Hong Kong's Latest White Elephant

The Hong Kong government likes to believe that it is in tune with an economy driven by economic liberalism and focus on return on capital. In reality it has become the tool of two types of vested interest. One is the clutch of property development groups who buy the loyalty of civil servants through post-early retirement jobs and other perks. Maximizing the tycoons' return on capital takes precedence over the interest of the public and its revenue which government is supposed to represent. On the political side there is Beijing, leaning on a spineless chief executive, Donald Tsang, to speed up integration with the mainland and focus on capital spending regardless of rate of return.

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