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HISTORY
After a period of economic stagnation caused by the United Nations' embargo on trade with China, Hong Kong began to industrialise. No longer could the territory rely solely on its port to provide prosperity for its greatly increased population. From the start, the industrial revolution was based on cotton textiles, gradually adding woollens and, in the late 1960s, man-made fibres and made-up garments. The fact that textiles and clothing have consistently taken up 43 to 55 per cent of Hong Kong's total domestic exports each year since 1959 clearly shows the economy's dependence on these items. While textiles remain the mainstay of Hong Kong's economy, major contributions are made by plastic goods, electronic products, watches and clocks, and other light industries. The development of Hong Kong's economic base has enabled the government to increase spending on social services over the years. As a result, more than two million people now live in some form of public housing managed by the Housing Authority. Throughout 1980, public housing flats were being constructed at an average rate of one every 7.5 minutes each 12-hour working day, every day of the year - and it is planned to continue providing about 35,000 flats a year under present conditions. At the end of 1980, the number of public housing estates had grown to 100. The Hong Kong Housing Society, a government-aided voluntary organisation, provides subsidised housing for a further 132,000 people.
A milestone in Hong Kong's housing development was reached in January, 1980, when tenants moved into the first flats completed under the government-funded Home Ownership Scheme. Well-appointed and self-contained, the flats are sold on attractive terms to tenants who have financially outgrown public housing, and to families on a limited income in the private sector. The higher standard of living they provide for people unable to afford open market rents, is an impressive example of the progress that has been achieved since the territory's public housing programme began 26 years ago. Development of the Home Ownership Scheme is being planned in phases to produce some 45,200 flats by 1988.
Expenditure on education rose to $2,943 million in the 1980-1 financial year and rep- resented 16.3 per cent of the total government budget. By late 1980 there were 2,694 educa- tion institutes, including those run by the government, with a total enrolment of 1.4 million. Since 1979, the government has provided nine years of free education for every child.
In the field of social welfare, such major advances have been made by both the govern- ment and voluntary agencies, that expenditure in the past decade has increased twenty- fold. Reviewed annually to keep abreast of changing needs, the social welfare programme included among its priorities in 1980: the development of social security in the form of cash benefits and emergency relief for victims of natural disasters; group and community services with an emphasis on young people; social rehabilitation of young law-breakers and probationers; family services for individuals and families with problems; facilities for the physically and mentally disabled to help integrate them into the community; and im- provements in services for the elderly.
The medical and health services are also undergoing vigorous development programmes which, by the end of the decade, will provide six more hospitals of over 1,000 beds each and 20 additional clinics and polyclinics. A dental school was opened during the year and a second medical school is scheduled to be opened in 1982. Medical and hospital care is available to everyone at a nominal cost but fees can be waived when necessary.
During the post-war years, a comprehensive system of protection for wages, rest days, statutory holidays, paid annual leave, maternity leave, sick pay and severance payments has been built up, and the benefits provided have steadily improved. In September, 1980, the minimum age for employment in both the industrial and non-industrial sectors was raised from 14 years to 15.