Neoliberalization and privatization in Hong Kong after the 1997 financial crisis

China Review

Volumn 7, Issue 2, 2007, Pages 65-92

  Chen, Yun Chung ^a   Pun, Ngai ^a  

^a HONG KONG UNIVERSITY OF SCIENCE AND TECHNOLOGY   (Hong Kong)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 36849023054     PISSN: 16802012     EISSN: None     Source Type: Journal    
DOI: None     Document Type: Article

References (57)

1. Neil Brenner and Nik Theodore, "Cities and the Geographies of 'Actually Existing Neoliberalism'," Antipode, Vol. 34, No. 3 (2002), pp. 349-70.
2. Pun Ngai, "Towards a Shareholding Society," in Shei chushou liao Xianggang? (Who Sells Out of Hong Kong), edited by Alliance for Safeguarding Grassroots Housing Rights (Hong Kong: Ming Pao Publishing House, 2006).
3. See David Harvey, "From Managerialism to Entrepreneurialism: The Transformation in Urban Governance in Late Capitalism," Geografiska Annaler, Vol. 71, No. 1 (1989), pp. 3-17;
4. J. Peckand A. Tickell, "Searching for a New Institutional Fix: The After-Fordist Crisis and Global-Local Disorder," in Post-Fordism: A Reader, edited by Ash Amin (Oxford: Blackwell, 1994), pp. 280-315;
5. Neil Brenner, "State Theory in the Political Conjuncture: Henri Lefebvre's 'Comments on a New State Form'," Antipode, Vol. 33, No. 5 (2001), pp. 783-808.
6. Brenner (Note 3), p. 801.
7. David Harvey, A Brief History of Neoliberalism (Oxford: Oxford University Press, 2005).
8. For neo-conservatives, "positive non-interventionism" and "free market" are indistinguishable.
9. See Wen Wei Po, 27 September 2006 and Ta Kung Po, 27 September 2006.
10. Hong Kong Economic Journal, 20 October 2006.
11. "Decolonized" means that Tsang has detached himself from privileging British capital interest over the emerging Chinese capital.
12. Bob Jessop and Sum Ngai-ling, "An Entrepreneurial City in Action: Hong Kong's Emerging Strategies in and for (Inter) Urban Competition," Urban Studies, Vol. 37, No. 12 (2000), pp. 2287-2313;
13. Siu-kai Lau (ed.), The First Tung Chee-hwa Administration (Hong Kong: Chinese University Press, 2002).
14. Stephen W. K. Chiu and Lui Tai-lok, City-States in the Global Economy: Industrial Restructuring in Hong Kong and Singapore (Boulder, CO: Westview Press, 1997).
15. Agnes S. Ku and Pun Ngai, Remaking Citizenship in Hong Kong (London and New York: Routledge, 2006).
16. Kenneth L. Chau and Chack-kie Wong, "The Social Welfare Reform: A Way to Reduce Public Burden?" in The First Tung Chee-hwa Administration, edited by Lau Siu-kai (Hong Kong: Chinese University Press, 2002).
17. Stephen W. K. Chiu and Lui Tai-lok (eds.), The Dynamics of Social Movement in Hong Kong (Hong Kong: Hong Kong University Press, 2000).
18. B. Kohl, "Privatization Bolivian Style: A Cautionary Tale," International Journal of Urban and Regional Research, Vol. 28, No. 4 (2004), pp. 893-908.
19. Po-keung Hui, "Ziben zhuyi bushi shenme" (What Capitalism Is Not) (Hong Kong: Oxford University Press, 2002).
20. T. Clarke, "The Political Economy of the UK Privatization Programme: A Blueprint for Other Countries," in The Political Economy of Privatization, edited by Thomas Clarke and Cristos Pitelis (London: Routledge, 1993).
21. Cited by Hui (Note 16).
22. H. Schamis, Re-forming the State: The Politics of Privatization in Latin America and Europe (Ann Arbor, MI: University of Michigan Press, 2002).
23. Ibid.
24. H. Feigenbaum and J. Henig, "The Political Underpinnings of Privatization: A Typology," World Politics, Vol. 46 (January 1994), pp. 185-208.
25. Schamis (Note 18).
26. M. Bell, An Invitation to Environmental Sociology, 2nd ed. (London: Pine Forge, 2004).
27. Brenner and Theodore (Note 1).
28. Ibid.
29. Ibid.
30. See Alliance for Safeguarding Grassroots Housing Rights (eds.), Who Sells Out of Hong Kong (in Chinese) (Hong Kong: Ming Pao Publishing House, 2005).
31. HA press release on 24 July 2003, "Divestment of Housing Authority's retail and car-parking facilities approved." Source: http:// www.housingauthority.gov.hk/en/aboutus/news/pressreleases/ 0,,2-0-6928,00.html
32. Ibid.
33. The HOS figure in figure 1 includes the TPS sales as well.
34. The HOS surplus in 2005-2006 is not because of the HOS sales but the restarting of the Tenants Purchase Scheme (TPS) since mid 2004.
35. This concept is often used in tax cuts. Even though tax cuts do not benefit all the people in the end, the regressive distribution effect of privatization is actually worse than that of a tax cut.
36. In fact, an international hedge fund - Children's Investment Fund Management (TCI) - from England has quickly acquired 18.5% of the Link's share soon after Link's IPO. As the largest shareholder, TCI has been aggressively forcing the Link Corporation to increase the commercial rent since early 2006, driving out the small commercial tenants that has been serving the public housing residents for decades.
37. This slogan has been widely used by protestors against the privatization of Link.
38. The cost of commercial space in public housing estates is usually, but not always, lower than in private estates mainly because of the social role of this commercial space inside the public housing estate. The rent (partly subsidized compared to "market rent") increases match the purchasing power of the public housing communities.
39. Interview with shop owner who has been doing business at Fung Tak Estate - one of the public housing estates - for 44 years. Cited from Charles Ho Chunkit, "Kill the Goose and Take its Eggs: Survival Difficulty for Commercial Tenants," in Alliance for Safeguarding Grassroots Housing Rights (eds.) (Note 26), p. 18
40. The commercial space and car parks bring in 20-30% of the HA's total revenue, thus they are commonly regarded as the "goose that lays the golden eggs."
41. Interview with a 70 year-old activist, Ms. Lo, who took the government to court for privatizing the link in June 2005.
42. A case study by Link Watch released at their press conference on 24 Nov. 2006. Link Watch is an NGO that was established at the same time as the privatization of the Link REIT. Its purpose is to monitor closely the social impact of the privatization of the Link REIT.
43. Twenty doctors together with 300 tenants protested against Link forcing them to move their clinic to a car park. Source: "Protest against the Link, doctors go to street demonstration" (Ta Kung Pao, A17, 15 December 2006).
44. The average rent of Link's shopping malls is HKD$25 per square foot, which is much cheaper than the HKD$76 per square foot of the privately-owned shopping malls. TCI insists that the Link Corporation should increase the rent from $25 to $40 per square foot, which is equivalent to a 60% increase. Cited from Hong Kong Economic Times, A18, 28 December 2006.
45. Legco members demanded the general manager of the Link should come to the Legco meeting to explain the rent increase. Unlike the officials of the HA in the past, the general manager of Link does not need to entertain the requests of politicians, and thus refused to come to the meeting. Cited from Sing Pao Daily News, A09, 5 January 2007.
46. The Link was accused by Link Watch' of exploiting cleaners at the Link's shopping malls. These subcontracted workers received as little as $14.4 per hour; and some worked for 15 hours per day. Cited from Apple Daily, A04, 15 January 2007.
47. In a recent survey of 500 commercial tenants of the Link Corporation, 90% of the tenants had been forced to pay increased rents. Among them, 37% tenants said the rate of increase was below 10%; 17% said the rate increase was between 10-20%; 5% said the increase was more than 20%; 33% of the tenants surveyed refused to disclose how great the increase was. Cited from Sing Tao Daily News, A02, 22 January 2007.
48. commercial tenants went on a street demonstration and protested in front of the government headquarters. They threatened to go on strike if the Link refused to freeze rent increases. Cited from Ta Kung Pao, 31 January 2007)
49. One sportswear store owner complain that he received notice of a rent increase of 87% from the Link Corporation. He suspects that the reason behind this increase is that a big company is interested in the location of his store. Such complaints have been rife since the Link take-over of the commercial spaces from the HA. Cited from Sing Pao Daily News, A02, 22 January 2007)
50. Link Watch (2004): "Survey report on the commercial and wet markets under Link," 24 November, 2006.
51. The survey by Link Watch (2004) interviewed 99 commercial tenants in 8 commercial spaces under the Link corporation between January and July 2006.
52. Interview with Ms Lo in June 2006.
53. David Harvey, A Brief History of Neoliberalism (Oxford: Oxford University Press, 2005).
54. Interview with the cleaners' union organizer of the Hong Kong Women Workers' Association in December 2005.
55. Interview with Link Watch organizers in March 2006.
56. Ming Pao, 1 January 2005.
57. Interview with Ms Lo in February 2005.