Chapter 1: Review
GROWTH OF THE INDUSTRIAL ECONOMY OF HONG KONG
THE predominant theme in international discussions about Asia in recent years has been the urgent need for outside assistance, in cash or in kind, for the less developed and newly independent countries of the area, in order to promote_their economic develop- ment and to raise the standard of living of their peoples. Hong Kong, however, has lived up to its reputation of being, as so often before, the exception to the general rule. This small Colony, almost entirely lacking in natural resources other than the indomitable will and enterprise of its people, has not only belied all prophecies of economic disaster, but also established itself as a vigorous industrial power whose activities are provoking widespread atten- tion from less successful competitors. This development has been achieved without major recourse to outside economic assistance, (other than the benefits derived from membership in the Common- wealth of Nations), and despite formidable obstacles arising from political circumstances beyond local control.
The purpose of this Chapter is to review the circumstances which have led to Hong Kong's industrial success in the past thirteen years and to describe the consequences, some unforeseen, which industrialization has brought about in the everyday life of the Colony and its relations with the rest of the world. The record of these events will, it is hoped, help the overseas reader to under- stand why Hong Kong continues to have faith in its economic future.
When the Union Jack was raised again in Hong Kong in the summer of 1945, it flew above a Colony which had been drained both physically and spiritually by the Japanese occupation. Its population had been forcibly reduced; its trade and industry brought to a standstill; its land neglected; and its buildings decayed if not destroyed. The outlook of the people who remained was