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THE DYNAMICS OF DECISION-MAKING IN HONG KONG 7 7.1 Introduction Decision-makers in the HKSAR government have bought into the rhetoric of sustainable development, but have yet to put it into practice. Furthermore, they do not appear to recognize Hong Kong's potential to be a leader in sustainability experimentation, which would give Hong Kong a strategic advantage in economic growth. 232 On a basic level, decision-makers have failed to identify sustainable development as a policy objective or to align organizational structures and practices in meeting this goal. Therefore, as a whole, the decisions and behaviors of government officials do not reflect an attempt to find the most sustainable solutions. Hong Kong's current system of decision-making is complex and has its roots in a 19 th century colonial model of administration where civil servants were trained first and foremost as bureaucratic administrators. However, implementation of the Chief Executive's new Principal Officials Accountability System (POAS) on July 1, 2002, will involve fundamental changes in the way that the HKSAR government operates. 233 This move is key in the sense that it is an attempt to reform the executive branch of government. At the same time, the restructuring of the policy bureaus and the designation of political appointees as effective ministers are insufficient measures for improving the quality of decisions. While the POAS does provide a platform for further changes, an overhaul of the decision-making process is also necessary. The current decision-making process is insufficiently rigorous in assessing alternatives, while the allocation of resources is often sub-optimal. Indeed, the entire system shows sign of obsolescence. With rapid changes in expectations and technology, yesterday's strategies are unlikely to prove effective in solving tomorrow's problems. In developing a sustainable transport system, Hong Kong needs integrated planning, cross-departmental coordination, and a more effective resource allocation structure so that related issues can be assessed concurrently before decisions are taken. Section 7.2 provides some general observations about the current system of decision-making in the HKSAR government. Section 7.3 discusses those government bodies that play a role in devising and implementing policies, including elected bodies, and discusses the possible impact of the POAS. Section 7.4 provides several case studies to illustrate observations made in earlier chapters. Section 7.5 provides recommendations regarding the institutional changes necessary for Hong Kong to move towards greater sustainability. 7.2 General observations There are several facts to bear in mind in understanding how the HKSAR government currently makes decisions with regard to transport and sustainability: 72 232 Gilbert, R. (2002), Electrifying Hong Kong: Making Transport Sustainable, Hong Kong: <strong>Civic</strong> <strong>Exchange</strong> & the Asia Foundation. Available at . 233 HKSAR Government (2002), Chief Executive announcement, April 14, 2002, available at .
Chapter 7: The Dynamics of Decision-making in Hong Kong 1. The political system gives overwhelming authority to the executive branch, which has resulted in an "executive-led" system of government in Hong Kong. This will not change with the implementation of the POAS. 234 2. Key decision-makers are the elite "Administrative Officers" (AOs), who are generalist bureaucrats effectively doubling up as ministers. Civil servants dominate all major policy processes, including policy initiation, formulation, and implementation. The POAS will create a new political elite. However, since it is anticipated that many of the initial appointees will come from the senior ranks of the civil service, existing organizational structures and decision-making practices are unlikely to change in the short-term. 3. The administrative culture of the Hong Kong civil service and the training of civil servants impact the way that decisions are made. The top-down and compartmentalized structure of the bureaus and departments does not encourage a multidisciplinary approach. This problem is further exacerbated by an internal culture where different bureaus and departments avoid "interfering" with each other's decisions. While officers from different units of the administration may coordinate with each other, there is little effective joint decision-making at the important stages of policy formulation. 235 In implementing the POAS, the Chief Executive has pushed for closer coordination of policy portfolios. Although the ministers will all serve on the Executive Council - a step in the right direction - effective coordination will occur only if policy objectives, goal setting, and organizational structures and practices are properly aligned. 4. The bureaucratic-administrative system sometimes results in a lack of competency at the highest levels of government. AOs change jobs every few years and, more often than not, are transferred into areas where they have no previous experience. Over the course of a five-year period, it is possible that all of the key officers within a bureau will change. This means that it can be hard to retain experience and institutional memory, as each new officer has to learn on the job. The POAS will create a non-political civil service in which permanent secretaries serve as administrative bureau heads and provide support to political appointees. It is unclear at this stage whether there will be complementary changes in the administrative system to develop the policy expertise required for a new governance system. 5. The argument in favor of the existing system is that while AOs are generalists, they are supported by departmental officers who are specialists. At the departmental level, the training has been to implement policies rather than initiative them. In theory, generalists and specialists should make a strong team but in practice, they often do not, and the differences in approach can be a cause of internal conflict and contention. The POAS is unlikely to change this situation in the short-term. 6. There is an urgent need to review Hong Kong's transport planning process and locate it within overall planning for sustainable development. The executive branch also needs to ensure that there is a meaningful connection between the planning and implementation of transport decisions, including the funding and pricing of transport. Opportunities to be more creative in developing and funding transport for the benefit of the community at large are being missed. 234 This system is derived from a colonial system in which the government was not elected to office and where there were no real politicians. As such, the civil service was in fact the ruling party and played a political as well as administrative role. 235 For example, for years the Transport Department (TD) and the Environmental Protection Department (EPD) used different standards to test vehicular smoke emissions. It was only after intense criticism in the legislature that they adopted a common standard in July 2000. 73
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Civic Exchange and the Asia Foundat
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7. THE DYNAMICS OF DECISION-MAKING
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SUSTAINABLE TRANSPORT IN HONG KONG:
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ROAD VERSUS RAIL - FINANCING MASS T
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Page 44 and 45: CLEANER & MORE EFFICIENT ROAD TRANS
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Page 98 and 99: APPENDICES Appendix 1 The Environme
Page 100 and 101: AUTHORS Bill Barron (wbarron@hkucc.
Page 102 and 103: REFERENCES Airport Authority Hong K
Page 108: Civic Exchange Room 601, Hoseinee H
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