The Myth of a Free Hong Kong Economy
Posted: Fri Aug 03, 2012 11:36 pm
The dark secret at the heart of Hong Kong is the unmitigated collusion between the government and a property cartel - controlled by just a few tycoons; the Lis, the Kwoks, the Lees, the Chengs, the Pao and Woo duo, and the Kadoories (more about them on part 2 of this report). These tycoons and their close business associates also happen to dominate seats on the 1,200-member Election Committee that chooses Hong Kong's chief executive.
Part 1 of 2: http://atimes.com/atimes/China_Business/NH02Cb01.html
This short presentation may offer a measure of how a few monopolies and oligopolies control most of the daily life of an average Hongkonger. It suggests Hong Kong, rather than being a "free" society, is actually the domain of captive markets.
By any definition, a captive market is a market where very few actors exercise a monopoly. Captive markets - which imply scarce competition - yield immense profits, without relation to costs of production.
Part 2 of 2: http://www.atimes.com/atimes/China_Busi ... 3Cb02.html
Part 1 of 2: http://atimes.com/atimes/China_Business/NH02Cb01.html
This short presentation may offer a measure of how a few monopolies and oligopolies control most of the daily life of an average Hongkonger. It suggests Hong Kong, rather than being a "free" society, is actually the domain of captive markets.
By any definition, a captive market is a market where very few actors exercise a monopoly. Captive markets - which imply scarce competition - yield immense profits, without relation to costs of production.
Part 2 of 2: http://www.atimes.com/atimes/China_Busi ... 3Cb02.html