Case Development Program

Hong Kong’s 1972 small house policy (SHP) was the subject of much debate. This policy was partly intended to to preserve the rural character of villages in the New Territories by facilitating male descendants of indigenous villagers to build of small houses. Supporters of this policy, led by the villagers’ representative body, argued that the building of small houses was a traditional right guaranteed by the Basic Law, Hong Kong’s mini-constitution. Others said that the policy conferred an unfair privilege, pointing to abuses that detracted from the policy’s original intent. Disagreements centred around issues of sustainability and discrimination. This case provides an overview of the SHP’s origin and some of the changes it went through, followed by details of disputes on the policy, as well as reforms proposed by various stakeholders. This case study will enable students to:

- Acquire a better understanding of the SHP, its origins, and the controversies it engendered; and

- Knowledgeably discuss the advantages and drawbacks of the SHP and possibilities for future improvements.

Hong Kong pioneered the rail plus property (R+P) model based on the principle of transit-oriented development and value capture, and this model of railway development is practiced around the world today. But Hong Kong’s implementation of integrated railway and property development continues to stand out because it is a rare example of railway transit development that does not need government subsidy. The Mass Transit Railway Corporation Limited (MTRCL), the sole operator of Hong Kong’s railway system, funds railway construction, expansion, and operation entirely with revenue from real estate development around train stations. While property development remains central to the success of Hong Kong’s implementation of the R+P model, credit should also be given to several other factors including non-financial support from the government. Hong Kong exports its unique approach to railway development to other places, even as it suffers criticism at home for not helping to alleviate Hong Kong’s acute shortage of affordable housing.

This case study aims to provide readers some familiarity with:

• The history of the R+P model in Hong Kong;

• Features of the R+P model of public transit development;

• Examples of how the R+P model is implemented in other cities; and

• Advantages and disadvantages of the P+R model;

By the end of this case study, readers should also be able to discuss how the R+P model could (or may not) work in their respective home cities.

Abstract

Hong Kong International Airport (HKIA) is one of the busiest airports in the world. It is connected to about 180 destinations through more than 1,000 daily flights by more than 100 airlines. In fear of the saturation of the flight movements, Airport Authority Hong Kong (AAHK) suggested in its ‘HKIA Master Plan 2030’ in 2011, two routes for further development – to enhance the existing two-runway system or to upgrade to a Three-Runway System (3RS). Following public consultation, the government approved this multi-billion-dollar runway project in March 2012, and confirmed its funding plan in 2016. Some believed it is of vital importance to develop the third runway in order to maintain the global leading position of the HKIA in the aviation industry. Through enhancing the air connectivity and quality of airport services, the third-runway is expected to bring long-term economic benefits to Hong Kong’s economy. Yet, some had reservations in whether it is worthwhile to sacrifice the environment to make way for development. The building of the third-runway involves a number of major works such as land reclamation and expansion of existing terminals. Putting aside the huge economic cost, there were other concerns that have sparked debate within the civil society on whether this infrastructure project was worth it or not.

Learning Objective

This case considers the policy dilemma on whether the government should expand the existing two-runway system or build the third runway to increase airport capacity. It outlines the background of air transport system in Hong Kong and the potential impacts of the proposed policy. Taking stakeholders’ attitudes and concerns, as discussed in the case, into account, students are expected to discuss other viable options and/or mitigations measures to balance interests.

Abstract

Waste management is such a complex issue in a highly populated city as Hong Kong. Over the past decade, the load of municipal solid waste (MSW) began to outpace population growth, indicating the need to resolve the mounting waste crisis. Over the past decades, the government has introduced a variety of policies to cope with this issue, such as funding schemes, educational campaigns and landfill expansion proposals. Yet, the effectiveness of these policies appeared to be limited while the existing strategic landfills were expected to reach its capacity in 2019. Facing these worsening ‘garbage crisis’, more is needed to be done by the government. The authority is therefore needed to come up with long-term sustainable strategies to cope with the underlying structural causes.

Learning Objective

This case study reviews the waste management policies in Hong Kong, examining the effectiveness and controversies over three initiatives adopted. It sets up a context for students to discuss and recommend initiatives, perhaps taking international practices and experiences as points of reference, to settle the MSW problem in Hong Kong.

Abstract

Facing the problem of acute land and housing shortage in Hong Kong, it is critical for government to devise ways to increase land supply to meet the rising demand due to social and economic development. To achieve this, the Chief Executive has proposed an infrastructure project - Lantau Tomorrow Vision - in her 2018 policy address aiming to create a third core business district in Lantau Island by constructing artificial islands of about 2,000 hectares through massive land reclamation. According to the government, this project can also create public residential units to meet the increasing housing demand for the next 20 to 30 years without having negative impacts on existing lands. It can also provide high value-added job and business opportunities in the district. However, shortly after its publication, this project had met fierce objections from the stakeholder groups due to the estimated skyrocketing financial costs and potential environmental impacts. This scheme is estimated to cost HK$624 billion. With such a high development cost, opposing groups suggested that the authority should prioritize other land supply options such as brownfields, unused military land, or Fanling golf course. Nevertheless, whether or not the project will proceed, there is a unanimous cry for the government to resolve the serious problem of housing shortfall in Hong Kong.

Learning objective

Students can gain a better understanding of the government’s rationale behind its proposed huge infrastructure project, known as Lantau Tomorrow Vision, particularly its advantages over other land supply options in addressing the long-term housing shortage; the concerns of those who oppose the project. The case can serve as a platform for further discussions of other arguments in favour or against this project; if this project were to be implemented, what mitigation measures are needed to balance different concerns.

Abstract

To increase the short to medium-term housing sites, the government has proposed in its 2017 Policy Address to have a multi-pronged strategy by considering various possible sources of land supply for housing. One of the possible options proposed was the allocation of some periphery areas of country park land with relatively low ecological and public enjoyment value for the development of public housing and non-profit-making elderly homes to increase land supply. However, such a proposal has provoked a backlash from not only the general public or environmentalists but also some politicians. While the government advocates the proposal as a product of ‘thinking outside of the box’ that can alleviate the housing shortage crisis, critics oppose it because of environmental concerns and the potential of reducing the recreational and educational value of country parks.

Learning objective

The central debate of this case study lies in how to strike a balance between environmental conservation and land development. It allows students to consider the pros and cons in developing country parks peripheries, and think about the viable options that could balance different stakeholders’ interests. For those who support the government’s idea, they could reflect on how to ensure transparency and procedural justice can be better served during the project implementation phase, too.

Abstract

Hong Kong’s trading ports are some of the busiest globally. On the positive side, it is a sign of a vibrant economy. On the negative, heavy marine traffic has caused serious damaging effects on both air quality and on public health in the city and the whole Pearl River Delta. The International Convention for the Prevention of Marine Pollution for Ships (MARPOL) Annex VI entered into force in 2005. Although China and Hong Kong ratified MARPOL Annex VI in 2006 and 2008, respectively, the authorities in both places were reluctant to introduce local regulations to implement it. In Hong Kong, a policy entrepreneur took the initiative to create a consensus among local and international stakeholders in the shipping industry to participate voluntarily in implementing marine pollution mitigation measures. These efforts were important in catalysing further actions, eventually leading to the introduction of regulations not only in Hong Kong but also across the border.

Learning Objectives

The case illustrates the role and characteristics of an effective policy entrepreneur. There can be further discussions on the political challenges in this case and how the policy entrepreneur managed to get around these. Readers can also think about the lessons that can be learned from this case to influence policy changes.

Abstract

The serious air pollution in the Greater Pearl River Delta (GPRD) caused by marine emissions required concerted efforts of the governments on both sides of the river. The governments of Guangdong Province and of Hong Kong created three levels of coordinating mechanisms, consisting of government officials with some representation from societal actors. These three official levels of coordinating mechanisms have overlapping memberships and cooperation areas. A fourth level of informal coordinating mechanisms emerged consisting of societal and industry stakeholders who try to make concerted efforts to influence policy decisions via informal channels.

Learning Objectives

This case identifies the components of the multi-level platform of coordination between Hong Kong and the Guangdong for the control of ship emissions in the GPRD. It also discusses the interactions within and across the different levels. Readers can think about how coordination can be improved and how the system can provide adequate channels for public/industry participation in the formulation and implementation of control measures.

Abstract

In 2009, the governments of Guangdong Province, Hong Kong, and Macao proposed the establishment of the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) to foster cross-border economic cooperation among the 9 cities of Guangdong plus the 2 Special Administrative Regions. GBA is expected to play a significant strategic role in China’s development, extending across various policy goals such as technological innovation, finance, infrastructure, ecological conservation, and industrial development. On the bright side, the GBA project can create more opportunities for the sustainable socio-economic development and long-term prosperity of the 11 participating cities. However, there are obstacles and challenges that lay ahead due to the 3 different political and legal systems that comprise the GBA. Moreover, fears that that greater integration would erode Hong Kong’s distinctive identity and rule of law also need to be addressed.

Learning Objective

This case provides insights about the debates surrounding the GBA project between those who see it as an opportunity and others who view it as a threat. Students can reflect and discuss the rationale behind the claims the project can either facilitate or undermine the implementation of the ‘one country, two systems’ principle. As future policy makers, what measures would you propose to strike a balance between these claims? What approach should each side–Hong Kong and Mainland–take to foster mutual trust, openness, and cooperation?

Abstract

Shenzhen has turned itself from a fishing village into a thriving technology hub, after having gone through three major stages of modernization–the construction phase, the restructuring phase, and the re-engineering phase. The city was chosen by Deng Xiaoping as a ‘testing ground’ for his ‘Open Door Policy’, becoming China’s first Special Economic Zone. Thanks to the innovative policies adopted by the city’s municipal government, Shenzhen is now the headquarters of major Chinese technology companies, such as Huawei, Tencent, and DJI. Shenzhen’s favourable policies, especially the encouragement of the open-source innovation system, have attracted overseas talents to come.

Learning Objective

Students are expected to discuss and identify the various factors that may have contributed to Shenzhen's transformation. Students can also discuss the extent to which Shenzhen can become a global innovation hub, identify good practices, and formulate innovative ideas or suggestions for changes or improvements to the current institutional arrangements to further harness the city's potential.