ABSTRACT
The post war history of Hong Kong is characterised by the development of a capitalist economy and rapid socio-economic/socio-political modernisation. This chapter examines the impact of modernisation on Hong Kong. Hong Kong's development since 1945 shows a close inter-relationship between socio-economic change and political reforms. An alternative picture of the development of the Hong Kong economy can be seen, for the period 1971-1993, from an examination of the changes in per capita Gross National Product. Modern industrial development in Hong Kong started shortly after the First World War. The lower labour-related costs helped Hong Kong maintain its level of investment in the textile and manufacturing sectors. The transformation of the economy, particularly the industrial sector, brought with it structural changes to Hong Kong society. As Hong Kong's rapid industrialisation began, the transition to a capitalist economy changed the socio-economic hierarchy in the territory, redefining the traditional colonial class structure to take into account economic imperatives.
