What caused the growth and success of Hong Kong?
1 Answer
The economy was free, no regulations prevented the economy from growing
Explanation:
Hong Kong was spared from communism since it remained part of the British Empire(soon to be called the Commonwealth) when Mao rose to power in China after the Long March in 1949.
No regulation was implemented as it was a territory far from the homeland and Britain had to deal with rebuilding at home once WWII was over. This non-existence of state regulations gave companies and businesses complete freedom, they invested and created both jobs and wealth.
In 1945 Hong Kong was as poor as most African countries today, by the seventies it had risen to the level of economic development of most Western nations. Hong Kong was taken as an example of how free enterprise can bring prosperity to a country by Milton Friedman, the famous monetarist of the Chicago school of economics.
