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The Public Sector in Hong Kong THE PUBLIC SECTOR IN HONG KONG IN HONG PUBLIC SECTOR THE THE PUBLIC SECTOR IN HONG KONG his book describes and analyses the role of the public sector in the T often-charged political atmosphere of post-1997 Hong Kong. It discusses THE PUBLIC SECTOR critical constitutional, organisational and policy problems and examines their effects on relationships between government and the people. A concluding chapter suggests some possible means of resolving or minimising the difficulties which have been experienced. IN HONG KONG Ian Scott is Emeritus Professor of Government and Politics at Murdoch University in Perth, Australia and Adjunct Professor in the Department of Public and Social Administration at the City University of Hong Kong. He taught at the University of Hong Kong between 1976 and 1995 and was Chair Professor of Politics and Public Administration between 1990 and 1995. Between 1995 and 2002, he was Chair Professor of Government and Politics at Murdoch University. Over the past twenty-five years, he has written extensively on politics and public administration in Hong Kong. G O V E P O L I C Y Professor Ian Scott’s latest book The Public Sector in Hong Kong provides a systematic analysis of Hong Kong’s state of governance in the post-1997 period Ian Scott R and should be read by government officials, politicians, researchers, students and N general readers who seek a better understanding of the complexities of the city’s M government and politics. E — Professor Anthony B. L. Cheung, President, The Hong Kong Institute of Education; N T Member, Hong Kong SAR Executive Council. Public Administration / Politics / Hong Kong Studies ISBN 978-962-209-172-6 P E O P L E 9 789622 091726 Printed and bound in Hong Kong, China Ian Scott 00aPrelim(p.i-iv).indd 1 11/18/09 1:00:13 PM For Christopher and Lindsay 00aPrelim(p.i-iv).indd 2 11/18/09 1:00:13 PM 00aPrelim(p.i-iv).indd 3 11/18/09 1:00:14 PM Hong Kong University Press 14/F Hing Wai Centre 7 Tin Wan Praya Road Aberdeen Hong Kong © Ian Scott 2010 ISBN 978-962-209-172-6 All rights reserved. No portion of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording, or any information storage or retrieval system, without permission in writing from the publisher. Secure On-line Ordering http://www.hkupress.org British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library. Printed and bound by Goodrich International Printing Co., Hong Kong, China 00aPrelim(p.i-iv).indd 4 11/18/09 1:00:14 PM Contents List of Figures and Tables vii Preface ix Glossary of Abbreviations and Acronyms xiii 1. The Public Sector: An Overview 1 Part I The Constitution and Political Accountability 23 2. The Constitutional Framework 25 3. Accountability and the Political System 49 Part II The Public Sector and Its Problems 67 4. The Civil Service: Structure and Functions 69 5. The Civil Service: Personnel Policies 95 6. The Public Sector Beyond the Civil Service 119 Part III Policy Formulation and Implementation 147 7. Policy and the Budgetary Cycle 149 8. The Policy Process 175 9. Policy Implementation 201 0bContents(p.v-vi).indd 5 11/4/09 4:38:34 PM vi Contents Part IV The Government and the People 229 10. Efficiency and Responsiveness 231 11. Rights, Complaints and Redress 257 12. The Public Sector and Its Future 289 Notes 307 Selected Bibliography 361 Index 385 0bContents(p.v-vi).indd 6 11/4/09 4:38:34 PM List of Figures and Tables Figures 1.1 The Public Sector 2 1.2 Government, Market and Society 4 4.1 The Government Secretariat, 2008 72 7.1 Public/Government Expenditure as a Percentage of GDP 155 7.2 Rate of Growth of Gross Domestic Product by Percentage 156 Change in Real Terms 7.3 Revenue Profile, 2007–2008 156 7.4 Expenditure Profile, 2007–2008 159 Tables 2.1 Composition of the Legislative Council, 1991–2008 31 3.1 Principal Officials in the Tsang Administration, July 2008 59–60 4.1 Bureaus and Departments in the Hong Kong Government, 2008 74–75 4.2 Strength of the Twelve Largest Departments, 2008 75 4.3 Ranks and Establishment in the Police Force and in the Administrative 77 Grade, 2008 4.4 Establishment and Strength of the Civil Service, 1997–2008 88 5.1 Strength of the Civil Service by Gender and Terms of Appointment, 2008 100 5.2 Civil Service Pay Scales, 2008 105 6.1 Number of Advisory and Statutory Bodies, June 2005 125 6.2 The Organisation of the Public Sector 128–129 7.1 The Budgetary Cycle 162 7.2 The Medium Range Forecast 163 7.3 Environmental Protection Department: Analysis of Financial Provision 165 7.4 Social Welfare Department: Analysis of Financial Provision 166 7.5 Total Public Expenditure: Year-on-Year Change 2007–2008 and 171 2008–2009 7.6 Total Public Expenditure by Percentage by Policy Area Group 172 0cFigures(p.vii-viii).indd 7 11/4/09 4:39:29 PM viii List of Figures and Tables 8.1 Selected Policy Issues: Problems of Process and Implementation 195 9.1 Typology of Policy Implementation Styles 206 10.1 The Patient’s Charter 10.2 Establishment of Social Services and Disciplinary Services Departments, 245 1997, 2008 11.1 Complaints and Representations to the Legislative Council, 1997–2008 249 11.2 Complaints to the Ombudsman, 1994, 1997–2008 266 11.3 Disposition of Concluded Complaints to the Ombudsman, 2003–2008 274 11.4 Complaints against the Police by Initial Categorisation, 2002–2007 281 11.5 Resolution of Allegations against the Police, 2002–2007 282 0cFigures(p.vii-viii).indd 8 11/4/09 4:39:29 PM Preface ince the retrocession to China in 1997, the public sector in Hong Kong has experienced major problems and undergone significant changes. External pressures, internalS civil service reform measures and a political climate very different from that of colonial times have contributed to uncertainty, a loss of direction, and relatively little achievement in the resolution of perennial policy issues. Externally, the government — previously seemingly immune from budgetary shortfalls — has been beset by periodic economic downturns that have seen it move into deficit with all the difficult political decisions that entails. It has also faced pressure from the sovereign power. Although the degree to which the Chinese government intervenes in Hong Kong affairs varies, often depending on its assessment of the national importance of the issue, it has been most clearly evident in the restrictions which it has placed on the pace of democratic development, in its interpretation of the Basic Law, and in its support for local political parties and groups sympathetic to its position. While this has influenced the political context in which the public sector works, the Chinese government has not overtly intervened in the affairs of the civil service or of most other public sector organisations. Internal reform measures have added to the turbulence. The immediate post-1997 emphases on greater managerial efficiencies and downsizing of the civil service have now been scaled back but they have left a legacy of organisational and personnel problems. The executive’s attempt to assert greater control over the civil service in the name of accountability has yet to be fully worked through and may well cause more disruption if the lines of command of the recent political appointments are not clearly delineated. The extension of the “accountability system” within the government suffers from the fundamental contradiction that the executive itself is appointed by the Chinese government and is not directly accountable to the people of Hong Kong. Despite the buffeting that the civil service has experienced from efforts to introduce more managerial practices and greater political control, the administrative culture of the civil service has proved to be remarkably resilient. It still possesses high administrative capacity in carrying out the routine implementation of policies which have long been accepted by the community. Where it faces difficulties is in formulating and implementing new policies. Its low policy capacity stands in marked contrast to its administrative performance and 0dPreface(p.ix-xi).indd 9 11/4/09 4:40:16 PM Preface there is a substantial backlog of issues that have been addressed but have subsequently been abandoned or delayed. The principal reason for policy shortcomings has been the rise of civil society and the difficulty which the government has experienced in developing effective channels of communication with grass-roots organisations and in meeting their demands, inter alia, for universal suffrage and a directly elected Chief Executive. Hong Kong’s institutional framework allows for few mediating institutions between the government and the people. Political parties are weak because they cannot win office and are unable, in consequence, to aggregate demands or build credible policy platforms. They can provide no surety that, even if they win control of the legislature, their platforms will be translated into policy. For its part, the government makes policy, but it has no mandate from the people to do so. Its policy agenda cannot be taken as a package which has been supported by the electorate and it is, as a result, required to find elaborate justifications for its proposals. It claims to act in the best public interest; to consult on major new initiatives; and to be as efficient, responsive and responsible as possible. Some of those claims may be partially true.
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