Hong Kong – The highly capitalist economy on the border of the world’s biggest socialist state, China.
Hong Kong is one of the world’s fastest-growing ‘countries’. Its exponential economic growth is primarily accredited to its connections with its neighbouring and controlling state China, its powerful trading and logistics network, and growing tourist industry. Despite this, its primary industry is financial services. Since Hong Kong opted for T-Bills over teabags, its residents have long enjoyed the dividends of its booming financial sector. As all of these listed industries and more are critical for today’s global economy, a country that provides such services at the high quality that Hong Kong offers is certain to expand rapidly, and this is the track it is predicted to follow.
However, its separation from the government under the United Kingdom and handover to the People’s Republic of China in 1997 – only 24 years ago – has left the current government in political turmoil, with protests and riots becoming common. As a result, it has not yet fully unlocked its potential. Once its social unrest is settled, it will be able to catapult itself into the global market as a critical player, challenging the likes of New York and London in the financial markets and connecting continents with its expanding trades and logistics industry. It has immense prospects yet to be tapped into, so it is one of the best examples of a thriving mixed economy.
Hong Kong positions itself more towards a free market economy, having fewer public goods and services in exchange for lower taxes, attracting more business to its financial sector. It allows the free market and invisible hand to determine prices in most markets, and government intervention is subdued. Still, it has regulations to prevent monopolization and its associated consequences and offers essential support such as free healthcare and primary and secondary education through the state. This has allowed it to maintain a healthy and well-educated population while maximizing efficiency and reducing market waste.
Leave a Reply