Hong Kong is the freest economy in the world, has been ranked as the world’s freest economy for the past 18 years. Hong Kong, as a Special Administrative Region in China, has the special rights to deal with its own economy, politics and culture. Since being established by the British in 1842, commerce has always been Hong Kong’s lifeblood and a can-do approach to business remains the norm. But to many in Hong Kong the accolade of being the world’s freest economy does not always ring true. According to the basic law, Hong Kong Special Administrative Region shall enjoy the right of independent diplomacy, executive power, independent defense, judicial independence, including that of final adjudication. Although Hong Kong has a lot of rights, the government may interfere. In a way, the policy of free economy has a bad effect on Hong Kong.

      For decades prior to 1997, the free port status of Hong Kong has meant that a freer economic policy of “laissez-faire” has been the practice. While economy freedom allowed individuals to pursue their own economy goals, the government before 1997 served as a referee that softened various societal conflicts, provided relevant infrastructure suitable to growth and development, and implemented adequate and needed social policies. However, laissez- faire economy did not operate in a vacuum, as the Hong Kong government intervened crucially in a number of economic areas, including the supply of water, rescue of commercial banks from financial crises on various occasions, provision of public housing for households whose members had only low skills, for public utilities, and negotiations in the textile export trade. Thus it can be seen, the Hong Kong government’s interference will improve the development of Hong Kong.

      While Hong Kong’s gross domestic product per head is high at 32,000 dollars, the disparity between rich and poor is wide and has become a political flashpoint. More than half of the populations earn less than 1,400 dollars a month and household incomes have barely increased over the past 10 years despite a booming economy. To help people survive on such low incomes, the government provides public housing to about 50% of the population. Hong Kong’s leader has announced it would provide more homes amid widespread discontent over sky- high property prices. The people on median incomes are not sharing in the wealth. To address this, the government has come up with the minimum wage and subsides but these are not policies that organizations would say this is a good idea. The Hong Kong government is also directly involved in other, sometimes surprising, areas of the economy. The Hong Kong government has a majority stake in Hong Kong Disneyland, which has made a loss each year since opening 2005, and is the major shareholder in MTR Corp, which runs the city’s underground and light rail network. Think about it if the government is not interfere the economy, Hong Kong’s free economy will develop well?

      Hong Kong remains an easy place to do business, but the ultra free-market policies are being questioned both by ordinary people and those in power. In the face of these pressures, the government is adopting a more populist stance. The government’s interference not means that Hong Kong should not adopt the free economy. They are moving away from a laissez-faire economy way of thinking, but in the process they do not give away Hong Kong’s free enterprise economy. In the process of developing the Hong Kong’s economy, we should adopt combined to take government interv and free economy.