Contested Space: The Role of
Civil Society Organizations in
Hong Kong
Conference on Governance,
Organizational Effectiveness,
and the Nonprofit Sector
Makati City, Philippines
5-7 September 2003
Presentation by –
Dr Patrick Ho
Secretary for Home Affairs
Government of the Hong Kong
Special Administrative Region
Nonprofit sector

What is the nonprofit sector?

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The nonprofit sector comprises mainly civil society
organizations (CSOs)
CSOs are organizations which operate outside the
confines of the market, the government and the
family
CSOs bring people together in a common cause to
solve problems
Nonprofit sector is also known as civil society or
the third sector
2
Nonprofit sector
Role
 CSOs can find solutions to market failures and
to social problems that appear intractable to
the Government
Policy
 Government’s policy is to encourage and
facilitate the development of a vibrant third
sector in Hong Kong
3
Policy statement

In his 2000 policy address, the Chief
Executive said that –
“In Hong Kong, voluntary organizations already
provide a vast array of services, but still have great
potential to improve in terms of both quality and
quantity. I hope that apart from having a highly
efficient and modernized market economy and a small
and effective government, Hong Kong can also boast
a dynamic and growing sector of voluntary service.
We will continue to enhance our working partnership
with these organizations. Together we will build a
better future for Hong Kong.”
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Nonprofit sector


The nonprofit sector is a significant social,
economic and political force in Hong Kong
Social


Economic

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CSOs are major providers of welfare, education
and health services
CSOs command significant resources
Political

CSOs are a powerful interest group
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Conceptual Framework
Mandate
Market
Government
appoints
Advisory
committees
Statutory
bodies
Public
Authorities
Examples:
Urban Renewal
Authority
Hospital Authority
Housing Authority
The public sphere
CSOs
Subvented
NGOs
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Conceptual Framework
Interaction among Government, the market and CSOs
Non-market
fairer
allocation of
services,
guaranteed
standards
Government
provides
funding
CSOs
Market
better choices,
market
efficiency
donations
provides
services
provide services
donations
provide
services
pay taxes
The public
pay for services
Private sector
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Contested space



Is the nonprofit sector getting too large in
Hong Kong?
Are CSOs competing unfairly with the market?
Should the Government play a more active
role in the provision of direct services?
8
Overview of CSOs

Overview of the scope, size, structure
and funding base of the nonprofit
sector in Hong Kong
9
(a) Scope



Kinship groups / clansmen’s associations /
neighbourhood groups
Traditional Chinese charities
The “Big Six” (NGOs)



Tung Wah Group of Hospitals, Po Leung Kuk, Yan
Chai Hospital, Pok Oi Hospital, Lok Sin Tong and
Yan Oi Tong
CSOs (Western-style NGOs)
Philanthropic institutions and foundations

e.g. Hong Kong Jockey Club, Shaw Foundation
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(b) Size



According to the “List of Approved
Charitable Institutions and Trusts of a
Public Character” (section 88 of the
Inland Revenue Ordinance (Cap. 112)),
there are 3,896 CSOs in Hong Kong
Section 88 organizations are tax-exempt
Many smaller CSOs are not registered
under section 88
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(c) Structure

Welfare Services

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Primary and Secondary Education



(subvention: HK$30.6 billion in 2002-03)
Culture, recreation and sports


(subvention: HK$24.6 billion in 2002-03)
Health services


(subvention: HK$7.5 billion in 2002-03)
(Lotteries Fund: HK$1.4 billion in 2002-03)
(subvention: HK$0.48 billion in 2002-03)
Environmental protection
Human rights
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Funding base
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Government (grants or subvention)

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e.g. Lotteries Fund, Community Investment and
Inclusion Fund
Corporate donations
Individual donations – fund raising from the
public
Large private funds and foundations
The Hong Kong Jockey Club Charities Trust
Community Chest of Hong Kong
Fees and charges for services
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Issues

Public mandate



Effectiveness

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public perceptions of the nonprofit sector
competition between the market and CSOs
how well the grants and donations are used by
CSOs?
Transparency


How open are these CSOs?
Disclosure of interests
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Issues (cont.)

Accountability

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Governance

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Responsibility and answerability of CSOs
The role of management boards of CSOs and the
role of executive staff
Role of Government


Friend or foe (facilitation or regulation) of CSOs
Equal partnership
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