Toward a Capital Investment State? The Social Welfare Development of Hong Kong

Abstract

This chapter examines social welfare development under the British colonial state in Hong Kong (1842–1997). One cannot but note some contradictions in Hong Kong’s social policy. The colonial state maintained a laissez-faire economy, stressing the importance of the markets in achieving economic efficiency and growth. However, this classical development ideology did not prevent the state from providing extensive housing, education, and medical services. It maintained universal health care, and ‘operates the second-largest public housing program of the capitalist world’ (Castells et al., 1990). Yet it was strongly committed to a residual welfare model, in the conviction that increased welfare would harm economic performance. Though an extensive array of social welfare services were present, Hong Kong was not a welfare state. In recent time, some plans for the partial privatization of social welfare services have been made, driving Hong Kong further away from the goal of the welfare state.