Policy Address
Risk Management in the Global Village
9. New challenges have surfaced since the last Policy Address. The risk of global recession is in sight and tainted milk products have triggered concerns over food safety. Economic globalisation has narrowed the distance between nations and fostered a closer international community. Some even suggest that “the world is flat”. As an externally-oriented economy, Hong Kong is naturally vulnerable to changes in the external economic environment. With globalisation, Hong Kong is even more exposed to external factors in areas such as the economy, finance, food safety and environmental protection. To address these issues, we need to co-operate with other governments as well as international organisations. The Government's role is increasingly important and needs to be redefined. We must exercise public power in an appropriate manner and formulate forward-looking policies. We should be ready to take decisive action to help stabilise the economy and rebuild people's confidence to ride out the difficulties.
10. The financial crisis, food safety and environmental pollution are the three major concerns of the public. All involve economic and social risk management under globalisation. The financial crisis triggered by US subprime mortgages has spread worldwide. Some banks have been affected by rumour-mongering, which has shaken the confidence of customers. Risk management has become more important than ever to our financial system. Separately, the globalisation of the food trade is a huge challenge to food safety management because foodstuffs nowadays are made from ingredients sourced from different places.
11. Environmental pollution is another problem that takes more than the efforts of one single government to tackle. Just as it takes international co-operation to fight global warming, we need cross-boundary collaboration to improve our air quality.
12. Honourable Members, to meet the challenges posed by globalisation, we need to re-examine the functions and roles of the Government. We will continue to uphold the principle of “Big Market, Small Government” in promoting economic development. The Government's role is to formulate policies conducive to market competition. When the market fails, however, the Government should be prepared to intervene in a timely and decisive manner. To stand out in the face of severe competition, we need to broaden our horizons and intensify economic integration with the Pearl River Delta (PRD) Region. The Government also needs to take the lead in building a Hong Kong-Shenzhen international metropolis as well as strengthening co-operation with Guangdong.
13. Advanced industrial countries are all facing such problems as an ageing population, a widening wealth gap and environmental pollution. The solutions to these social development problems lie in long-term policy planning and regional co-operation.
14. On governance, rising public expectations, coupled with rapid information dissemination by the media, necessitate prompt government response. Government officials should be more proactive in reaching out to the public, listening to their views and taking the public pulse. Apart from communicating through traditional channels such as advisory bodies and opinion leaders, we need to have direct dialogue with various sectors in the community.
15. These are uncertain times. We face risks to our economy, society and everyday lives. Strong government leadership is the key to stabilising the economy and helping people regain peace of mind. Under the concept of “Strong Governance”, we endeavour to achieve a pragmatic, credible and accountable Government. “Public opinion underpins the strength of our leadership. Enhancing people's well-being is the first order of business of good governance.” I hold fast to these values in policy making.
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