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An Evaluation on 2007 Obstetric Service Policy in Hong Kong_a Solution to the Service Seeking Behavior of Mainland Pregnant Women

An Evaluation on 2007 Obstetric Service Policy in Hong Kong_a Solution to the Service Seeking Behavior of Mainland Pregnant Women

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Sections

  • INTRODUCTION
  • Introduction
  • Undesirable Phenomena
  • Diagnosis to the Phenomena
  • Economic environment
  • Legal Ambiguity
  • Failure of Charging Policy
  • Government Actions
  • Framework of Study
  • Research Questions
  • Methodology
  • Dissertation Plan
  • Immigration Policy on Mainlanders in Colonial Era
  • Entry to Hong Kong for Settlement
  • Entry to Hong Kong for Visit
  • Immigration Policy on Mainlanders after 1997
  • Immigration Ordinance
  • Basic Law
  • CHONG Fung-yuen v. the Director of Immigration
  • Common Pool Resources
  • Problem of Collective Actions
  • Externalities
  • Public Obstetric Service in Hong Kong
  • Cost of giving birth in Hong Kong
  • I) Short-term costs
  • II) Long-term costs
  • Benefits of giving birth in Hong Kong
  • II) Advanced Medical Care
  • III) Hong Kong Residency
  • Policy before September 2005
  • Policy after September 2005
  • Increase in Charge
  • Defaulted Payment Prevention Mechanism
  • Centralized Registration System
  • Tightened Immigration Control
  • What is Evaluation?
  • Regulatory Instrument
  • Economic Instrument
  • Information
  • Evaluation of 2007 Policy
  • Policy Instruments
  • Choice of instruments
  • Design of Policy
  • Conclusion

Title

An evaluation on 2007 obstetric service policy in Hong Kong : a solution to the service-seeking behaviour of Mainland pregnant women? Shiu, Wan-yee, Ruby; •µ—ûQ

Author(s)

Citation

Issue Date

2007

URL

http://hdl.handle.net/10722/52547

Rights

unrestricted

An Evaluation on 2007 Obstetric Service Policy in Hong Kong – a Solution to the Service-seeking Behaviour of Mainland Pregnant Women?

By SHIU Wan-yee, Ruby June 2007

Degree of Master of Public Administration The Department of Politics and Public Administration Faculty of Social Science University of Hong Kong

i

I, Shiu Wan Yee, attest that this thesis, ‘An Evaluation on 2007 Obstetric Service Policy in Hong Kong – a Solution to the Service-seeking Behaviour of Mainland Pregnant Women?’, submitted for fulfillment of the Master of Public Administration is fully my own work unless otherwise quoted and cited.

ii

Table of Content Content Page Chapter One Introduction Introduction Undesirable Phenomena Diagnosis to the Phenomena Economic Environment Legal Ambiguity Failure of Charging Policy Government Action Framework of Study Research Questions Methodology Dissertation Plan 1 2 5 5 6 7 9 11 12 12 13 Chapter Two Hong Kong’s Immigration Policy on Mainlanders Introduction 14 Immigration Policy on Mainlander in Colonial Era 14 Entry to Hong Kong for Settlement 17 Entry to Hong Kong for Visit 18 Immigration Policy on Mainlanders after 1997 20 Contradiction between Basic Law and Immigration 25 Ordinance Immigration Ordinance 25 Basic Law 26 CHONG Fung-yung v. the Director of Immigration 28 Chapter Three Diagnosis of the Problem from an Economic Approach Introduction Common Pool Resources Problem of Collective Actions Externalities 31 31 32 34 iii .

Public Obstetric Service in Hong Kong Cost of Giving Birth in Hong Kong I) Short-term costs II) Long-term costs Benefits of Giving Birth in Hong Kong I) Fleeting from one-child policy penalty II) Advanced medical care III) Hong Kong Residency Externalities Policy Before September 2005 Policy After September 2005

38 40 41 41 43 45 45 45 46 48 48

Chapter Four

New Policy in February 2007 Introduction The New Policy Increase in Charge Defaulted Payment Prevention Mechanism Centralized Registration System Tightened Immigration Control

51 51 52 53 54 55

Chapter Five

Evaluation of the New Policy Introduction What is Evaluation Classification of Policy Regulatory Instrument Economic Instrument Information Evaluation of 2007 Policy Policy Instrument Choice of Instrument Design of Policy Conclusion

56 58 60 60 61 62 63 63 64 68 69

iv

Chapter Six

The Way Forward Introduction 71 Long-term Implication 71 Social Disintegration 72 Restructuring of Obstetric Service Policy 73 Reorienting Policy Target 73 Extending Quota Coverage 74 Increasing Charge for Couples who are both 74 non-Hong Kong residents Supportive Measures 75 I) Immigration control 75 II) Defaulted Payment Prevention System 78 Civil Education 78 Vision in Education, Housing, Medical Service and other 79 Welfare Policies Education 79 Social Welfare Assistance 81 Conclusion 82

v

CHAPTER ONE INTRODUCTION Introduction In the past five years, the number of Mainland women coming to Hong Kong for obstetric services has risen from 7810 cases in 2001 to 20,577 cases in the first ten months of 20061. The percentage to the number of local pregnant women rose from Before 2001, majority of Mainland women came to

16% in 2001 to 39% in 2006.

Hong Kong for obstetric services were wives of Hong Kong males. While in recent years, there was an upsurge in the number of Mainland women, whose husbands were also Mainlanders, came to Hong Kong for giving birth. Among the 20,577 Mainland

women giving birth in Hong Kong, 61% of them were married to non-Hong Kong residents. Detailed figure on the number of birth by Mainland mothers in Hong Kong appear in Annex A.

With only eight public hospitals providing obstetric services in Hong Kong, handling around 42,000 deliveries per year 2 , the large influx of Mainland women poses significant pressures on the scarce health care resources in Hong Kong. Some public

Discussion Paper on ‘Impact of the use of Obstetric Services by Mainland Women on Public Hospital Resources’ by Legislative Council Panel on Health Services. (8 January 2007), LC Paper No. CB (2) 761/06-07(03). 2 ‘Hospital booking rule for Mainland mothers’, Global News Wire - Asia Africa Intelligence Wire, 2007-01-17. 1

1

(2006-12-8) “港婦:被迫開刀分娩 確保有牀位”. Extra beds made of canvas were placed inside public wards to cater for the excessive numbers of expectant mothers who were waiting for giving birth. Some did not receive the same amount of prenatal checks as they used to have. 3 4 ‘醫管局擬五招防病人走數’. Apple Daily (2006-12-07) 2 . There were reports that that more than one woman gave birth in one delivery room at the same time. Some were even left in the corridor.hospitals have already announced that no further registration for obstetric services would be accepted in the first half year of 2007 due to the excessive workload they encountered due to the influx of Mainland women.3 Undesirable Phenomena There were intermittent reports on the plight of local pregnant women. The privacy of these mothers-to-be was not respected. Apple daily. some pregnant women deliberately chose to deliver their babies by surgery instead of natural labour just to secure a stay in the hospital.4 It was because they knew that those gave birth by surgery (elective caesarean section) were allowed to stay for maximum three nights while those had their babies naturally born (spontaneous vaginal delivery) could only stay one night in the hospital. Worse still.

and getting services they had not wholly paid for.000 obstetric package in September 2005. jumping queues.Local pregnant women showed concern about deteriorating standards of care and were resentful of outsiders coming in. 3 .2 billion in 2006 which was around 13% of the overall government expenditure. Approximately HK$300 million revenue of Hospital Authority in 2006.300 5 Public money spent on medical service amounting to $32. HKSAR Government. Hong Kong taxpayers generally have the feeling that money they spent went to subsidize Mainland women instead of provide quality medical service to Hong Kong people5 as the obstetric services were provided to everyone at a highly subsidized rate regardless of the service seekers’ nationality. the charge for obstetric services was calculated based solely on the number of days of hospitalization. 90% was government subvention. Sources : Census and Statistics Department. Before the imposition of the HK$20. 2006. prior to this. A group of 30 angry Hong Kong mothers marched to Central Government Office to air their resentment in order to push the Government into taking action on November 19. which was believed to be the major factor that triggered the implementation of new measures in February 2007. Hong Kong public medical care is funded mainly by the HKSAR government. the charge was standardized across all public hospitals at a highly subsidized rate at HK$100 per day for Hong Kong residents and HK$3.

especially when the pregnant woman has Viral Hepatitis Type B or Acquired Immune Deficiency Syndrome. defects and other possible problems could not be detected before delivery. some of these Mainland women did not settle the bill before they left the hospitals.000.000 Mainland women gave birth in Prince of Wales Hospital. 4 . Source : ‘內地婦來港產子要做產前檢查’. hospital staff. More than 70% of them did not receive antenatal examination. LC Paper No. as the service seekers’ medical history and the health condition of their babies are all unknown to the hospitals. more. this also brought risk to the hospital staffs and other pregnant women staying in the same hospital.legco.8 It posed considerable risks to both the mothers-to-be. (2006-12-07) & ‘內地婦港產嬰 5 年升 16 倍’.7 What made the situation even worse was that many of these Mainland pregnant women did not receive any antenatal examination before they came to Hong Kong for giving birth. other patients. 8 In 2006.6 The influx of Mainland women seeking obstetric What is services imposed significant financial burden to our health care system.000 to $14. (8 January 2007). the bad debts of Hospital Authority amounted to $2. Besides.hk/yr04-05/english/counmtg/hansard/cm1110ti-translate-e.pdf) Discussion Paper on ‘Impact of the use of Obstetric Services by Mainland Women on Public Hospital Resources’ by Legislative Council Panel on Health Services. there were almost 20.per day for non-Hong Kong residents while the average cost of delivery for a pregnant woman was $12.800 million in 2005/06. (http://www. Singtao Daily.gov. CB (2) 761/06-07(03). (2006-12-07). 6 7 Legislative Council Meeting on November 10. and the babies because illness. Mingpao. 2004. Together with the inefficient default payment collecting mechanism.

political stability attracted immigrants from Mainland China. and social changes after the handover of sovereignty in 1997. its economic development. job opportunities. the Severe Acute Respiratory Syndrome (SARS) outbreak seriously hit Hong Kong retail.Diagnosis to the Phenomena Economic environment Mainland women giving birth in Hong Kong is a complex issue and cannot be easily explained by one single reason. After 1997. Before 1997. The number of Mainland visitors increased from 2. economic. tourism. 5 . when Hong Kong was still a British colony. The restrictions on Mainland visitors were further relaxed by the 9 Immigration Department Annual Reports 96-97.86 million in 2001. and catering industries.27 million in 1997 to 4.9 When Hong Kong economy rebounded in 2003. It is the result of political. The purpose was to control the number of influx of Mainland China to avoid unbearable pressure on the resources of Hong Kong. Hong Kong government agreed to increase the Two-way Permit quota three folds to encourage Mainland visitors traveling Hong Kong. Hong Kong government enacted Immigration Ordinance and imposed strict control over Mainland migrants and visitors. Hong Kong experienced an economic downturn due to Asian Financial Crisis. 03-04. To revive the economy.

6 . when the people moving in and out from Hong Kong were governed by Immigration Ordinance Chapter 115 (Cap. Legal Ambiguity Before 1997. without being part of a tour group) for a maximum of seven days. 115).e. Hong Kong residents were defined as Chinese citizen born in Hong Kong if one of his/her parents had settled or had the right of abode in Hong Kong at the time of his/her birth or at any later time.. Ambiguity over the definition of Hong Kong residency was cleared on 20 July 2001 when the Court of Final Appeal ruled in the Chong Fung-yuen case that Chinese citizens born in Hong Kong have the right of abode in Hong Kong regardless of the status of their parents.introduction of Individual Visit Scheme in 2003 that allowed Mainlanders to visit Hong Kong in their own capacity (i. the definition of Hong Kong citizens under Immigration Ordinance was challenged as it was found to be contradictory with Article 24(2)(1) of the Basic Law which provides that Chinese citizens born in Hong Kong Special Administrative Region have the right of abode in Hong Kong. The relaxation of immigration control has paved way for the large influx of Mainland pregnant women coming to Hong Kong for the purpose of giving birth. With the introduction of Basic Law in 1997.

the number of babies born to Mainland women is large enough to have implication on Hong Kong’s planning and policy on population.10 Some said that these newborn babies would be a solution to our ageing problem while some argued that they might be the heaviest financial burden to Hong Kong society.The decision of Court of Final Appeal gave all babies born to Mainland women in Hong Kong. and education. South China Morning Post. Many Mainland parents have expressed that they will have their children in care of relatives in Hong Kong and to be educated in Hong Kong. regardless of their citizenship and financial condition. welfare. Fees and charges for different medical services are standardized across all public hospitals at a highly subsidized rate. will have free education. as Hong Kong citizens. Requests from any person. healthcare. which is also the main reason for Mainland women coming to Hong Kong for giving birth. Failure of Charging Policy Another reason for the large influx of Mainland mothers-to-be was the low charge for obstetric services in Hong Kong. would be contemplated. The same fee 10 ‘Authority cashes in on pregnancy policy’. They know that their babies. Health care services in Hong Kong are distributive in nature. 7 . Although either hypothesis is anticipation. residency in Hong Kong. (2007-02-02). housing benefit and social welfare.

many Mainland women did not settle the bill before leaving the hospitals. seeking payment is made before they left. Since children born in Hong Kong 8 . Every extra child will cost the couple around RMB80. further encouraged such free-riding behaviour. Despite the low medical charge. nothing to lose.structures applied to Hong Kong and non-Hong Kong residents alike. Mainland parents could avoid the penalty for having more than one child under One-child policy. the baby delivery service. In addition. It stipulates that each couple is only entitled to have one child. there is no policy or system in place to ensure full The ineffective default payment mechanism For Mainland women. This charge has already included The charge was so low that it could not even cover the cost of delivery. This policy was adopted by Mainland China since late-1970s as a measure to control its population. obstetric services in Hong Kong have everything to gain. by giving birth in Hong Kong. Before September 2005.000 as penalty. The low charge level attracted Mainland women since they could enjoy enormous benefits including better medical care and Hong Kong residency for their children born in Hong Kong. obstetric service for Mainland women only costed HK$3.300 for one-day hospitalization in a public general ward. What is more.

their parents would not be fined.000. It is recognized that the obstetric service charge To for non-Hong Kong residents was set too low. Private consultation fees were also revised from fixed standard charges to pre-sent ranges to reflect variations in the complexity of the patients’ clinical conditions and in the expertise that might be required for treatment. bring the market to optimum. the Hospital Authority introduced a new charging system as a rational basis for the allocation of resource in September 2005. requests from local and Mainland pregnant women were handled in the same manner. citizenship. As services were provided based on medical need regardless of the patients’ or service seekers’ citizenship.are Hong Kong citizens and will not have Mainland Hukou. causing market disequilibrium. The whole package charges each service seeker HK$20. which included delivery and three days 2 nights of hospitalization in a public general ward. Government Actions The ever-increasing number of Mainland mothers giving birth in Hong Kong made the government realize the problem. 9 . Each non-Hong Kong pregnant woman giving birth in Hong Kong will be provided with a minimum obstetric package.

York Chow. Source : ‘Hospital Authority : management of outstanding medical fees’. the Bureau came up with some measures to tackle with the problem. After several meetings among the Secretary for Health. and Mainland China Authorities on the issue. Aims of the measures are to ensure that local pregnant women would be provided with proper and 11 In 2004/2005 financial year. the defaulted payment arisen from obstetric services by Mainland women amounted to HK$1. Ambrose Lee.The alarming figure of bad debt11 also pushed the authority to introduce measures to avoid defaulted payment. Secretary for Security Mr. as many Mainland pregnant women know that they would not be denied medical service due to lack of means. Welfare. HKSAR Government.800 upon admission at a public hospital.gov. and Food Bureau Dr.pdf 12 ‘4 日男嬰 離奇猝死’.200 million. 10 .aud.12 Noise from the public and the pressure groups formed up by pregnant women had pushed the government in facing the problem in a more active way. However. After delivery. There were intermittent reports that babies died due to inadequate postnatal care as the babies’ mothers left hospitals for avoiding payment. These acts pose significant risks to both the mothers and babies. they avoided paying deposit by seeking service from accident and emergency (A&E) ward when they approached to deliver. (2006-12-27). http://www. The minimum obstetric service package required all non-Hong Kong residents to pay a deposit of $19. Wenweipo. Audit Commission.hk/pdf_e/e47ch05. the Mainland mothers left with their babies prematurely to evade payment.

The problem of externalities resulted in market inequilibrium and inefficiency. New Brunswick and London : Transaction Publishers (1992). : George Mason University Press and DUNN. T. Governing the Commons. iii) The problem of externalities can be solved by internalizing the social cost to individual through Pigouvian tax so that the consumer can see 13 ‘New measures on obstetric services and immigration control’ on January 16..gov. 2007.M.. W. (eds). The following are the major presumptions in the framework14 – i) Public obstetric service is common-pool resources that are non-excludable and subtractive.info. The Theory of Market Failure : A critical Examination. Fairfax. 14 The presumptions are the summary of reference drawn from OSTROM.. www. they only see the cost imposed on them and neglect the cost imposed on the society as a whole. Advanced in Policy Studies since 1950. E. (1990). Cambridge : NewYork.. ii) Its nature inevitably results in the As human beings are rational and self-interested.priority obstetric services through restricting the number of non-local pregnant women giving birth in Hong Kong to a level that can be supported by Hong Kong’s healthcare system. (eds). Va.hk.13 Framework of Study This paper will employ market theories to explain the problem of insufficient public obstetric service in Hong Kong. KELLY. 11 . Press Release. R. COWen. Cambridge University Press. problem of ‘free-riders’.

the real cost of their consumption. ‘externalities’ and ‘Pigouvian tax’ to illustrate the problem of insufficient public obstetric service in Hong Kong in recent years. I will ask the following questions: What makes the public obstetric services become so scarce? Why could the policy adopted in 2005 not solve the problem? Can the new policy implemented in 2007 solve the problem of Finally. Research Questions In this dissertation. Extensive research on academic Additionally. literature will be conducted on these theories. journals and reports and meeting records of Legislative Council. iv) One of the greatest challenges to Pigouvian tax is that the government is not able to have perfect information to set the optimal tax level. can the policy mark an end to Hong insufficient public obstetric services? Kong people’s anxiety over Mainland women’s utilization of obstetric services? Methodology This paper employs the theoretical frameworks of ‘common pool resource’. and websites. magazines. 12 . useful information will be collected from newspaper.

this chapter will analyze the policy effectiveness and legitimacy by referring to the choice of policy tools and the design of policy. 13 . five by applying Policy Instrument theory. answering the failure of 2005 policy. Chapter 4 is the detailed description of the new policy implemented in February 2007. the evolution of Hong Kong’s immigration policy on Mainlanders before and after 1997 will be discussed. representatives of enforcement agencies and professionals such as doctors and nurses to seek their views on the feasibility and effectiveness of the new policy. Dissertation Plan The whole dissertation comprises six chapters. This policy will be evaluated in Chapter Instead of evaluating the policy outcome. In Chapter 2.Interviews will be conducted with representatives of interest groups. Chapter 3 will explain the Mainland women’s service-seeking behaviour from This chapter will apply the Pigouvian theorem in economic point of view. The discrepancies between Immigration Ordinance and Basic Law after 1997 will be emphasized to illustrate the reason for the influx of Mainland pregnant women after 2001. The last chapter will round up the whole dissertation by proposing suggestions on the way forward.

‘The Evolution of Immigration Law and Policies : 1842-2003 and Beyond’ in CHAN J.CHAPTER TWO HONG KONG’S IMMIGRATION POLICY ON MAINLANDERS Introduction Hong Kong has long been an immigration city. 14 . 1. (eds) Immigration Law in Hong Kong : An Interdisciplinary Study. Rwezaura. At present. J. to now..15 People from Mainland China come to Hong Kong for different reasons. Immigration Policy on Mainlanders in Colonial Era Hong Kong had no immigration control measures on Mainlanders until 1938 when the 15 CHAN. B. more than half of Hong Kong population is immigrants from Mainland China. Evolution of Hong Kong immigration policy on Mainlanders since 1842 is outlined in Annexure B. Since the British occupation of the territory in 1842. Hong Kong : Sweet & Maxwell Asia (2004). 16 Ibid. Some treasure political stability while some cherish rapid economic development. Hong Kong’s immigration policies for Mainlanders have aimed at controlling the number of migrants from Mainland China to avoid unbearable pressure on the resources of Hong Kong. Hong Kong has been a favorite sanctuary for those looking for a better life. Pp.16 From 1842 when Hong Kong became a British colony.

1. J. visas or entry permit. frontier passes or certificates of residence issued under the Ordinance were illegal immigrants and would not be permitted to land. The Immigration Control Ordinance of 1949 was enacted which provided that any person not in possession of relevant travel documents. Instead of being repatriated to Mainland. 18 Natives of Guangdong Province were exempted from this Ordinance. 15 . social. Details at Annexure C.. Immigration officers could exercise their discretions in granting permits.population grew from 878. Source : CHAN. the Hong Kong Government realized that the society could not cope with the influx of people from Mainland China in terms of physical. The United Nation and the United States 17 Growth of Population in Hong Kong 1841-2006. Rwezaura. enter or remain in Hong Kong18.500. Pp. every illegal immigrant could obtain entry permit by reporting to the immigration authorities so that their stay could be regulated.17 At the time.000. with or without conditions. (eds) Immigration Law in Hong Kong : An Interdisciplinary Study. Notwithstanding the introduction of the Immigration Control Ordinance. One of the reasons was that Hong Kong economy suffered badly in the fifties after the outbreak of the Korean War in June 1950.947 in 1931 to over 1. B. How an illegal immigrant was to be dealt with was decided by the prevailing executive policies and not by the law. Hong Kong : Sweet & Maxwell Asia (2004). to allow an illegal immigrant to stay in Hong Kong. the immigration authority adopted an ‘open door’ policy. and economic infrastructure. ‘The Evolution of Immigration Law and Policies : 1842-2003 and Beyond’ in CHAN J.

21 Hong Kong Population Projection 1971-1991. 56. 20 Ibid.19 Under this ‘open door’ policy. entered the urban areas and subsequently gained a home with relatives or otherwise found proper 19 CHAN. the figure was quite alarming. Hong Kong : Sweet & Maxwell Asia (2004).700 in 197321. ‘The Evolution of Immigration Law and Policies : 1842-2003 and Beyond’ in CHAN J. (eds) Immigration Law in Hong Kong : An Interdisciplinary Study. in 1973 alone. At the same time. 6-9. However. political uncertainties pushed refugees from Mainland China who brought to Hong Kong capital and industrial expertise as well as a pool of skilled. B. 20 When comparing with the total population of 4.203. Trading of Hong Kong almost came to a standstill.000 Chinese persons entered Hong Kong illegally between 1962 and 1972 and were subsequently permitted to stay. 16 .000 illegal immigrants arrived from the Mainland. These refugees were the major force of economic growth at that time which explained why the government adopted such a lenient policy toward illegal immigrants from Mainland China in the fifties and sixties.imposed embargoes on Mainland China and Hong Kong. Rwezaura. and industrious labour. about 60. HKSAR Government. intelligent.. Census and Statistics Department. J. It pushed the Hong Kong Government to impose a ‘reached-base’ policy Under this policy. but all others who evaded immediate capture. in 1974. illegal immigrants who were arrested in the border region or in Hong Kong territorial waters during their attempt to enter Hong Kong would be repatriated. Pp.

Hong Kong : Sweet & Maxwell Asia (2004). five years after the implementation of ‘reach-base’ policy. as this might 22 CHAN. However. the introduction of quota was opposed by the Mainland authority as ‘unreasonable and unfriendly act towards the PRC and its people’. the only legal way for people from Mainland China to come to Hong Kong for settlement was entry under One-way Permit (OWP) scheme. removed. Rwezaura. 24 The number of legal immigrants from Mainland China dropped from 107. It was also a sensitive political matter to have an agreement on the quota.24 All illegal immigrants from Mainland China were to be Entry to Hong Kong for Settlement Since the abolishment of the ‘reach-base’ policy in 1980.22 In 1979.900 while those evaded capture and remained in Hong Kong was 107. 23 Illegal immigrants from Mainland who successfully evaded capture and remained in Hong Kong increased from 6.500 in 1980..23 This ‘reached-base’ policy was thus abolished in 1980. 17 . J.700. the first year of the abolishment of ‘reach-based’ policy.100 (1978) to 107. the number of Mainlander arrested on arrival and repatriated was 89.600 (1977) to 28.700 in 1979 to 69. 12.accommodation would be given permission to stay in Hong Kong. OWP scheme is a quota system introduced in 1950 with maintaining a rough balance between the inflow and outflow of people as its major objective. 12-13. Some condemned that this policy positively encouraged illegal immigrants from Mainland and led to an influx of illegal immigrants who arrived and reached base.700 (1979). ‘The Evolution of Immigration Law and Policies : 1842-2003 and Beyond’ in CHAN J. (eds) Immigration Law in Hong Kong : An Interdisciplinary Study. Ibid Pp. B. Pp.

In 1995.25 Entry to Hong Kong for Visit The restrictions over Mainland visitors were strict in colonial era. the number of legal migrants who It reached a peak came to Hong Kong by way of an OWP varied from time to time. A compromise would be that the Director of Immigration always gave permission to land to whoever was issued an OWP. It resulted in 67. British and Chinese governments reached an agreement on the daily limit of the number of legal immigrant to 150 per day in 1980. 18 . 15-16. of 310 per day in 1978. which was almost 250% of the figure in 1977. the Mainland authority. Mainlanders who wish to make private visit to Hong Kong had to apply for a Two-way permit (TWP) 25 CHAN. The authority reduced the limit to 75 per day in 1983 while it increased to 105 in 1993 to facilitate the admission of a large number of long-separated spouses and children born to Hong Kong citizens. Hong Kong : Sweet & Maxwell Asia (2004). still changed the daily limit over time. Rwezaura. Indeed. ‘The Evolution of Immigration Law and Policies : 1842-2003 and Beyond’ in CHAN J.. (eds) Immigration Law in Hong Kong : An Interdisciplinary Study. Pp. Since then the daily limit remained unchanged. the quota increased to 150 per day.495 legal immigrants from Mainland China Although the in one single year. which is the issuing authority of OWP’s. J. the quota was not strictly enforced. B. Therefore.constitute a tacit recognition on the part of the Chinese government that Hong Kong was not part of China.

27 Mainland people coming to Hong Kong for visits before 1997 were not as free as Hong Kong people going to Mainland China for visits were. or more. 27 SHAO. upon application. TWP scheme was Before 1997. 26 Before 1997. Shanbo (2002). 內地人士非移民簽證來港的政策檢討及建議. Each had strict ‘Tanqing’ (Relative visit) and ‘Tuandui Luyou’ (Group visit). They must arrive and There was also daily quota imposed on the Group visit endorsement. there were only two types of endorsements. visitors had to join tours organized by one of the three recognized and approved Mainland tour operators.from Mainland Public Security Bureau offices before entry. depart together as a group. It was hard to believe that the average daily quota for Group visit was 8. including copies of Hong Kong Identity Card.142 in 1998. For Group Visit. The daily limit increased to 1.3 persons for the whole of Mainland China. Relative Visit endorsement was issued for those who went to Hong Kong for managing properties or business or visiting close relatives who were Hong Kong permanent residents. the definition of ‘close relative’ confined to parents. Endorsement would only be issued to those who had relatives residing in Hong Kong. though this was still inadequate to cope with the demand. 一國兩制研究中心. 19 . certificate of marriage. Pp 6-9. spouse. requirements upon application. The applicant must produce proof of business and properties in Hong Kong or proof of close relatives26 living in Hong Kong. implemented in 1950. spouse’s parents and siblings.

Two Systems’ arrangement went off to an auspicious start. after the changeover of sovereignty in July 1997. Pp 20. Hong Kong decreased from 2. The 150 daily quotas for OWP still Number of Mainland visitors to The major applied and the issue of TWP was not released.29 million in 1996 to 2. it As a result.26 million in 1997. 一國兩制研究中心. either for settlement or for visit.75. a number of Asian currencies had depreciated substantially with respect to the US dollar. remained steady at 7. the outbreak of the Asian Until the financial crisis began with the depreciation of the Thai baht in July 1997. political stability faded away as the issue of concern as the economy became the major focus. The ‘One Country. there was no significant influx of Mainlanders. What many Hong Kong people and international observers feared about intervention by Chinese authorities did not happen. Quite unexpectedly. Shanbo (2002). 20 . 內地人士非移民簽證來港的政策檢討及建議.28 It was ironic that. end of January 1998. reason was that the China Government did not want chaos at the time of handover and sought stability.Immigration Policy on Mainlanders after 1997 Immediately after the change of sovereign. Since Hong Kong dollar was linked to the US dollar. 28 SHAO. all these Asian currencies depreciated with Traveling to other Asian countries became much respect to the Hong Kong dollar.

R. 31 With all of its foreign investment took the form of factories on the ground instead of securities. SARS Epidemic. 18 30 SIU. which allowed visitors on business trip. 62-83. J. Alan & WONG. Pak-wai (1998). The requirements for Relative 29 LIU. RMB's non-convertibility protected its value from currency speculators. In 1998. 21 .31 The Chinese economy was hardly affected by the financial crisis as it continued to grow at 8. Unlike other Asian countries.8% in 1997 and 7.. J (eds). most of the China’s investment took the form of factories on the ground rather than securities. Economic Impact of SARS : The case of Hong Kong. Hong Kong’s unemployment rate hit record levels exceeding 7% by the end of 2002. ‘The Impact of SARS on Greater China Economies’ in Wong. which insulated the country from rapid out flowing of assets and money and sharp drop in the exchange rate after the financial crisis. RMB’s non-convertibility protected its value from currency speculators. pp. Hong Kong Institute of Asia-Pacific Studies.cheaper than to Hong Kong after their currency depreciation. who previously were required to obtain a visa upon arrival at Hong Kong. China Government introduced ‘Shangwu’ (Business visit) endorsement. Liang. The Asian Financial Crisis and After Problems and Challenges for the Hong Kong Economy. China insulated itself from rapid capital flight.29 Domestic consumption shrank and the economy contracted. Pp. Chan. 13.32 To revive the economy. (2004) Pp.8% in 1998. In the first half of 1998. Mainland China was less affected by the Financial Crisis.. Richard. China was less affected by the financial crisis.30 When compared with Hong Kong. S. Singapore : World Scientific Publishing Company. Asian Economic Papers 3:1 (Winter 2004). Hong Kong government agreed to have the restrictions on the issue of TWP relaxed. the number of visitor arrivals declined sharply by 21% as compared to the first half of 1997. 32 Wong.

34 Revenue from tourism-related activities increased from 142 millions in 1998 to 287 million in 2002. Asian Economic Papers 3:1 (Winter 2004).4% in the third quarter of 2002 and at 5. also increased from 3 before 1997 to 63 in 2002.35 When economy started to recover again 36 . 33 At present. Richard. Pp.1% in the fourth quarter of 2002. Shanbo (2002). worked. Sources : SIU.67 million in 1998 to 6. Alan & WONG. which undertook the application of Group visit endorsement.500 in 2000. there are in total 99 tour operators in Mainland China that can apply Group Visit TWP. pp. 2003. All tour operators were monitored by the China Tourism Association. 33 SHAO.Visit endorsement were released in 2000. 內地人士非移民簽證來港的政策檢討及建議. 22 . The relaxation in TWP permit requirements greatly attracted tourists from Mainland China. 8. 34 35 Tourism Development Board. The number of Mainland visitors to Hong Kong increased from 2. Ibid. The daily quota for Group visit endorsement increased from 1.142 in 1997 to 1. which allowed Mainlanders to visit their relatives who lived. Economic Impact of SARS : The case of Hong Kong. 一國兩制研究中心. He stayed in a hotel in Kowloon for one night in February. HKSAR Government. 62-83. 36 Real GDP in Hong Kong grew at 3. Hong Kong experienced another crisis –Severe Acute Respiratory Syndrome (SARS). his brother-in-law to Kwong Wah Hospital on February 13.82 million in 2002. A professor from Guangdong came to Hong Kong for a relative’s wedding. The number of tour operators in Mainland China. and studied in Hong Kong. He sought medical treatment in Hong Kong and was admitted Not soon after.

gov. On April 2. admitted to Ward 8A of Prince of Wales Hospital (PWH) and brought the index case for Hong Kong’s first outbreak in PWH. Hong Kong people refrained from many consumption activities outside their 37 SARS Expert Committee Report : From Experience to Action. the World Health organization (WHO) issued an advisory against non-essential travel to Hong Kong and Guangdong Province.html. Another patient.37 Visitor numbers fell throughout the Asia-Pacific region. Department of Health. 38 Hong Kong Tourism Board Annual Report 2003-2004.sars-expertcom. HKSAR Government. 2003. Eleven healthcare staff of PWH working in Ward 8A left on sick leave on March 10.hk/english/reports/reports/reports_fullrpt.hk/info/sars/e_sars2003. the Guangdong professor was certified death and was later confirmed to have died of SARS. and those of May by almost 68%. http://www. On February 22. total 1755 people were infected with SARS. who visited an acquaintance staying on the same floor of the hotel during the critical day in February.info. with Hong Kong’s April arrivals dropping by almost 65% compared with 2002. 2003. The number of medical staff who had infected with SARS through contact with this patient increased to 139. were admitted. The SARS epidemic reached its peak on March 30. 2003 when the government issued an order to isolate Block E of Amoy Garden after 213 residents of Amoy Garden were admitted to hospital for suspected and confirmed SARS with half of the cases were from block E. 39 SARS. HK Government http://www. Department of Health. 1451 were discharged while 304 died of the disease.39 Fearing the disease might spread to the community at large. 23 .38 By the end of the epidemic. who stayed in the same hotel with the professor. 2003.htm.and 16 other people.gov.

Individual visitors from the Mainland were permitted to remain in Hong Kong for a period of not more than 7 days upon each entry. Zhongshan. Hong Kong SAR Government. 24 .2 million in 2004 which brought an increase in inbound tourism revenue from 70. Source : Census and Statistics Department.849 million in 2004. 40 Unemployment rate increased from 7. When this scheme was introduced in July 2003. 41 Tourism Board Highlights 2004. the Chinese Government further released the issue of TWP and implemented the Individual Visit Scheme.5 million in 2003 to 12. In the past three and a half years. HKSAR Government.41 The Individual Visit Scheme was successful in reviving Hong Kong economy while it also paved way for Mainland pregnant women to come to Hong Kong for giving birth. The Individual Visit Scheme has brought a significant increase in the number of Mainland visitors to Hong Kong from 8. The drop in demand put further pressure on the price level and worsened the unemployment problem. Mainlanders might go to Hong Kong as individual visitors. and Foshan in Guangdong Province. the scheme extended progressively.7% in July 2003. it was opened only to residents of Dongguan. Jiangmen. and now covers Guangdong province and 28 other cities (Refer to Map at Annexure D).5% in March 2003 to the highest point of 8. The number of visitors from Mainland China from 1997 to 2006 is shown in Annexure E.234 million in 2003 to 91.homes.40 To bring the Hong Kong economy back to life.

The Joint Declaration sets out the basic policies of the People's Under the principle of "One Republic of China (PRC) regarding Hong Kong. The Joint Declaration provides that these basic policies shall be stipulated in a Basic Law of the HKSAR. 25 . British Dependent Territories Citizens who enjoyed a right of abode in the Dependent Territories and British Overseas Citizens who enjoy right of abode nowhere in the whole. a child born in Hong Kong acquired the status of a British Dependent Territories (Hong Kong) 42 43 The Basic Law of The Hong Kong Special Administrative Region of The People’s Republic of China.42 Immigration Ordinance The definition of ‘Hong Kong citizen’ was stipulated in Immigration Ordinance Cap. Country. The Act reclassified Citizenship of the United Kingdom and Colonies into three categories relating to the right of abode in United Kingdom : British citizens who had the right of abode in the UK. It came into effect on 1 July 1997. 115. The British Nationality Act 1981 was an Act of Parliament passed by the British Parliament concerning British nationality. Most of the Hong Kong people fell largely into the category of British Dependent Territories Citizens.Contradiction between Basic Law and Immigration Ordinance The Sino-British Joint Declaration on the Question of Hong Kong (The Joint Declaration) was signed between the Chinese and British Governments on 19 December 1984. the implementation of the British Nationality Act 198143. the socialist system and policies shall not be practiced in the Hong Kong Special Administrative Region (HKSAR) and Hong Kong's previous capitalist system and life-style shall remain unchanged for 50 years. The Basic Law of the Hong Kong Special Administrative Region (The Basic Law) was adopted on 4 April 1990 by the Seventh National People's Congress (NPC) of the PRC. Before 1997. Two Systems".

2A of Immigration Ordinance Cap. 26 44 . a Hong Kong permanent resident enjoys the right of abode in Hong Kong which are the right to (a) land in Hong Kong. 115. This provision was stated clearly in Schedule 1 of Immigration Ordinance Cap. For the purpose of reunification. Schedule 1 of Immigration Ordinance Cap. It was the common understanding of the Chinese and British experts under the Sino-British Joint Liaison Group that similar arrangement would apply after 1997 and no formal agreement was made before the reunification. (c) not to have a deportation order made against him and (d) not to have a removal order made against him. 1(5) of Schedule 1 of Immigration Ordinance Cap. this qualifying requirement sated in paragraph 2(a) of Schedule 1 of Immigration Ordinance does not exist in Article 24 of Basic Law. and any condition of stay that is imposed shall have no effect. 45 According to s.citizen if one of his or her parents had the same status or was settled in the city at the time of their birth. 115. and he is not subject to any limit of stay in Hong Kong. 115 was slightly amended upon the change of sovereign in 1997. While its meaning remained the same which required that for a Chinese citizen born in Hong Kong to be a permanent resident. in accordance with the laws of the Region. (b) not to have imposed upon him any condition of stay in Hong Kong. 115 as ‘A person is settled in Hong Kong if he is ordinarily resident in Hong Kong. Article 24 of Basic Law states that the following categories of people shall have the right of abode in Hong Kong and shall be qualified to obtain. one of his parents must have been settled44 or had the right of abode45 in Hong Kong at the time of his birth or at any later time. Basic Law However. permanent identity cards which state their right of abode – The term ‘settled’ is defined by Para.

who. ii) Chinese citizens who have ordinarily resided in Hong Kong for a continuous period of not less than seven years before or after the establishment of the Hong Kong Special Administrative Region. iv) Persons not of Chinese nationality who have entered Hong Kong with valid travel documents. and vi) Persons other than those residents listed in categories (1) to (5). before the establishment of the Hong Kong Special Administrative Region. had the right of abode in Hong Kong only. iii) Persons of Chinese nationality born outside Hong Kong of those residents listed in categories (1) and (2). v) Persons under 21 years of age born in Hong Kong of those residents listed in category (4) before or after the establishment of the Hong Kong Special Administrative Region.i) Chinese citizens born in Hong Kong before or after the establishment of the Hong Kong Special Administrative Region. 27 . have ordinarily resided in Hong Kong for a continuous period of not less than seven years and have taken Hong Kong as their place of permanent residence before or after the establishment of the Hong Kong Special Administrative Region.

Article 11 of Basic Law provides that no law enacted by the legislature of the Hong Kong Special Administrative Region shall contravene the Basic Law. CHONG Fung-yuen case was a classic case arguing the legal provision on the residency of Hong Kong born child to Mainland parents. the Director of Immigration The Contradictions between Basic Law and the qualifying requirements provided in the Immigration Ordinance brought a numbers of judicial reviews where decisions and authority of the Director of Immigration Department were challenged. Chong’s grandfather lodged a claim about Chong's status with the Director of Immigration. The authority of Immigration Ordinance was seriously challenged. That was in November 1997. They were not residents of Hong Kong. CHONG Fung-yuen’s parents were Mainlanders who came to Hong Kong with two-way permits on a visit in early September 1997. The Director did not accept CHONG Fung-yuen as permanent resident of Hong Kong. They were arrested and repatriated while CHONG Fung-yuen stayed in Hong Kong with his grandfather who was a Hong Kong citizen. Shortly after the parents arrived in Hong Kong. and did not accept that he 28 . the mother gave birth to CHONG Fung-yuen on 29 September 1997. CHONG Fung-yuen v. permanent or otherwise.More importantly.

The Court of First Instance ruled that the wordings in Article 24(2) (1) of the Basic Law are clear and self-explanatory enough to confer the status of permanent residents on Chinese citizens who have been born in Hong Kong.has the right of abode in Hong Kong by referring to the provision stated in Para 2(a) of Schedule 1 of Immigration Ordinance. HACL 69/1999 29 . the Director of Immigration. The judged state that – the words in paragraph 2(a) of Schedule 1 to the Immigration (Amendment) Ordinance enacted on 1 July 1997 : ‘if his father and mother was settled or had the right of abode in Hong Kong at the time of the birth of the person or at any later time’ were in my judgment incompatible with.46 46 CHONG FUNG-YUEN v.24(2)(1) of the Basic Law. They have therefore no effect to limit the right of abode of those Chinese citizens born within Hong Kong. Chong’s grandfather applied for a judicial review against the Director’s decision in 1999. and contravene art.

whose parents neither had the right of abode nor lived in Hong Kong at the time of birth. 2001. 1997 and January 31. Hong Kong medical and health care and social welfare services became the big pull for Mainland mothers. the number of such births in Hong Kong has risen from 709 in 2000 to 9273 in 2005.47 Based on the survey of 43 months. The decision of Court of Final Appeal has tremendous implication on Hong Kong population policy. Once the floodgate was open. 1997 to January 31. a 13-fold increase. 2001. (2006-12-04) 30 .Besides. the judges of the case had reviewed the numbers of children born in Hong Kong between July 1. The lack of foresight of our judges brought about today’s plight. 62 of 2000. South China Morning Post. (CHONG Fung-yuen v. CACV No. they concluded that such judgment posed no ‘significant risk’ to the city and decided that anyone born in Hong Kong is Hong Kong resident regardless of his or her parents’ residency48. the Director of Immigration. there were totally 1991 Chinese citizens born in Hong Kong whose parents neither had the right of abode in Hong Kong nor Hong Kong residents. Director of Immigration lodged an appeal to the Court of Appeal and Court of Final Appeal and were both dismissed. 47 Between July 1.) 48 ‘The Hordes at our gate’ by Regina Ip. Following the Court’s judgment.

if not impossible. is it possible to restrict someone’s access to that good or service and the second. we basically ask two questions : firstly. to restrict someone’s access to the resources and becomes unavailable for subsequent consumption once it is open for access. the insufficient public obstetric service for local women will be diagnosed from an economic perspective. does the good or service remain available for subsequent consumption or use by someone else. For goods which is very difficult. By referring to the public obstetric service as a common-pool resource. once access is gained and consumption or use occurs. we can 31 . problems of collective action and problem of externalities can be used to explain the service-seeking behaviour of Mainland pregnant women.CHAPTER THREE DIAGNOSIS OF THE PROBLEM FROM AN ECNONOMIC APPROACH Introduction In this chapter. The content and effectiveness of government reactions in 2005 will be analyzed through Pigou’s theorem of government intervention as a solution to the problem of externality. Common Pool Resources When categorizing a good or service.

N. Public policy analysis : a political economy approach. resources are exhaustible. people do things to advance their own goals and objectives50. 50 Brickers. E.categorize it as common-pool resource. E. hardly at all of common interest. these that it is impossible or too costly to restrict someone’s access. and fishery grounds49. Cambridge: Cambridge University Press. Boston . The individual is likely to neglect the impact of overgrazing as everyone thinks chiefly of his own. (1990). 32 . Pp 2. In Garrett Hardin’s ‘Tragedy of the Commons’. New York : Houghton Mifflin. 5 51 Ostrom. self-interested. pp. Pp 30. Governing the Commons : the evolution of institutions for collective action. the problem of collective action is common. every herder can gain access to the same piece of land. (2001).. he used behaviour of As human beings are rational and If rational herders to illustrate the phenomena. pastures. there will be one day when the resources be used up if open for consumption without proper management or control. These resources are so large Furthermore. (1990). Governing the Commons : The evolution of institutions for collective action. The most typical examples of common-pool resources are forests. Problem of Collective Actions Standard analysis in modern resource economics concludes that when common-pool resources are open to people for consumption. K.51 49 Ostrom. they tend to add more and more animals as they receive the direct benefit of their own animals and bear only a share of the costs resulting from overgrazing. Cambridge: Cambridge University Press.

Another scholar Robert Axelrod suggested that the ‘Tragedy of Commons’ could be avoided by repeated interactions and cooperation among individuals. The rationale

behind this is that individual will cooperate if they believe that gains from cooperation over time outweigh the loss in short-term benefits of not doing so. However, due to

individuals’ inability to trust one another, they fail to cooperate and end up competing with each other. This theory is called prisoner’s dilemma, which is a common

representation of the failure of self-interested individuals to cooperate due to lack of trust.

Mancur Olson in The Logic of Collective Action also suggested those human beings are rational and self-interested. Unless the number of individuals is small, or unless

there is coercion or some other special device to make individuals act towards their common interest, rational, self-interested individuals will not act to achieve their common or group interest.52 best interest. Instead, they will behave in a way that brings them the

52

Ostrom, E, ‘Policy Analysis of collective Action and Self-Governance’ in Dunn W.N. & Kelly, R.M (eds) Advances in Policy Studies Since 1950, New Brunswick (USA) and London (UK) : Transaction Publics (1992), Pp 89-90. 33

The above three theories are closely related. At the heart of each of these models is the free rider problem. Whenever one person cannot be excluded from the benefits

that others provide, each person is motivated not to contribute to the joint effort and to obtain benefit without paying. Since individuals are rational and self-interested, they tend to allow others to pay for the goods so that they may ‘free ride’. participants choose to free ride, the collective benefit is not produced. If all

On the other

hand, some may provide while others free ride, leading to a less than optimal level of provision of collective benefit. The temptation to free ride, however, may dominate

the decision process and thus all end up where no one wanted to be. These models are extremely useful for explaining how perfectly rational individuals can produced, under some circumstances, outcomes that are not ‘rational’ when viewed form the perspective of all of those involved.53

Externalities The irrational outcome usually appears in the form of inefficiency due to negative externalities. Figure 154 shows the effects of a negative externality. The marginal

benefit curve showing the maximum value that one is willing to pay for successive

53

Ostrom, E, ‘Policy Analysis of collective Action and Self-Governance’ in Dunn W.N. & Kelly, R.M (eds) Advances in Policy Studies Since 1950, New Brunswick (USA) and London (UK) : Transaction Publics (1992), Pp 90. 54 Dahlman. C.J., ‘The Problem of Externality’ in Cowen T. (eds) The Theory of Market Failure, Virginia : George Mason University Press (1988). Pp 209-234. 34

units of goods while the marginal social cost curve representing the maximum values that one is willing to forgo for the production of successive unit of goods. In a

perfectly competitive market, the efficient equilibrium is at the point of intersection of the supply and demand curves, where marginal social cost equals to marginal social benefit. The latter reflects the idea that the marginal social benefits should equal the marginal social cost, that is the production or consumption should be increased only when the marginal social benefit exceeds the marginal social cost.

However, there are situations where individual decisions are not based upon full account of true costs and true benefits. If the consumers or producers only take into

account their own private cost, they will end up at price Pp and quantity QP, instead of the more efficient price Ps and Qs. The result is that a free market is inefficient since

at the quantity Qp, the social benefit is less than the social cost, so society as a whole would be better off if the goods between Qp and Qs had not been produced or consumed. The problem is that people are buying and consuming excessively. The most typical example of externality is the problem of pollution. Producers only see

their private costs of production such as input of materials, labour cost, rent of factory, while fail to appreciate the real cost or the social cost to others such as pollutions arisen from their production and the impact of others’ health. As the producers

35

E. R.neglect these externalities. New Brunswick (USA) and London (UK) : Transaction Publics (1992).N. Modern resource economics analysis also concludes that where number of users have access to a common-pool resource.55 55 Ostrom. 86 36 . Pp. total resource units withdrawn from the resource will be greater than the optimal economic level of withdrawal. & Kelly. they tend to produce more than market optimum and induce loss to the society as a whole. ‘Policy Analysis of collective Action and Self-Governance’ in Dunn W.M (eds) Advances in Policy Studies Since 1950.

the real cost is internalized to the producers or consumers so as to resume the market optimum. C. goods or services consumed or produced. which was suggested by Pigou in Economics of Welfare in 1921. Pp 209-234. (Figure 2 refers56) 56 Dahlman.J. Virginia : George Mason University Press (1988). 37 . (eds) The Theory of Market Failure.One of the most frequently cited solutions to externality is government intervention by way of user charges or tax. He stated that it is desirable to make the producers or consumers take By imposing charges or tax for every unit of responsibility for the externalities.. ‘The Problem of Externality’ in Cowen T.

In Hong Kong.. Virginia : George Mason University Press (1988). (eds) The Theory of Market Failure. ‘The Problem of Externality’ in Cowen T. imposition of tax and monitoring are too high. the transaction costs for formulating regulation. it is in reality impossible to restrict one’s access to medical care.J. it is the Hospital Authority’s principle not to deny medical care due to 57 Dahlman.Pigouvian theorem ‘The Pigouvian Tax’ was criticized by Ronald Coase to be inefficient in solving public problem. all externalities would be eliminated. medical services that are provided by public hospitals can be categorized as common-pool resources that are non-excludable and subtractive. Additionally.57 Public Obstetric Service in Hong Kong In Hong Kong. as costless transaction opportunities will allow suitable modification of translations behaviour so that all undesirable side effects are properly internalized. However. 38 . He further suggested that when there are no costs of transacting. C. He criticized that government is not capable of gathering perfect information to set an optimal level of charge or tax to bring marginal private cost equal to marginal social cost. which makes medical service a private good. Non-excludable means that it is impossible to prevent relevant people from using the resources and subtractive means that consumption by a person will impose cost on others. Some may argue that user charge excludes those who cannot afford the payment from accessing the medical services. Pp 209-234.

The government A pregnant woman about to give birth was turned away from three hospitals and a clinic in Kunming because she only had 900 yuan. which is highly subsidized by government. 58 Non-Hong Kong residents paid HK$3. Unlike Mainland China58. Additionally Mainland mother are patients requiring addition drugs.e.60 Patients seeking medical service only have to pay at a rate. 39 . Obstetric service before September 2005 calculated on the number of day of hospitalization. bed. HK$263 million was from government subvention. among the HK$300 million revenue of Hospital Authority. Public medical resource is common-pool resource because it is also subtractive. over 70% of the total government revenue was from tax.300 per day. are forced to pay more and give birth in private hospitals when the limit in public hospitals is reached. who now received less attention from nurse and doctors and less space in the same ward. ‘Hospitals slam door on pregnant woman’. thereby imposing costs on other patients. Hong Kong residents only had to pay HK$100 per day for admission to public hospital for giving birth. ward. The ethical concern makes public medical service non-excludable in nature. South China Morning Post. 59 In 2005/2006 financial year. medical services will be provided to any person in Hong Kong who is in need regardless of their ability to pay. 2007-04-03. who do not manage to reserve a place in public hospital or who want to have better medical care. 60 In 2005/2006 financial year. 90% i. as human lives are paramount.lack of means. Pregnant women. Hong Kong public medical services are funded mainly by the government59 through revenue from taxes and sale of land. medical attention from doctors and nurse.

000 (Service Those who can afford the higher charges of seven private hospitals at Annexure F).000.61 Alternative to public medical service is private medical service provided by seven private hospitals in Hong Kong. (http://www.legco. 2004. 61 Legislative Council Meeting on November 10. hospitals is much higher. Mainland women evaluate the costs and benefits based on their knowledge. Cost of giving birth in Hong Kong When deciding whether to give birth in Hong Kong or in Mainland. in private or in public hospital. service charges will choose private hospitals that provide better medical treatment. a more comfortable stay. Mainland mothers choose the option that benefits them most. As utility maximizers.gov.subsidized 97% and 75% respectively as the cost of delivery for each pregnant woman is estimated to be HK$12. They focus on their private costs and benefits while neglecting the costs for the Hong Kong society by consumption of medical care. and better postnatal care.000 to HK$14.pdf) 40 . The charge for obstetric services in private It ranges from HK$15.000 to over HK$100.hk/yr04-05/english/counmtg/hansard/cm1110ti-translate-e.

Many of these Mainland mothers-to-be come to Hong Kong with two-way permit under Individual Visit Scheme. which were only HK$3. i. Mingpao. Short-term costs include obstetric service charges.I) Short-term costs Giving birth in Hong Kong involves short-term costs and long-term costs to Mainlanders. (2006-12-29) Application fee fro a two-way permit cost RMB120 for a single entry while cost RMB140 for double entries. http://www. The cost of lodging ranges from hundreds to thousands.300 before September 2005. Source : Website of Division of Exit and Entry Administration Department of Public Security of Guangdong Province. travel during pregnancy involves risk to the mothers and babies that should also be counted as costs. citizenship. Hukou system was implemented by Mainland China government in 1955 as a measure to guard big cities 62 63 ‘特首:需要新醫院 便建新醫院 與公安部研究孕婦來港產子問題’. they have to pay lodging. The most important one would be forgoing ‘hukou’. II) Long-term costs Giving birth in Hong Kong is not without long-term cost. For those who have no relative in Hong Kong. The application fee for a TWP together with a single entry endorsement costs RMB120.gdcrj. in Mainland China. Mainland pregnant women come from Guongdong province.e. Majority of It depends on the type of accommodation chosen by the Mainlanders.com/wlgat/gdgry/index. The transportation cost is rather limited.62 They come to Hong Kong mainly by train.63 However.htm 41 .

obtain employment. Children of state official and military officers attend elite schools with small classes while those of workers in urban area go to neighborhood schools and the parents pay 5% of their income for tuition plus a range of miscellaneous fees. marry. every Mainland China citizen is required to register to a Public Security Bureau. there are still differentiations.6 million. for example in the allocation of social services by job status. with a net gain of 34.64 Under Hukou system.6% in 1956. their counterparts in countryside. Within both urban and rural spheres. one cannot establish eligibility for food. The China Quarterly.against influx of rural population. 65 Deborah Davis (1989) Chinese Social Welfare : Policies and Outcomes. Unlike Hong Kong.6% of the total population in 1949 to 14. (1994) The Origins and Social Consequences of China’s Hukou System. The state reserves its resources disproportionately for those Benefits allocated to urban areas are privileged over classified as urban population. or shelter.65 64 Rapid economic development in Mainland China brought significant rural-urban migration. and proof of official status. Hukou registration provides the principal basis for establishing identity. Tiejun Cheng and Mark Selden. or enlist in the army. Without registration. go to school. 42 . The China Quarterly. China’s urban population increased from 10. eligibility for the above benefits in Mainland is not standardized across the country. citizenship. clothing.

: Ashgate.. the Chinese leader at that time. Gabe T. Four modernization included modernization of agriculture. Deng Xiaoping. 67 WANG. With the implementation of economic reform in late 1970s. Brookfield. China’s Populations : Problems. Thoughts and Policies. and to realize the four modernizations66. It was also the first time that family planning was confirmed legally and became one of the fundamental duties of all citizens. Vt. 43 . In 1978. national defence and science and technology. Central Government officials started doubting their traditional beliefs that having large family was a good thing. the Fifth National Peoples’ Congress ratified the new constitution.Benefits of giving birth in Hong Kong I) Fleeing from One-child Policy Penalty However.67 66 ‘Four modernizations’ was fundamental part of Deng Xiaoping’s economic reform in China in late 1970s. 87-94. (1999). Aldershot . pointed out that strict adherence to population control policies was the only way out of poverty. Pp. the Health Ministry issued instruction to all government organizations to provide guidance to people on the concept of birth control. majority of these Mainland pregnant women regard hukou as a push instead of a pull of coming to Hong Kong for giving birth because they can flee from paying one-child policy penalty by having baby in Hong Kong. As a result. industry. In 1954 when the first census survey in China revealed that China’s population was over 600 million and was growing by 2 percent yearly. which explicitly stipulated that the state advocated family planning.

However.The population Control Policy in late-1970s included four parts. : Ashgate. from household to household. and resolutely prevent the third child. One is to reduce the number of children-.68 Under the one-child policy.which advocates that each couple has only one child. 44 . Aldershot . Thoughts and Policies. Vt.300 to give birth in Hong Kong. Mainland and paying the penalty will not guarantee social services especially for those live in rural area and /or without state employment. Generally speaking. There The penalty varies from city to city. By paying just HK$3. The Family Planning Office claims that the rationales behind is first.. It explains why so many 68 WANG. a family in Guangdong who has their second child will be fined for around RMB80. Mainlanders come to Hong Kong for giving birth. Pp. China’s Populations : Problems. to make people think clearly before having children and second. Mainlanders can evade from making the penalty of RMB80. 95. it must strictly control the second birth. Gabe T. as a financial support for the government to provide education and other welfares for their children. every Mainland couple is only entitled to have one child.000 to the government. Brookfield. will be a fine for having an extra child. (1999). entitlement to social services Having a Hukou in depends largely on the type of Hukou and social status.000.

Reports on denying medical treatment due to lack of means is common in Mainland China. medical care and technology in Hong Kong is much more advanced than that in Mainland China. This is also the method used by many Mainland women to flee from The whole system attracts making payment in Hong Kong public hospitals.II) Advanced Medical Care Further. III) Hong Kong Residency However. Especially after the landmark Chong Fung-yuen case in 2001. the service seeker can easily avoid paying deposit or can make off without payment by approaching A&E ward and seeking service in the last minute. in Mainland. it became clear that everyone born in Hong Kong would be Hong Kong citizen. as they know that they can obtain better medical service without paying a penny in Hong Kong. Mainlanders. They are attracted by the nine-year free education. Many Mainland mothers cherish the better living environment and welfare for their children and thus try every mean to give birth in Hong Kong. Furthermore. when full payment is made upon admission. While in Hong Kong. medical services are provided only They follow strictly to this rule. the major drive for Mainlanders giving birth in Hong Kong is the permanent residency for their children born in Hong Kong. public housing 45 .

medical resources are subtractive in nature. the large influx of Mainlanders has placed significant pressure on the Hong Kong medical resources.benefits.000 to HK$14. their children can enjoy disproportionately greater benefits provided by the Hong Kong government. As mentioned before. The negative externalities associated are not incorporated in the cost function of these Mainland mothers. With only limited cost. The cost of delivery ranges from HK$12. different sorts of allowances such as Comprehensive Social Assistance Allowance and more recently the Pre-primary Education Voucher Scheme. Those managing to get a place in public hospitals are forced to stay in a 46 . public medical care. Saturation of public hospitals forced local expecting mothers to give birth in private hospitals. consumption by one would impose cost to another. That makes Hong Kong quite attractive to Mainlanders. but appears as costs to others in the society. The difference between the charge level and the cost are borne by Hong Kong taxpayers.000. Besides. The service-seeking behaviour of Mainlanders has reduced the frequency and quality of prenatal and postnatal checks entitled to all local mothers-to-be. Externalities What these Mainland mothers cannot see are costs imposed on the society upon their consumption of medical care in Hong Kong.

irrational behaviour. providing education. government has taken measure to internalize the costs to the Mainlanders and tackle the problem of externality. Not all of these costs were recognized by the Mainlanders. Furthermore. 47 . shouldered by Hong Kong taxpayers. and welfare to these Hong Kong born children to Mainland parents are not without cost. there was an upsurge in Mainland pregnant women. They feel that these children free ride on the effort of Hong Kong taxpayers. Individual rational decision becomes collective In order to resume market equilibrium. Hong Kong people show anxiety over this situation as they feel that their contributions to the society are subsidizing children whose parents have done nothing to contribute to the economic prosperity of Hong Kong. The costs are. whose husbands are also Mainlanders. Especially after 2005. nevertheless. medical care. This discrepancy between the marginal private costs and marginal social costs of seeking obstetric services by Mainland mothers induces a loss in the overall benefit of such consumption for the whole society.crowded ward and give birth with another woman in the same delivery room at the same time. coming to Hong Kong for the purpose of giving birth.

Some local mothers-to-be were forced to pay extra to get a place in private hospitals. The private cost for Mainlander was far below the social cost of giving birth in Hong Kong. with delivery service included. 300 for one-day hospitalization in public ward. the charge for obstetric service in Hong Kong for non-Hong Kong residents was just HK$3.Policy before September 2005 After Hong Kong Court of Final Appeal confirmed the status of Hong Kong born child to Mainland parents in 2001. thousands and thousands of Mainlanders came to Hong Kong for giving birth. as the public hospitals had no vacancy left. extra charge. for non-Hong Kong resident seeking 48 . The number of Mainland women giving birth in Hong Kong in 2005 increased almost 3-fold over that in 2001. there was an upsurge in the Mainland mothers coming to Hong Kong for giving birth. Policy after September 2005 Hong Kong government noted the problem and tried to regulate the situation by imposing a negative incentive. Together with the long-term benefits to their children and the relaxation of Two Way Permit (TWP) requirements. pressure on medical staff and affected the quality of service provided to local pregnant women. The sudden increase in the number of Mainland pregnant women induced congestions in public ward. At that time. delivery room.

the number of Mainland women gave birth in Hong Kong increased 30% from 19538 in 2005 to 20577 in the first ten months of 2006. In 2006.000 when one can save HK$80.000 by fleeing from one-child policy penalty.000. they might simply remain in China. the marginal private cost after the 49 . so that Mainlanders who could afford the charge might rationally decide to give birth in private hospitals in order to get better medical treatment and service in return.000 obstetric package was introduced The package included delivery and care fees in a public ward It also came along with a deposit system that for the first three days in the hospital. Another purpose was to bring the charge level of public obstetric service closer to that of private hospital. required all Mainland pregnant women to pay HK$19. The major reason It is was that the charge was not effectively set to bring the market back to optimum. The rational behind was that by increasing the price level. in September 2005. A HK$20.800 deposit upon admission to hospital in order to avoid defaulted payment. quite ironic to set the charge at HK$20. the cost of giving birth in Hong Kong was internalized to Mainlanders seeking the service. one year after the implementation of increased charge for the obstetric package. afford HK$20. For those could not This Pigouvian tax adopted by the government proved to be ineffective in solving the problem. Besides.obstetric service in public hospital.

Source : ‘Hospital Authority : management of outstanding medical fees’. Another reason why the package could not reduce the number of Mainland pregnant women coming to Hong Kong was that the cost could not successfully be internalized to the consumers. Audit Commission. http://www. HKSAR Government.800 million in 2005/06 financial year. 69 The bad debts of Hospital Authority amounted to HK$2. they then sought last-minute hospital admission before delivery through the A&E ward.69 As Mainlanders can easily escape from making payment. Although the Authority required every non-Hong Kong resident to make deposit upon admission for giving birth. the obstetric package did not come along with new initiatives in preventing and collecting defaulted payments as many of the defaulted payments ended up as bad-debt. Furthermore.aud.hk/pdf_e/e47ch05. there existed a loophole that allowed Mainland women to obtain obstetric service without making deposit.implementation of new charge was still far below the marginal social cost. They knew that Hong Kong hospitals would not deny service due to lack of means. the cost of delivery could not be internalized to them and could not bring the market to optimum. It coincides with the criticism over Pigouvian’s theorem that the government is incapable of setting an optimal level of charge or tax to attain market equilibrium.gov.pdf 50 .

Some suggested having the Basic Law amended or reinterpreted while 51 . The action by these groups of pregnant women had tremendous effect. quality of service delivery has declined significantly.CHAPTER FOUR NEW POLICY IN FEBRUARY 2007 Introduction The ever-increasing number of Mainland mothers coming to Hong Kong for giving birth has reached an unsustainable level. duration of stay after delivery and number of postnatal checks entitled by every baby and mother have been reduced. existing medical staff manpower can no long cater for the increasing workload. Speculations on the possible solutions and development over the issue can be seen on the headline of the newspaper almost everyday. Public hospitals are overcrowded. They urged the government for solution to ensure sufficient public obstetric service is reserved for local pregnant women. A group of 30 local mothers-to-be marched to Central Government Office to air their grievances over the situation in November 2006. Legislative Council members and the public have urged the government to face the problem. Different pressure groups.

and Food Bureau finally came up with a package of new measures to tackle the problem. Health. 2007 when the new measures were implemented.000 to HK$39.000 is the minimum rate that covers the charges for the delivery (vaginal or operative) and the first three days of hospitalization in general wards for the 52 . Welfare.000. The official objective of the new measures is to ensure sufficient public obstetric service is available to local pregnant women. and strengthening of immigration control. All were rejected by the government. After months of meetings with Mainland authorities. The policy Pregnant women of other nationalities were not bounded by these rules. The New Policy Increase in Charge Effective from February 1. The authority’s explanation was that the number of pregnant women from other countries seeking obstetric service in Hong Kong was not common. a centralized booking system. the charge for delivery in public hospital increased from HK$20.some suggested withholding the baby’s birth certificate until the parents have settled their hospital charge. HK$39. The measures include increasing the charge. was tailor-made solely for Mainland women.

Those. and medical staffs. Authority will defer submission of birth data to Birth Registry for Mainlanders until outstanding fees are paid up to 42 days.000 will be charged for those who have not made a prior confirmed booking for their delivery and / or have not undergone the antenatal checkup provided by the Hospital Authority during the pregnancy. encourages the Mainland pregnant women to have prenatal checks before their delivery in order to reduce the risks to the mothers. the Hospital Authority implemented several measures for collecting outstanding medical fees. private hospitals. To effectively internalize the costs to the Mainland mothers. Defaulted Payment Prevention Mechanism As mentioned in last chapter. who have outstanding fee will only be provided with 53 . without an effective defaulted payment system.concerned delivery. The major aim of doubling the service charge was again to make it closer to or even over the price level set by private hospitals. including both Hong Kong residents and non-Hong Kong residents. So that the Mainland mothers will shift to The imposition of HK$9.000 additional charge was to deter It also Mainland pregnant women from seeking obstetric service in the last minute. their babies. An additional HK$9. the Additionally. the consumers will never see the real costs of their consumption. Upon registration. the Mainland mother-to-be is required to produce proof of address.

LC Paper No. 70 Discussion Paper on ‘Impact of the use of Obstetric Services by Mainland Women on Public Hospital Resources’ by Legislative Council Panel on Health Services. quotas are left will be allocated to Mainland women. 71 On the first day of the implementation of this new measures. Therefore. totally 734 Mainland pregnant women made registration through the Hospital Authority centralized booking system and brought HK$28. the government knows clearly that the problem cannot be solved solely by increasing the service charge.71 Besides.000 worthy as they can flee from one child policy penalty and their children can enjoy Hong Kong social welfare benefits.6 million revenue to Hong Kong Government within in single day. ‘Authority cashes in on pregnancy policy’. (2007-02-02). People who can afford HK$39. the government implemented other supporting measures to ensure sufficient obstetric service is available to local pregnant women. Centralized Registration System The Bureau developed a centralized booking system for both private and public hospitals. 54 .000 for giving birth to a baby are countless. Every Mainland woman must make prior booking in person and settle the Priority is reserved for local women and only when extra In any case.70 Having learnt from previous lessons. CB (2) 761/06-07(03). Furthermore.emergency services. administrative charge will be imposed for late Finally. the number of full payment in advance. Mainland people might still find HK$39. South China Morning Post. People in Mainland China are getting wealthier. (8 January 2007). the Authority is also exploring the possibility of hiring international debt collection agency for pursuing Mainland bad debts. payments.

28 weeks. the authority has defined ‘advanced stage of pregnancy’ as being pregnant for more than 7 months i. the advanced stage of pregnancy72 who have no booking would be denied.e. Body check facilities and medical officers were stationed in all checkpoints to provide advice on the physical conditions of the non-local pregnant women. In spite of the rush. The public generally welcomed the policy which had considerably released their anxiety over the situation. Those who were found to be pregnant for more than 28 weeks and without booking certificate will be denied entry. Tightened Immigration Control The Bureau also anticipated that those who have not made reservation nor had no money might try to get through the immigration control points by concealing or disguising their pregnancy. 55 . After the Mainland women have made the reservation. there was no big opposition or objection from the public.quota for Mainland mothers would not exceed HK$12. a booking certificate will be issued to them. 72 To avoid dispute. Every Mainland mother-to-be is required to produce such certificate to Entry of those Mainland women at immigration officer upon entry to Hong Kong. The new policy was put forward in January 2007 and was fully implemented in February.000 per year. pressure groups or politician at the time it was implemented.

Mainland pregnant women seeking emergency delivery service even dropped by 75%. Besides. (2007-04-16) 56 . totally 3. In the first nine weeks of the new policy until April 4.800 Mainland women gave birth in Hong Kong. it seems that the new measures have successfully shifted the Mainland mothers-to-be from public to private hospitals. 2007.190 of them gave birth in public hospitals. Welfare.73 By looking at the figure. although the total number of Mainland women coming to Hong Kong only dropped by 4%. and Food Bureau. the implementation of centralized booking system together with immigration control has 73 ‘Birth fee drop for wives .CHAPTER FIVE EVALUATION OF THE NEW POLICY Introduction According to the figure released by the Health. When compared with the figure of the same period last year. 1. the number of Mainland pregnant woman giving birth in Hong Kong public hospitals dropped significantly after the implementation of the new measures in February 2007. the number seeking services from public hospitals dropped significantly by 35%. 371 of them sought last-minute obstetric service from emergency wards. charge for cross-border couples could fall to HK$20.000’ SCMP (2007-04-17) and ‘內地孕婦來港分娩個案降 4%’ Singtao Daily.

57 . Carrots. the duration is too short to see the real effectiveness of the policy. Elmore stated that certain types of problems predictably bring into play certain responses from policy makers.C. Rist R. strengths.F.deterred people from seeking last-minute service from the emergency wards. The study of policy instruments then can be useful in strengthening the predictive capacity of policy analysis that would be helpful in policy design. 41. Different policy instruments have different operating characteristics. and implementation problems. Policy Instruments and their Evaluation. while the instrument choice is real and will have immediate consequence75. Richard F. (1998). Vedung E. it is good to know something about the potential effects of different policy instruments before one chooses among them. Bemelmans-Videc M. Pp. Sticks and Sermons. this chapter will be the evaluation of the new policy with focus on its design and implementation. (1987) ‘Instruments and strategy in public policy’. However.74 As a broad policy objective is to be achieved far in the future. R. Therefore. since the new policy has been implemented for just two and a half months. Therefore. Certain instruments fit certain problems and objective better than other instruments. 74 75 Elmore. instead of focusing on the output of the policy. USSA New Brunswish : Transaction Publishers. this chapter will evaluate the new policy by referring to the choice and design of the policy instruments. Policy Studies Review. these responses are called instruments.

Pp. 76 Rossi. 58 . When evaluating a policy. and legitimacy77. there should be some criteria by which to judge the adequacy of the policy the criteria of ‘good governance’ – the central values of which government actions is appraised.76 Evaluation of a policy cannot do away with figures and data on the In fact. Pp. Carrots. Newbury Park. 77 Bemelmans-Videc M. design. P. all phases of the policy process. Sticks and Sermons. the values of good governance include effectiveness.E. policy outcome. efficiency. no matter ‘output evaluation’ or ‘process evaluation’. USSA New Brunswish : Transaction Publishers. Rist R. Apart from ‘output / outcome evaluation’. and H. Evaluation : A Systematic Approach.H. implementation and utility of social intervention programmes. 1993. 5.C. Policy Instruments and their Evaluation. democracy. legality. there is also ‘process evaluation’ where the evaluation focuses on the process of designing and implementing of policy or programme. According to Marie-Louise Benelmans-Videc. from problem analysis through monitoring implementation to the appraisal of the actual result of the policy can be evaluated. 41. Freeman. Vedung E. (1998). which is generally referred as ‘output / outcome evaluation’.What is Evaluation? Evaluation is the systematic application of social research procedure for assessing the conceptualization. CA : Sage.

Therefore. the choice of policy instrument instruments is a search for optimum solution. Policy Instruments and their Evaluation. (1998). USSA New Brunswish : Transaction Publishers. policy instruments that score high on the democracy criterion often have a price tag in terms of their efficiency. 6-9 59 . The final value is legitimacy. instrument. Vedung E. Legality means the degree of correspondence of administrative action in designing and implementing policies with the relevant formal rules as well as with the principles of proper process.78 78 Bemelmans-Videc M. Carrots. It includes the problems of implementation of the policy instrument through devised means. and a balancing act. while at the same time they compete or conflict. Democracy is the degree to which administrative action in designing and implementing policies correspond with accepted norms as to government-citizen relationships in a democratic political order. These central criteria of good governance need to be combined. It includes both positive and negative effects brought by the policy Efficiency refers to the input-output ratio of the policy instrument. a prioritizing process.C.g. Sticks and Sermons. which is the degree to which government choices are perceived as just and lawful in the eyes of the involved actions. Pp. e. Rist R.Effectiveness is the degree of goal-realization due to the use of certain policy instrument.

policy instruments can be defined as regulation.Classification of Policy Instruments Nowhere in the international literature on policy analysis and public administration is to be found a uniform.79 Regulatory Instrument Regulations are measures undertaken by government to influence people by means of formulated rules and directives that mandate receivers to act in accordance with what is ordered in these rules and directives. Pp. imprisonment. 31. Vedung E.81 79 Bemelmans-Videc M. (1998). Rist R. 81 Bemelmans-Videc M. 60 . Vedung E. USSA New Brunswish : Transaction Publishers. Sticks and Sermons. Sticks and Sermons. Regulations often associated with threats of negative sanctions such as fines. By such. USSA New Brunswish : Transaction Publishers. and information. 59. Policy Instruments and their Evaluation. economic means. Rist R. Carrots. Pp. 80 Ibid.C. policy instruments are categorized by the degree of authoritative force or degree of constraints involved in the government effort. (1998). The In this paper. and other type of punishment. policy instruments can be categorized in many ways. generally embraced classification of policy instrument.C. Carrots. acceptable behaviour or to limit activities in a society. 59. Policy Instruments and their Evaluation. Pp.80 Regulation is often chosen by the governments as a policy tool because it appears to be more certain and effective as regulatory instruments define the norms.

83 Taking cigarette consumption in Hong Kong as an 82 Bemelmans-Videc M. 83 Bemelmans-Videc M. USSA New Brunswish : Transaction Publishers. They may decide not to make use of the government incentive. Rist R. time. Sticks and Sermons. effectiveness also greatly depends on the nature of the policy context. Sticks and Sermons. Rist R. (1998). effort.C. Carrots. which also determines the capacity of the government organization to ensure compliance. Vedung E. The effectiveness of a regulatory instrument is associated with its legitimacy. Vedung E. Additionally.82 An illegitimate regulation might lead to non-compliance and the cost of non-compliance might even greater that the cost of the problem itself.C. and other valuables to pursue certain actions.Regulatory instruments are not without weakness. because they hesitate to take the measures required to get it. Policy Instruments 61 . It is argued that regulations are ineffective in changing behaviour if there no social consensus around the government policy underlying the regulatory instruments. Economic Instrument Economic policy instruments involve either handing out or the taking away of material resources from the addressees to make it cheaper or more expensive in terms of money. Carrots. What makes economic policy instruments different from regulations is that the addressees are not obligated to take the measures involved.71. (1998). Policy Instruments and their Evaluation. Pp. either positive or negative.

since cigarette smoking is hazardous to health. the addressee might already have decided to behave in the desired way. Economic policy instrument is flexible and usually has higher legitimacy when compared with regulatory instruments. good or bad. USSA New Brunswish : Transaction Publishers. 84 Ibid. diffusion of printed material. How the and their Evaluation. 62 .example. Pp. Pp. as the addressee has no obligation to follow the regulation. the government fells the need to do something to discourage people consuming cigarette. 33. the government imposes heavy tax on it and makes the smokers’ habit more expensive. education. amassing and packaging etc. The addressees have the right to choose. However. Instead of formulating rule to totally ban the purchasing of cigarette in the market. 84 Through advertisement. citizens are informed of what is right or wrong. the effectiveness of economic instrument must rely heavily on the relationship between the economic incentive and the policy goals. Sometimes. in which case economic incentive or disincentive has been unnecessary. 32-33. Information The third type of instrument is information which influences people through the transfer of knowledge. communication of reasoned argument and persuasion.

USSA New Brunswish : Transaction Publishers. It is worth highlighting that information can be either a policy instrument in its own right or a metapolicy instrument in the sense that it is used to disseminate knowledge of the existence. regulatory.000. It increased the public obstetric service charge for Mainland women from HK$20. (1998). 63 . Evaluation of 2007 Policy Policy Instruments The policy implemented in 2007 is a combination of economic. Carrots. (1998). meaning. and availability of other policy instruments.85 The former refers to information as a policy instrument while the latter refers as information on policy instrument. Vedung E.C. Policy Instruments and their Evaluation.86 85 Bemelmans-Videc M. They can choose not to come to Hong Kong for giving birth if they hesitated to give the amount of money or they can seek service from private hospitals in Hong Kong. 48. Rist R. Sticks and Sermons.000 to HK$39.people should act and behave and what people are allowed to do. and informative policy instruments. Sticks and Sermons. Policy Instruments and their Evaluation.C. USSA New Brunswish : Transaction Publishers. Pp. Vedung E. The financial disincentive increased the cost of action and prompted the addressees to undertake activities that will achieve the goals of the government. 86 Bemelmans-Videc M. Rist R. Pp 79. Mainlanders are not obligated to pay the adjusted service charge. Carrots.

we do not see large-scale promotion or publicity on this policy in Hong Kong. However. it imposed regulations requiring all Mainland obstetric service seekers make prior registration and settle full payment before delivery. Many new policies in Hong Kong in recent years like to use information either as a tool or as a package. body check facilities are put in place in border checkpoints to ascertain the health condition of pregnant Mainland women. since the target of this policy is Mainland women. there are advertisement. To avoid non-compliance.000. press release. There is also yearly quota that set the upper limit of vacancy allocated to Mainland women to ensure sufficient obstetric service is available to local women. policy formulation is the art of choice making. and consultation papers to raise people attention on the subject.To avoid defaulted payment and enhanced the effectiveness of the policy. Those seeking obstetric service without registration will be penalized for HK$10. Choice of instruments From policy instrument perspective. Those Mainland women at their advanced stage of pregnancy without booking certificate would be denied entry. There are two factors which shape the choice of policy makers : the first one is the 64 . Well before the policy is put forward.

151. different people had different focuses on the issue that led to different proposals on the solutions. USSA New Brunswish : Transaction Publishers. 88 Bemelmans-Videc M. the capabilities of implementing institution.F. Some even suggested amending Basic Law to redefine the residential status of children born in Hong Kong with Mainland parents. In January 2007. ‘Getting the Job done : Alternative Policy Instruments’. Some focused on the problem of defaulted payment. R.87 The decision making process is an exercise of give and take which involves the trade-offs of effectiveness and efficiency. No. (1998).88 In late 2006 when the issue received the hottest debate. Summer 1987. Pp 144. Rist R. Educational Evaluation and Policy Analysis.. 9. Sticks and Sermons. Vol. some focused on the residency of the children while some focused on the quality and availability of obstetric service in public hospitals. Vedung E. and the different constituent pressures faced by the policy maker. the political and fiscal costs of selecting a particular instrument.C. There were suggestions to request Mainland pregnant women to pay deposit upon entry at border checkpoints and withhold the issue of birth certificate to their children if they fail to settle the hospital bill. the government announced its plan in tackling the service seeking behaviour of Mainland pregnant women while no extremely authoritative measures as 87 McDonnell.problem identification and the second is the resources and constraints faced by policy makers.M. Carrots. 65 . Policy Instruments and their Evaluation. Elmore. L. 2. Pp.

there is no need to totally deny service to non-local women. the Director of Immigration. Although these measures will surely bring effectiveness and efficiency due to their degree of coerciveness. the children born in Hong Kong might become our future workforce. reinterpretation of Basic Law became a taboo of Hong Kong government which was condemned to have ruined the autonomy of Hong Kong under ‘One Country. On one hand. On the other hand. Instead of implementing absolute prohibition. Hong Kong government chose conditional prohibition. the prior registration requirement allow the authority better control the number of Mainland pregnant women seeking public obstetric service. 14 of 1998. which will relieve the problem of 89 NG Ka-ling and others v.listed above could be seen in the proposal. FACV No. it can reduce the possibility of defaulted payment. Two System’. the level of legitimacy would induce difficulties in implementation. Ka-ling case89 in 2002. which granted permission to Mainland women to come to Hong Kong if they have fully settled the obstetric service charge in advance. As the policy objective is to ensure sufficient obstetric service to local pregnant women. The political cost and the After NG cost of non-compliance are so high that the government cannot afford. The possibility of seeking reinterpretation was ruled out by the Secretary for Security on the first day it was proposed. More importantly. 66 .

There is always individuals resist compliance if by doing so they can reap positive benefits. the authority also set up body check facilities in border checkpoint to ascertain the pregnant women’s medical condition. Census and Statistics Department. the imposition of yearly quota ensured sufficient obstetric service is available to local pregnant women. the policy doubled the service charge to make the charging level of obstetric service in public hospital more inline with that in private hospitals. The economic mean has changed people’s behaviour and successfully shifted the service seekers from public hospitals to private hospitals. In the meantime. With the consistently low birth rate.the ageing population faced by the society. 67 . which is the goal of the policy. Regulation seldom results in uniform compliance. HKSAR Government. 27% of the total population will be aged 65 and above.90 Allowing Mainland mothers to give birth in Hong Kong is one of the methods in ensuring the sustainability of Hong Kong population growth. it is estimated that by 2030. Finally. there are still intermittent reports on Mainland women gained entry to Hong Kong by 90 2006 Population By-census. Apart from prior registration system to prevent defaulted payment. However. The government then put in place series of measures to avoid non-compliance.

What more. Women from all other countries are not covered by the new policy. a Mainland woman crossed the border with a forged registration certificate that was issued by a medical practitioner in Hong Kong. it is not a perfect policy. They would not be any barrier from entering Hong Kong solely on the ground of pregnancy. In fact. It only applies to Mainland women. Firstly.disguise or forgery. Recently. Japan. Sri Lanka. they only have to pay HK$20. If the policy goal is to protect the welfare of Hong Kong pregnant 68 . which means pregnant women from USA. Government’s explanation was that non-local pregnant women from places other than China are a clear minority and would not pose threat to the Hong Kong public medical service just does not sound convincing. the policy is discriminatory in nature. UK. what the government can do is to reduce the variation of behaviour to a tolerable level because the enforcement cost for uniform compliance is prohibitively high. 000 for giving birth in Hong Kong. it also has its downsides. Other illegal acts such as illegal smuggling of pregnant women from Mainland China to Hong Kong and overstaying in Hong Kong waiting for delivery are common. Design of Policy However. and Thailand etc are not required to make prior registration for giving in Hong Kong. The way the policy is designed is unexpectedly insensitive which made it subjected to challenges.

Moreover. Conclusion The choice of policy instrument appears to have stricken a balance between effectiveness. and legitimacy. 2007 to demonstrate against the new policy.women. 39% of them are married to Hong Kong males. Their grievance over the policy is understandable.577 Mainland women coming to Hong Kong for giving birth in the first 10 months of 2006. They found it unfair as they are required to pay extra for service and welfare entitled by every Hong Kong people. 2007 and May 13. Fifty Hong Kong males who have wives in Mainland China marched to Central Government Officer on April 1. the new service charge should apply to all obstetric service seekers from all over the world. The legitimacy of the new policy is doubtful. These Mainland women expressed that they will not pay HK$39. The figure in the first three months after the implementation of policy has initially approved the policy’s effectiveness in reducing Mainland women’s demand over public obstetric service. 000 even if they have money as they found it unfair to be treated differently. the policy was criticized for failing to take care of the real need of Hong Kong people. Among the 20. feasibility. After the 69 . instead of just targeting Mainland pregnant women.

800 Mainland women gave birth in Hong Kong. among the 3. the successfully shifted the demand from public to private hospitals. 1. compared with the figure of the same period last year. there is a significant reduction in the number of Mainland pregnant women giving birth in public hospitals. 70 .190 of them gave birth in public hospitals. It dropped by 35% when The new pricing system has Besides. registration system and immigration control have deterred people from taking free lunch.implementation of the new policy. According to the figure released in early-April 2007.

the goal of relieving the pressure of public obstetric service has been achieved by shifting Mainland pregnant women from public hospitals to private hospitals. problem really solved? However. the implementation of the policy has been a success.CHAPTER SIX THE WAY FORWARD Introduction Judging from some key indicators of policy outcome such as the number of Mainland women giving birth in public hospitals. The primary worry is the implication of Mainland children's In the first nine weeks after the implementation inclusion in our society in the end. The number of Mainland pregnant women seeking obstetric service between February and April this year dropped by 37% when compared with the figure of the same period in 2006. of the new policy.170 registrations for obstetric 71 . In the three months after the implementation. is the Does it mark an end to Hong Kong people’s anxiety about the influx of Mainland immigrants? Long Term Implication Government knows that Hong Kong people's concern is not just the availability of obstetric service. Hospital Authority received 10.

Otherwise. Besides. Singtao Daily. in both private and public hospitals. the demand of From welfare services from these newborn babies has surfaced progressively. August 2006 to March 2007. it is estimated that the number of registration will reach twenty or even thirty thousand by the end of 2007. there were 102 children born to Mainland parents applied for Comprehensive Social Security Assistance (CSSA)92. housing facilities. charge for cross-border couples could fall to HK$20. married with Mainland wives.services. medical The services. The figure might seem trivial when compared with the total number of children born to Mainland parents every year. implication for Hong Kong resources will be significant. Hong Kong residents. However. its implication cannot be overlooked. 72 . Based on this figure. there were signs of deepened social disintegration after the issue became the center of discussion last year.000’ SCMP (2007-04-17) and ‘內地孕婦來港分娩個案降 4%’. In fact. and other welfare services of Hong Kong. we will commit the same mistake as committed by our judges in CHONG Fung-yuen case in 2001. 91 ‘Birth fee drop for wives . Social Disintegration The uncertainties faced by Hong Kong people made them worry and anxious. Source : Social Welfare Department. They are all entitled to the education. from Mainland women91. (2007-04-16) 92 The applicants’ ages ranged from two months old to 17 years old.

The welfare of those Hong Kong residents with Mainland wives should be cared for equally. The best and simplest way in achieving this is by standardizing the service charge for all Hong Kong families. With the short-term problem being solved. the government can show its care and support to all families in Hong 73 . Other Hong Kong people argued that allowing Mainland women married to Hong Kong males to give birth in Hong Kong at normal rate would expose our medical resources to exploitation.complained that they are discriminated and are not provided with the same rights and benefits enjoyed by other Hong Kong residents. By doing so. This can be achieved by restructuring the current policy on obstetric services and better management of welfare resources. the government should focus its effort on the long term planning in order to balance the population and the resources. Instead of protecting the benefit of local pregnant women. the policy should aim at protecting the right and benefit of Hong Kong residents as a whole. the objective of the policy has to be re-oriented to meet the real need of Hong Kong people. That means Mainland women married to Hong Kong residents only have to pay HK$100 per night for giving birth in public hospitals. Restructure of obstetric service policy Reorienting Policy Target First.

As most of the opposition of the current policy was from Mainland women married to Hong Kong residents. Mainland women giving birth in private hospitals might pose unbearable pressure on the resources of Hong Kong at a later date. 3756. Increasing Charge for Couples who are Both non-Hong Kong Residents Thirdly. around 36% of them sought service from public hospitals 93 . for those couples who are both non-Hong Kong residents wishing to give birth in Hong Kong. Mingpao (2007-04-13) 74 .Kong without differentiation which would definitely be beneficial to restore social harmony. as their children might be educated. to better manage the number of Mainland women giving birth in Hong Kong. Without proper control. From February to April. and seeking medical 93 “內地婦急症室產子減 75% 四成不付款”. there were 10. Extending Quota Coverage Secondly. the quota system is not applicable to private hospitals. living. the quota system should extend to cover the registration in private hospitals. the above-suggested policy would gain support that is more public.170 Mainland women registered for obstetric services in Hong Kong. Under current policy.

Series of measures have to be put in place to avoid non-compliance. Mainland pregnant women without registration certificate tried different means to 75 . which can reduce the possibility of defaulted payment. The aim is not to raise public revenue.e. I) Immigration Control An experienced Immigration officer served in Lok Ma Chau border-crossing point revealed that in the past few months after the implementation of the new policy.000. Supportive Measure As the charge is so high. around HK$100. they are required to pay extra as compensation to the Hong Kong government.and welfare of all kinds in Hong Kong. It can be achieved by strengthening of Immigration control and implementing a defaulted payment prevention system. Those seeking obstetric services in Hong Kong would be willing and capable in paying the services. Apart from protecting Hong Kong people’s benefits. The payment is expected to be in line with the amount of the one-child policy penalty i. it is very likely that people will try every possible mean to come to Hong Kong illegally. the increase in charge has the effect in screening incoming pregnant women. The whole purpose is to reduce their incentive to give birth in Hong Kong to the minimum.

come to Hong Kong. the officer should not allow the pregnant woman to leave China unless the woman can produce a valid registration certificate. Apart from the most commonly used tricks that was disguising as non-pregnant woman. The possibility of non-compliance can be minimized by strengthening the communication with Mainland and solving the problem by working in partnership. there were also Mainland mothers claimed feeling unwell and sought medical treatment at the border crossing points. Second. First. Mainland women claim feeling unwell and seek medical service from Hong Kong border-crossing points should be handed over to the Mainland public security officers 76 . Immigration officers had After medical They even no choice but to send these Mainlanders to the nearest hospitals. if a Mainland woman leaves Mainland China to Hong Kong. treatment. threatened to commit suicide if repatriated. Few falsified registration certificates while others became nasty when being denied entry. and the Mainland public security officer at clearance counter reasonably believes that she is at her advanced stage of pregnancy. these Mainland women refused to leave the hospital. Some Mainlanders waited in the area between China and Hong Kong clearance counters and sought obstetric service from the border crossing point when they were ready for delivery. They should establish a cross-border system that cover two issues.

China government should realize that such service-seeking behaviour of Mainland women is not simply a Hong Kong problem. The behavior poses significant impact on the population As those babies born in Hong Kong will not be counted as China population. especially those serving in border checkpoints. However. it requires cohesive communication and cooperation between Mainland and Hong Kong authorities. Training should focus on the authority empowered to Immigration officers under the new policy. The system is expected to reduce the possibility of abusing medical service due to policy loophole. As the whole obstetric service policy lies heavily on the effectiveness of the immigration control. it is a cross-border problem. the one-child policy will be less effective in controlling the number of population in China. the communication skills and the negotiation technique. 77 . it needs the active participation of Mainland China. policy of Mainland China. The training will better equip the officers and make them more confident and competent in carrying out their duties. More importantly.who will either render medical treatment on the spot or send the women to the nearest hospitals for treatment. Immigration Department should invest more resources in training their staffs.

these babies born to Mainland women were discriminated by other Hong Kong people that resulted in serious social segregation. Civil Education Due to excessive negative reports by the media. The government should exert greater effort in promotion the positive image of these newborn babies by publicizing the benefits and advantages brought by them. who have overstayed in Hong Kong after the expiration of their TWP. which will be the solution to our aging population problem in the future. Those who fail to settle full service charge before they leave the hospitals will be wanted and denied egress from Hong Kong. Some are illegal immigrants while some are two-way permit holders.II) Defaulted Payment Prevention System Even under strict immigration control. Mainland mothers can still enter Hong Kong illegally. They should be portrayed as the pillar of our society. The purpose is to reduce people’s incentive to come to Hong Kong for giving birth illegally. In these cases. 78 . the government should take actions to show her intolerance to these immigration offences and the determination in collecting full payment by criminalizing non-payment of hospital fee and charging all illegal immigrants and overstaying pregnant women with heavier penalty to deter illegal acts.

Many teachers lost their jobs and many students are forced to transfer to other primary schools. All policies have to be reviewed to meet the need of our next generation. 63% of the newborn babies were born to mothers from Mainland China and became the major source of population growth in Hong Kong.gov. Due to the ever-declining birth rate94. and medical care in the coming decade. The government should monitor the trend of the service-seeking behaviour of Mainland women and project the demand on education. Medical Service and Other Welfare Policies In 2006. Housing. 94 The number of birth in Hong Kong dropped from 85.hk/showtableexcel2. social assistance. and welfare of all kinds in Hong Kong.jsp?tableID=004. Education These children may seek education.700 in 1990 and to 48. 79 . there was growing proportion of these newborn babies whose parents are not Hong Kong residents.censtatd. Census and Statistic Department. accommodation. These schools are either demolished or left idle. medical service. housing facilities. The government should recognize the implication of the growing number of these newborn babies and their family profile to our existing and future social policies.200 in 2001. Besides. http://www. totally 127 primary schools closed down between 2001 and 2006 due to the low enrollment rate.000 in 1980 to 67.Vision in Education. The most imperative one would be our education policy.

Hong Kong's population has rebounded. If these children seek education in Hong Kong. we might be able to avoid unnecessary chaos as such. If the government has insight and takes a proactive role in forecasting our demand on education in the future. The government should consider either encouraging private sector to run boarding schools. since 2001. In the past. if they remain residents in Mainland China. This means the whole society’s demand on education will increase in the coming decade.However. They successfully brought our population back to 1990 level. accommodation and catering are being taken care. The number of birth rose from 48.200 in 2001 to 65. which provide all in one services to these children so that their education.000 in 2006. it is very likely that they will not live with their parents. On the other hand. with children born to Mainland mothers formed the major part of the population increase. 80 . with our geographical layout. or the government can provide the services by herself so that the quality of education and living environment can be assured. With the increase proportional of newborn children whose parents are not Hong Kong residents. the demand on boarding schools was low which made the number of boarding schools limited. the demand on boarding schools might increase. it would take considerable time for them to travel to school.

the existing social welfare system needed to be reviewed.955 per month if can pass the Social Welfare Department should develop a system with Mainland China to collect reliable information on the applicant’s financial situation to avoid deception of the social assistance programs. government should reduce the amount of cash assistance and explore the feasibility of using voucher or direct subsidies to service providers to avoid assistance being misused. 81 . financial test95. Besides.000 for ‘single person’ application. These two That means those children born to Mainland parents are all eligible for applying CSSA on the day they are born in Hong Kong. These children can get HK$1. to ensure the assistance goes directly to the applicant. 95 To be eligible for CSSA. any person who has been Hong Kong resident for 7 years or more and has resided in Hong Kong for at least one year is eligible for applying CSSA. Furthermore. Under current policy. the applicant’s capital asset should not be more than HK$34. the amount and the mode of assistance also needs to be reviewed. requirements are exempted for those who are under 16 years old.Social Welfare Assistance To better protect Hong Kong people’s welfare and avoid social resources being abused. as the assistance is provided to the Hong Kong born children only.

it is not the purpose of this paper to list out all policies the government has to review. However. which is an irrebuttable truth. education. and medical service in Hong Kong while they also have the obligation to contribute to the community. 82 . The objective of this section is to highlight that the government should note the significant implication brought by these newborn babies to our society.The government should look into far too many issues. They have the right to enjoy the welfare. Conclusion These newborn babies are Hong Kong residents. The government should extend its focus from the availability of public obstetric service to the long-term planning of social policies to ensure sustainable development of Hong Kong society as a whole. Whether they will become the pillar or the burden of the society depends on the government’s attitude and determination in nurturing them and builds their sense of belonging towards Hong Kong that makes them recognize Hong Kong as their home.

174–186. Hong Kong Institute of Asia-Pacific Studies. Pp. (1981).. 83 .M. (8 January 2007). Rwezaura. N. W. McDonnell. L. 577-597. USSA New Brunswish : Transaction Publishers. J. Chan.N. New York : Houghton Mifflin. Hong Kong : Sweet & Maxwell Asia (2004). Public Policy Analysis : an Introduction. R. The China Quarterly.T. Pak-wai (1998). K. Hong Kong : Civic Exchange. Chinese Nationality and Citizenship in Hong Kong SAR. The Asian Financial Crisis and After Problems and Challenges for the Hong Kong Economy. Public Policy Analysis : a Political Economy Approach. ‘Chinese Social Welfare : Policies and Outcomes’ The China Quarterly Special Issue : The People’s Republic of China after 40 Years. Carrots. Englewood Cliffs. ‘The Origins and Social Consequences of China’s Hukou System’. (2005) Liu. (1994). Brickers. Immigration Department Annual Reports 03-04. Rules for determining domicile. No.F. Policy Instruments and their Evaluation.. R. Cowen. 119 (Sept 1989). 133-152. Vol.J.. Va. 644-668 Coll. (eds) Immigration Law in Hong Kong : An Interdisciplinary Study.C. Pp. 9 (Summer 1987).. Dunn. T. Elmore. Cheng. 2. CB (2) 761/06-07(03).Bibliography Bemelmans-Videc M and Rist R.. Vol. (2001).N. 7 (Sept 1987). LC Paper No. Educational Evaluation and Policy Analysis. ‘Instruments and Strategy in public policy’. D.F. Elmore. : George Mason University Press (1988).Pp. The Theory of Market Failure : a Critical Examination. (eds). Immigration Department Annual Reports 96-97. Davis. ‘Getting the Job done : Alternative Policy Instruments’. : Prentice Hall. Pp. M. No. Boston . and Selden. Hong Kong : Law Reform Commission of Hong Kong.L. B. Sticks and Sermons. Vedung E. Fairfax. K.. (2002).. 139 (Sept 1994). (1998). Policy Studies Review..J. Vol.. Discussion Paper on ‘Impact of the use of Obstetric Services by Mainland Women on Public Hospital Resources’ by Legislative Council Panel on Health Services.

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com/wlgat/gdgry/index. Department of Health Website of Division of Exit and Entry Administration Department of Public Security of Guangdong Province.gov.hklii. (http://www. (http://www.censtatd.gov.htm) 85 .hk) Audit Commission.discoverhongkong.hk/gia) Tourism Board (http://www. (www.gov.aud.swd.sars-expertcom.hk) SARS Expert Committee (http://www.gdcrj.hk) Social Welfare Department (www.hk) Hong Kong Legal Information Institute (www.gov.gov. (www.legco.gov.info.hk) Legislative Council.Website Census and Statistics Department.com) Official Website on SARS.hk) HKSAR Government Press Release (www.

Mingpao. ‘4 日男嬰 離奇猝死’. Global News Wire . (2006-12-04) ‘醫管局擬五招防病人走數’.Newspaper ‘Authority cashes in on pregnancy policy’. Apple daily. Apple Daily (2006-12-07) ‘內地婦來港產子要做產前檢查’. Singtao Daily. Singtao Daily. ‘內地孕婦來港分娩個案降 4%’. Mingpao. (2007-01-17) ‘Hospitals slam door on pregnant woman’. South China Morning Post (2007-04-03) ‘The Hordes at our gate’ by Regina Ip. South China Morning Post. (2006-12-07) & ‘內地婦港產嬰 5 年升 16 倍’. Wenweipo. (2006-12-29) 86 . (2007-04-16) “內地婦急症室產子減 75% 四成不付款”. (2006-12-8) ‘港婦:被迫開刀分娩 確保有牀位’. (2006-12-07). (2007-02-02). Mingpao (2007-04-13) ‘特首:需要新醫院 便建新醫院 與公安部研究孕婦來港產子問題’. (2006-12-27).000’ South China Morning Post (2007-04-17) ‘Hospital booking rule for Mainland mothers’. South China Morning Post. ‘Birth fee drop for wives .Asia Africa Intelligence Wire. charge for cross-border couples could fall to HK$20.

(8 January 2007). CB (2) 761/06-07(03).3%) Year 2001 2002 2003 2004 2005 2006 (first 10 months) Number of Births in HK 48219 48209 46965 49796 57098 52265 Family Profile of babies born to Mainland mothers Total No. 87 .5%) 19538 (34%) 20577 (39.6%) 10128 (21.6%) 13209 (26.4% 31.6% Year 2001 2002 2003 2004 2005 2006 (first 10 months) Source : Discussion Paper on ‘Impact of the use of Obstetric Services by Mainland Women on Public Hospital Resources’ by Legislative Council Panel on Health Services. of babies Number of babies % to the total number born to Mainland born to Mainland of babies born to women women in HK Mainland women 7810 8506 10128 13209 19538 20577 620 1250 2070 4102 9273 12678 7.1% 47.7% 20.5% 61. LC Paper No.9% 14.Annex A Birth Statistics Total Number of Birth in Hong Kong Number of babies born to Mainland women in HK (% to the total number of births) 7810 (16%) 8506 (17.

Mainland China increased the OWP quota from 75 to 105 per day 1950 1950 1950 1966 1974 1980 1980 1983 1984 1993 88 . natives of Guangdong province were exempted.Annex B Chronology of Major Events affecting Hong Kong Immigration Policy on Mainlanders 1841 1940 1941 1949 Hong Kong became British colony Immigration Control Ordinance introduced Second World War Immigration Control Ordinance stipulated that no person may enter into the Colony without an entry permit. Hong Kong Government introduced a quota system to balance the numbers of those entering into and those leaving the Colony. Outbreak of Cultural Revolution in Mainland China Introduction of ‘reach based’ policy. Outbreak of Korean War The United States imposed an almost complete embargo on Chinese trade. Maximum 150 legal immigrants were allowed to enter Hong Kong for settlement per day. which brought Hong Kong entrepot trade to a standstill. Abolition of ‘reach based’ policy China and British governments finally reached an agreement on the daily quote of One Way Permit. Mainland China reduced the OWP quota from 150 to 75 per day Signing of Sino-British Joint Declaration.

Relaxation of ‘Tanqing’ (Relative visit) endorsement requirements. Court of Final Appeal ruled that any person born in Hong Kong is Hong Kong residents in CHONG Fung-yuen case SARS Outbreak Introduction of Individual Visit Scheme 2001 2003 2003 89 .1995 1997 1997 1998 1998 The daily quota for OWP further increased to 150 per day Change of sovereignty Hong Kong hit by Asian Financial Crisis Unemployment rate of Hong Kong reached 7% Introduction of ‘Shangwu’ (Business visit) endorsement for Two-way Permit.

HKSAR Government.Annex C Growth of Population in Hong Kong (1841 – 2006) 8000 7000 6000 5000 4000 3000 2000 1000 0 1841 1851 1861 1871 1881 1891 1901 1911 1921 1931 1941 1951 1961 1966 1971 1976 1981 1986 1991 1986 2001 2006 Thousand(s) Year Source : The figure from 1841 – 2001 were taken from CHAN. 90 . B.. Rwezaura. Hong Kong : Sweet & Maxwell Asia (2004) The figure for 2006 was drawn from Census and Statistics Department. J. ‘The Evolution of Immigration Law and Policies : 1842-2003 and Beyond’ in CHAN J. (eds) Immigration Law in Hong Kong : An Interdisciplinary Study.

Annex D Map of Cities covered by Individual Visit Scheme in 2007 Changchun Shenyang Beijing Shijiazhuang Dalian Tianjin Jinan Wuxi Suzhou Wuhan Shanghai Chengdu Nanjing Hangzhou Chongqing Ningbo Changsha Taizhou Fuzhou Nanchang Guiyang Quanzhou Xiamen Nanning Kunming Zhengzhou Hefei Haikou 91 .

of Mainlanders Visited Hong Kong (1997 – 2006) Million(s) 14 12 10 8 6 4 2 0 8. Source : Tourism Board 92 .46 m * 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Year * Individual Visit Scheme implemented in Mainland China in July 2003.Annex E No.

800 – HK$25. Fee Kong HK$13.000 HK$45. Hospital (聖德肋撒醫院) Union Hospital (仁安醫院) Teresa’s HK$13.000 HK$33.000 ward) (private (general St.100 Kong residents.500 – HK$15.600 – Same as charges for Hong Administration HK$51. HK$10.200 – HK$42.000 – HK$25.100 – HK$16.000 ward) HK$100.800 Normal Delivery Kong residents.000 Fee HK$13.000 Baptist Hospital (香港浸信會醫院) St.00 Charge – HK$1.780 Kong residents.800 HK$85.000 – HK15.000 HK$100.000 – HK$52.000 93 .700 HK$94. charge Caesarean Delivery for Special Women Arrangements Mainland mother for Mainland Pregnant Kong HK$13.800 – Same as charges for Hong Deposit for Mainlanders HK$50. HK$15.800 – HK$17.680 – HK$15.260 HK$34.000 – HK$24.Annex F Obstetric Service Charges in Hong Kong Private Hospitals Service charge for Hong Service Hospital Kong residents Normal Delivery Hong Sanatorium Hospital (養和醫院) and HK$32.000 HK$26.880 HK$42.800 – Same as charges for Hong (港安醫院) Hong HK$41.180 – HK$30.800 HK$488.000 HK$15.800 – Same as charges for Hong Administration HK$32.000 – HK$35.500 Kong residents.000 – HK$27.000 Caesarean Delivery HK$43.000 Adventist Hospital HK$15.500 HK$80.000 – Additional Administrative (聖保羅醫院) Canossa Hospital (嘉諾撒醫院) HK$25.880 HK$37. Paul Hospital HK$12.000 – HK$28.280 HK$28.880 – HK$18.

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