State Policy and Economic Growth: a Note on the Hong Kong Model.

The relationship of state policy to economic growth in such countries as Japan, South Korea, Taiwan and Singapore has been appreciated by some social scientists for quite some time while; Hong Kong seemed to be the deviant case. The article focuses on economic growth in Hong Kong, which was also predicated on substantial state intervention. However, state ownership of land, the provision of collective consumption, and the supply of basic commodities by the People's Republic of China, at less than market prices, are the defining characteristics. Although many commentators have noted the advantages of Hong Kong's geographical position in aiding rapid industrialization, her political status may have been equally important. Because it is administering a colony, Hong Kong's government has been able to avoid the types of political pressures that have often led to mushrooming public sectors, disproportionate investment in "non-productive" activities and resultant financial difficulties in many third world countries.