Is welfare restructuring and economic development in post-1997 Hong Kong in search of a cohesive society?

Hong Kong, like other newly industrializing economics in East Asia, has been conceptualized as one of the societies practicing “Productivist Welfare Captialism”. Historical evidence seems to suggest that the adoption of “productivism” in social policy provision really worked before the Asian Financial Crisis in 1997. nonetheless, drastic social transformations and economic restructuring in the post-1997 era have challenged the established productivist social policy regime. More importantly, these East Asian states cannot immune from the growing impacts of globalization. The realization of the social cohesion depends on whether policy actions can ensure that everyone can have equal chances to enhance their personal development, while it is very often difficult to strike a balance between welfare restructuring and economic development to strengthen the cohesiveness among various individuals and groups within society, such as social solidarity and reduction in income and wealth disparities, and trust and cooperation within communities or families. This chapter sets out in this wider theoretical context to examine welfare restructuring resulting from the Asian Financial Crisis in 1997 and the growing impact of the globalizing economy in Hong Kong, with particular reference to examine whether “Productivist Welfare Capitalism” is still productive in balancing economic growth and social development in Hong Kong. Copyright © 2010 World Scientific Publishing.