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History

Basic Law provides that the socialist system and policies shall not be practised in the HKSAR, and that the previous capitalist system and way of life shall remain unchanged for 50 years.

The city's changes were not only political. Over the years, the manufacturing sector moved its focus from simple, labour-intensive products to sophisticated, high-value-added products. Taking advantage of the abundant supply of land and labour in the Pearl River Delta, industrialists expanded their production bases across the boundary while retaining their headquarters in Hong Kong. This mode of operation has contributed to economic development in the region and facilitated the transformation of Hong Kong into an increasingly service-based economy, with domestic merchandise exports accounting for less than 2 per cent of total exports by 2012.

To keep pace with the development, the government improved and expanded the infrastructure. Hong Kong was transformed into a modern city with efficient road and rail links, and first-class port and airport facilities. New highways opened up previously remote areas, the railway networks were expanded and Hong Kong International Airport at Chek Lap Kok was opened in 1998.

The development of the economic base has enabled the government to increase spending on education, social welfare, health and other needs from $226.9 billion in 2006-07 to an estimated $466.7 billion in 2016-17.

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Free primary and junior secondary education has been provided to every student attending public-sector schools since 1978. Senior secondary education and full-time courses offered by the Vocational Training Council for secondary three school leavers also became free in September 2008. Post-secondary education remains heavily subsidised. It is the government's policy that no qualified student is deprived of education for lack of financial means.

The scope and delivery of welfare services have evolved to become more holistic, integrated and accessible. In the past decade, total government spending on social welfare has more than doubled, from $33.5 billion in 2006-07 to an estimated $68.4 billion in 2016-17.

A healthcare system originally developed in the early post-war years to cope with the growing population has expanded greatly in line with the government's commitment to safeguard public health and to provide medical care and facilities for everyone. In 1990, the government set up the independent Hospital Authority and gave it responsibility for managing public hospitals and providing heavily subsidised public healthcare services, having regard to the principle that no person should be denied medical care due to lack of means. By December 2016, the authority was managing 42 public hospitals and institutions, 47 specialist outpatient clinics and 73 general outpatient clinics.

Comprehensive labour legislation, including the Minimum Wage Ordinance, is in place to protect employees' benefits and rights, as well as their occupational safety and health. Free employment and recruitment services are offered to help both job-seekers and employers. The Employees Retraining Board provides training and retraining courses and services to help the unemployed and those affected by economic restructuring to better meet the demands of the changing labour market.

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