1
SKH Lam Woo Memorial Secondary School
Form 3 E.P.A
2 The main features of the Hong Kong economy
Introduction
Hong Kong is a famous city in the world. Many people think that the following factors lead to the successful economic development:
- The respect of private property right
- The practice of free market economy
Private property right (私有產權)
Private property right refers to the right of a person to own (擁有) a property such as a house or a car. Id someone owns a property, he or she has the right to:
use the property or refuse (拒絕) to let other people use that property.
make use of the property to earn an income; and
transfer the ownership (擁有權) of the property to other people.
The relationship between private property right and economic development
As the examples show, Ka Shing can use his van to earn an income by delivering goods for other people. In fact, if the government takes all his income as tax, he may lose his incentive (動機) to work.
Therefore, if a government protects the private property right of its citizen, it can help promote economic prosperity (繁榮).
How does the HKSAR government protect private property right?
Law enforcement (施法)
The government protects people’s private property and ensures (確保) fair deals (公平交易) through the enforcement of laws.
Simple and low taxation system
Hong Kong always keeps a simple and low taxation system. As a result, businessmen have a strong incentive to invest (投資) in Hong Kong. The low taxation system attracts people to work harder and it promotes economic development.
Free market economy (自由市場)
It is believed that the practice of free market economy in Hong Kong is also important for the economic prosperity.
Features of a free market economy
In a free market,
people can freely buy or sell;
people can freely ask for a reasonable price during buying and selling;
prices of goods are freely adjusted (調節) according to the supply and demand conditions.
In Hong Kong, the government never interferes (干預) with the operation of the free market. People can choose the jobs they like and to make use of their knowledge. These features contribute to the rapid economic development of Hong Kong.
Respect for private property right and the practice of the free market system are the two main features of the Hong Kong economy.
Summary
- Respect for private property right and the practice of the free market system are two main features of Hong Kong economy.
- The HKSAR government protects people’s private property right through:
Law enforcement
Simple and low taxation system
- The government never interferes with the operation of the free market. People can freely perform different kinds of economic activities. All these contribute to the development of the Hong Kong economy.
Glossary
Private property right (私有產權)
refuse (拒絕)
ownership (擁有權)
incentive (動機)
prosperity (繁榮).
Law enforcement (施法)
ensures (確保)
fair deals (公平交易)
invest (投資)
Free market economy (自由市場)
adjusted (調節)
interferes (干預)