Published: 10:33, April 6, 2020 | Updated: 05:14, June 6, 2023
PDF View
Heritage Foundation index: A warning to be heeded by HK
By Grenville Cross

Grenville Cross says unless everything is done now to prepare the forces of law and order for future challenges, we’ll pay a price

‘God helps those who help themselves”, said Benjamin Franklin, the American statesman.

Under the Basic Law (Article 5), Hong Kong has been allowed to retain its “previous capitalist system and way of life”, at least until 2047, when the “50 years unchanged” proviso expires. Since reunification, therefore, full advantage has been taken of this dispensation, and Hong Kong’s business environment has been adjudged one of the best in the world. Indeed, according to the US-based Heritage Foundation (HF), which produces an annual Index of Economic Freedom, Hong Kong ranked as the world’s freest economy from 1995 to 2019, which is a remarkable achievement.

However, when the HF, on March 24, released its index for 2020, Hong Kong had slipped to second place, with a score of 89.1, narrowly behind Singapore, on 89.4. In total, 180 different places were surveyed, so even coming second is no mean feat, particularly as its other neighbors in the top five are Australia, New Zealand and Switzerland. By comparison, the United States fell to 17th, with a score of 76.6, down five places since 2019, and this was largely attributable to its protectionist policies, which have seen tariffs rise sharply and impacted trade.

Great dangers are on the horizon, and, unless effectively contained, they will do lasting damage not only to Hong Kong’s status as one of the safest places in Asia in which to live and work, but also to its hard-won reputation as one of the world’s freest economies

However, despite losing its ascendancy, Hong Kong saw its individual scores for judicial effectiveness, government integrity and property rights all rise, which was an encouraging development. While recognizing that Hong Kong has become increasingly integrated with the Chinese mainland, through trade, tourism and financial links, the HF found that risks to economic freedom had also risen. It concluded that Hong Kong “remains a dynamic global financial center with a high degree of competitiveness and openness, but the sense of risk is also heightened”. 

Quite clearly, the HF was concerned over the violence that engulfed Hong Kong for much of 2019, and which was unnerving for the business community. This, of course, is what many in the protest movement hoped for, as their plan from the outset has been to weaken China by damaging Hong Kong and its economy. The irony, however, is that, while Hong Kong’s status has changed by only one place in this year’s index, that of the US, which so many of the protesters glorify, has declined significantly.

Anybody who cares for Hong Kong will, of course, be sad to see its status dented, particularly as many had come to take it for granted. The priority now, therefore, is to arrest the decline, and hopefully reverse it. So long, however, as the subversive forces, which have largely paused their operations until the COVID-19 crisis is over, are able to mount significant levels of urban warfare, Hong Kong’s reputation as a good place to do business will be imperiled, with incoming investment being deterred.

Although the police force continues to do a fantastic job of protecting Hong Kong, it must have the tools it needs, whether in terms of equipment, resources or laws. While the government is naturally preoccupied with combating the coronavirus, it must also find the time to plan ahead. At some point, the subversives will resume hostilities, and the signs are that the outrages they have in mind in future will exceed anything witnessed thus far. 

In March alone, the police seized huge amounts of arms and ammunition, explosives and bomb-related paraphernalia, but nobody should be under any illusion. While the police have excellent intelligence, some of the protest movement’s arsenals are inevitably evading detection. The culprits obviously plan, at some point, to place the bombs, guns and other weaponry in the hands of their front-line operatives, enabling them to commit terrorist attacks throughout Hong Kong. Unless, therefore, everything possible is done now to prepare the forces of law and order for what lies ahead, there will be a heavy price to pay. Great dangers are on the horizon, and, unless effectively contained, they will do lasting damage not only to Hong Kong’s status as one of the safest places in Asia in which to live and work, but also to its hard-won reputation as one of the world’s freest economies.

As things stand, however, there is still hope. As the HF explained, “despite its recent troubles, Hong Kong remains one of Asia’s most important financial and trading centers”. If this is to continue, however, Hong Kong’s defences must be shored up, and its legal system fortified. Anybody who declares war on society must be held fully to account, and early preparation is the key.

The author is a senior counsel, law professor and criminal justice analyst, and was previously the director of public prosecutions of Hong Kong.

The views do not necessarily reflect those of China Daily.