ABSTRACT
According to the integrated approach to state capacity we postulated in the preceding chapter, effective governing coalition building is the principal means of providing the state with a solid political support base for consolidating its governance capacity, while the notions of state autonomy and state embeddedness are the necessary enabling conditions for the effective operation of such a governing coalition. In this connection, local political science literature indicated that colonial Hong Kong was ruled by a governing coalition between the British colonial administration and the business sector, and the existence of such a statebusiness alliance was the foundation of effective governance during the colonial period.
