Wednesday, November 21, 2012 A15 A clean slate Shifting ground Frank Ching says it’s clear from Beijing’s changes in emphasis that our high degree of autonomy isn’t set in stone and can always be narrowed Heather Du Quesnay says that, above all, the ESF needs clarity on its financial future, to allow it to move on and bring to an end the debilitating subvention debate that has been clouded by half-truths and misunderstandings I t’s that time of year again. The English Schools Foundation subvention is on the Education Bureau’s agenda and there is a media feeding frenzy. We welcome the debate because our 13,000 students are important to Hong Kong’s future. Nearly a quarter of last summer’s university entrants, including some of our IB diploma 45-point scorers, entered Hong Kong universities. They, together with their peers who have gone overseas for higher education but will in many cases return, are the future movers and shakers of Hong Kong, as their predecessors have been. Ageing Hong Kong needs its youth talent pool and ESF students are an important part of it. But the debate, if it is to be useful, must be based on facts and not on the halftruths and misunderstandings that have taken on a life of their own in a decade of argument. We have to debunk some of these myths. Let’s start with the notion that ESF exists only to educate the children of rich expatriates. The ESF Ordinance says noth- The subvention has become the lightning rod for the confused feelings in this city about its colonial past ing about expatriates; it talks only about children who can benefit from an Englishmedium education. Today, we have students of more than 50 different nationalities: 74 per cent are Asian or Eurasian by ethnicity (44 per cent are Chinese) and nearly 70 per cent are from permanent resident families. These are all “local” children in the sense that they are growing up here and most of them stay throughout their schooling. Some of their parents have to scrimp and save to keep them in our schools. In modern Hong Kong, the term “expatriate” is an anachronism that defies definition and certainly does not tell us anything meaningful about the ESF student body. The second myth is that the ESF Ordinance in some way entitles us to government funding. In fact, the ordinance is silent on finance. The original funding practice was that the government paid an amount equivalent to that spent on local children’s education and parents made up the rest of the costs of an international curriculum. But that so-called “parity principle” was unilaterally abandoned by the government 12 years ago and repeated arguments by the champions of ESF have failed to move three governments since then. So we have a subvention calculated by reference to an outdated formula, frozen in cash terms and constantly subjected to question and challenge. The resulting uncertainty has led inexorably to the kind of media debate we are now experiencing, healthy if it happened once and led to a resolution, but debilitating for parents, students and staff alike when it is repeatedly linked to ill-informed criticism and offensive comments that rich Western expats are getting something they have no right to. The ESF needs, above all, an end to this uncertainty and strife so that the board can plan confidently for a sustainable financial future and the professionals can concentrate their energy on educating the children in our schools rather than dodging brickbats. Then there is the myth of mismanagement. In 2004, the ESF became a pariah organisation after the Director of Audit’s review. The audit report was debated brutally in the Legislative Council’s Public Accounts Committee. But once it was published, the ESF did not challenge it. We put our house in order, painfully and publicly, and it took four years before our completed action plan was signed off by the committee. Only then did the Education Bureau allow us to discuss the subvention. Myth number four is that we missed an easy win by failing to seek Direct Subsidy Scheme status. The proponents of this line have simply not done their homework. Apart from the fact the government has categorically ruled out DSS status for the ESF, the current DSS funding formula just would not fit ESF schools without considerable revision and we would lose much freedom and control over our own affairs. What of the myth of the ESF’s vast cash reserves? The accounts show reserves of more than HK$900 million last year, but this is not money waiting to be spent. The rules of accounting require an organisation to show the profit and loss accumulated since its inception. This is all money which has already been spent on building improvements, equipment and other capital items. On the balance sheet, the reserves are matched by the assets which they were used to buy. More than anything, the ESF needs clarity about its financial future. With the present government, we have at least some signs of a will to bring this protracted C public wrangle to an end. After much pressure from the ESF Board, the government seems willing to protect the subvention of all the children currently in the system and we are urging them to go a step further to protect their siblings. We are also negotiating for a new subvention which would include funding for the teaching of Chinese to non-Chinese speakers and the education of children with special educational needs. The latter is more than overdue because over many years and by default, the ESF has become the government’s proxy in the delivery of its statutory and humanitarian responsibilities for the education of English-speaking children with special educational needs. Yet we are woefully underfunded even for our special school, Jockey Club Sarah Roe, the only one of its kind in Hong Kong, which receives far less than if it were a local school. Given the age and condition of some of our buildings, like Island School, we will also need government support for capital expenditure if we are to keep the facilities in schools up to scratch without imposing an impossible burden on parents’ fees. The ESF subvention has become the lightning rod for the confused and contradictory feelings in this city about its colonial past. That such feelings exist is understandable and they may take many more years to work through. But the ESF must be freed from that vortex of emotion and allowed to take its place in Hong Kong as a modern organisation, educating young Hongkongers for whom the British colonial past will take its place in the history books alongside the Treaty of Nanking and the demise of the Qing dynasty. The subvention debate needs to be concluded once and for all. Heather Du Quesnay is chief executive officer of the ESF hina unveiled its basic policies regarding Hong Kong in 1984 when the Sino-British Joint Declaration was initialled. Those policies, the Chinese government stressed, would remain unchanged for 50 years. On July 1, 1997, when the Chinese flag was raised over the former British colony, then president Jiang Zemin declared: “I would like to reaffirm that ‘one country, two systems’, ‘Hong Kong people administering Hong Kong’ and ‘a high degree of autonomy’ will remain unchanged for 50 years.” These three phrases have come to represent Beijing’s policies towards Hong Kong. Today, they are still in place, but have been redefined over the past 15 years. On the 10th anniversary of the Hong Kong Special Administrative Region, President Hu Jintao told us that “one country is the prerequisite of two systems”, and that “without one country, there will be no two systems”. Evidently, Beijing felt the need to assert to those clamouring for greater autonomy that “one country” trumps “two systems”. Just this July – months after a highly publicised survey revealed more people identified themselves as Hongkongers than Chinese, Hu, in Hong Kong to mark the 15th anniversary, said: “Our compatriots in Hong Kong enjoy a growing sense of identity and closeness with the country and the nation.” The assertion, in the face of contrary data, was presumably meant as a gentle admonition. This month, Hu delivered a report to the 18th party congress which included a section on Hong Kong. This time, his words went beyond just putting “one country” ahead of “two systems”. While Beijing previously said its policies were to ensure stability and prosperity, now we were told “the underlying goal of the principles and policies adopted by the central government concerning Hong Kong and Macau is to uphold China’s sovereignty, security and development interests” as well as to maintain longterm prosperity and stability of the two regions. And, he added: “We must both uphold the power of the central government and ensure a high degree of autonomy in the special administrative regions.” So China has shifted from stressing a “high degree of autonomy” to emphasising the sovereignty, security and power of the central government. Hu ended by saying Hong Kong people can “definitely play an active role in national affairs and share with other people of all ethnic groups in China the dignity and glory of being Chinese”. Surely, this was a not-so-subtle hint of Beijing’s displeasure over growing pro-independence sentiment in Hong Kong. Beijing’s shifts in emphasis are a sober reminder that the degree of autonomy our city enjoys can always be narrowed. In the coming years, as Hong Kong discusses universal suffrage, Beijing will no doubt respond to proposals thrown up in the debate. Hong Kong should be prepared for fireworks, especially over the role of the nominating committee. But it is certain that whatever Beijing does, it will continue to insist its policies towards Hong Kong have not changed and that the “one country, two systems” is still being successfully implemented. Frank Ching is a Hong Kong-based writer and commentator. frank.ching@scmp.com. Follow him on Twitter: @FrankChing1 Separate territorial disputes from maritime safety, for the good of all Political reform must combine modern ideals and tradition Andrew Leung says a code of conduct to avoid hostilities will help region refocus on growth Lanxin Xiang says China’s leaders have to overcome crisis of legitimacy T he way a party presents itself can either enhance or undermine a regime’s legitimacy, and China is no exception. The regime currently faces a legitimacy crisis, partly because the Communist Party presents itself in such an ugly way that it has eroded the traditional Confucian moral basis of the state. There is no doubt the oneparty system is responsible for China’s economic success, and that it will remain the dominant force for years to come. But the topic of republicanism remains relevant today, even for maintaining the legitimacy of one-party rule. The party faces growing public dissatisfaction over rampant corruption among its political elites, and the seven new leaders presented at the just concluded 18th party congress do not have a convincing mandate to rule. Constitutionally, China is a “people’s republic”, but it resembles neither a republic nor a traditional dynasty; it is an unnatural hybrid of a Chinese political body dominated by an alien political organ, the politburo. The politburo system was abandoned in most parts of the communist world after the end of the cold war, so why does China insist on keeping this ugly relic of the Russian revolution? The party also performs poorly in presenting itself on the issue of political reform. While the new leaders appear to agree that the party’s badly damaged image is in urgent need of a makeover, no concrete ideas have yet been put forth. he curtains of domestic politics have barely come down and the United States and China have already shifted their attention back to the Asean geopolitical chessboard in their battle for influence over the Asia-Pacific. US President Barack Obama’s first trip overseas after his re-election victory and Wen Jiabao’s probable last visit to the region as premier underscore just how much is at stake for both countries. The Association of Southeast Asian Nations has always been important to Beijing: it is at the heart of China’s regional supply and production chain, straddling vital sea lanes for merchandise trade on which China relies for some 50 per cent of its gross domestic product, double the US’ proportion. The South China Sea lanes are also critical conduits for transporting fuel. The region is a treasure trove of energy and valuable resources waiting to be exploited. Strategically, it is also where the “first island chain”, China’s Pacific coastal maritime defence perimeter, is situated. Until recently, long-standing territorial disputes in these waters were largely left on the back burner as China carefully built harmonious relations around its periphery. But the calm was disrupted after the US began its Asia pivot. While it repeatedly assured China it was merely rebalancing forces in the region rather than embarking on an anti-China containment policy, China’s neighbours with rival maritime claims have become emboldened. Rising nationalism in emerging South Asian economies also means they are less receptive to the overarching economic weight of the 800pound panda. So the US pivot has become a useful geopolitical and military counterweight for China’s neighbours, even if none of them want to be corralled into an anti-China bloc. It was hence no surprise that Wen, at the Asean and East A binding code stands a good chance of defusing growing tensions Asian summits in Phnom Penh, tried hard to steer the focus away from the South China Sea disputes to the mutual economic benefits in the soonto-be-launched Regional Comprehensive Economic Partnership. The initiative is expected to incorporate 16 nations: the 10 Asean states, China, Japan, South Korea, India, Australia and New Zealand. Not to be outdone by China, the US is pushing for a US-Asean free trade agreement, through accelerated efforts to get the Trans-Pacific Partnership off the ground. The TPP presently includes the US, Vietnam, Malaysia, Singapore, Brunei, Mexico, Canada, Australia and New Zealand, with others still in negotiations. The elephant in the TPP room is, of course, China. The US is also likely to want a seat in the Regional Comprehensive Economic Partnership. But trade is not everything in the South China Sea. Asean members have grown increasingly anxious that any belligerent misfiring over the territorial disputes in the area may escalate to a full-scale war with unpredictable and uncontrollable consequences. It was with this concern in mind that in Phnom Penh, Southeast Asian leaders asked China to begin formal talks “as soon as possible” to craft a legally binding accord aimed at preventing an outbreak of violence over the disputed maritime territories. A war in the South China Sea would be anathema to the US as much as it would be to China, its neighbours and the rest of the world. Strategically, of course, it would be advantageous for China to negotiate bilaterally in its territorial disputes. But in light of the increasing nationalism among its rival claimants, it would be somewhat naïve to hope for an early settlement. Now, with the added assurance of the US pivot, these nations are even less likely to succumb to pressure from China for one-on-one negotiation, even if, strictly speaking, territorial disputes are essentially bilateral issues. For China to attempt to throw its weight around would be counter-intuitive. There is no reason the territorial disputes cannot be separated from safe maritime conduct. The disputes can be put aside to be dealt with later while genuine efforts are made to reach an internationally binding code of conduct. This can be aimed exclusively at preventing military mishaps and avoiding escalation of conflict without compromising each side’s claim to territory. Such a code of conduct would help defuse the ticking time bomb in the region. For the US, it would help to anchor its rebalancing as part of an American global “grand strategy” as expounded by American foreign-policy doyen Zbigniew Brzezinski. For China, it would help redirect focus in Asean and regional relations back to economic co-operation and mutual benefits. It would also set at ease the minds of the Asean nations and others in the region, so they could turn their attention back to growth. With mounting stand-offs in the South China Sea, a binding code of red lines stands a good chance of defusing growing tensions, regardless of territorial disputes. My bet is that what is of benefit to all is bound to happen, sooner rather than later. Andrew K. P. Leung is an international and independent China specialist based in Hong Kong > CONTACT US Agree or disagree with the opinions on this page? Write to us at letters@scmp.com. If you have an idea for an opinion article, email it to oped@scmp.com T So how can things be improved? In seeking to redesign China’s political system, analysts tend to look towards Western democracy while neglecting to consider modern China’s republicanism. It is easy to see why it is often overlooked: the term “People’s Republic of China” suggests that the nature of the Chinese political system has long been defined. But that is not true; on the contrary, exactly what type of republic China needs remains far from settled. In its narrowest sense, a republic refers to a political order in which the head of state is not a monarch. In its broadest sense, it is a political order in which the supreme power lies in a body of citizens entitled to vote for representatives who will be accountable to them. Thus, republicanism stresses politics by representation. Confucianism, on the other hand, stresses that a strong moral centre – that is, governance based on ethics acceptable to the majority – is the ultimate source of legitimacy, not imperial power. So the debate about republican ideals in modern China centres on who should represent the moral centre and what kind of qualifications they should possess. In traditional China, the scholar-gentry class, through a rigorous recruitment process in the form of imperial exams, automatically had a mandate to perform administrative duties on behalf of the emperor. At the same time, they also served as a barometer of public opinion. The 1911 revolution ended this dynastic system. Modern republicanism took over, but the state failed to maintain internal political stability. Compared with the dynastic system, the modern Chinese version of republicanism seems inferior. Crucially, the republican period has failed to produce a new and coherent argument for the legitimacy of the regime. Doing away with the role of the emperor – who was seen as the only legitimate interlocutor between heaven and earth – meant that political continuity could no longer be justified by hereditary order. The postrevolutionary regimes had therefore to maintain legitimacy via coercive power alone. The problem lies in the tension between modern Chinese republicanism and the traditional political culture that persists. To begin political reform while avoiding social upheaval, a firm foundation has to be constructed based on a system in which republican ideals and Confucian moral traditions can co-exist in harmony. Thus, republicanism needs to be part of the political discourse. Only then can a constitutional order be created in which the worst and most destructive features of the current system can be smoothly and peacefully phased out. Lanxin Xiang is professor of international history and politics at the Graduate Institute of International and Development Studies in Geneva