ABSTRACT
The fastest growing economy in East Asia during the second half of the twentieth century was Hong Kong’s. The Hong Kong Industrial States Corporation supplied multistory flatted factory facilities at very subsidized rents. Economic growth averaged almost 9 percent per year and living conditions improved at breathtaking pace. By the end of the twentieth century, liberal economic policies were adopted by most nations of the world. The case of Hong Kong was the ultimate proof that at least the vast majority of liberal economic policies were capable of delivering very positive results. Taiwan was the second fastest growing economy in the world during the last half of twentieth century. The case of Taiwan presented a paradox to mainstream economics because during the whole period market forces were greatly distorted. During the 1950s, Hong Kong attained a faster rate of factory output and gross domestic product than did Taiwan, while applying absolutely no trade barriers and being largely free of cartels.
