The Hong Kong Arts Development Council was established by ordinance in 1995. The council's key responsibility is to plan, promote and support the broad development of the arts, including literary, performing, visual and film arts, as well as arts education in Hong Kong.

    During the year, the council initiated over 40 proactive and partnership projects with the aim of creating a favourable environment for artistic pursuits and to bring the arts closer to the public. These included the Hong Kong Book Fair 2002, co-presented with the Hong Kong Trade Development Council; the Hong Kong Literary Festival 2002 and the Arts Education Expo, jointly organised with the LCSD; the Mobile Art Gallery, co-organised with the New World First Bus Services Limited and the LCSD's Art Promotion Office; the Youth Work Experience and Training Scheme — Arts and Creative Industries, in liaison with the Labour Department; and Arts Unlimited, an arts education TV programme jointly produced with the Radio Television Hong Kong.

    The council organised the 26th Hong Kong International Film Festival in March/April, an event that attracted more than 170 000 people. There were more than 300 screenings of films from 40 countries during the 12-day festival as well as special topics that included Director in Focus, Age of Independents, The Zone and Hong Kong Panorama (2001–02). Film-related activities such as seminars, forums, outdoor screenings and an exhibition were also staged.