Hong Kongs Economy Development

Hong Kongs Economy DevelopmentHong Kong Economy1. IntroductionThe development of a knowledge-based trynce is a global trend. By 2003, Hong Kong was following this direction to qualify into a knowledge-based economy. During this sparing restructuring, Hong Kong was suffering from structural unemployment, peripheral labour and mismatches of jobs.2. The magnificence for HK to develop its humans niftyAccording to states statistic, the average age of the labour force increased from 34 in 1991 to 37 in 2001 due to ageing of the overall population and delayed unveiling into the labour force as a result of increased postsecondary teaching methodal opportunities. unlike, increases in gross domestic product (GDP), increases in the note of human capital show the extent to which development has reached the population. Investment in facts of life that caters to the immediate drives of industry both foreign and domestic is essential. The educational system should also maintain the long-term goal of self-reliance and promoting programmes that dissipate in thinkers, innovator and entrepreneurs.Because of Hong Kongs neighbours such as Singapore has already owned a completely human capital strategy for rising in competitiveness. So Hong Kong drives to optimize the economic structure and labour pool. Obviously, Hong Kong need invest to human capital to reinforce the strengths of its four main economic pillars finance, logistics, touristry and manufacturing services. The accumulation of human capital is an important contributor to economic growth. Although human capital takes at least eight years to advanced and requires constant support, its returns are fundamental for make betterment. Investment in human capital has proven successful in many developing nations. The growth of education pot contribute significantly to the generation of overall output in economy. The general finding is that more educated individuals tend to have advanced employment rate and earnings and produce more output relative to those who are less educated. Moreover, education is deemed as an investment that enables individuals to be equip with knowledge and skills that improve their employability and productive capacity.3. The role of regimeThe role of the political science should be establishing the enabling environment and that of the customary and cliquish sectors as lively partners in the provision of the economic services. Collaboration between public and private sectors in the productive economy is an area where the optimal use of public and private sector resources can create added value for a golf club as a whole.4. Best work together with Private and earth sectorsThe political relation should coordinate between the public and private sectors and give them some(a) beneficial policy or regulation for their collaboration. Ideally, the collaboration between them should cull use a brook base. Moreover, the project should have a tough politi cal commitment, open mindedness, clear responsibilities and the correct apportionment of chance for them. As a result, the private sector should cover the main commercial risks, including project completion risk, operating cost and market demand. However, the private sector whitethorn not be able to absorb the full market risk when it is not given direct access to the market. In these cases, long-term take or pay contracts with political relation may be required. Another partnership, a fine balance must be struck by the public sector between easing risk perceptions of private sector partners and maintaining comfortable incentives for the efficient private sector management of projects.5. Hong Kong take Managerial and master copy peopleDuring economic restructuring, the proportion of professionals, associate professionals, managers and administrators in the working population increased from 3 .7%, 10.5% And 9.4% respectively in 1991 to 5.9%, 16.2% and 11 .4% respectively in 200 1. It represent that Hong Kong focus on develop its four economic pillars. Therefore, Hong Kong need many high-level people with managerial experiences in the fields of finance, tourism and logistic and manufacturing. Moreover, Hong Kong allow also need professional to develop the high value-add industry such as fruityware development and innovative multi-media. HK government also has the admission scheme to utilize the foreign talents and mainlands professionals.6. The advantages and disadvantages of the gate of Talents Scheme and the Admission of Mainland Professionals SchemeThe Advantage of 2 schemesAttract talents from impertinent Hong Kong with expertise and skills not readily available locally, who could enhance the competitiveness of the territorys economy as manufacturing or services centre, particularly in technology-based, knowledge intensifier or high-value-added activities.Different countrys talent come to Hong Kong, it can make the Hong Kong has an international image.The disadvantage of two schemesIf the government is wrong to esteem the application and approve the talent or professional for admission into HK, it may affect the local job vacancy.The disadvantage of the Admission of Mainland Professionals SchemeUnlike talent schemes, the existing policy on entry of Mainland professionals was so limiting that less than 600 Mainlanders were admitted under the Admission of Mainland Professionals Scheme in the past two years.7. Hong Kong Long-Term insuranceThe following policies could be used to improve the quality of skills in the Hong Kongs economy for long-term7.1 Education and Manpower PolicyThe HK government should continue to pursue extensive programmes to upgrade the educational attainment of population at all levels. At the same time, it also leave behind hike up and facilitate skills upgrading and life-long education. Especially, the low-level workers will need these programmes to enhance their skills to diddle the changing demand s of the economy. Consequently, HK government will adopt a strategic, responsive and interrelated approach to manpower supplying and development.7.2 Admission of Mainland Professionals and TalentThe HK government should provide more flexibility and incentives to tertiary institutions to attract academics and students from the Mainland and overseas. Also, it may continue to improve arrangements for Mainland businessmen to visit Hong Kong for business-related purposes. To step up efforts to sanction Hong Kong people cosmos educated overseas to return to live and work here.7.3 Training and other Needs of New ArrivalsThe HK Government should continue to provide and develop curb programmes to address the training needs of fresh arrivals of different age-groups and foster approximate partnership between the Government and Non-governmental Organizations to identify and address the needs of new arrivals in HK. This helps to enhance the employment skills of new arrivals.7.4 Investment ImmigrantsThe HK government should flesh out the existing immigration policy to cater for persons who will make certain investment (HK$6.5 million) in Hong Kong but do not themselves run a business i.e. capital investment entrants and to apply this extended policy ab initio to foreign nationals, residents of Macao SAR and Taiwan.7.5 Policies Impacting on ChildbirthThe HK government should continue with current family planning programmes emphasizing healthy, Planned Parenthood. On the other hand, HK government also should encourage the citizens to bear child and consider to granting the same level of tax inference for all children irrespective of number.7.6 Elderly PolicyThe HK government should revisit and redefine the notion of retirement and old age and continue to develop programmes that promote active and healthy aging. As a result, it may develop a sustainable financial support system for the needy elderly.7.7 Mobility of populationThe HK government should have some polici es to enhance mobility of people, portability in welfare, education and housing entitlements should be introduced. Cross-border taxation should also be studied.7.8 Portability of BenefitsFor longer term, the HK government should address the get it on of portability of public benefits taking into account the pace of economic integration with the collect River Delta (PRD) and examine in detail the cost implications of portable benefits on the Government fiscal position and the local economy.7.9 Reorganization of mainland universitiesThe HK Government should recognize the dexterity from the mainland universities. The mutual recognition of professional and academic qualification between Hong Kong and the PRD needs to be speeded up. More generally, standards between Hong Kong and the PRD should be harmonized through a benchmarking process.8. ConclusionAs Hong Kong developing into an innovative and knowledge-based society, Hong Kong was suffering from structural unemployment, marginal labour. Therefore, the HK government should have a series of population policies to improve Hong Kongs soft and hard infrastructure to meet the challenges of a knowledge-based economy. Moreover, this population policy will be designed to fit Hong Kongs long-term social and economic development, complement family requirements and address the interests of different sectors.