Given the general lack of laissez-faire in the world, examples to show the benefits of free market capitalism are few and far between. However, Hong Kong is often pointed to as an example of the power of capitalism and how a "pure" capitalism will benefit all.
It is undeniable that the figures for Hong Kong's economy are impressive. Per-capita GDP by end 1996 should reach US$ 25,300, one of the highest in Asia and higher than many western nations. Enviable tax rates - 16.5% corporate profits tax, 15% salaries tax. In the first 5 years of the 1990's Hong Kong's economy grew at a tremendous rate -- nominal per capita income and GDP levels (where inflation is not factored in) almost doubled. Even accounting for inflation, growth was brisk. The average annual growth rate in real terms of total GDP in the 10 years to 1995 was six per cent, growing by 4.6 per cent in 1995.
However, looking more closely, we find a somewhat different picture than that painted by those claim it as an example of the wonders of free market capitalism (for the example of Chile, see section C.11).
Firstly, like most examples of the wonders of a free market, it is not a democracy, it was a relatively liberal colonial dictatorship run from Britain. But political liberty does not rate highly with many supporters of laissez-faire capitalism (such as right-libertarians, for example). Secondly, the government owns all the land, which is hardly capitalistic, and the state has intervened into the economy many times (for example, in the 1950s, one of the largest public housing schemes in history was launched to house the influx of about 2 million people fleeing Communist China). Thirdly, Hong Kong is a city state and cities have a higher economic growth rate than regions (which are held back by large rural areas). Fourthly, according to an expert in the Asian Tiger economies, "to conclude . . . that Hong Kong is close to a free market economy is misleading." [Robert Wade, Governing the Market, p. 332]
Wade notes that:
"Not only is the economy managed from outside the formal institutions of government by the informal coalition of peak private economic organisations [notably the major banks and trading companies, which are closely linked to the life-time expatriates who largely run the government. This provides a "point of concentration" to conduct negotiations in line with an implicit development strategy], but government itself also has available some unusual instruments for influencing industrial activity. It owns all the land. . . It controls rents in part of the public housing market and supplies subsidised public housing to roughly half the population, thereby helping to keep down the cost of labour. And its ability to increase or decrease the flow of immigrants from China also gives it a way of affecting labour costs." [Ibid.]
Wade notes that "its economic growth is a function of its service role in a wider regional economy, as entrepot trader, regional headquarters for multinational companies, and refuge for nervous money." [Op. Cit., p. 331]. In other words, an essential part of its success is that it gets surplus value produced elsewhere in the world. Handling other people's money is a sure-fire way of getting rich (see Henwood's Wall Street to get an idea of the sums involved) and this will have a nice impact on per-capita income figures (as will selling goods produced sweat-shops in dictatorships like China).
By 1995, Hong Kong was the world's 10th largest exporter of services with the industry embracing everything from accounting and legal services, insurance and maritime to telecommunications and media. The contribution of the services sectors as a whole to GDP increased from 60 per cent in 1970 to 83 per cent in 1994. Manufacturing industry has moved to low wage countries such as southern China (by the end of the 1970's, Hong Kong's manufacturing base was less competitive, facing increasing costs in land and labour -- in other words, workers were starting to benefit from economic growth and so capital moved elsewhere). The economic reforms introduced by Deng Xiaoping in southern China in 1978 where important, as this allowed capital access to labour living under a dictatorship (just as American capitalists invested heavily in Nazi Germany -- labour rights were null, profits were high). It is estimated about 42,000 enterprises in the province have Hong Kong participation and 4,000,000 workers (nine times larger than the territory's own manufacturing workforce) are now directly or indirectly employed by Hong Kong companies. In the late 1980's Hong Kong trading and manufacturing companies began to expand further afield than just southern China. By the mid 1990's they were operating across Asia, in Eastern Europe and Central America.
The gradual shift in economic direction to a more service-oriented economy has stamped Hong Kong as one of the world's foremost financial centres. This highly developed sector is served by some 565 banks and deposit-taking companies from over 40 countries, including 85 of the world's top 100 in terms of assets. In addition, it is the 8th largest stock market in the world (in terms of capitalisation) and the 2nd largest in Asia.
Therefore it is pretty clear that Hong Kong does not really show the benefits of "free market" capitalism. Wade indicates that we can consider Hong Kong as a "special case or as a less successful variant of the authoritarian-capitalist state." [Op. Cit., p. 333] Its success lies in the fact that it has access to the surplus value produced elsewhere in the world (particularly that from the workers under the dictatorship in China and from the stock market) which gives its economy a nice boost.
Given that everywhere cannot be such a service provider, it does not provide much of an indication of how "free market" capitalism would work in, say, the United States. And as there is in fact extensive (if informal) economic management and that the state owns all the land and subsidies rent and health care, how can it be even considered an example of "capitalism in action"?
“That’s a big honor,” commented Larry. “The passenger, while they were high up, threw something and hit the pilot, the seaplane went out of control, the man jumped—and then cut free his parachute, cut the sack holding the emeralds, and hid in the swamp.” “I see a light,” Sandy said as the airplane swung far out over the dark water. “A green light, but the hydroplane wouldn’t carry lights.” "No, no; it's a good deal, but it ain't too much. Not that it could be more, very well," he added, and he glanced furtively at the woman within, who had stretched out on the lounge with her face to the wall. Mrs. Taylor was fanning her. But though the 21st of January was to be the day of the grand attack on the Ministry, the battle was not deferred till then. Every day was a field-day, and the sinking Minister was dogged step by step, his influence weakened by repeated divisions, and his strength worn out by the display of the inevitable approach of the catastrophe. The first decided defeat that he suffered was in the election of the Chairman of Committees. The Ministerial candidate, Giles Earle, was thrown out by a majority of two hundred and forty-two to two hundred and thirty-eight, and the Opposition candidate, Dr. Lee, was hailed by a shout that rent the House. Other close divisions followed. The fall of Walpole was now certain, and he would have consulted both his dignity and comfort in resigning at once. This was the earnest advice of his friends, but he had been too long accustomed to power to yield willingly. He was oppressed with a sense of his defeats, and the insolence of enemies whom he had so long calmly looked down upon without fear. He was growing old and wanted repose, but he still clung convulsively to his authority, though he had ceased to enjoy it. "Should think they was bride and groom, if they wasn't so old." "March them right over to that shed there," said the Major, "and the Quartermaster will issue them muskets and equipments, which you can turn over again when you reach Chattanooga. Good-by. I hope you'll have a pleasant trip. Remember me to the boys of the old brigade and tell them I'll be with them before they start out for Atlanta." The train finally halted on a side-track in the outskirts of Chattanooga, under the gigantic shadow of Lookout Mountain, and in the midst of an ocean of turmoiling activity that made the eyes ache to look upon it, and awed every one, even Si and Shorty, with a sense of incomprehensible immensity. As far as they could see, in every direction, were camps, forts, intrenchments, flags, hordes of men, trains of wagons, herds of cattle, innumerable horses, countless mules, mountains of boxes, barrels and bales. Immediately around them was a wilderness of trains, with noisy locomotives and shouting men. Regiments returning from veteran furlough, or entirely new ones, were disembarking with loud cheering, which was answered from the camps on the hillsides. On the river front steamboats were whistling and clanging their bells. "Go out and git you a rebel for yourself, if you want to know about 'em," Shorty had snapped at the Orderly. "There's plenty more up there on the hill. It's full of 'em." "Drat 'em! durn 'em!" "He's dead," said Realf. Should you leave me too, O my faithless ladie!" The odds were generally on Reuben. It was felt that a certain unscrupulousness was necessary to the job, and in that Backfield had the advantage. "Young Realf wudn't hurt a fly," his champions had to acknowledge. Though the money was with Reuben, the sympathy was mostly with Realf, for the former's dealings had scarcely made him popular. He was a hard man to his customers, he never let them owe him for grain or roots or fodder; his farm-hands, when drunk, spoke of him as a monster, and a not very tender-hearted peasantry worked itself sentimental over his treatment of his children. Caro was frightened, horrified—she broke free, and scrambled to her feet. She nearly wept, and it was clear even to his muddled brain that her invitation had been merely the result of innocence more profound than that which had stimulated her shyness. Rough seaman though he was, he was touched, and managed to soothe her, for she was too bashful and frightened to be really indignant. They walked a few yards further along the path, then at her request turned back towards Odiam. Calverley reluctantly departed on his mission, cursing the interruption that prevented his enjoying the degradation of his rival, and the baron now inquired whether Holgrave had confessed himself his villein. HoME国家产免费一级毛卡片
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