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Hong Kong

Description​

Hong Kong is a special administrative region of the People's Republic of China.

Discussion​

Overview​

Upon the end of the Second World War, the British (re)claimed Hong Kong and declared the port a tariff-free zone for most imports. Minimal restrictions were placed on what was permitted for import.

In 1961, John James Cowperthwaite became Hong Kong's Financial Secretary. Cowperthwaite took an exceptionally hands-off approach to government compared to contemporary standards. He set no economic plan, no industrial subsidies and no domestic objectives. The official policy was "positive non-interventionism" — the government's default position was to refrain from acting, setting the parameters for a largely free-market economy.

The history of Hong Kong demonstrates how limited government interference in markets, while safeguarding property rights and facilitating free trade, can produce great prosperity and raise the general standard of living.

Governance approach​

The approach of Financial Secretary Cowperthwaite meant government mostly refrained from intervening in economic activity.

My own views on all matters of public revenue and public expenditure are conditioned by an acute appreciation of whose is the sacrifice that produces public revenue and to whom accrues the benefit of public spending. — John James Cowperthwaite, Financial Secretary of Hong Kong 1961-1971.

Implementation​

  • limited regulation
  • consistent protection of property rights
  • no monopolization of government services (non-government providers may compete with government agencies).

Flag​

Flag of Hong Kong

Resources​

  • Frisby, Dominic, Daylight Robbery (Penguin, 2022), ch. 2