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Contested Space: The Role of Civil Society Organizations in Hong Kong

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

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Contested Space: The Role of Civil Society Organizations in Hong Kong

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  1. 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

  2. Nonprofit sector • What is the nonprofit sector? • 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

  3. 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

  4. 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.”

  5. Nonprofit sector • The nonprofit sector is a significant social, economic and political force in Hong Kong • Social • CSOs are major providers of welfare, education and health services • Economic • CSOs command significant resources • Political • CSOs are a powerful interest group

  6. values values create create CSOs create create values values Conceptual Framework Public Authorities Mandate Statutory bodies Advisory committees Examples: Urban Renewal Authority Hospital Authority Housing Authority Market Government appoints become institutionalized provides funding The public sphere Subvented NGOs

  7. Conceptual Framework Interaction among Government, the market and CSOs Non-market fairer allocation of services, guaranteed standards Government provides funding provides services pay taxes CSOs provide services The public donations donations provide services pay for services Market better choices, market efficiency Private sector

  8. 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?

  9. Overview of CSOs • Overview of the scope, size, structure and funding base of the nonprofit sector in Hong Kong

  10. (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

  11. (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

  12. (c) Structure • Welfare Services • (subvention: HK$7.5 billion in 2002-03) • (Lotteries Fund: HK$1.4 billion in 2002-03) • Primary and Secondary Education • (subvention: HK$24.6 billion in 2002-03) • Health services • (subvention: HK$30.6 billion in 2002-03) • Culture, recreation and sports • (subvention: HK$0.48 billion in 2002-03) • Environmental protection • Human rights

  13. Funding base • Government (grants or subvention) • 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

  14. Issues • Public mandate • public perceptions of the nonprofit sector • competition between the market and CSOs • Effectiveness • how well the grants and donations are used by CSOs? • Transparency • How open are these CSOs? • Disclosure of interests

  15. Issues (cont.) • Accountability • Responsibility and answerability of CSOs • Governance • 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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