Hong Kong is faced with new challenges as well as opportunities in an era of dramatic changes and revelations. The Hong Kong government must take upon itself the responsibility of steering Hong Kong toward future success with a renewed commitment which is more proactive than that of its predecessors. This is the gist of the message former chief executive and chairman of the Our Hong Kong Foundation Tung Chee-hwa delivered in a speech at a press conference on Monday.

Tung said that Hong Kong society has long been pursuing long-term prosperity and stability by rational and civilized means. Tung said the government has always played a very important role in keeping everything on the right track. However, as the times have never stopped changing and never will, Hong Kong must constantly adapt itself to the ever-changing world as any other society should in order to prosper.

To do so we need to keep our knowledge up-to-date and our thinking in tune with changing times. The government in this respect is obligated to take the lead as well as to encourage the public to keep an open mind. For example, the financial crises of recent years have affected Hong Kong's economy adversely time and again. One of the most important lessons they have taught us is that the free market without government intervention is a recipe for disaster.

It does not matter how much Hong Kong's past success depended on "positive non-intervention". The times have changed and the free market has proved unworthy of the trust we put in it. The SAR was able to emerge from the last two financial disasters relatively unscathed precisely because of decisive action by the government to fend off the vicious attacks by unruly speculators and to support the economy.

In the era of globalization the old administrative mantras such as "big market, small government" mean surrendering to the whims of corporate giants who dominate the market. Without effective regulation and restrictions their unchecked desire for profits will lead to increasing social conflict fueled by the widening wealth gap. It will eventually trigger political strife. Apart from government stewardship Hong Kong also needs to diversify its economy by creating new growth engines in addition to the current "pillar industries" such as real estate and financial services. This, too, requires government leadership and planning.

(HK Edition 06/14/2016 page10)