Case Development Program

Abstract

Hong Kong’s trading ports are some of the busiest globally. On the positive side, it is a sign of a vibrant economy. On the negative, heavy marine traffic has caused serious damaging effects on both air quality and on public health in the city and the whole Pearl River Delta. The International Convention for the Prevention of Marine Pollution for Ships (MARPOL) Annex VI entered into force in 2005. Although China and Hong Kong ratified MARPOL Annex VI in 2006 and 2008, respectively, the authorities in both places were reluctant to introduce local regulations to implement it. In Hong Kong, a policy entrepreneur took the initiative to create a consensus among local and international stakeholders in the shipping industry to participate voluntarily in implementing marine pollution mitigation measures. These efforts were important in catalysing further actions, eventually leading to the introduction of regulations not only in Hong Kong but also across the border.

Learning Objectives

The case illustrates the role and characteristics of an effective policy entrepreneur. There can be further discussions on the political challenges in this case and how the policy entrepreneur managed to get around these. Readers can also think about the lessons that can be learned from this case to influence policy changes.

Abstract

The serious air pollution in the Greater Pearl River Delta (GPRD) caused by marine emissions required concerted efforts of the governments on both sides of the river. The governments of Guangdong Province and of Hong Kong created three levels of coordinating mechanisms, consisting of government officials with some representation from societal actors. These three official levels of coordinating mechanisms have overlapping memberships and cooperation areas. A fourth level of informal coordinating mechanisms emerged consisting of societal and industry stakeholders who try to make concerted efforts to influence policy decisions via informal channels.

Learning Objectives

This case identifies the components of the multi-level platform of coordination between Hong Kong and the Guangdong for the control of ship emissions in the GPRD. It also discusses the interactions within and across the different levels. Readers can think about how coordination can be improved and how the system can provide adequate channels for public/industry participation in the formulation and implementation of control measures.

Abstract

In 2009, the governments of Guangdong Province, Hong Kong, and Macao proposed the establishment of the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) to foster cross-border economic cooperation among the 9 cities of Guangdong plus the 2 Special Administrative Regions. GBA is expected to play a significant strategic role in China’s development, extending across various policy goals such as technological innovation, finance, infrastructure, ecological conservation, and industrial development. On the bright side, the GBA project can create more opportunities for the sustainable socio-economic development and long-term prosperity of the 11 participating cities. However, there are obstacles and challenges that lay ahead due to the 3 different political and legal systems that comprise the GBA. Moreover, fears that that greater integration would erode Hong Kong’s distinctive identity and rule of law also need to be addressed.

Learning Objective

This case provides insights about the debates surrounding the GBA project between those who see it as an opportunity and others who view it as a threat. Students can reflect and discuss the rationale behind the claims the project can either facilitate or undermine the implementation of the ‘one country, two systems’ principle. As future policy makers, what measures would you propose to strike a balance between these claims? What approach should each side–Hong Kong and Mainland–take to foster mutual trust, openness, and cooperation?

Abstract

Shenzhen has turned itself from a fishing village into a thriving technology hub, after having gone through three major stages of modernization–the construction phase, the restructuring phase, and the re-engineering phase. The city was chosen by Deng Xiaoping as a ‘testing ground’ for his ‘Open Door Policy’, becoming China’s first Special Economic Zone. Thanks to the innovative policies adopted by the city’s municipal government, Shenzhen is now the headquarters of major Chinese technology companies, such as Huawei, Tencent, and DJI. Shenzhen’s favourable policies, especially the encouragement of the open-source innovation system, have attracted overseas talents to come.

Learning Objective

Students are expected to discuss and identify the various factors that may have contributed to Shenzhen's transformation. Students can also discuss the extent to which Shenzhen can become a global innovation hub, identify good practices, and formulate innovative ideas or suggestions for changes or improvements to the current institutional arrangements to further harness the city's potential.

Abstract

Over the past decade, China has witnessed a swift growth in mobile payment adoption, with Alipay and Wechat Pay leading the way. This fast development can be attributed to several factors such as consumers’ enthusiasm with the convenient and user-friendly interface; growing penetration of smartphones; governmental regulator’s (People’s Bank of China) ability to oversee and regulate institutions; and support from service providers and technology giants, Tencent and Alibaba. This case highlights the latest developments in mobile payment industry in China, with a specific focus on main stakeholders across the value chain and their support for a robust mobile payment system. It discusses the emergence, key drivers, and benefits of mobile payments, examining why China is ahead of the rest of the globe in this industry and what are the strategic options for mobile payments to grow.

Learning Objective

This case allows students to gain a basic understanding on how mobile payment adoption succeeded in China. It also provides a context for discussing strategies adopted by different stakeholders along the value chain to facilitate the adoption of mobile payment in China. The case can also serve as a starting point to discuss what might be the next step going forward in mobile payments in the Mainland.

Abstract

Established in 2015, the Innovation and Technology Bureau (ITB) of the Hong Kong Special Administrative Region was tasked with transforming the city into an innovation and technology hub with a vibrant ecosystem for scientific collaboration and interaction among innovation actors from around the globe. To stem Hong Kong’s decline relative to its regional competitors in innovation and technology development, first Chief Executive Tung Chee-hwa set up the Innovation and Technology Commission (ITC) in 2000. In 2012, Chief Executive Leung Chun-ying announced a plan to set up ITB, but several attempts by the government to obtain funding approval in the legislature between 2012 and 2015 failed. The main argument of the opposition was it was not necessary to have a dedicated technology bureau and that it was a waste of public money. After much debates marked by filibustering by pro-democracy legislators, the funding was finally approved in November 2015.

Learning Objective

This case presents some of the main arguments for and against the establishment of ITB. It can also provide a starting point for students to assess and discuss to some extent whether the establishment of a dedicated bureau was justified or not in light of the current situation.

Abstract

Uber is often hailed as a pioneer of taxi industry that provides point-to-point service via a ride-hailing app. Uber debuted in Hong Kong in 2014. No sooner had it become popular than it was outlawed due to strong opposition from the taxi industry. Despite the restriction, Uber continues to operate openly although suffering occasional sanctions. Society has debated on whether Uber should be legalized. Those who opposed the liberalization of the taxi industry were concerned about the loss of jobs of taxi drivers, safety issues, the lack of third-party insurance, and so on. Others wanted to break the longstanding monopoly and unfair licensing system, and to improve service quality to benefit consumers.

Learning Objective

Students can gain a better understanding of the pros and cons of legalizing Uber in Hong Kong. Students are expected to discuss the obstacles to allowing Uber to operate, and the existing institutional limitations and the capacity of the Hong Kong government to regulate Uber. Students can propose policy solutions to balance the interests of relevant stakeholders like taxi drivers, license holders, and the general public.

Abstract

Since the establishment of the Hong Kong Special Administrative Region, the government has been investing on infrastructure projects–notable examples are Science Park and Cyberport–and R&D under funding schemes mostly administered by the Innovation and Technology Commission to position itself as a regional leader in technology innovation. To speed up technological progress, the government set up a dedicated bureau for I&T in 2015. Hong Kong actively sought cross-harbour collaboration with the Mainland to overcome its lack of expertise, talent, and market. In 2017, the officials of Hong Kong and of Shenzhen jointly decided to build an innovation and technology park in Lok Ma Chau Loop. Hong Kong signed many other agreements with Shenzhen and the other cities in Guangdong Province to boost its regional and global competitiveness. However, to date, Hong Kong lags behind its regional competitors in terms of technological advance. Critics pointed out some of the factors that the government needs to grapple with the problem of being a laggard in technology innovation.

Learning Objectives

The case presents some questions to think about and/or for discussion: Why is Hong Kong falling behind its regional competitors on I&T development? What are the major barriers to the development of I&T in Hong Kong? What might Hong Kong be missing making it a laggard compared to other developed economies? If you were to make recommendations to the government, what improvements would you suggest?