The key phrase in the latest book on Hong Kong's economy says that it is 'more difficult to understand or explain than many others in Asia'. The territory's rags-to-riches story has dazzled the world for decades, but that is not regarded as a mystery by either the Government or the population. A free market, a deep water port, the rule of law and the entrepreneurial skills and hard work of the people: these are the locally accepted ingredients for Hong Kong's success. But crucially, this success is not taken for granted. Never complacent, sections of the business community have sponsored two surveys looking into the territory's prospects as part of China while surrounded by the burgeoning regional economies.
The two have taken opposing views. A report by the Massachusetts Institute of Technology sounded a more cautious note, recommending that Hong Kong became a manufacturing centre again, creating new products and building a reputation for technological innovation. The Institute urged that money be spent on research and development and called for increased government involvement in industry, including allocating houses for science and technology experts.
The second report, The Hong Kong Advantage, is co-written by a visiting professor of Business Administration at Hong Kong University and two locally based economists. It is optimistic about the territory's future as part of China and backs the current policy of minimum official intervention. The economy, it says, is sufficiently robust to survive any major shocks.
However, both agree on one essential point; that the 'one country, two systems' pledge is crucial to continued success.
As analyses, both offer valuable insights into the market economy. But Hong Kong has prospered in the past on the back of good down-to-earth business instincts. The signs are that it will go on doing so, regardless of what the experts might say.
