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Positive non-interventionism

Hong Kong's economic policy of the 1970s and 1980s; forerunner to neoliberalism

Positive non-interventionism (積極不干預) was the economic policy of Hong Kong; this policy can be traced back to the time when Hong Kong was under British rule. It was first officially implemented in 1971 by Financial Secretary of Hong Kong John Cowperthwaite, influenced by Arthur Grenfell Clarke and Geoffrey Follows which believed that the economy was doing well in the absence of government intervention but that it was important to create the regulatory and physical infrastructure to facilitate market-based decision making. The policy was continued by subsequent Financial Secretaries, including Sir Philip Haddon-Cave. Economist Milton Friedman has cited it as a fairly comprehensive implementation of laissez-faire policy. While other describe it as an variant of corporatism or even as a mixed economic system.

Declining of Positive non-interventionism

Financial Secretaries Donald Tsang, Antony Leung, Henry Tang and John Tsang all defended the minimal intervention approach, however didn't called it Positive non-interventionism and didn't really advocated for it. Donald Tsang called his economic policy "Big Market, Small Government". During Tsang term as Financial Secretary of Hong Kong, Tsang coined the term "caring capitalism" in 1996, which describe the governments's approach of giving priority to economic growth and then using the new-found wealth to develop social infrastructure and welfare services. William W. L. Wong argues that Hong Kong had under Donald Tsang a welfare capitalist system, also Christian Aspalter has the view, but Donald Tsang still used positive non-interventionist elements. After Hong Kong became part of the People's Republic of China but before Donald Tsang, Hong Kong embraced a mix of a liberal economy and a welfare state. While Peter Guy argues that Hong Kong embraces a predatory form of capitalism. Welfare measures rose in 2012. Leung Chun-ying also embraced like Tsang some positive non-interventionist elements and also used it as an governance strategy. Carrie Lam used like her predecessor positive non-inteeventionist elements even after her pledging of a “new fiscal philosophy”. However under John Lee Ka-chiu since 2024 the government tries to navigate between capitalism and socialism, if it want to find third way between them is not known though.

First-hand explanation

According to Cowperthwaite:

In the long run, the aggregate of decisions of individual businessmen, exercising individual judgment in a free economy, even if often mistaken, is less likely to do harm than the centralised decisions of a government; and certainly the harm is likely to be counteracted faster.

According to Haddon-Cave:

positive non-interventionism involves taking the view that it is normally futile and damaging to the growth rate of an economy, particularly an open economy, for the Government to attempt to plan the allocation of resources available to the private sector and to frustrate the operation of market forces.

Haddon-Cave goes on to say that the "positive" part means the government carefully considers each possible intervention to determine "where the advantage" lies, and, although usually it will come to the conclusion that the intervention is harmful, sometimes it will decide to intervene.

Similar philosophies

While John Tsang Chun-wah wasn't a positive non-interventionist, he followed a fiscal conservative philosophy. However he also embraced some social welfare programs. Henry Tang supports free markets and a small government similar to Tsang's "Big Market, Small Government", however Tang's practice welfare maeasures aren't really known. It should be noted though that dozens of people aired their grievances to Henry Tang Ying-yen over the funding cuts to welfare services made over the past couple of years. However, later he claimed that some policies aimed for welfare, even when lawmakers were critical of this, after year's Tang promised higher rent for elders. Times before he praised after all social enterprises. also he promised more family-related reforms. and romised more social welfare for social workers. The practice things Tang did make Tang's philosophy closer to positive non-interventionism. Tang openly embraces capitalism and also admires the US President Calvin Coolidge.

References

Heiwai Tang. (2021-04-14). "The 50-year Impact of Positive Non-interventionism on Hong Kong".
(November 1998). "Why we intervened".
(10 February 2014). "The Man Behind the Hong Kong Miracle". Foundation for Economic Education.
(30 June 2017). "Hong Kong: A two-stage economic experiment".
(June 2017). "Negotiating Positive Non-interventionism: Regulating Hong Kong's Finance Companies, 1976–1986". The China Quarterly.
"Speech by CE at Hong Kong Business Community Luncheon (English only)".
Lee, Peter. (2023-04-01). "Explainer: Why Hong Kong is constitutionally obliged to balance the books".
"Chief Executive - Big Market, Small Government".
Lau, Chi Kuen (1997). Hong Kong's Colonial Legacy. Chinese University Press. pp. 79–80.
(2007). "The Resilience of Personal Economy of Ageing: An Examination of the Productivist Welfare Capitalism of Hong Kong". Journal of Comparative Social Welfare.
(14 December 2010). "Different Worlds of Welfare Capitalism: Australia, the United States, the United Kingdom, Sweden, Germany, Italy, Hong Kong and Singapore".
(2010). "Innovation Policy and the Limits of Laissez-faire".
(June 2004). "The Social Security System in Hong Kong: Establishment and Readjustment of the Liberal Welfare Model". The Developing Economies.
(July 2004). "Globalisation, Unemployment and the Welfare Regime in Hong Kong". Social Policy and Society.
(10 May 2015). "The View | Question for Hong Kong is what kind of capitalism does society want".
(10 January 2012). "Rethink needed on welfare policy".
"Positive Non-interventionism and Innovation".
(March 2018). "Innovation and government intervention: A comparison of Singapore and Hong Kong". Research Policy.
(3 February 2021). "Positive Non-interventionism as Governance Strategy". Hong Kong Economic Journal, 4 November 2015.
(4 November 2015). "Yue Chim Richard Wong 王于漸 | Positive Non-interventionism as Governance Strategy « Yue Chim Richard Wong 王于漸".
"Archived copy".
(2 December 2024). "Opinion | Tension between socialism, capitalism holds back Hong Kong's recovery".
[http://www.legco.gov.hk/1966/h660324.pdf Official Report of Proceedings of the Hong Kong Legislative Council] (March 24–25, 1966) p. 216
(12 December 2016). "The remaking of financial chief John Tsang into 'local Hong Kong boy'". South China Morning Post.
(23 December 2013). "CSSA bill after court's decision will impact budget: John Tsang Chun-wah".
(21 March 2013). "From miser to God of Wealth, John Tsang lifts lid a little on public coffers".
"Pragmatism with a touch of idealism | Voice of Hong Kong".
(24 November 2004). "Tang brushes aside complaints of needy".
(19 April 2007). "Henry Tang rejects claims that budget lacks long-term direction".
(13 February 2012). "Cash for the elderly on Henry Tang's agenda".
"Henry Tang praises social enterprise".
"Henry Tang launches Family Council".
"CS visits integrated family service centre (With photos/Video)".
"Speech by Financial Secretary at Joint Business Community Luncheon (English only) (With photos/Video)".
(23 June 2007). "Henry Tang: Better Times Are Here".
"Speech by CS at SCMP conference (English only) (With photo and video)".

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