Saturday, July 17, 2010

The Hong Kong Myth

There are examples out there of the proper balance between an active government and market economy if people could get beyond their rigid, ideological templates and actually see them:

Actually, where Asian government has succeeded is not whether the government led the way, but where the balance between government and the market was delicately calibrated. Economies work well where governments knew how to let the market work where it functioned best and the government concentrated on what it did best.

The idea of Hong Kong being the freest market in the world is a bit of a myth, considering that half of Hong Kong citizens live in government owned low-cost housing and the government provided superb social welfare. Positive non-intervention did not mean no intervention. It meant that the government provided the environment for the private sector to thrive, without competing directly with the private sector.

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