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1、publicadministrationanddevelopmentPublicAdmin.Dev.20,397±421(2000)GOVERNMENTINTERVENTIONINTHEECONOMY:ACOMPARATIVEANALYSISOFSINGAPOREANDHONGKONGNEWMANM.K.LAM*DepartmentofPoliticsandPublicAdministration,UniversityofHongKong,HongKongABSTRACTSingaporeandHongKongareveryd
2、ifferentandyetverysimilarinmanyrespects.Astudyoftheircurrentpro®lesandhistor-icaldevelopmentindicatesthatthetwohaveachievedcomparableeconomicsuccessesthroughdifferentdevelopmentstrate-gies.AfterWorldWarII,SingaporegainedpoliticalindependencewhileHongKongachievedecon
3、omicrestructuring.TheSingaporegovernmentadoptedaninterventionistapproachtodevelopitseconomy,whiletheHongKonggovernmentfollowedthelaissez-faireprinciple.However,asthetwowerematuringsociallyandeconomicallyinthelastfewdecades,bothgovern-mentsfoundthenecessitytoadoptahy
4、bridstrategyofmixingeconomicinterventionswiththefree-marketapproach.Anexamin-ationofpublic®nanceandeconomicpoliciessincetheonsetoftheAsianeconomicturmoilshowsthatthetwohavebecomeincreasinglysimilarintheireconomicapproaches,withheavyemphasisonstabilizingtheeconomyand
5、stimulatingbusinessactivitiesthroughgovernmentinitiatives.Basedontheirprojectedeconomic,socialandpoliticaldevelopment,theHongKonggovernmentisexpectedtobecomemoreinterventionistwhileitsSingaporecounterpartisexpectedtogointheoppositedirec-tion.Theeconomicdevelopmentst
6、rategiesofthetwogovernments,comingfromtwoextremes,willbecomemorealikeintheforeseeablefuture,forreasonsofpoliticalfeasibilityintheformer.INTRODUCTIONSingaporeisaplacewhere`anythingnotexpresslypermittedisforbidden',whileHongKongisaplacewhere`everythingnotexpresslyforb
7、iddenispermitted'.LeeHsienLoong,DeputyPrimeMinisterofSingapore,wasreportedtohavemadethiscomparisoninNovember1997(Porter,1998).TheSingaporegovernmentiswellknownforitseconomicintervention,whiletheHongKonggovernmentisequallywellknownforitsfree-marketapproach.Inspiteoft
8、hisapparentdifference,thetwohaveenjoyedequaleconomicsuccess.GeigerandGeiger(1973,p.11)suggestthattheyaremodelsoftheirparticulardevelopment
