= Hong Kong Manhattan. Topic 3: Hong Kong as a Global City

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Hong KongManhattan

Topic 3:Topic 3:Hong Kong as a Global CHong Kong as a Global C

ityity

Themes and QuestionsThemes and Questions

Themes:Themes:

1.1.From positive non-interventionism to aFrom positive non-interventionism to active imagineeringctive imagineering

2.2.The post-handover urban governanceThe post-handover urban governance

Questions:Questions:1.1.What is urban governance?What is urban governance?2.2.What are the changing forms of Hong KoWhat are the changing forms of Hong Ko

ng state in the process of global city mang state in the process of global city making?king?

TheThe Urban Governance StructureUrban Governance Structure

• An urban governance structure An urban governance structure can be conceptualized as a mode can be conceptualized as a mode of regulation, which, involves not of regulation, which, involves not only development planning, only development planning, hegemonic discourses and hegemonic discourses and information technology, but also information technology, but also media, communication, law and media, communication, law and education.education.

Cyberport is good (to me)!!!

Key concept to remember!

TheThe Urban Governance StructureUrban Governance Structure

• It involves both governmental and non-It involves both governmental and non-government factors in regulating the urgovernment factors in regulating the urban development.ban development.

• It is argued that not until the establishIt is argued that not until the establishment of the SAR government and after ment of the SAR government and after the Asian financial crisis, a new vision othe Asian financial crisis, a new vision of "active imagineering" governance is sf "active imagineering" governance is shown in HK. hown in HK.

Reinventing the role of City- StateReinventing the role of City- State

• A speech by the Chief Executive, Tung Chee HA speech by the Chief Executive, Tung Chee Hwa in the Microsoft Asia Enterprise Summit' 9wa in the Microsoft Asia Enterprise Summit' 99:9:

It has always been my firm belief It has always been my firm belief that innovation and technology that innovation and technology are crucial drivers of economic are crucial drivers of economic growth and expansion. This is growth and expansion. This is particularly so in the knowledge-particularly so in the knowledge-based global economy in which based global economy in which we now live. …we now live. …


The Government has a vital role to plaThe Government has a vital role to play in creating the right environment for y in creating the right environment for innovation and technology to develop innovation and technology to develop and flourish in the community. …and flourish in the community. …

In addition to the foregoing initiatives,In addition to the foregoing initiatives, we are embarking on a project that wi we are embarking on a project that will put us in a strategic position in the dll put us in a strategic position in the development of information technologevelopment of information technology and services, namely the developmey and services, namely the development of a "Cyberport".nt of a "Cyberport".


The project will be developed by the GThe project will be developed by the Government in partnership with a leadiovernment in partnership with a leading information services company in thng information services company in the private sector. Let me do a little bit oe private sector. Let me do a little bit of marketing here. The Cyberport is a Uf marketing here. The Cyberport is a US$1.6 billion development on 26 hectaS$1.6 billion development on 26 hectares of land on the southern part of Honres of land on the southern part of Hong Kong Islandg Kong Island."


• The first time in Hong Kong The first time in Hong Kong history that the Government has history that the Government has taken part in a mega technology taken part in a mega technology project.project.

• SAR government shows a leading SAR government shows a leading role of the city-state to renovate role of the city-state to renovate the Hong Kong economy and the Hong Kong economy and reshape Hong Kong as a global reshape Hong Kong as a global city.city.


• The role of the Asian states in The role of the Asian states in today's global economy has been today's global economy has been summarized by Henry Yeung summarized by Henry Yeung (1998) as the follows:(1998) as the follows:

1.1. The state continues to serve as The state continues to serve as the ultimate guarantor of the the ultimate guarantor of the "rights" of global capital "rights" of global capital

2.2. The state continues to provide the The state continues to provide the necessary conditions for the necessary conditions for the growth of domestic capital growth of domestic capital globallyglobally.


3.3. The state is directly engaged in The state is directly engaged in transnational economic activities transnational economic activities to become a "collective to become a "collective capitalist".capitalist".

4.4. The state remains one of the most The state remains one of the most effective regulators in the global effective regulators in the global economy. economy.

Hong Kong love Disney World (Not Disneyland)!!!(Disney World is cheaper than Disneyland)


5.5. The role of the state in The role of the state in internationalizing politics such as internationalizing politics such as forming regional and international forming regional and international institution for the co-ordination and institution for the co-ordination and regulation of the global capital.regulation of the global capital.

5.5. The states still have substantial The states still have substantial power over their domestic power over their domestic economies in a globalizing world.economies in a globalizing world.

Hong Kong is XXX, YYY and ZZZ international center!!!

Crisis-Survival- Competition DiscourseCrisis-Survival- Competition Discourse

• The SAR government builds up its legitiThe SAR government builds up its legitimacy through producing a new rhetoric macy through producing a new rhetoric of urban imagineering. of urban imagineering.

• It hopes to create an image of "active aIt hopes to create an image of "active and capable" government, based on a nd capable" government, based on a crcrisis-survival-competitionisis-survival-competition discourse. discourse.

SAR government is a strong state!!!


• The Asian Financial Crisis badly The Asian Financial Crisis badly hit the SAR economy and the hit the SAR economy and the belatedness of the economic belatedness of the economic recovery produces the best recovery produces the best source for the rhetoric.source for the rhetoric.

• A global competition race is A global competition race is imagined at a level that will imagined at a level that will threaten the survival of Hong threaten the survival of Hong Kong as a regional finance and Kong as a regional finance and business centre.business centre.


In the 1999-2000 Budget Speech, In the 1999-2000 Budget Speech, the Financial Secretary, Mr. Donald the Financial Secretary, Mr. Donald Tsang viewed Hong Kong as lacking Tsang viewed Hong Kong as lacking time to compete in the race:time to compete in the race:

There is no question that, for There is no question that, for Hong Kong to meet the Hong Kong to meet the challenges of the 21st challenges of the 21st Century, it must adapt to the Century, it must adapt to the new forces of the Information new forces of the Information Age.…Age.…


To respond to these mega trends, To respond to these mega trends, we must first of all identify our strwe must first of all identify our strengths and develop our own niche.engths and develop our own niche. We should exploit the strengths of We should exploit the strengths of our sophisticated telecommunicatour sophisticated telecommunications network… we must race agaiions network… we must race against time. nst time.


• The words, strategies, planning, funding, The words, strategies, planning, funding, hi-tech, and high value-added play significhi-tech, and high value-added play significant rhetorical roles in the SAR governing pant rhetorical roles in the SAR governing practices. eg "Digital 21 Hong Kong SAR Infractices. eg "Digital 21 Hong Kong SAR Information Technology Strategy", "Onward ormation Technology Strategy", "Onward with New Strengths" (1999-2000). with New Strengths" (1999-2000).

• All the rhetoric is targeted for making a coAll the rhetoric is targeted for making a consensus among involved actors. nsensus among involved actors.

New Age of Urban GovernanceNew Age of Urban Governance

• A new urban governance, A new urban governance, consisting of a multi-scaled urban consisting of a multi-scaled urban governance structure, was governance structure, was formulated. formulated.

• Commission on Innovation and Commission on Innovation and Technology (CIT) is a high-level Technology (CIT) is a high-level committee to make committee to make recommendation for development recommendation for development HK into a high-tech city.HK into a high-tech city.


• The imagery employed by the The imagery employed by the Commission is fanciful: HK is Commission is fanciful: HK is capable and will be an innovation-capable and will be an innovation-led, technology-intensive led, technology-intensive economy in the 21st century. economy in the 21st century.

• It portrays that Hong Kong not It portrays that Hong Kong not only as a business and financial only as a business and financial center, center,

but also as:but also as:


1.1. a leading city in the a leading city in the world for world for the the development and use of development and use of information technology;information technology;

2.2. a world-class design a world-class design and and fashion center; fashion center;

3.3. a regional center for a regional center for multimedia-based multimedia-based information information and and entertainment services;entertainment services;


4.4. a world center for the a world center for the development of health food development of health food

and pharmaceuticals and pharmaceuticals based on based on Chinese Chinese medicine; medicine;

5.5. a leading supplier in a leading supplier in the world the world of high value-of high value-added added components and components and products products where Hong where Hong Kong already Kong already excels excels today; today;


6.6. a regional center for a regional center for supplying supplying professional professional and technological and technological talents and services; and talents and services; and

7.7. the marketplace for the marketplace for technology technology transfer transfer between the Mainland between the Mainland and the rest of the world.and the rest of the world.


• As suggested by the CIT, three giant projecAs suggested by the CIT, three giant projects have already been announced: the Cybets have already been announced: the Cyberport, Herbalport, and Silicon Harbor. rport, Herbalport, and Silicon Harbor.

• The Cyberport is a strategic infrastructure The Cyberport is a strategic infrastructure project aimed at creating a synergistic cluproject aimed at creating a synergistic cluster of leading IT and services companies ister of leading IT and services companies in Hong Kong. n Hong Kong.

Hong Kong is High-Tech, innovative and creative!!!(But only few investment in REAL High-Tech industries)


• A "successful" Cyberport, “enthusiastically A "successful" Cyberport, “enthusiastically imagineered”, will provide:imagineered”, will provide:

state-of-the-art optical fiber state-of-the-art optical fiber network, a broad-band network, a broad-band facility with high speed facility with high speed access to the rest of the access to the rest of the world;world;

facilities such as media facilities such as media equipment and studio equipment and studio facilities for common use by facilities for common use by the more than 100 small to the more than 100 small to medium sized; medium sized;


cyber-related educational, entertcyber-related educational, entertainment and retail facilities to prainment and retail facilities to provide a public interface, so as to lovide a public interface, so as to learn about the technologies of thearn about the technologies of the future.e future.

The Cyberport development is claThe Cyberport development is claimed to rely largely on the expertimed to rely largely on the expertise and entrepreneurial spirit of tise and entrepreneurial spirit of the private sector.he private sector.


The project claimed to The project claimed to generate more than 12,000 generate more than 12,000 jobs in Hong Kong, among jobs in Hong Kong, among which 4,000 jobs will also be which 4,000 jobs will also be created in the construction created in the construction industry. industry.

U.S. led multi-national U.S. led multi-national information corporations, information corporations, including Microsoft and CMGI including Microsoft and CMGI

have announced Hong have announced Hong Kong as Kong as their choice for Asia their choice for Asia Pacific Pacific regional regional headquarters. headquarters.


changing the world image of changing the world image of Hong Kong as "a low-tech Hong Kong as "a low-tech but high-IQ" regional centre but high-IQ" regional centre to a "global and high-tech" to a "global and high-tech" centre.centre.

So, cyberport is good (to me and my daddy)!!!!

Glocalizing the Hong Kong EconomyGlocalizing the Hong Kong Economy

• This active role of mediating between the This active role of mediating between the global and the local can be conceptualized global and the local can be conceptualized as "glocalization".as "glocalization".

• ““Glocalization” refers to the strategies aGlocalization” refers to the strategies adopted by cities in articulating local differdopted by cities in articulating local differences to enhance its global advantages.ences to enhance its global advantages. T These strategies include:hese strategies include:



1.1. strengthening its local characteristics sstrengthening its local characteristics so as to distinguish itself from other coo as to distinguish itself from other competing citiesmpeting cities; ;

2.2. building up new local characteristics thbuilding up new local characteristics that are complementing the existing ones,at are complementing the existing ones, so that the economy of agglomeration so that the economy of agglomeration can be reaped (can be reaped ( 收穫收穫 ));;



3.3. maintaining its linkages with maintaining its linkages with global players which are global players which are exploiting the local exploiting the local characteristics in their interestscharacteristics in their interests;;

4.4. expanding its global reach expanding its global reach through promoting how its local through promoting how its local characteristics can meet the characteristics can meet the interests of global playersinterests of global players. . Key concept to remember!


• These local characteristics are These local characteristics are basically infrastructure, basically infrastructure, institutions, policies and culture institutions, policies and culture that can help integrate different that can help integrate different territorial governance structures. territorial governance structures.


The other supplementary The other supplementary measures the government has measures the government has taken include:taken include:

1.1. Opening up the telecommunication Opening up the telecommunication market;market;

2.2. Offering land and infrastructure for Offering land and infrastructure for grandgrand

Hong Kong has excellent transportation system. (We destruct and construct roads again and again.)

Glocalizing the Hong Kong EconomyGlocalizing the Hong Kong Economy3.3. projects, such as Cyberport and Disneylaprojects, such as Cyberport and Disneyla

nd theme park; nd theme park;

4.4. Setting up a special Task Force to review Setting up a special Task Force to review immigration and human resources policy;immigration and human resources policy;

5.5. Launching an Innovation and Technology Launching an Innovation and Technology Fund.Fund.

Conclusion:Conclusion:

1.1. The SAR government is changing its nonintThe SAR government is changing its noninterventionist role into an "active imagineerierventionist role into an "active imagineering" and glocalized strategy. ng" and glocalized strategy.

2.2. The Asian financial crisis justifies the new uThe Asian financial crisis justifies the new urban governance.rban governance.

3.3. Under a crisis-competitive-survival ideologUnder a crisis-competitive-survival ideology, the SAR govt actively imagineers Hong Ky, the SAR govt actively imagineers Hong Kong as a global city comparable to New Yorong as a global city comparable to New York, London and Tokyo.k, London and Tokyo.


4.4. It thus forges itself to a more It thus forges itself to a more active role in regulating the active role in regulating the market and society.market and society.

5.5. Due to its colonial legacy, the HK Due to its colonial legacy, the HK government is still not strong government is still not strong enough to regulate its societal enough to regulate its societal actors. actors.

Hong Kong is the most liberal economy in the world. (We only regulate housing market).


6.6. The success of the strategy will The success of the strategy will depend on a combination of social depend on a combination of social consensus, the state’s projection, consensus, the state’s projection, and a positive response from private and a positive response from private enterprise. enterprise.

7.7. A contractual relationship between A contractual relationship between the state, market and society has to the state, market and society has to be reached.be reached.

Under my leadership, Hong Kong will have a good future!!!

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= Hong Kong Manhattan. Topic 3: Hong Kong as a Global City