Is it enough for Hong Kong to remain successful by staying at the top globally in its economic freedom?
Hong Kong has ranked as the world's freest economy in The Wall Street Journal and Heritage Foundation's Index of Economic Freedom for 17 consecutive years, since the inception of the index in 1995.1Being economic free helps the successful of Hong Kong. Hong Kong is the richest region in the world. However, In World Competitiveness Yearbook 2013 published by IMD, the ranking of Hong Kong competitiveness is dropped from the top to the third.2 In the following, I will discuss and explain why it is not enough for Hong Kong to remain successful by staying at the top globally in its economic freedom by talking about the drawbacks and problems caused by the economic freedom.
How economic freedom helped Hong Kong be successfully
Hong Kong’s economic freedom score of 89.3 keeps it atop the Index rankings for the 19th consecutive year.3 Staying at the top globally in its economic freedom boosts the investment from other place including mainland China and overseas. It helps the financial sector remains highly competitive and well capitalized, serving as a leading global hub.
Problem Caused by economic freedom
Problem of Monopoly
Hong Kong is facing a problem that many century-old shops and Small and Medium Enterprises close down and Hong Kong young people finds it difficult to start an undertaking because of the high rates. The shopping malls monopolized by chain store because they are the only one which can afford the land rates. It is especially serious in the shopping malls under the management of the Link REIT. 70% of shops in shopping malls under management of the Link REIT are chain stores.
It is a serious problem that the Link REIT manages the shopping malls near to the public housing estates which suppose people living in are not wealth and need the help from the government. However, the price of products in the chain...
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