Gaming, Governance and Public Policy in Macao

Edited by Newman M. K. Lam and Ian Scott Hong Kong University Press 14/F Hing Wai Centre 7 Tin Wan Praya Road Aberdeen Hong Kong www.hkupress.org

ISBN 978-988-8083-28-2 (Hardback) ISBN 978-988-8083-29-9 (Paperback)

University of Macau Av. Padre Tomás Pereira, Taipa Macau, China www.umac.mo

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British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library.

10 9 8 7 6 5 4 3 2 1

Printed and bound by Liang Yu Printing Factory Ltd. in Hong Kong, China Contents

List of Figures, Plates and Tables vii Preface xi Abbreviations and Acronyms xv A Note on the Place Name and the Currency xvii List of Contributors xix

1. Social Stability and Economic Growth 1 Ian Scott

Part I The Gaming Industry and Its Critics

2. The Development of the Gaming Industry and Its Impact on 19 Land Use Penny Wan and Francisco V. Pinheiro

3. The Impact of Gaming Liberalisation on Public Opinion and 37 Political Culture Newman M. K. Lam

Part II Governance

4. Executive-Legislative Relationships and the Development of 57 Public Policy Eilo Yu Wing Yat

5. Challenges and Threats to Traditional Associations 75 Annie Lee Shuk Ping vi Contents

6. Civil Service Reform: Building Basic Administrative Capacity 89 Brian Brewer

7. Improving Productivity through Ef¿ ciency Wages: The Case of 107 the Civil Service Jeannette Taylor

Part III Public Policy

8. Labour Policy: Resolving the Mismatch between Demand and 129 Supply Grace O. M. Lee

9. Labour Regulation in the Liberalised Casino Economy: The Case 145 of the Croupiers Alex H. Choi and Eva P. W. Hung

10. Education Governance and Reform: Bringing the State Back In 163 Joan Y. H. Leung

11. Housing Policy: A Neoliberal Agenda? 183 James Lee

12. Social Welfare Policy: A ‘Flexible’ Strategy? 197 Chan Kam Wah and James Lee

Part IV Conclusions

13. Gaming, Governance and Public Policy: Constraints and 217 Opportunities Ian Scott and Newman M. K. Lam

Appendix: Timeline Macao 1999–2010 225 Notes and References 243 Selected Bibliography 269 Index 283 List of Figures, Plates and Tables

Figures

1.1 Economic Growth and Social Stability: Four Different Scenarios 3 1.2 Regime Characteristics in Four Scenarios 4 1.3 The Decline in Employment in Manufacturing, 1990–2008 7 1.4 Homicides, 1997–2008 8 1.5 Rate of Growth of Gross Domestic Product in Real Terms, 1991– 9 2001 1.6 Growth in Foreign Investment, 2001–2008 11 1.7 Rate of Growth of Gross Domestic Product in Real Terms, 2001– 11 2008 2.1 Percentage of Gaming Revenues to Government Income, 1998– 25 2008 6.1 Organization Chart of the Macao Government 92 7.1 Ef¿ ciency Wage Ratio and Elasticity of Effort of the Macao Civil 118 Service, 1998–2009 7.2 Ef¿ ciency Wage Ratio and Elasticity of Effort of the Macao 119 Workforce by Industry 7.3 Annual Percentage Change in Public Sector Wages and Private 122 Sector Wages and InÀ ation in Macao, 1998–2009 11.1 House Price to Income Ratio, 2002–2006 194

Plates

2.1 The Flagship Casinos of the Macao Casino Industry after p. 28 2.2 Height Restrictions near Guia Hill after p. 28 2.3 The Oceanus Casino after p. 28 viii List of Figures, Plates and Tables

Tables

2.1 Number of Casinos and Tables, 2002–2009 25 2.2 Growth Pattern of Revenue from Different Gaming Activities, 26 2002–2008 (in millions MOP) 2.3 Changes in the Unemployment Rate, the Total Employed Population 26 and the Employed Population in the Ga