Tycoonarchy

Asia’s financial hub is dominated by a handful of hoary plutocrats:

Many of Hong Kong’s richest families are preparing for a generational changing of the guard. Unfortunately for the UK colony turned Chinese “special administrative region”, the sons and daughters who will inherit Hong Kong’s biggest fortunes will continue to dominate an economy defined by rent-seeking monopolies. […]

As the old saying has it, the hardest million dollars you will ever earn is your first million. Hong Kong’s next generation of tycoons never had to earn their first million, let alone their first billion. The city’s property, ports, electricity and supermarket sectors, to name just a few, have been locked up by just eight families.

Hong Kong’s monopoly madness extends far down the economic food chain to its licensing systems for taxis and public minibuses. The number of taxi licences has not increased since 1994, while those for minibuses has been frozen since 1976.

Or, as a remarkable Time Out Hong Kong article from 2012 that was apparently spiked and later reinstated put it:

Here is your typical day in Hong Kong: after buying your groceries from Li Ka-shing, you hop on to one of Cheng Yu-tung’s buses to take you back to your Kwok brothers’ apartment to cook your food with, you guessed it, gas supplied by Lee Shau-kee. […]

Hong Kong was originally founded to serve the interests of business, not of its population. Government ownership of land was aimed at keeping taxes low. The tycoons did not devise this system; they have simply milked it (with a vengeance) while the government has done little to counterbalance their growing domination or address the broader impact on the economy and society. Since the 1997 handover, the government has been noticeably more proactive in serving the tycoons’ interests.

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