One lesson emerging from the recent financial turmoil in the region is the importance of forward planning in economic strategy.
The more the global economy evolves, the greater the reliance on foreign markets, with increased vulnerability for countries which place too much faith in the trends of the hour. It is daunting to recall that a year after the pundits extolled the virtues of the tiger economies, Southeast Asia is in a crisis which has brought even such a country as Japan to the brink of bankruptcy.
When anything from currency speculation to over-zealous lending can destabilise a nation, the safest government policy is to encourage economic growth which spreads the risk across a broad spectrum.
For some time now the Central Policy Unit has been head-hunting senior executives and academics for secondment to the unit. It is to extend that strategy by asking Hong Kong's universities to tender for a long term exercise involved in studying the political and socio-economic policies of neighbours in the region. By this means they hope to help the government stay ahead of the race in commerce and industry.
Vitality and adaptability are in-built Hong Kong characteristics, and backed by sound institutions and the rule of law offer the best hope of continued prosperity. But these are testing times, and some old certainties no longer hold true.
Even the shipping industry, once confident that its deep water port had no rivals, is losing out to rival facilities, modern and competitively priced, on the mainland. The economy has relied too heavily on the property sector, which is facing an adjustment that may be permanent. Changes exempting mainland institutions from the law weaken Hong Kong's appeal as a base for international companies in Asia. Many may prefer Singapore. The planned science park is one way to widen Hong Kong's economic base, but it is not a complete answer. If academics can suggest others, their advice will be invaluable.
