Urban Planning in Hong Kong and Integration with the Pearl River Delta: A Historical Account of Local Development

This paper shows the importance that urban planning plays in the development of Hong Kong. This leads to a reassessment of the role of the government, which is the sole proprietor of the land, in the economy – while it acknowledges the importance of market forces. The first part shows how, since 1945, Hong Kong authorities have been obliged to intervene more in urban planning and local development, despite their liberal ideology. The second part focuses on the interaction between government action and market forces, and their influence in this development. The third part deals with the question of the economic integration between Hong Kong and the Pearl River Delta (PRD) after China started its economics reforms in 1978. The deconcentration of Hong Kong industries to China was mainly due to market forces, but provided a new role for the government. This role is analyzed through its transportation policy – the domain with the most visible governmental intervention before and after 1997. It indicates the preference of the government to develop the territory rather than better integration with the PRD, because of the internal economic problems that may emerge from this integration. Nevertheless, for political and economic reasons, this integration is also seen as necessary. The future of Hong Kong’s economy lies in the answers the authorities will give to this dilemma.