‘I’m still somewhat optimistic about Hong Kong’: Nobel Prize-winning economist urges city to diversify investment portfolio, take full advantage of unique status
- Joseph Stiglitz suggests Hong Kong government should invest more in education and healthcare to ‘de-risk’ amid geopolitical tensions
- ‘Think about some of the new potential for Hong Kong in its very special role, assuming that [it] keeps [its] special place economically and with self-rule in many areas,’ he says
Hong Kong should diversify its investment strategy and take full advantage of its unique status within China to explore new development opportunities, a Nobel Prize-winning economist has said, expressing an optimistic outlook for the city’s future.
Joseph Stiglitz, a professor at Columbia University, also suggested that the Hong Kong government should invest more in the education and healthcare sectors in order to “de-risk” amid growing geopolitical tensions.
“I am still somewhat optimistic about Hong Kong,” Stiglitz told audiences on Thursday during an online appearance at the Future of Hong Kong Economy conference organised by the University of Hong Kong’s business school.
The American economist attributed his confidence to Hong Kong’s achievements over the past 56 years since his first visit to the city, as well as a sense of civic pride among residents.
“But if I were from the outside advising Hong Kong, I would say diversify your portfolio,” he said. “Also think about some of the new potential for Hong Kong in its very special role, assuming that [it] keeps [its] special place economically and with self-rule in many areas.”
Stiglitz called on the administration to make the knowledge sector, mainly universities in the city, a larger part of Hong Kong’s economy.
The education sector would play an increasingly significant role in Hong Kong’s economy, with the city’s English-speaking universities being considered a major advantage as it transitions towards a knowledge- or innovation-based economy, he explained.