Governance crisis and changing state-business relations: A political economy perspective

This chapter argues that since the 1990s there has been a weakening of the traditional tightly-knit government-business alliance that characterised colonial rule because of greater competition and fragmentation within business circles and deeper intervention in business matters by the government, often in a controversial way. Political conflict arises not just from popular demands for participation and welfare but also from underlying changes in the power structure. This chapter focuses on the problems and contradictions that have plagued government in Hong Kong since 1997. Through a statistical study, demonstrates that there has been a loosening of the traditionally tight links between public companies and a breakdown in cohesion in the business sector. Copyright © 2012 Hong Kong University Press. All rights reserved.