The Post-war Years

After the Japanese surrender, Chinese civilians — many of whom had moved into the Mainland during the war — returned at the rate of almost 100 000 a month. The population, which by August 1945 had been reduced to about 600 000, rose by the end of 1947 to an estimated 1.8 million. In 1948-49, as the forces of the Chinese Nationalist Government began to face defeat in civil war at the hands of the Communists, Hong Kong received an influx unparalleled in its history. Hundreds of thousands of people — mainly from Kwangtung (Guangdong) Province, Shanghai and other commercial centres — entered Hong Kong during 1949 and the spring of 1950. By mid-1950, the population had swelled to an estimated 2.2 million. It has continued to rise, reaching four million by 1970, five million by 1980, approaching six million by 1990, and now nearing seven million.

After a period of economic stagnation caused by the United Nations' embargo on trade with China, arising from the Korean War, Hong Kong began to industrialise. No longer could Hong Kong rely solely on its port to provide prosperity for its greatly increased population. From the start, the industrial revolution was based on cotton textiles, gradually adding woollens to the list and, in the late 1960s, man-made fibres and made-up garments. Textiles and clothing made up more than half of domestic exports by value during the 1960s.

Although Hong Kong has become increasingly a service-based economy over the past 10 years with domestic merchandise exports steadily declining, textiles and clothing still constitute over 50 per cent of domestic exports by value. Electronics, watches, clocks and jewellery are also major export items.

Over the years, the manufacturing sector has gradually moved from one concentrating on simple, labour-intensive products to one focusing on sophisticated, high value-added products. Taking advantage of the abundant supply of land and labour in the Pearl River Delta, industrialists have expanded their production bases across the boundary while maintaining headquarters operations in Hong Kong. This mode of operation has contributed to economic development in the region and facilitated the transformation of Hong Kong into a services centre.

Associated with events in the Mainland, 1966 saw mounting tension in Hong Kong. During 1967, this developed into a series of civil disturbances, affecting all aspects of life and temporarily paralysing the economy. But, by the year's end, the disturbances were contained and the community continued its tradition of peaceful progress.

Hong Kong continued to expand its role as an entrepôt with its neighbours and trade with the Mainland was no exception. Coupled with tourism, this has led to vast improvements in communications, with an increasing number of people entering the Mainland from or through Hong Kong, the natural gateway, each year. With the launch of the Individual Visit Scheme for Mainland people in 2003, there was a surge in the demand for air services between the Mainland and Hong Kong. On December 2, Cathay Pacific Airways commenced three weekly services to Beijing. Altogether, Cathay Pacific and Hong Kong Dragon Airlines (Dragonair) and four Mainland carriers — China Southern Airlines, Air China, China Eastern Airlines and Xiamen Airlines — operate more than 1 200 flight movements a week in scheduled and non-scheduled services between Hong Kong and about 40 destinations in the Mainland.

The Kowloon-Canton Railway Corporation operates frequent train services from Hung Hom in Kowloon to the Mainland boundary at Lo Wu. It also operates inter-city through train services between Hong Kong and cities in Guangdong as well as Shanghai and Beijing. Ten trains are available daily from Hung Hom to Guangzhou, six of which call at Dongguan, and one terminates at Zhaoqing via Foshan. Trains to Shanghai and Beijing operate on alternate days. Cross-boundary coach services operate different routes to Guangdong and other parts of southern China. There are frequent daily ferry services to Macau and there are also regular services to some 20 other ports in South China.

To keep pace with the development, the Government places strong emphasis on improving and expanding infrastructure. As a result, Hong Kong has been transformed into a modern city with efficient road and rail links, and first-class port and airport facilities. New highways have opened up previously remote areas, the railway networks are being expanded, and a new international airport has been in operation at Chek Lap Kok since 1998. Accommodating about 46 per cent of Hong Kong's population, the nine new towns in the New Territories have eased the pressure on developable land in Kowloon and on Hong Kong Island. Current and planned projects would continue to spur the economy, creating job opportunities and enhancing the environment for the community.

The development of Hong Kong's economic base has enabled the public sector to increase spending on housing, education, social welfare and health over the years — from $69.7 billion in 1993-94 to an estimated $155.3 billion in 2003-04.

Hong Kong's public housing programme started with an emergency measure to rehouse some 53 000 people made homeless overnight in a squatter fire on Christmas Day 1953. It has developed into a comprehensive programme that encompasses a wide range of rental and home ownership scheme flats with self-contained facilities.

The programme is in line with the Government's policy objectives to reduce the number of inadequately housed people, to help households gain access to affordable housing and to encourage home ownership in the community. The Hong Kong Housing Authority has primary responsibility for this programme. More than half of Hong Kong's families live in accommodation that they own.

The Government has been investing heavily in education to enhance Hong Kong's competitiveness in a knowledge-based and globalised economy. Free and compulsory primary and junior secondary education is provided to every student up to the age of 15 years. Senior secondary and tertiary education is also heavily subsidised and it is a government policy that no one is deprived of education for lack of financial means. Exemplifying this, starting from the 2002-03 school year, all Secondary 3 students from public sector schools who are able and willing to continue with their study may receive subsidised Secondary 4 education or vocational training.

The Government and non-governmental organisations have made major social welfare advances in the past decade, with expenditure increasing from $7.03 billion in 1992-93 to $32.76 billion in 2003-04. At the same time, social services have developed from providing emergency relief into today's diversified and comprehensive network.

Hong Kong's major health indicators such as life expectancy at birth and infant mortality rate are now among the best in the world. Important factors in this have been improvements in socio-economic conditions, education, housing, sanitation, nutrition and the introduction of a comprehensive childhood immunisation programme. With a high polio immunisation rate, coupled with a high level of vigilance, Hong Kong was certified polio-free in 2000. An effective disease surveillance system, which comprises clinics, hospitals and laboratories in public and private sectors, is in place and this is crucial to the effective prevention and control of diseases. In 2001, a new Public Health Laboratory Centre was established to enhance the provision of quality laboratory services.

Medical and health services are undergoing continuous development programmes. The Government continues to invest in medical services and is aware of the international trend of developing ambulatory and community care programmes and replacing, where appropriate, in-patient treatment by ambulatory and out-patient services. In 2003, two projects were completed. The first project was the relocation of the Accident and Emergency Department of the Tang Shiu Kin Hospital to the Ruttonjee Hospital to make way for conversion of the former hospital into an ambulatory and day-care centre. The second was an improvement programme involving eight public hospitals. Construction works for other major hospital projects, at a total estimated cost of $5.9 billion, were to be completed over the next five years. In addition, all general out-patient services previously operated by the Department of Health were transferred to the Hospital Authority in 2003 to facilitate integration of the primary and secondary levels of care in the public sector.

A comprehensive system of labour legislation has been developed to provide for employees' benefits and protection, employees' compensation, occupational safety and health. Free employment services are provided to help job-seekers find work and employers to recruit staff. The Employees Retraining Board provides quality retraining courses and services to the unemployed and potentially unemployed in order to enhance their employability and meet the needs of employers and the Hong Kong economy.