Does Hong Kong’s economy serve the people or profit?
China has lifted nearly 800 million people out of extreme poverty, arguably the greatest achievement in poverty reduction in human history. Even so, no mainland Chinese economist has won the Nobel Prize in Economic Sciences. Across the Pacific, the United States has produced about 75 per cent of Nobel economics laureates, even as its economy staggers under mounting public debt, chronic fiscal…
The remarkable feat of China lifting nearly 800 million people out of extreme poverty has not translated into a Nobel Prize for Chinese economists. Conversely, the United States, despite its economic struggles, has produced about 75% of Nobel laureates in Economics. Out of 99 laureates, only two are Asian. This stark contrast highlights how economics in Western countries and China serve divergent purposes, focusing on different kinds of achievements.
Western economics emphasizes capital and the capitalist system, prioritizing market forces, efficiency, productivity, and GDP growth as measures of success. In China, economics is deeply rooted in ideology, integrating a planned economy with a socialist market economy, where state and private enterprises cooperate. For Hong Kong, operating under the "one country, two systems" framework, the question is not just about winning a Nobel but about the fundamental purpose and direction of its economy.
Considering electricity, a vital service, Hong Kong’s power companies operate under government-negotiated schemes, guaranteeing returns based solely on capital assets. This profit-driven model contrasts sharply with other economic policies. Hong Kong, while appearing wealthy on paper with high average wealth per adult, suffers from marked income inequality.
Despite this, the government has not intervened to address housing affordability, instead allowing property prices to soar. The Chinese approach, such as high-speed rail, prioritizes public benefits and national development, unlike US investments in AI companies that focus on maximizing profits. China’s economic success does not necessitate a Nobel Prize, but the lack of recognition for Hong Kong’s economic policies raises critical questions about serving the people or merely pursuing profit.
Written by urgent.news from South China Morning Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
