Governance Crisis in Post-1997 Hong Kong: A Political Economy Perspective

This paper is an attempt to analyse the origins of the present governance crisis in post-1997 Hong Kong. We see the growing social discontent and political contentions emerging in post-colonial Hong Kong as symptoms of more fundamental changes. In our review of the existing literature on the impacts of institutional changes on Hong Kong's political governance, it is pointed out that the present governance crisis cannot be explained simply in terms of growing demands coming from the civil society or leadership failure. Based upon an analysis of the changing configuration of business groups, we argue that the social foundation of an administrative state, which was once perceived as one of the institutional pillars of Hong Kong's success, has been eroded by a tendency towards de-centring in the formation of business interests. The failure to build a new state-business alliance and form a governing coalition with the capitalist class is a structural weakness of the Hong Kong Special Administrative Region government in developing its governing capacity and political leadership.