Teacher’s
Edition
The Trials and Hardships of Hong Kong Economy
A. Learning objectives
1. To understand some indicators that reflects the economic condition of Hong Kong,
such as unemployment rate
2. To understand that Hong Kong is a small but open economy and the economy is
affected by both internal and external factors
3. To understand how Hong Kong government and residents, in the past decade,
responded to the difficulties and challenges posed by the economic downturn
4. To understand some of the economic problems faced by Hong Kong and their
impacts
5. To acquire the skills of reading and analysing data, as well as interpreting the
economic condition from the figures
6. To learn to view from other people’s perspectives so as to develop empathy
towards others
7. To reflect how to prepare for the future by understanding the economic condition
of Hong Kong
B. Prior knowledge
General Studies in primary school
Strands
4: Community
and Citizenship












Core elements
Goods, facilities and services in the community
Different kinds of work in society
People who work to satisfy our needs and maintain
harmonious society
Exchange of goods and services to meet our needs and the
needs of others
The differences among people, and the need to respect the
rights of others
Communicating and getting along with others in the
community
The early history of Hong Kong
Major features of Hong Kong economy
Factors affecting the economic development of Hong Kong
The benefits for Hong Kong of trading with other parts of
the world
Some current and relevant social issues in the community
Suggestions for extension: investigating how government
policy affects the economic development of Hong Kong and
the economic relationships between the mainland of China
and the HKSAR
1
6: Global
Understanding
and the
Information Era



Reasons for people to exchange information, goods and
services
Major current international events and their meanings to us
The interdependence of different parts of the world
C. Suggested no. of lessons: 4
D. Suggested learning activities
Lesson 1-2
1. Divide students in groups to work on【Activity 1】 so as to provide students a
basic idea about Hong Kong economy in the past decade.
2. Ask students to analyze the figures in【Activity 2】and answer the questions.
Discuss the questions in class so that students can learn about the relationship
between the trend of unemployment rate and the economic condition of Hong
Kong in recent years. After answering the questions for each phase, students read
the major events of the respective phases to enhance their understanding of the
economic condition in that decade.
3. Explain to students that unemployment rate is an important indicator in reflecting
economic condition. Teacher can also tell students that they will reflect on the
impacts brought by the economic events in the next lesson.
Lesson 3-4
1. Summarize the discussion of the last two lessons.
2. Distribute materials of【Activity 3】. Students read the materials and discuss the
questions in groups and then present their findings to the class. It is expected that
students can understand the difficulties and challenges Hong Kong government
and residents faced in the past decade and how they responded and reflected from
the experience.
3. Conclude the lesson with emphasis on the characteristics of Hong Kong economy.
That is, Hong Kong is a small but open economy. Its economic condition is
affected by both internal and external factors. According to the experience in last
decade, Hong Kong can always turn crises to opportunities when the government
and society work and try their best together to brave the challenges and
difficulties.
2
The Trials and Hardships of Hong Kong Economy
Activity 1
1.
Please write down the years in which the events below happened/will happen.
The group which finishes the task most quickly and has the most accurate
answers will be the champion.
Calendars of major events
Year
1. Hong Kong will host East Asian Games
2009
2. 9-11 terror attacks on USA
2001
3. Mr. Tung Chee-hwa resigned from the post of Chief Executive of the
HKSAR
2005
4. During the outbreak of SARS, the government ordered to quarantine
the residents of Block E, Amoy Garden
2003
3
5. Re-unification of Hong Kong with China
1997
6. During Asian Financial Crisis, Hong Kong dollar faced speculative 1998
pressure. It was the first time for the Hong Kong Monetary Authority
to buy a large amount of shares in stock and futures markets, in order
to repel the speculators who controlled the currency market.
7. Wen Jiabao, the Premier of People's Republic of China, and Mr 2003
Tung Chee-hwa, the Chief Executive of the HKSAR, hosted the
ceremony of signing the 《 Mainland and Hong Kong Closer
Economic Partnership Arrangement》(CEPA)
8. World Trade Organization (WTO) Hong Kong Ministerial 2005
Conference
4
9. Grand opening of Hong Kong Disneyland
2005
10. The mainland of China formally launched the “Individual Visit 2003
Scheme”. The number of mainland visitors to Hong Kong rose
sharply.
11. David Beckham, the British soccer player, followed the Spanish 2003
soccer team Real Madrid to visit Hong Kong and to play a friendly
match.
Remarks: Teacher can freely replace events expect events 2,4,6,7,10 as they are the background
information for Activity 2 and 3. Teacher can also find other suitable events from Hong Kong
Yearbook if needed. For students with high ability, teacher can encourage them to suggest
other events for discussion.
2.
Which of the above events are related to the volatile economic condition in
recent years in Hong Kong? Please support your answer with reasons.
＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿______＿＿
＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿______＿＿
＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿______＿＿
＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿______＿＿
＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿______＿＿
Sources of photos: Hong Kong Yearbook 1997, 2003 & 2005
5
Activity 2
The Ten Years of Economic Turmoil
We often come across unemployment rate as an
economic data from the news. In fact,
unemployment rate is one of the important
indicators to reflect the economic condition of Hong
Kong. From the trends of unemployment rate and
the economic performance in the last fourteen years,
we can see the close relationship between the two.
Read Diagram 1 and answer the questions.
Diagram 1
（Note）
Source: “Half-yearly Economic Report 2007 & Updated Economic Forecasts for 2007”. Press
Conference Presentation, 17th August 2007, HKSAR.
http://www.hkeconomy.gov.hk/en/pdf/07q2_ppt.pdf
Note: 03Q2 in the diagram represents second quarter of 2003. The figure (3.8) below 03Q2 represents
the unemployment rate at that time.
6
A. The Period Between 1993 – 1999
1. Between 1993 and the Re-unification of Hong Kong with China, how was
the level of the overall unemployment rate? What was the range of the
unemployment rate at that time?
Between 1993 and the Re-unification of Hong Kong with China, the overall unemployment
＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
rate was low and was between 1.4% and 3.8%.
＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
2. From mid-1997 to the end of 1999, what happened to the overall
unemployment rate?
From mid 1997 to the end of 1999, the overall unemployment rate increased continuously.
＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
3. Following question 2, what was the highest overall unemployment rate at
that period? How is it different from the highest unemployment rate before
the Re-unification of Hong Kong with China? What does the difference
tell about the economic condition of Hong Kong at that time?
The highest overall unemployment rate at that period was approximately 6.3%. The rate was
＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
about 2.5% (6.3-3.8%) higher than that before the Re-unification of Hong Kong with China.
＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
This shows that the economic condition of Hong Kong worsened.
＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
4. Suggest an event from Activity 1 that is related to the economic condition
mentioned in question 3. Support your answer with reasons.
The economic condition mentioned in question 3 is closely related to the Asian Financial
＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
Crisis as many businesses closed at that time and made many people unemployed.
＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
5. At the end of 1999, what was the unemployment rate of lower-skilled
workers? How is the rate different from that of the professional and
managerial staff?
The unemployment rate of lower-skilled＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
workers was around 6.5%. It is higher than that of
＿＿＿＿＿＿＿＿＿＿＿＿＿
professional and managerial staff by about 3.7% (6.5-2.8%).
＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
＿＿
7
Major Events
A lesson learnt from the Asian Financial Crisis
EXPERIENCE can be a harsh teacher and 1998 gave us all plenty of lessons. Hong
Kong had its poorest economic result for more than 20 years, slipping into recession
in the second quarter.
On July 1, 1997, Hong Kong had returned seamlessly to China. The next day, the
Thai Government devalued its Baht. In the 18 months that followed (to end-1998),
the Asian crisis became a crisis with global implications. Governments fell, leaders
changed and poverty descended on millions of people.
In August, during a concerted attack on our currency and
equities markets, the government was forced to intervene to
stop a contrived manipulation which could have brought Hong
Kong to its knees. The incursion was a matter of survival to
preserve local community confidence, protect the integrity of
the linked exchange rate to the US$ as well as restore a
level-playing field to the stock and money markets.
The crisis had a profound effect on Hong Kong. The figures for 1998 tell the tale.
Real GDP contracted by around 5 per cent (compared with 5.3 per cent real growth
in 1997), property prices dropped by 50 per cent, and rents were down by about the
same amount. Stock market prices and turnover dropped sharply. Unemployment
more than doubled to 5.7 per cent, wages fell, small businesses closed and consumer
demand went into reverse. Other factors compounded the distress. A liquidity crunch
(caused mainly by the repatriation of tens of billions of dollars to Japan) and
sustained speculative attacks on the Hong Kong currency and stock markets were
just some extraordinary problems that Hong Kong dealt with during a particularly
fierce 'Year of the Tiger'.
Source: Hong Kong Yearbook 1998
8
B.
The Period Between 2000 and 2002
6. What happened to Hong Kong’s overall unemployment rate between
2000 and 2002? What was the highest overall unemployment rate in that
period?
The
overall unemployment rate first dropped and then bounced back between 2000 and
＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
2002.
During that time, the overall unemployment rate peaked at around 7.7%.
＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
7. Following the above question, how is the highest overall unemployment
rate at that time different from that at the end of 1999? What does the
difference tell us about the economic condition of Hong Kong at that
time?
The
highest overall unemployment rate at that time is higher than that at the end of 1999
＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
by
1.4% (7.7-6.3%). This shows that the economic condition of Hong Kong at that time
＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
deteriorated.
8. Suggest an event from Activity 1 that is related to the economic condition
mentioned in question 7. Support your answer with reasons.
＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
The 9-11 terrorist attacks on the USA in 2001 affected the US economy and the Hong
＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
Kong’s export to the USA. This worsened the economic condition of Hong Kong.
＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
9. At the end of 2002, what was the unemployment rate of lower-skilled
workers? How is the rate different from that of professional and
managerial staff?
The unemployment rate of lower-skilled workers was around 8.1%. It is higher than that of
＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
professional and managerial staff by about 4.9% (8.1%-3.2%)
＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
9
Major Events
The global economic environment showed a
distinct worsening during 2001, prompted by
the abrupt downturn in the US economy and
with the slack spreading over to Asia and
Europe. The shock impact of the tragic events
in the United States on September 11
aggravated the situation. It hit badly the global travel industry and
reduced the demand for trade-related and other services. The
exports of services likewise slowed down towards the year-end…..
With the September 11 incidents hitting severely the travel
industry world-wide and the demand for trade-related and other
business services in the region, exports of services likewise slowed
down towards the year-end.
Source: Hong Kong Yearbook 2001
10
C. The Period Between 2003 and 2007
10. What happened to the overall unemployment rate in 2003? What was the
highest overall unemployment rate at that time? What does the
unemployment rate tell us about the economic condition of Hong Kong at
the time?
The overall unemployment rate in 2003 peaked at 8.6% and reached the highest in history.
＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
This shows that the Hong Kong economy was at low ebb.
＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
11. Suggest an event from Activity 1 that is related to the economic condition
mentioned in question 10. Support your answer with reasons.
Severe Acute Respiratory Syndrome (SARS) broke out in Hong Kong in 2003 and hit the
＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
economy again.
＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
12. What was the overall unemployment rate in the second quarter of 2007?
What does the unemployment rate tell us about the economic condition of
Hong Kong at that time?
The overall unemployment rate in the second quarter of 2007 was about 4.2%. It shows
＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
that Hong Kong economy was recovering.
＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
13. In the second quarter of 2007, what was the unemployment rate of
lower-skilled workers? How is the rate different from that of professional
and managerial staff?
The unemployment rate of lower-skilled workers was around 4.9%. It is higher than that of
＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
professional and managerial staff by 2.8% (4.9%-2.1%).
＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
11
Advanced Questions
1. Compare the unemployment rate between lower-skilled workers and
professional and managerial staff in different economic conditions in
questions 5, 9 and 13. What problem does the answer reveal?
Under all economic conditions, the unemployment rate of lower-skilled workers was higher
＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
than that of professional and managerial staff. When Hong Kong economy slumped, the gap
＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
widened. It reflects that structural transformation in Hong Kong economy worsens the
＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
unemployment situation of lower-skilled workers.
＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
2. If you were an officer of Labour and Welfare Bureau, how would you deal
with this problem?
Students
＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
may answer the question freely.
＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
12
Major Events
Behind the Smiling Face: 296 died, 3.8 billion loss
Hong Kong people have enough of it! The moment WHO announced the removal of Hong
Kong from the SARS affected area list at 3 o’clock yesterday afternoon, the whole city burst
into thunderous cheers. Everyone was smiling brightly and joyfully, however, these delights
did not come easily.
In the past three months, the epidemic (SARS) has claimed the lives of nearly 300 people in
Hong Kong, and was also responsible for an economic loss of HK$ 3.8 billion. It’s yet to be
known when the city will get fully recovered and regain its vigor.
Since the very beginning of SARS, there have been 1,755 cumulative infected cases in Hong
Kong. While most of the patients recovered, 296 of them were
unfortunately killed by the virus, including six health care
personnel. Ten patients are still receiving treatments in the Intensive
Care Unit and fighting SARS.
Apart from bringing casualties, the epidemic also hit severely the
Hong Kong economy. Industries such as tourism, transportation,
food and beverage suffered substantial loss and worsened the
unemployment condition. Food and beverage and retail industries
were the first to be affected as their sales turnover made a dive of more than 50%. In the first
two weeks of April, 25 restaurants were shut down and approximately 1,600 people lost their
jobs. The latest unemployment rate reached a high of 8.3%. Mr Stephen Ip Shu-kwan,
Secretary for Economic Development and Labour, pointed out that the total loss from all
industries in April and May amounted to HK$ 3.8 billion. At the end of last month, Hong Kong
government revised its prediction on economic growth, adjusting the ratio from 3% down to
1.5%. Those infected with SARS are not the only ones in torments, their family members
might as well have to face the financial hardship.
Property market was also adversely affected by SARS. The registered volume of sale and
purchase of premises in Hong Kong in the past 100 days decreased by 29.9% to 4,753 cases,
compared to the 11,148 cases in the same period last year; the total value dropped from HK$
33 billion to HK$ 22.23 billion, experiencing a plunge of nearly HK$ 10.931 billion or 33.2%.
Mr Patrick Chu, Vice-chairman of Hong Kong Property, said that the secondary property
market suffered much more than the primary property market. As revealed by recorded
transactions, the volume of transactions reduced by nearly 31% with an approximately 28%
decrease on the total value. On the other hand, Mr Chu predicted that as the influence of SARS
gradually faded away, Hong Kong property market would recover in the second half year…
Sources: “笑容背後 痛失 296 人命 38 億元”. Apple Daily. 2003-06-24；
經濟通專訊 http://www.etnet.com.hk/news-focus/15April2003/news-focus-main.html;
Hong Kong Professional Teachers’ Union http://www.hkptu.org/sarsdonate/statement.htm
(Sources retrieved on 26 March 2006)
13
Activity 3
From Experience to Reflection
In the past decade, Hong Kong experienced political, economic and social changes.
These changes together with some international incidents left deep marks on the
memory of Hong Kong people.
In Activity 1 and 2, we have seen the economic impact brought by these incidents to
Hong Kong. In Activity 3, we hope to be inspired through reflection on the events.
Source 1
In a move to alleviate the difficulties faced by the community as the economy
weathered the impact of the regional financial turmoil, the government introduced
several packages during the course of 1998. These included measures to help ease
the financial burden on households as well as businesses, to improve liquidity in the
financial system, to stabilise the property market, and to boost tourism. Moreover,
measures to enhance employment services and re-training as well as to create more
jobs were taken to enable the unemployed to re-enter the labour market at an early
opportunity.
Source: Hong Kong Yearbook 1998
14
Source 2
…. Investment spending on machinery and equipment also turned up to a
notable growth in the latter part of 2003, on the back of improved economic
conditions and brighter business outlook, especially after the signing of the
Closer Economic Partnership Arrangement (CEPA) between Hong Kong and
the Mainland.
In the external sector, inbound tourism and the travel-related sectors suffered a
drastic downturn in the second quarter of 2003 upon the impact of SARS, but
regained strength swiftly in the third quarter and advanced further in the fourth
quarter. The remarkable turnaround was backed by a strong rebound in visitor
arrivals from the Mainland, especially after the launch of the Individual Visit
Scheme in late July.…
Measures in Response to SARS Outbreak
In response to the outbreak of SARS and to prepare for the entry of school
leavers into the labour market in the summer, two employment/training
packages, coordinated by the Labour Department, were introduced in May and
July to create a total of 53 550 employment-related and training openings, at
the cost of $1.15 billion. Of these openings, 17 000 were training places offered
under the Skills Enhancement Project to provide trade-specific and generic
training to employees of industries hard-hit by SARS — such as catering,
retail, tourism, hotel, passenger transport, building decoration, real estate, and
airport and related industries.…
To help needy employers in the worst-hit industries — including the tourism,
restaurants, retail and entertainment businesses — to tide over the difficult time
and to preserve jobs, the Government established a low-interest Loan
Guarantee Scheme, with a commitment of $3.5 billion.…Some of the
Government’s special relief measures included the rates concession and waiver of
water and sewage charges….
Source: Hong Kong Yearbook 2003
15
Source 3
Combating the SARS outbreak
….The Social Welfare Department has been entrusted to
administer two non-government funds, namely the 'Business
Community Relief Fund for Victims of SARS' and the 'We
Care Education Fund' initiated by the business sector and the civil service sector
respectively, and to allocate grants to eligible individuals or families….
Source: Hong Kong Yearbook 2003
Source 4
RTHK further expands service by setting up network for
isolated patients to communicate with outside world
Under the threat of Severe Acute Respiratory Syndrome (SARS), most hospital
inmates have to be isolated from the outside world. In order to boost the public
morale against SARS and let hospital inmates feel care and support directly from
their friends and relatives, RTHK, after promoting “Say Hi to Family”, will carry
out the second phase of the service titled “NetCare” on Monday, 12 May in
collaboration with the parochial campaign against SARS, Hong Kong United
Youth Association, the Hospital Authority and Faculty of Medicine of CUHK. It
is a visit scheme through videoconferencing to relieve the suffering of isolation
between the inmates and their families.
Source: “香港電台進一步拓展服務建立網絡助隔離病者溝通”. Press release from RTHK, 8 May
2005. http://www.rthk.org.hk/press/chi/20030508_66_78028.html (Retrieved on 26 March 2006)
Source 5
A structural shift during the past decade has meant establishments in
the service sectors now employ six times as many workers as
themanufacturing sector.... With the continuing shift in employment,
many manufacturing workers have been displaced. The Employees
Retraining Board, set up in 1992, helped workers displaced from the manufacturing
sector to rejoin the workforce by providing them suitable retraining….
Source: Hong Kong Yearbook 1997
16
Source 6
The Government launches the Continuing Education Fund, which
provides subsidies to local residents aged 18 to 60 without a
university degree to pursue continuing education so as to prepare
Hong Kong's workforce for the knowledge-based economy.
Source: Hong Kong Yearbook 2002
17
Answer the following questions by refering to Activity 2 and Source 1 to 6, and using your own
knowledge.
1. The high overall unemployment rate in Hong Kong recorded in the three phases
(1993-1999, 2000-2002 and 2003-2007) in Activity 2 was closely related to
some events. Identify and categorise these events into internal and external
factors, and conclude from them the characteristics of Hong Kong economy.
Internal Factor: ＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
The outbreak of SARS (Severe Acute Respiratory Syndrome)
External Factor: ＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
Asian financial crisAsian Financial Crisis, 9-11 terrorist attack and economic downturn in the US
Characteristics of Hong Kong economy: From
＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
the above categorisation, we can conclude
＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
that Hong Kong is a small and open economy, whose situation is affected by both internal
＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
and external factors.
2. How did the HKSAR Government and/or the Central People’s Government
react to the economic challenges in different phases? Illustrate your answer with
examples from one of the phases in Activity 2.
＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
E.g. During the outbreak of SARS, the HKSAR Government provided professional and
＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
general retraining to employees of the most affected industries such as catering, retailing,
＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
tourism, hotel, transportation, building renovation, real estate, aviation and other related ones;
＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
and set up the low-interest loan guarantee scheme to help employers bridge over difficulties. In
＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
and sewage charges. In the same year, the Central People’s Government signed the Mainland
＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
and Hong Kong Closer Economic Partnership Arrangement (CEPA) with the HKSAR
＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
Government and implemented the “Individual Visit Scheme” for mainland tourists so as to
＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
addition, the HKSAR government also implemented the rates concession and waiver of water
revitalize Hong Kong economy.
3. Do you think tackling difficulties in Hong Kong only by the HKSAR
Government / the Central People’s Government is enough? Why?
＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
Students may answer the question freely.
＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
4. How would you feel if you were the first Hong Kong Chief Executive who
faced various challenges since 1997? How would you respond to the public’s
expectation?
＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
Students may answer the question freely.
＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
18
How I am inspired
In the past decade, Hong Kong gained precious experience
under tough circumstances. As the world is getting closer and the
global economy develops at an ever-increasingly rapid pace, the
experience deserves our deep reflection so as to help plan our
future.
For example:

Lower-skilled workers often suffer a greater setback
from unemployment than professional and managerial
staff.
The situation aggravates when the economy is
weak;

Hong Kong is a small and open economy, whose
economic condition is affected by both internal and
external factors;

In the face of challenges, Hong Kong is always able to
turn crises to opportunities and to get back on the rising
track. This in fact rests very much on the solidarity and
collaboration between the government and society to
brave challenges and difficulties together.
How do the trials and hardships Hong Kong
experienced in the last decade inspire you?
(e.g. your
lifelong planning, views on Hong Kong development in
the future and your participation in local affairs.)
Students may answer the question freely.
＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
＿＿＿＿＿＿＿＿＿＿＿＿＿＿______________＿______________
19