinese People’s Political Consultative Conference and director of the Hong Kong and Macao Affairs Office of the State Council, said in his speech that Hong Kong’s capitalism has accumulated many contradictions since the development of capitalism. Objectively, the Legislative Council needs to take into account the differences of various classes and sectors of Hong Kong society. Interests, especially while conducive to the development of capitalism, better balance Hong Kong’s overall interests, sectoral interests, and regional interests. What do you think for this?
Lei Dingming:
Hong Kong society has developed to a very complicated stage. Many groups with different interests have emerged early in the morning, and they have different influences in political decision-making. They have even influenced many plans of the SAR government.
However, for a society to achieve good governance, different interests must be balanced and the overall interests of the society must be fully taken care of.
In fact, the interests of society as a whole can be taken care of. The interests of small groups may not be affected. On the contrary, it may be that because the economy is more prosperous, everyone can get some benefits.
What I am more worried about is that in the past two or three years, Hong Kong had "black storms" first and then epidemics. The SAR government always used some money to stimulate the economy and maintain social operations.
If the epidemic is over in the future, if the expenditure of the SAR government is to return to normal, it must continue to maintain the concept of "prudent financial management" and actively respond to the problem of population aging.
In addition, there is also the development of young people in Hong Kong.
Hong Kong’s education has long been lacking in science and engineering. Because Hong Kong is a financial center, many outstanding students tend to study finance, business, or law and medicine. The younger generation lacks scientific and technological talents.
This problem can actually be resolved by combining the development of Hong Kong with the development of the Guangdong-Hong Kong-Macao Greater Bay Area to provide a new space and world for young people in Hong Kong, but this also requires the SAR government to work hard on education.
Due to the educational problems in Hong Kong in the past, many young people in Hong Kong have a strong resistance to the Mainland, and they have not even been to the Mainland at all.
Therefore, it is very important to enhance Hong Kong’s young people’s understanding of the Mainland. They need to be made aware that there is room for development in the Mainland. Similarly, Hong Kong’s market economy needs more room for development, otherwise it will be a big problem for Hong Kong itself.
On September 16, 2021, the central government’s promotion of measures for Hong Kong youth was held in Hong Kong. The talk announced 8 preferential measures for Hong Kong youth, covering all aspects of schooling, employment, entrepreneurship, internship, and life.
Photo by China News Agency reporter Li Zhihua
China News Agency reporter: How do you look forward to the future development of Hong Kong?
Lei Dingming:
In terms of maintaining the market economy and developing the political system, I think Hong Kong is now heading in a good direction.
In the past, Hong Kong was politically pursuing Western-style liberal democracy, wasting a lot of time, taking some detours, and not focusing on economic development.
Now it is very important to turn our eyes back to the development of the economy.
For any system to be truly sustainable, it must be able to bring benefits to the people.
The implementation of "one country, two systems" is beneficial to both Hong Kong and the Mainland, so Hong Kong's market economy and related systems can be maintained for a long time.
Of course, while maintaining the unique characteristics of Hong Kong, it must not be reduced to an anti-China base.
Hong Kong must continue to rely on the free competition of the market to develop its economy. However, in terms of political system, we must not blindly follow the liberal democracy that has gone wrong in the West. Instead, we must "go our own way". This is very important and a truly long-term choice.
(Finish)
On June 30, 2020, Hong Kong citizens came to the streets of Causeway Bay to celebrate the promulgation of the Hong Kong National Security Law.
Photo by China News Agency reporter Zhang Wei
About the interviewee:
Lei Dingming, Honorary University Fellow, Adjunct Professor and Emeritus Professor of the Department of Economics, Hong Kong University of Science and Technology, a visiting researcher at the Center for China and World Economic Research of Tsinghua University, and Honorary Director of the Chinese Economic Research Department of Lingnan University.
Bachelor of Economics from the University of Chicago, Doctor of Economics from the University of Minnesota, Justice of the Peace in Hong Kong Special Administrative Region.
In 1991, he was awarded a tenured faculty position in the Department of Economics, State University of New York.
He has served as a member of multiple advisory structures such as the Employment Task Force of the Hong Kong Special Administrative Region Government, the Long-Term Housing Strategy Committee, the Population Policy Steering Committee, the Long-term Financial Planning Working Group, and the Land Supply Task Force, and a columnist for many newspapers and magazines in Hong Kong.
The author of "Dragon and Eagle Fighting-Hong Kong's View of Sino-US Political and Economic Relations", "Viewing the Sky from Hong Kong-Looking at the Economy from Hong Kong", "The Economic Interpretation of Democracy and People's Livelihood", "Help Hong Kong Settle the Accounts", "For the Hong Kong Dollar Crisis" "Treatment", "Use Economics as Eyes" and so on.