The central policy unit in the governance of Hong Kong : a study Title of institutional dynamics Chu, Hiu-kwan, Julie; Lai, Chi-wai; Ng, Mau-kun, Wallace; So, Author(s) Yee-bik, Becky; Yeung, Lok-kei, Kiki Citation Issued Date 2014 URL http://hdl.handle.net/10722/211004 Rights Creative Commons: Attribution 3.0 Hong Kong License The Central Policy Unit in the Governance of Hong Kong: A Study of Institutional Dynamics The Central Policy Unit in the Governance of Hong Kong: A Study of Institutional Dynamics Chu Hiu Kwan, Julie (UID: 2012931603) Lai Chi Wai (UID: 2012931627) Ng Mau Kun, Wallace (UID: 2012931677) So Yee Bik, Becky (UID: 2001060069) Yeung Lok Kei, Kiki (UID: 1998047056) Capstone project in partial fulfillment of the requirements of the Master of Public Administration Department of Politics and Public Administration The University of Hong Kong 2014 The Central Policy Unit in the Governance of Hong Kong: A Study of Institutional Dynamics Declaration We declare that this Capstone Project Report, entitled The Central Policy Unit in the Governance of Hong Kong: A Study of Institutional Dynamics, represents our own work, except where due acknowledgement is made, and that it has not been previously included in a thesis, dissertation or report submitted to this University or to any other institution for a degree, diploma or other qualifications. Chu Hiu Kwan, Julie Lai Chi Wai Ng Mau Kun, Wallace So Yee Bik, Becky Yeung Lok Kei, Kiki P.1 The Central Policy Unit in the Governance of Hong Kong: A Study of Institutional Dynamics Acknowledgements We would like to begin with our special thanks to our supervisor Professor Ian Thynne for his patience, support, enlightenment and full guidance in the course of this capstone project. With his advice and stimulating comments, we managed to overcome the difficulties encountered and come up with various ideas for improvement. We are also truly grateful to all other faculty members of HKU’s Master of Public Administration programme for providing us numerous learning opportunities both inside and outside of the classrooms over the past two years. Last but not least, our gratitude must also be given to our family and friends, especially our caring parents, spouses, children, and the two beloved newborns who are expected shortly after the completion of this capstone project. Without their care and unconditional support, both physically and psychologically, this project would not have come into existence at all. P.2 The Central Policy Unit in the Governance of Hong Kong: A Study of Institutional Dynamics Table of Contents Declaration ................................................................................................................. P.1 Acknowledgements .................................................................................................... P.2 Table of contents ........................................................................................................ P.3 Abstract ...................................................................................................................... P.6 List of Abbreviations.................................................................................................. P.7 Chapter One Introduction ....................................................................................... P.8 Focus, Objectives and Background .................................................................. P.8 Research Questions and Associated Propositions .......................................... P.10 Overview of the Analytical Framework and its Application to the CPU ....... P.11 Research Methodology ................................................................................... P.13 Chapter Overview ........................................................................................... P.14 Chapter Two Analytical Framework ..................................................................... P.16 Introduction .................................................................................................... P.16 Think Tanks in the Policy Process .................................................................. P.16 Approaches to Analyzing Institutions, including Think Tanks ...................... P.20 Concluding Comments ................................................................................... P.30 P.3 The Central Policy Unit in the Governance of Hong Kong: A Study of Institutional Dynamics Chapter Three Policy Research, Advice and the Central Policy Unit: Institutional Structures and Changes.............................................. P.32 Introduction .................................................................................................... P.32 Period I: Pre-1997 era ..................................................................................... P.32 Period II: Tung Chee-hwa era (1997-2005) .................................................... P.38 Period III: Donald Tsang Yam-kuen era (2005-2012) .................................... P.42 Period IV: Leung Chun-ying era (2012-Present) ............................................ P.47 Concluding comments .................................................................................... P.51 Chapter Four The Central Policy Unit: Institutional Foundations and Maturity .......................................... P.55 Introduction .................................................................................................... P.55 Period I: Pre-1997 era ..................................................................................... P.55 Period II: Tung Chee-hwa era (1997-2005) .................................................... P.66 Period III: Donald Tsang Yam-kuen era (2005-2012) .................................... P.77 Period IV: Leung Chun-ying era (2012 - Present) .......................................... P.92 Concluding Comments ................................................................................. P.104 Chapter Five Conclusion and Recommendation................................................. P.107 Introduction .................................................................................................. P.107 P.4 The Central Policy Unit in the Governance of Hong Kong: A Study of Institutional Dynamics The research questions revisited ................................................................... P.107 Some Lessons Learnt from Other Think Tanks ............................................ P.111 Recommendations ........................................................................................ P.119 Limitations of the study ................................................................................ P.123 Concluding Remarks .................................................................................... P.124 Appendices ............................................................................................................. P.126 Appendix A - List of CPU Members ............................................................ P.126 Appendix B - List of CPU research project available on the web................ P.165 References .............................................................................................................. P.177 P.5 The Central Policy Unit in the Governance of Hong Kong: A Study of Institutional Dynamics Abstract In any policy-making process, governments around the world use various institutions as sources of policy advice and the Hong Kong (HK) Government is no exception. Besides the government bureaux and departments, the Central Policy Unit (CPU) has a major role to play in providing policy advice to the Government. This project recognizes this role by studying the institutional dynamics of the CPU in the governance of HK. Starting from its formation in 1989, the institutional structures and changes of the CPU are presented in four main periods, namely the pre-1997 era, the Tung Chee-hwa era, the Donald Tsang Yam-kuen era and the Leung Chun-ying era. The institutional foundations of the CPU are then analysed based on the analytical framework comprising Ostrom's rules-in-use and Thynne’s concept of institutional maturity. Some recommendations are also suggested for the way forward for the CPU. P.6 The Central Policy Unit in the Governance of Hong Kong: A Study of Institutional Dynamics List of Abbreviations AO Administrative Officers CE Chief Executive CPU Central Policy Unit CS Chief Secretary CSD Commission on Strategic Development FS Financial Secretary GGTTTI Global Go To Think Tank Index HKSAR Hong Kong Special Administrative Region IAD Institutional Analysis and Development LegCo Legislative Council NAO Network Administrator Organisation POAS Principal Officials Accountability System RGC Research Grants Committee CE Chief Executive CPU Central Policy Unit HKSAR Hong Kong Special Administrative Region TTCSP Think Tanks and Civil Societies Program at the University of Pennsylvania UK United Kingdom P.7 The Central Policy Unit in the Governance of Hong Kong: A Study of Institutional Dynamics Chapter One Introduction Focus, Objectives and Background This project addresses the effectiveness of the Central Policy Unit (CPU) in acting as a think tank for the governance of Hong Kong (HK). The objectives of the project are to evaluate the institutional dynamics of the CPU, including its change in leadership, role and institutional maturity, over its 25 years of history from its establishment in 1989 up till the present. The project recognizes that for governments