Question

In: Economics

nHong Kong society has witnessed two large–scale crises since the middle of 2019. First, the past...

nHong Kong society has witnessed two large–scale crises since the middle of 2019. First, the past 12 months have witnessed a series of political protests triggered by the introduction of the Fugitive Offenders amendment bill. This political movement has divided Hong Kong society and generated significant impacts on the local political and economic environment. On the other hand, Coronavirus (COVID-19), an infectious disease, has spread globally since January 2020. Hong Kong has also been heavily hit by this ongoing global pandemic. Now, official statistics showed that Hong Kong had slipped into economic recession. The Hong Kong SAR Government and its Chief Executives have been facing increasing pressures from different stakeholders regarding their responses to and management of the two ongoing crises. Consider the current development of the two crises, answer the following questions:

a) Conceptualize the political and economic environment that the Hong Kong SAR Government has been facing in managing the political and economic challenges caused by the Anti-Extradition Bill Movement and the Coronavirus disease (COVID-19) Pandemic.

b) Evaluate the performance of Carrie Lam, the Chief Executive of HK SAR, in managing the political and economic challenges caused by the Anti-Extradition Bill Movement and the Coronavirus disease (COVID-19) Pandemic over the last several months.

c) Provide your recommendations for Carrie Lam and the Government of HK SAR, to better manage the future political and economic challenges caused by the ongoing Anti-Extradition Bill Movement and the Coronavirus disease (COVID-19) Pandemic.

Solutions

Expert Solution

Answer A) Hong Kong's economic condition was largely affected by its political climate. The introduction of extradition bill against the will of One Country, Two systems has instilled fear in the mind of the Hong Kong residents. This in turn resulted in widespread protests which are still going on even now despite pandemic caused by Corona. Owing to the protests Hong Kong economy grew at a very miniscule rate of 0.5 percent by June 2019. Industries that got hurt were primarily tourism industry that witnessed a fall of 34 percent, retails industry also saw a downward trend and dropped by 20 percent. Many of the experts feel that with this poor economic growth Hong Kong may face recession.

Unrest still continues in Hong Kong and shows no sign of settlement as Beijing failed to come to terms with protesters on logical conclusion with the proposed extradition bill. Pro-democracy protesters are getting higher with every passing day and protests seem to have no end. As such poor political choices by Hong Kong administrator has contributed towards dismal economic performance of once a booming economy of Hong Kong. It is also indicative that Hong Kong residents are confident that immediate losses are ok to be digested instead of falling into trap of extradition bill and other Beijing's motivated policies to curb the air of freedom and democratic values of Hong Kong.

Answer B) There is a famous saying in India that "will of the people is the will of God" and if we go by this saying looks like Carrie Lam has not lived up to her role of a leader as the will of the people seems to be against her. Hong Kong over the last one year has seen tremendous uprising against government policy of extradition bill. Carrie Lam was on the limelight for introducing this bill. Since this bill gives authority to Beijing to extradite people from Hong Kong to China. Rising dissent spread across Hong Kong as they saw it to be a potential tool of Beijing to suppress any dissent that emanates from Hong Kong against the administration and its policies.

The way Carrie Lam has handled the pandemic is also seen as a half-hearted effort and the community spread of Covid-19 has created fear in the mind of people that this was intentionally spread in Hong Kong to counter protests by making protesters get infected with this virus. Many unverified and verified videos have also surfaced in social media platforms such as twitter showcasing the deliberate attempt to suppress the voice of the whistle-blower and also spreading of the virus with actions like sticking saliva on elevator switches, spitting on public places etc. Lack of will to provide better medical facilities to Hong Kong residents has added to masses dislike towards the administration. As such Carrie Lam has become very unpopular public figure in Hong Kong and she has failed to be a representative of the people. Her inefficiency is an epitome of Hong Kong's current economic and political situation.

Answer C) Below points can be put across to Carrie Lam and Government of Hong Kong SAR.

1) Primarily Hong Kong administration at this point of time should focus on dealing efficiently in preventing this pandemic and recovery of positive cases. Better medical facility and medical knowhow should be shared so as to achieve common objective of treating and preventing further rise and death of positive cases. This will develop gradual trust among the residents in Carrie's administration.  

2) Secondly administration should look into pushing the revival of the economy. Given the fact that tourism will continue to see its downfall other sectors that are doing good should be encouraged. E-commerce sectors can also be pushed so that it generates employment and revenue for both administration and civilians. Financial and professional services are doing well so if possible more employment should be created in this sector so that people have income to do their day to day purchases.

3) Thirdly, protests that are going on should be dealt in a more democratic way so that protesters do not get infuriated and possible atmosphere of dialogue should be created. It is obvious that Hong Kong residents will not let the Chinese administration have its last laugh in this whole battle. As such it would be logical to comply with the protesters and make an effort to find a way out through discussion.

4) Fourthly, administration should also propose relevant economic measures to Hong Kong residents to gain the confidence of the people.

In conclusion all administration has to do is speak the language of the people so as to develop the confidence of the people. The world is noticing on how it is acting on whims of China and how bad China's image has become globally because of its deceit in putting the world in to ventilators by hiding the outbreak of Covid-19. So people siding with China have become synonymous to siding with Evil. As such efforts should be put to pull out of bonding with China and put across people's voice. This will garner confidence not only of Hong Kong residents but also of the whole world. This will also help to restore economic ties with US and European counterparts from whom Hong Kong gets its larger share of businesses. Change in economic climate is an immediate endeavour needed for the smooth functioning of the economy.


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