conventional long name	Hong Kong Special Administrative Region of the People's Republic of China although "Hong Kong Special Administrative Region" and "Hong Kong" are also accepted.|groupnote}}

| native_name = 中華人民共和國香港特別行政區 | common_name = Hong Kong | image_flag = Flag of Hong Kong.svg | alt_flag = A flag with a white 5-petalled flower design on solid red background | image_coat = Hong Kong SAR Regional Emblem.svg | alt_coat = A red circular emblem, with a white 5-petalled flower design in the centre, and surrounded by the words "Hong Kong" and "中華人民共和國香港特別行政區" | symbol_type = Emblem | national_anthem = ''March of the Volunteers'' 《義勇軍進行曲》 | image_map = Hong Kong Skyline Restitch - Dec 2007.jpg | map_caption = View at night from Victoria Peak | alt_map = A panorama overlooking the skyscrapers of Hong Kong at night, with Victoria Harbour in the background | image_map2 = Hong Kong Location.svg | map2_width = 250px | alt_map2 = Hong Kong is situated on a peninsula and series of islands on the south coast of China, to the east of the Pearl River Delta and bordered to the north by Guangdong province | official_languages = Chinese, English It does not explicitly specify the standard for "Chinese". While Mandarin written in Simplified Chinese characters are the standards in mainland China, Cantonese and Traditional Chinese characters are the ''de facto'' standards in Hong Kong. ''See also: Bilingualism in Hong Kong''.|group=note}} | languages_type = Spoken languages | languages = Cantonese, English | demonym = Hong Konger | leader_title1 = Chief Executive | leader_name1 = Donald Tsang | leader_title2 = Chief Justice | leader_name2 = Geoffrey Ma | leader_title3 = President of theLegislative Council | leader_name3 = Jasper Tsang | legislature = Legislative Council | government_type = Quasi-presidential autonomous region with limited suffrage | sovereignty_type = Establishment | established_event1 = Treaty of Nanking | established_date1 = 29 August 1842 | established_event2 = Japanese occupation | established_date2 = 25 December 1941 –15 August 1945 | established_event3 = Handover to China | established_date3 = 1 July 1997 | latd= 22 | latm= 16.7 | latNS = N | longd= 114 |longm= 09.533 |longEW = E | area_magnitude = 1 E9 | area_km2 = 1,104 | area_rank = 179th | area_sq_mi = 426 | percent_water = 4.58 (50 km²; 19 mi²) | population_census = 7,061,200 | population_census_year = 2010 | population_density_km2 = 6480 | population_density_sq_mi = 16576 | population_density_rank = 4th | GDP_PPP = $326 billion | GDP_PPP_rank = | GDP_PPP_year = 2010 | GDP_PPP_per_capita = $45,736 | GDP_PPP_per_capita_rank = | GDP_nominal = $225 billion | GDP_nominal_rank = | GDP_nominal_year = 2010 | GDP_nominal_per_capita = $31,590 | GDP_nominal_per_capita_rank = | Gini = 43.4 | Gini_year = 2007 | HDI = 0.862 | HDI_rank = 21st | HDI_year = 2010 | HDI_category = very high | currency = Hong Kong dollar | currency_code = HKD | time_zone = HKT | utc_offset = +8 | date_format = yyyy年m月d日 (Chinese) dd-mm-yyyy (English) | drives_on = left | cctld = .hk and .香港 | calling_code = +852 | nicknames = HK, The 852 }}

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Hong Kong () is one of two special administrative regions (SARs) of the People's Republic of China (PRC), the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour. With a land mass of and a population of seven million people, Hong Kong is one of the most densely populated areas in the world. Hong Kong's population is 95 percent ethnic Chinese and 5 percent from other groups. Hong Kong's Han Chinese majority originate mainly from the cities of Guangzhou and Taishan in the neighbouring Guangdong province.

Hong Kong became a colony of the British Empire after the First Opium War (1839–42). Originally confined to Hong Kong Island, the colony's boundaries were extended in stages to the Kowloon Peninsula in 1860 and then the New Territories in 1898. It was occupied by Japan during the Pacific War, after which the British resumed control until 1997, when China resumed sovereignty. The region espoused minimum government intervention under the ethos of positive non-interventionism during the colonial era. The time period greatly influenced the current culture of Hong Kong, often described as "East meets West", and the educational system, which used to loosely follow the system in England until reforms implemented in 2009.

Under the principle of "one country, two systems", Hong Kong has a different political system from mainland China. Hong Kong's independent judiciary functions under the common law framework. The Basic Law of Hong Kong, its constitutional document, which stipulates that Hong Kong shall have a "high degree of autonomy" in all matters except foreign relations and military defence, governs its political system. Although it has a burgeoning multi-party system, a small-circle electorate controls half of its legislature. An 800-person Election Committee selects the Chief Executive of Hong Kong, the head of government.

As one of the world's leading international financial centres, Hong Kong has a major capitalist service economy characterised by low taxation and free trade, and the currency, Hong Kong dollar, is the ninth most traded currency in the world. The lack of space caused demand for denser constructions, which developed the city to a centre for modern architecture and the world's most vertical city. The dense space also led to a highly developed transportation network with public transport travelling rate exceeding 90 percent, the highest in the world. Hong Kong has numerous high international rankings in various aspects. For instance, its economic freedom, financial and economic competitiveness, quality of life, corruption perception, Human Development Index, etc., are all ranked highly.

Etymology

The name "Hong Kong" is an approximate phonetic rendering of the pronunciation of the spoken Cantonese or Hakka name "香港", meaning "fragrant harbour". Before 1842, the name referred to a small inlet – now Aberdeen Harbour or Little Hong Kong – between the island of Ap Lei Chau and the south side of Hong Kong Island, which was one of the first points of contact between British sailors and local fishermen.

The reference to fragrance may refer to the harbour waters sweetened by the fresh water estuarine influx of the Pearl River, or to the incense from factories lining the coast to the north of Kowloon, which was stored around Aberdeen Harbour for export before the development of Victoria Harbour. In 1842, the Treaty of Nanking was signed, and the name Hong Kong was first recorded on official documents to encompass the entirety of the island.

History

Pre-colonial

Archaeological studies support a human presence in the Chek Lap Kok area from 35,000 to 39,000 years ago, and in Sai Kung Peninsula from 6,000 years ago. Wong Tei Tung and Three Fathoms Cove are the two earliest sites of human habitation in the Palaeolithic period. It is believed the Three Fathom Cove was a river valley settlement and Wong Tei Tung was a lithic manufacturing site. Excavated Neolithic artefacts suggest cultural differences from the Longshan culture in northern China and settlement by the Che people prior to the migration of the Baiyue. Eight petroglyphs were discovered on surrounding islands, which dated to the Shang Dynasty in China.

In 214 BC, Qin Shi Huang, the first emperor of China, conquered the Baiyue tribes in Jiaozhi (modern Liangguang region) and incorporated the territory into imperial China for the first time. Modern Hong Kong is located in Nanhai commandery (modern Nanhai District) and near the ancient capital city Pun Yue. The area was consolidated under the kingdom of Nanyue, founded by general Zhao Tuo in 204 BC after the Qin Dynasty collapsed. When the kingdom was conquered by Emperor Wu of Han in 111 BC, the land was assigned to the Jiaozhi commandery under the Han Dynasty. Archaeological evidence indicates the population increased and early salt production flourished in this time period. Lei Cheng Uk Han Tomb in the Kowloon Peninsula is believed to have been built during the Han Dynasty.

During the Tang Dynasty period, the Guangdong region flourished as a regional trading center. In 736, Emperor Xuanzong of Tang established a military town in Tuen Mun to defend the coastal area in the region. The first village school, Li Ying College, was established around 1075 in the New Territories under the Northern Song Dynasty. During the Mongol invasion in 1276, the Southern Song Dynasty court moved to Fujian, then to Lantau Island and later to Sung Wong Toi (modern Kowloon City), but the child Emperor Huaizong of Song committed suicide by drowning with his officials after being defeated in the Battle of Yamen. Hau Wong, an official of the emperor is still worshipped in Hong Kong today.

The earliest recorded European visitor was Jorge Álvares, a Portuguese explorer who arrived in 1513. After establishing settlements in the region, Portuguese merchants began trading in southern China. At the same time, they invaded and built up military fortifications in Tuen Mun. Military clashes between China and Portugal led to the expulsion of the Portuguese. In the mid-16th century, the Haijin order banned maritime activities and prevented contact with foreigners; it also restricted local sea activity. In 1661–69, the territory was affected by the Great Clearance ordered by Kangxi Emperor, which required the evacuation of the coastal areas of Guangdong. It is recorded that about 16,000 persons from Xin'an County were driven inland, and 1,648 of those who left are said to have returned when the evacuation was rescinded in 1669. What is now the territory of Hong Kong became largely wasteland during the ban. In 1685, Kangxi became the first emperor to open limited trading with foreigners, which started with the Canton territory. He also imposed strict terms for trades such as requiring foreign traders to live in restricted areas, staying only for the trading seasons, banning firearms, and trading with silver only. The East India Company made the first sea venture to China in 1699, and the region's trade with British merchants developed rapidly soon after. In 1711, the company established its first trading post in Canton. By 1773, the British reached a landmark 1,000 chests of opium in Canton with China consuming 2,000 chests annually by 1799.

British colonial era

In 1839, the refusal by Qing Dynasty authorities to import opium resulted in the First Opium War between China and Britain. Hong Kong Island was occupied by British forces on 20 January 1841 and was initially ceded under the Convention of Chuenpee as part of a ceasefire agreement between Captain Charles Elliot and Governor Qishan, but the agreement was never ratified due to a dispute between high ranking officials in both governments. It was not until 29 August 1842 that the island was formally ceded in perpetuity to the United Kingdom under the Treaty of Nanking. The British established a crown colony with the founding of Victoria City the following year.

In 1860, after China's defeat in the Second Opium War, the Kowloon Peninsula and Stonecutter's Island were ceded in perpetuity to Britain under the Convention of Peking.

In 1894, the deadly Third Pandemic of bubonic plague spread from China to Hong Kong, causing 50,000–100,000 deaths.

In 1898, under the terms of the Convention for the Extension of Hong Kong Territory, Britain obtained a 99-year lease of Lantau Island and the adjacent northern lands, which became known as the New Territories. Hong Kong's territory has remained unchanged to the present.

During the first half of the 20th century, Hong Kong was a free port, serving as an entrepôt of the British Empire. The British introduced an education system based on their own model, while the local Chinese population had little contact with the European community of wealthy ''tai-pans'' settled near Victoria Peak.

In conjunction with its military campaign, the Empire of Japan invaded Hong Kong on 8 December 1941. The Battle of Hong Kong ended with British and Canadian defenders surrendering control of the colony to Japan on 25 December. During the Japanese occupation of Hong Kong, civilians suffered widespread food shortages, rationing, and hyper-inflation due to forced exchange of currency for military notes. Through a policy of enforced repatriation of the unemployed to the mainland throughout the period, because of the scarcity of food, the population of Hong Kong had dwindled from 1.6 million in 1941 to 600,000 in 1945, when the United Kingdom resumed control of the colony.

Hong Kong's population recovered quickly as a wave of migrants from China arrived for refuge from the ongoing Chinese Civil War. When the PRC was proclaimed in 1949, more migrants fled to Hong Kong for fear of persecution by the Communist Party. Many corporations in Shanghai and Guangzhou shifted their operations to Hong Kong.

In the 1950s, Hong Kong's rapid industrialisation was driven by textile exports and other expanded manufacturing industries. As the population grew and labour costs remained low, living standards rose steadily. The construction of Shek Kip Mei Estate in 1953 followed a massive slum fire, and marked the beginning of the public housing estate programme designed to cope with the huge influx of immigrants. Trade in Hong Kong accelerated even further when Shenzhen, immediately north of Hong Kong, became a special economic zone of the PRC, and Hong Kong was established as the main source of foreign investment in China. The manufacturing competitiveness gradually declined in Hong Kong due to the development of the manufacturing industry in southern China beginning in the early 1980s. By contrast, the service industry in Hong Kong experienced high rates of growth in the 1980s and 1990s after absorbing workers released from the manufacturing industry.

In 1983, when the United Kingdom reclassified Hong Kong from a British crown colony to a dependent territory, the governments of the United Kingdom and China were already discussing the issue of Hong Kong's sovereignty due to the impending expiry (within two decades) of the lease of the New Territories. In 1984, the Sino-British Joint Declaration – an agreement to transfer sovereignty to the People's Republic of China in 1997 – was signed. It stipulated that Hong Kong would be governed as a special administrative region, retaining its laws and a high degree of autonomy for at least 50 years after the transfer. The Hong Kong Basic Law, which would serve as the constitutional document after the transfer, was ratified in 1990.

Since 1997

On 1 July 1997, the transfer of sovereignty from United Kingdom to the PRC occurred, officially ending 156 years of British colonial rule. Hong Kong became China's first special administrative region, and Tung Chee Hwa took office as the first Chief Executive of Hong Kong. That same year, Hong Kong suffered an economic double blow from the Asian financial crisis and the H5N1 avian influenza. In 2003, Hong Kong was gravely affected by the outbreak of severe acute respiratory syndrome (SARS). The World Health Organization reported 1,755 infected and 299 deaths in Hong Kong. An estimated 380 million Hong Kong dollars (US$48.9 million) in contracts were lost as a result of the epidemic.

On 10 March 2005, Tung Chee Hwa announced his resignation as Chief Executive due to "health problems". Donald Tsang, the Chief Secretary for Administration at the time, entered the 2005 election unopposed and became the second Chief Executive of Hong Kong on 21 June 2005. In 2007, Tsang won the Chief Executive election and continued his second term in office.

In 2009, Hong Kong hosted the fifth East Asian Games, in which nine national teams competed. It was the first and largest international multi-sport event ever held in the territory. Today, Hong Kong continues to serve as an important global financial centre, but faces uncertainty over its future due to the growing mainland China economy, and its relationship with the PRC government in areas such as democratic reform and universal suffrage.

Governance

In accordance with the Sino-British Joint Declaration, and the underlying principle of one country, two systems, Hong Kong has a "high degree of autonomy as a special administrative region in all areas except defence and foreign affairs." The declaration stipulates that the region maintain its capitalist economic system and guarantees the rights and freedoms of its people for at least 50 years beyond the 1997 handover. The guarantees over the territory's autonomy and the individual rights and freedoms are enshrined in a constitution, the Hong Kong Basic Law, which outlines the system of governance of the Hong Kong Special Administrative Region, but which is subject to the interpretation of the Standing Committee of the National People's Congress (NPCSC).

The primary pillars of government are the Executive Council, the civil service, the Legislative Council, and the Judiciary. The Executive Council is headed by the Chief Executive who is elected by the Election Committee and then appointed by the Central People's Government. The civil service is a politically neutral body that implements policies and provides government services, where public servants are appointed based on meritocracy. The Legislative Council has 60 members, half of which are directly elected by universal suffrage by permanent residents of Hong Kong according to five geographical constituencies. The other half, known as functional constituencies, are directly elected by a smaller electorate, which consists of corporate bodies and persons from various stipulated functional sectors. The entire council is headed by the President of the Legislative Council who serves as the speaker. Judges are appointed by the Chief Executive on the recommendation of an independent commission.

The implementation of the Basic Law, including how and when the universal suffrage promised therein is to be achieved, has been a major issue of political debate since the transfer of sovereignty. In 2002, the government's proposed anti-subversion bill pursuant to Article 23 of the Basic Law, which required the enactment of laws prohibiting acts of treason and subversion against the Chinese government, was met with fierce opposition, and eventually shelved. Debate between pro-Beijing groups, which tend to support the Executive branch, and the Pan-democracy camp characterises Hong Kong's political scene, with the latter supporting a faster pace of democratisation, and the principle of one man, one vote.

In 2004, the government failed to gain pan-democrat support to pass its so-called "district council model" for political reform. In 2009, the government reissued the proposals as the "''Consultation Document on the Methods for Selecting the Chief Executive and for Forming the LegCo in 2012''". The document proposed the enlargement of the Election Committee, Hong Kong's electoral college, from 800 members to 1,200 in 2012 and expansion of the legislature from 60 to 70 seats. The 10 new legislative seats would consist of five geographical constituency seats and five functional constituency seats, to be voted in by elected district council members from among themselves. The proposals were destined for rejection by pan-democrats once again, but a significant breakthrough occurred after the Central People's Government accepted a counter-proposal by the Democratic Party. In particular, the Pan-democracy camp was split when the proposal to directly elect five newly created functional seats was not acceptable to two constituent parties. The Democratic Party sided with the government for the first time since the handover and passed the proposals with a vote of 46–12.

Legal system and judiciary

Hong Kong's legal system is completely independent from the legal system of Mainland China. In contrast to mainland China's civil law system, Hong Kong continues to follow the English Common Law tradition established under British rule. Hong Kong's courts may refer to decisions rendered by courts of other common law jurisdictions as precedents, and judges from other common law jurisdictions are allowed to sit as non-permanent judges of the Court of Final Appeal.

Structurally, the court system consists of the Court of Final Appeal, the High Court, which is made up of the Court of Appeal and the Court of First Instance, and the District Court, which includes the Family Court. Other adjudicative bodies include the Lands Tribunal, the Magistrates' Courts, the Juvenile Court, the Coroner's Court, the Labour Tribunal, the Small Claims Tribunal, and the Obscene Articles Tribunal. Justices of the Court of Final Appeal are appointed by Hong Kong's Chief Executive.

The Department of Justice is responsible for handling legal matters for the government. Its responsibilities include providing legal advice, criminal prosecution, civil representation, legal and policy drafting and reform, and international legal cooperation between different jurisdictions. Apart from prosecuting criminal cases, lawyers of the Department of Justice act on behalf of the government in all civil and administrative lawsuits against the government. As protector of the public interest, the department may apply for judicial reviews and may intervene in any cases involving the greater public interest. The Basic Law protects the Department of Justice from any interference by the government when exercising its control over criminal prosecution.

Human rights

In general, Hong Kong is perceived to enjoy a high level of civil liberties. The Hong Kong government generally respect the human rights of the citizens, although core issues remain. There are concerns over the freedom of assembly which is restricted by the Public Order Ordinance. The police has been occasionally accused of using heavy-handed tactics towards protestors and questions are asked towards the extensive powers of the police. As to the right of privacy, covert surveillance remains the major concern. There is a lack of protection for homosexuals due to the absence of a sexual orientation discrimination law. There are also comments regarding a lack of protection for labour rights.

Internet access in Hong Kong is not under the censorship, surveillance, and control of the Great Firewall of China.

Administrative districts

Hong Kong has a unitary system of government; no local government has existed since the two municipal councils were abolished in 2000. As such there is no formal definition for its cities and towns. Administratively, Hong Kong is subdivided into 18 geographic districts, each represented by a district council which advises the government on local matters such as public facilities, community programmes, cultural activities, and environmental improvements.

There are a total of 534 district council seats, 405 of which are elected; the rest are appointed by the Chief Executive and 27 ''ex officio'' chairmen of rural committees. The Home Affairs Department communicates government policies and plans to the public through the district offices.

Military

When Hong Kong was a British colony and later, a dependent territory, defence was provided by the British military under the command of the Governor of Hong Kong who was ''ex officio'' Commander-in-chief. When the PRC assumed sovereignty in 1997, the British barracks were replaced by a garrison of the People's Liberation Army, comprising ground, naval, and air forces, and under the command of the Chinese Central Military Commission.

The Basic Law protects local civil affairs against interference by the garrison, and members of the garrison are subject to Hong Kong laws. The Hong Kong Government remains responsible for the maintenance of public order; however, it may ask the PRC government for help from the garrison in maintaining public order and in disaster relief. The PRC government is responsible for the costs of maintaining the garrison.

Geography and climate

Hong Kong is located on China's south coast, east of Macau on the opposite side of the Pearl River Delta. It is surrounded by the South China Sea on the east, south, and west, and borders the Guangdong city of Shenzhen to the north over the Shenzhen River. The territory's area consists of Hong Kong Island, the Kowloon Peninsula, the New Territories, and over 200 offshore islands, of which the largest is Lantau Island. Of the total area, is land and is inland water. Hong Kong claims territorial waters to a distance of . Its land area makes Hong Kong the 179th largest inhabited territory in the world.

As much of Hong Kong's terrain is hilly to mountainous with steep slopes, less than 25% of the territory's landmass is developed, and about 40% of the remaining land area is reserved as country parks and nature reserves. Most of the territory's urban development exists on Kowloon peninsula, along the northern edge of Hong Kong Island, and in scattered settlements throughout the New Territories. The highest elevation in the territory is at Tai Mo Shan, above sea level. Hong Kong's long and irregular coast provides it with many bays, rivers and beaches.

Despite Hong Kong's reputation of being intensely urbanised, the territory has tried to promote a green environment, and recent growing public concern has prompted the severe restriction of further land reclamation from Victoria Harbour. Awareness of the environment is growing as Hong Kong suffers from increasing pollution compounded by its geography and tall buildings. Approximately 80% of the city's smog originates from other parts of the Pearl River Delta.

Though it is situated just south of the Tropic of Cancer, Hong Kong has a humid subtropical climate (Köppen ''Cwa''). Summer is hot and humid with occasional showers and thunderstorms, and warm air coming from the southwest. Summer is when typhoons are most likely, sometimes resulting in flooding or landslides. Winters are mild and usually start sunny, becoming cloudier towards February; the occasional cold front brings strong, cooling winds from the north. The most temperate seasons are spring, which can be changeable, and autumn, which is generally sunny and dry. Hong Kong averages 1,948 hours of sunshine per year, while the highest and lowest ever recorded temperatures at the Hong Kong Observatory are and , respectively.

Economy

As one of the world's leading international financial centres, Hong Kong has a major capitalist service economy characterised by low taxation and free trade, and the currency, Hong Kong dollar, is the ninth most traded currency in the world. Hong Kong was once described by Milton Friedman as the world’s greatest experiment in laissez-faire capitalism. It maintains a highly developed capitalist economy, ranked the freest in the world by the Index of Economic Freedom for 15 consecutive years. It is an important centre for international finance and trade, with one of the greatest concentrations of corporate headquarters in the Asia-Pacific region, and is known as one of the Four Asian Tigers for its high growth rates and rapid development from the 1960s to the 1990s. Between 1961 and 1997 Hong Kong's gross domestic product grew 180 times while per-capita GDP increased 87 times over.

The Hong Kong Stock Exchange is the seventh largest in the world, with a market capitalisation of US$2.3 trillion as of December 2009. In that year, Hong Kong raised 22 percent of worldwide initial public offering (IPO) capital, making it the largest centre of IPOs in the world. Hong Kong's currency is the Hong Kong dollar, which has been pegged to the U.S. dollar since 1983.

The Hong Kong Government has traditionally played a mostly passive role in the economy, with little by way of industrial policy and almost no import or export controls. Market forces and the private sector were allowed to determine practical development. Under the official policy of "positive non-interventionism", Hong Kong is often cited as an example of laissez-faire capitalism. Following the Second World War, Hong Kong industrialised rapidly as a manufacturing centre driven by exports, and then underwent a rapid transition to a service-based economy in the 1980s.

Hong Kong matured to become a financial centre in the 1990s, but was greatly affected by the Asian financial crisis in 1998, and again in 2003 by the SARS outbreak. A revival of external and domestic demand has led to a strong recovery, as cost decreases strengthened the competitiveness of Hong Kong exports and a long deflationary period ended. Government intervention, initiated by the later colonial governments and continued since 1997, has steadily increased, with the introduction of export credit guarantees, a compulsory pension scheme, a minimum wage, anti-discrimination laws, and a state mortgage backer.

The territory has little arable land and few natural resources, so it imports most of its food and raw materials. Hong Kong is the world's eleventh largest trading entity, with the total value of imports and exports exceeding its gross domestic product. It is the world's largest re-export centre. Much of Hong Kong's exports consist of re-exports, which are products made outside of the territory, especially in mainland China, and distributed via Hong Kong. Even before the transfer of sovereignty, Hong Kong had established extensive trade and investment ties with the mainland, which now enable it to serve as a point of entry for investment flowing into the mainland. At the end of 2007, there were 3.46 million people employed full-time, with the unemployment rate averaging 4.1% for the fourth straight year of decline. Hong Kong's economy is dominated by the service sector, which accounts for over 90% of its GDP, while industry constitutes 9%. Inflation was at 2.5% in 2007. Hong Kong's largest export markets are mainland China, the United States, and Japan.

As of 2010, Hong Kong is the eighth most expensive city for expatriates, falling from fifth position in the previous year. In 2011, Hong Kong was ranked second in the Ease of Doing Business Index, behind Singapore. General principle No. 5 of the Basic Law of the SAR suggests that the CPC expects that it shall have brought the economic system of the Mainland and Hong Kong into harmony by 2047, by which time the Chinese economy is predicted to have been the largest by any measure of GDP for decades.

Demographics

The territory's population is 7.03 million. In 2009, Hong Kong had a birth rate of 11.7 per 1,000 population and a fertility rate of 1,032 children per 1,000 women. Residents from mainland China do not have the right of abode in Hong Kong, nor are they allowed to enter the territory freely. However, the influx of immigrants from mainland China, approximating 45,000 per year, is a significant contributor to its population growth – a daily quota of 150 Mainland Chinese with family ties in Hong Kong are granted a "one way permit". Life expectancy in Hong Kong is 79.16 years for males and 84.79 years for females as of 2009, making it one of the highest life expectancies in the world.

About 95% of the people of Hong Kong are of Chinese descent, the majority of whom are Taishanese, Chiu Chow, other Cantonese people, and Hakka. Hong Kong's Han majority originate mainly from the Guangzhou and Taishan regions in Guangdong province. The remaining 5% of the population is composed of non-ethnic Chinese. There is a South Asian population of Indians, Pakistanis and Nepalese; some Vietnamese refugees have become permanent residents of Hong Kong. There are also Europeans (mostly British), Americans, Canadians, Japanese, and Koreans working in the city's commercial and financial sector.|group=note}} In 2008, there were an estimate of 252,500 foreign domestic helpers from Indonesia and the Philippines working in Hong Kong.

Hong Kong's ''de facto'' official language is Cantonese, a Chinese language originating from Guangdong province to the north of Hong Kong. English is also an official language, and according to a 1996 by-census is spoken by 3.1 percent of the population as an everyday language and by 34.9 percent of the population as a second language. Signs displaying both Chinese and English are common throughout the territory. Since the 1997 handover, an increase in immigrants from mainland China and greater integration with the mainland economy have brought an increasing number of Mandarin speakers to Hong Kong.

The majority of residents of Hong Kong would claim no religious affiliation, professing a form of agnosticism or atheism. According to the U.S Department of State only 43 percent of the population practices some form of religion. Some figures put it higher, according to a Gallup poll, 64% of Hong Kong do not believe in any religion, and possibly 80% of Hong Kong claim no religion. According to another gallup poll, Hong Kong is the seventh country which considers religion as an important part of their daily lives, with only 22%. In Hong Kong teaching evolution won out in curriculum dispute about whether to teach other explanations, and that creationism and intelligent design will form no part of the senior secondary biology curriculum

Hong Kong enjoys a high degree of religious freedom, guaranteed by the Basic Law. Hong Kong's main religions are Buddhism, Taoism, and Confucianism, a local religious scholar in contact with major denominations estimates there are approximately 1.5 million Buddhists and Taoists. A Christian community of around 600,000 forms about 8% of the total population; it is nearly equally divided between Catholics and Protestants, although smaller Christian communities exist, including the Latter-Day Saints and Jehovah's Witnesses. The Anglican and Roman Catholic churches each freely appoint their own bishops, unlike in mainland China. There are also Sikh, Muslim, Jewish, Hindu and Bahá'í communities. The practice of Falun Gong is tolerated.

Statistically Hong Kong's income gap is the greatest in Asia Pacific. According to a report by the United Nations Human Settlements Programme in 2008, Hong Kong's Gini coefficient, at 0.53, was the highest in Asia and "relatively high by international standards". However, the government has stressed that income disparity does not equate to worsening of the poverty situation, and that the Gini coefficient is not strictly comparable between regions. The government has named economic restructuring, changes in household sizes, and the increase of high-income jobs as factors that have skewed the Gini coefficient.

Education

Hong Kong's education system used to roughly follow the system in England, although international systems exist. The government maintains a policy of "mother tongue instruction" () in which the medium of instruction is Cantonese, with written Chinese and English. In secondary schools, 'biliterate and trilingual' proficiency is emphasised, and Mandarin-language education has been increasing. The Programme for International Student Assessment ranked Hong Kong's education system as the second best in the world. Hong Kong's public schools are operated by the Education Bureau. The system features a non-compulsory three-year kindergarten, followed by a compulsory six-year primary education, a three-year junior secondary education, a non-compulsory two-year senior secondary education leading to the Hong Kong Certificate of Education Examinations and a two-year matriculation course leading to the Hong Kong Advanced Level Examinations. The New Senior Secondary academic structure and curriculum was implemented in September 2009, which provides for all students to receive three years of compulsory junior and three years of compulsory senior secondary education. Under the new curriculum, there is only public examination, namely the Hong Kong Diploma of Secondary Education.

Most comprehensive schools in Hong Kong fall under three categories: the rarer public schools; the more common subsidised schools, including government aids-and-grant schools; and private schools, often run by Christian organisations and having admissions based on academic merit rather than on financial resources. Outside this system are the schools under the Direct Subsidy Scheme and private international schools.

There are nine public universities in Hong Kong, and a number of private higher institutions, offering various bachelor's, master's, and doctoral degrees, other higher diplomas, and associate degree courses.The University of Hong Kong, the oldest institution of tertiary education in the territory, was described by Quacquarelli Symonds as a "world-class comprehensive research university" and was ranked 24th on the 2009 THES - QS World University Rankings, making it first in Asia. The Hong Kong University of Science & Technology was ranked 35th in the world in 2009 and ranked second in Asia for 2010. The Chinese University of Hong Kong was ranked 46th in the world in 2009 and ranked fourth in Asia for 2010. Based on the 2011 rankings published by career and education network QS, three of the top five Asian universities are in Hong Kong. They are the Hong Kong University of Science and Technology, the University of Hong Kong and Chinese University of Hong kong as first, second and fifth rank, respectively.

Healthcare

There are 13 private hospitals and more than 50 public hospitals in Hong Kong. Among the widest range of healthcare services throughout the globe are on offer, and some of the SAR's private hospitals are rightly considered to be among the very best of their type in the world.

There are two medical schools in the SAR, one based at the Chinese University of Hong Kong and the other at Hong Kong University. Both have strong links with public sector hospitals.

With respect to postgraduate education, many Hong Kong doctors have traditionally look overseas for further training, and many took British Royal College exams such as the MRCP(UK) and the MRCS(UK). However, Hong Kong has been developing its own postgraduate medical institutions, in particular the Hong Kong Academy of Medicine, and this is gradually taking over the responsibility for all postgraduate medical training in the SAR.

There are also strong public health systems in Hong Kong, and the Centre for Health Protection, founded after the SARS outbreak of 2003, is particularly worthy of mention.

Culture

Hong Kong is frequently described as a place where "East meets West", reflecting the culture's mix of the territory's Chinese roots with influences from its time as a British colony. Hong Kong balances a modernised way of life with traditional Chinese practices. Concepts like ''feng shui'' are taken very seriously, with expensive construction projects often hiring expert consultants, and are often believed to make or break a business. Other objects like Ba gua mirrors are still regularly used to deflect evil spirits, and buildings often lack any floor number that has a 4 in it, due to its similarity to the word for "die" in Cantonese. The fusion of east and west also characterises Hong Kong's cuisine, where dim sum, hot pot, and fast food restaurants coexist with haute cuisine.

Hong Kong is a recognised global centre of trade, and calls itself an "entertainment hub". Its martial arts film genre gained a high level of popularity in the late 1960s and 1970s. Several Hollywood performers, notable actors and martial artists have originated from Hong Kong cinema, notably Bruce Lee, Jackie Chan, Chow Yun-fat, Michelle Yeoh, Maggie Cheung and Jet Li. A number of Hong Kong film-makers have achieved widespread fame in Hollywood, such as John Woo, Wong Kar-wai, and Stephen Chow.

The Hong Kong government supports cultural institutions such as the Hong Kong Heritage Museum, the Hong Kong Museum of Art, the Hong Kong Academy for Performing Arts, and the Hong Kong Philharmonic Orchestra. The government's Leisure and Cultural Services Department subsidises and sponsors international performers brought to Hong Kong. Many international cultural activities are organised by the government, consulates, and privately.

Hong Kong has two licensed terrestrial broadcasters – ATV and TVB. There are three local and a number of foreign suppliers of cable and satellite services. The production of Hong Kong's soap dramas, comedy series, and variety shows reach audiences throughout the Chinese-speaking world. Magazine and newspaper publishers in Hong Kong distribute and print in both Chinese and English, with a focus on sensationalism and celebrity gossip. The media in Hong Kong is relatively free from official interference compared to mainland China, although the ''Far Eastern Economic Review'' points to signs of self-censorship by journals whose owners have close ties to or business interests in the People's Republic of China and states that even Western media outlets are not immune to growing Chinese economic power.

Hong Kong offers wide recreational and competitive sport opportunities despite its limited land area. It sends delegates to international competitions such as the Olympic Games and Asian Games, and played host to the equestrian events during the 2008 Summer Olympics. There are major multipurpose venues like Hong Kong Coliseum and MacPherson Stadium. Hong Kong's steep terrain and extensive trail network with expansive views attracts hikers, and its rugged coastline provides many beaches for swimming.

Cityscape

{| |- | | |}

Architecture

According to Emporis, there are 7,650 skyscrapers in Hong Kong, which puts the city at the top of world rankings. It has more buildings higher than 35m (or 100m, or 150m) than any other city. The high density and tall skyline of Hong Kong's urban area is due to a lack of available sprawl space, with the average distance from the harbour front to the steep hills of Hong Kong Island at , much of it reclaimed land. This lack of space causes demand for dense, high-rise offices and housing. Thirty-six of the world's 100 tallest residential buildings are in Hong Kong. More people in Hong Kong live or work above the 14th floor than anywhere else on Earth, making it the world's most vertical city.

As a result of the lack of space and demand for construction, few older buildings remain, and the city is becoming a centre for modern architecture. The International Commerce Centre (ICC), at high, is the tallest building in Hong Kong and the third tallest in the world, by height to roof measurement. The tallest building prior to the ICC is Two International Finance Centre, at high. Other recognisable skyline features include the HSBC Headquarters Building, the triangular-topped Central Plaza with its pyramid-shaped spire, The Center with its night-time multi-coloured neon light show, and I. M. Pei's Bank of China Tower with its sharp, angular façade. According to the Emporis website, the city skyline has the biggest visual impact of all world cities. The oldest remaining historic structures including the Tsim Sha Tsui Clock Tower, the Central Police Station, and the remains of Kowloon Walled City were constructed during the 19th and early 20th centuries.

There are many development plans in place, including the construction of new government buildings, waterfront redevelopment in Central, and a series of projects in West Kowloon. More high-rise development is set to take place on the other side of Victoria Harbour in Kowloon, as the 1998 closure of the nearby Kai Tak Airport lifted strict height restrictions.

Transport

Hong Kong's transportation network is highly developed. Over 90% of daily travels (11 million) are on public transport, the highest such percentage in the world. Payment can be made using the Octopus card, a stored value system introduced by the Mass Transit Railway (MTR), which is widely accepted on railways, buses and ferries, and accepted like cash at other outlets.

The city's main railway company (MTR) was merged with the urban mass transit operator (KCRC) in 2007, creating a comprehensive rail network for the whole territory (also called MTR). This MTR rapid transit system has 152 stations, which serve 3.4 million people a day. Hong Kong Tramways, which has served the territory since 1904, covers the northern parts of Hong Kong Island.

{| |- | |} Hong Kong's bus service is franchised and run by private operators. Five privately owned companies provide franchised bus service across the territory, together operating more than 700 routes. The two largest, Kowloon Motor Bus provides 402 routes in Kowloon and New Territories; Citybus operates 154 routes on Hong Kong Island; both run cross-harbour services. Double-decker buses were introduced to Hong Kong in 1949, and are now almost exclusively used; single-decker buses remain in use for routes with lower demand or roads with lower load capacity. Public light buses serve most parts of Hong Kong, particularly areas where standard bus lines cannot reach or do not reach as frequently, quickly, or directly.

The Star Ferry service, founded in 1888, operates four lines across Victoria Harbour and provides scenic views of Hong Kong's skyline for its 53,000 daily passengers. It acquired iconic status following its use as a setting on ''The World of Suzie Wong''. Travel writer Ryan Levitt considered the main Tsim Sha Tsui to Central crossing one of the most picturesque in the world. Other ferry services are provided by operators serving outlying islands, new towns, Macau, and cities in mainland China. Hong Kong is famous for its junks traversing the harbour, and small kai-to ferries that serve remote coastal settlements. The Port of Hong Kong is a busy deepwater port, specialising in container shipping.

Hong Kong Island's steep, hilly terrain was initially served by sedan chairs. The Peak Tram, the first public transport system in Hong Kong, has provided vertical rail transport between Central and Victoria Peak since 1888. In Central and Western district, there is an extensive system of escalators and moving pavements, including the longest outdoor covered escalator system in the world, the Mid-Levels escalator.

Hong Kong International Airport is a leading air passenger gateway and logistics hub in Asia and one of the world's busiest airports in terms of international passenger and cargo movement, serving more than 47 million passengers and handling 3.74 million tonnes (4.12 million tons) of cargo in 2007. It replaced the overcrowded Kai Tak Airport in Kowloon in 1998, and has been rated as the world's best airport in a number of surveys. Over 85 airlines operate at the two-terminal airport and it is the primary hub of Cathay Pacific, Dragonair, Air Hong Kong, Hong Kong Airlines, and Hong Kong Express.

See also

Public holidays in Hong Kong

List of cities with most skyscrapers

Notes

Footnotes

References

Further reading

}}

External links

; Government

Discover Hong Kong – Official site of the Hong Kong Tourism Board

; Other

Hong Kong at Encyclopædia Britannica

HongKong at ''UCB Libraries GovPubs''

WikiSatellite view of Hong Kong at WikiMapia

Category:1997 establishments Category:Chinese-speaking countries and territories Category:English-speaking countries and territories Category:Former British colonies Category:Independent cities Category:Metropolitan areas of China Category:Pearl River Delta Category:Populated places established in 1842 Category:Port cities and towns in China Category:South China Sea Category:Special administrative regions of the People's Republic of China

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!honorific-prefix	The Honorable
Name	Joseph Stiglitz
Honorific-suffix	ForMemRS FBA
Order	17th Chair of the Council of Economic Advisors
Term start	1995
Term end	1997
President	Bill Clinton
Predecessor	Laura Tyson
Successor	Janet Yellen
Office2	World Bank Chief Economist
Term start2	1997
Term end2	2000
Preceded2	Michael Bruno
Succeeded2	Nicholas Stern
Birth date	February 09, 1943
Birth place	Gary, Indiana
Party	Democratic
Spouse	Anya Schiffrin
Alma mater	Amherst CollegeMassachusetts Institute of Technology
Profession	Economist }}

{{infobox economist | school tradition	New Keynesian economics | color darkorange | field Macroeconomics, Public Economics, Information Economics | influences John Maynard Keynes, Robert Solow | opposed | influenced Paul Krugman, Jason Furman | contributions Screening, Taxation, Unemployment | repec_prefixe |repec_idpst33 }}

Joseph Eugene Stiglitz, ForMemRS, FBA, (born February 9, 1943) is an American economist and a professor at Columbia University. He is a recipient of the Nobel Memorial Prize in Economic Sciences (2001) and the John Bates Clark Medal (1979). He is also the former Senior Vice President and Chief Economist of the World Bank. He is known for his critical view of the management of globalization, free-market economists (whom he calls "free market fundamentalists") and some international institutions like the International Monetary Fund and the World Bank.

In 2000, Stiglitz founded the Initiative for Policy Dialogue (IPD), a think tank on international development based at Columbia University. Since 2001, he has been a member of the Columbia faculty, and has been a University Professor since 2003. He also chairs the University of Manchester's Brooks World Poverty Institute and is a member of the Pontifical Academy of Social Sciences. Stiglitz is also an honorary professor at Tsinghua University School of Public Policy and Management and a member of the Executive and Supervisory Committee (ESC) of CERGE-EI. Stiglitz is one of the most frequently cited economists in the world.

Biography

Stiglitz was born in Gary, Indiana, to Jewish parents, Charlotte and Nathaniel Stiglitz. From 1960 to 1963, he studied at Amherst College, where he was a highly active member of the debate team and President of the Student Government. He went to the Massachusetts Institute of Technology (MIT) for his fourth year as an undergraduate, where he later pursued graduate work. His undergraduate degree was awarded from Amherst College. From 1965 to 1966, he moved to the University of Chicago to do research under Hirofumi Uzawa who had received an NSF grant. He studied for his PhD from MIT from 1966 to 1967, during which time he also held an MIT assistant professorship. The particular style of MIT economics suited him well - simple and concrete models, directed at answering important and relevant questions. From 1966 to 1970 he was a research fellow at the University of Cambridge: he arrived at Fitzwilliam House as a Fulbright Scholar in 1965 and then won a Tapp Junior Research Fellowship at Gonville and Caius College. In subsequent years, he held academic positions at Yale (1970–1974), Stanford (1974–1976, 1988–2001), Oxford (1976–1979), and Princeton (1979–1988). Stiglitz is now a Professor at Columbia University, with appointments at the Business School, the Department of Economics and the School of International and Public Affairs (SIPA), and is editor of ''The Economists' Voice'' journal with J. Bradford DeLong and Aaron Edlin. He also gives classes for a double-degree program between Sciences Po Paris and Ecole Polytechnique in 'Economics and Public Policy'. As of 2005 he chairs The Brooks World Poverty Institute at the University of Manchester. Stiglitz is a New-Keynesian economist.

In addition to making numerous influential contributions to microeconomics, Stiglitz has played a number of policy roles. He served in the Clinton Administration as the chair of the President's Council of Economic Advisors (1995 – 1997). At the World Bank, he served as Senior Vice President and Chief Economist (1997 – 2000), in the time when unprecedented protest against international economic organizations started, most prominently with the Seattle WTO meeting of 1999. He was fired by the World Bank for expressing dissent with its policies. He was a lead author for the Intergovernmental Panel on Climate Change.

He is a member of Collegium International, an organization of leaders with political, scientific, and ethical expertise whose goal is to provide new approaches in overcoming the obstacles in the way of a peaceful, socially just and an economically sustainable world. He is also a member of the scientific committee of the Fundacion IDEAS, a Spanish think tank.

Stiglitz has advised American President Barack Obama, but has also been sharply critical of the Obama Administration's financial-industry rescue plan. Stiglitz said that whoever designed the Obama administration's bank rescue plan is "either in the pocket of the banks or they’re incompetent."

In October 2008 he was asked by the President of UN's General Assembly to chair a commission entrusted with drafting a report on the reasons for and solutions to the financial crisis. In response, the commission produced the Stiglitz Report.

On July 25, 2011, Stiglitz participated to the "I Foro Social del 15M" organized in Madrid (Spain) expressing his support to the 2011 Spanish protests.

Contributions to economics

Information asymmetry

Stiglitz's most famous research was on screening, a technique used by one economic agent to extract otherwise private information from another. It was for this contribution to the theory of information asymmetry that he shared the Nobel Memorial Prize in Economics in 2001 "for laying the foundations for the theory of markets with asymmetric information" with George A. Akerlof and A. Michael Spence.

Before the advent of models of imperfect and asymmetric information, the traditional neoclassical economics literature had assumed that markets are efficient except for some limited and well defined market failures. More recent work by Stiglitz and others reversed that presumption, to assert that it is only under exceptional circumstances that markets are efficient. Stiglitz has shown (together with Bruce Greenwald) that "whenever markets are incomplete and/or information is imperfect (which are true in virtually all economies), even competitive market allocation is not constrained Pareto efficient". In other words, they addressed "the problem of determining when tax interventions are Pareto-improving. The approach indicates that such tax interventions almost always exist and that equilibria in situations of imperfect information are rarely constrained Pareto optima." Although these conclusions and the pervasiveness of market failures do not necessarily warrant the state intervening broadly in the economy, it makes clear that the "optimal" range of government recommendable interventions is definitely much larger than the traditional "market failure" school recognizes. For Stiglitz, there is no such thing as an invisible hand. According to Stiglitz:

In the opening remarks for his prize acceptance "Aula Magna", Stiglitz said:

In an interview in 2007, Stiglitz explained further:

Efficiency wages: the Shapiro-Stiglitz model

Stiglitz also did research on efficiency wages, and helped create what became known as the ''"Shapiro-Stiglitz model"'' to explain why there is unemployment even in equilibrium, why wages are not bid down sufficiently by job seekers (in the absence of minimum wages) so that everyone who wants a job finds one, and to question whether the neoclassical paradigm could explain involuntary unemployment. The answer to these puzzles was proposed by Shapiro and Stiglitz in 1984: "Unemployment is driven by the information structure of employment". Two basic observations undergird their analysis:

# Unlike other forms of capital, humans can choose their level of effort. # It is costly for firms to determine how much effort workers are exerting.

A full description of this model can be found at the links provided. Some key implications of this model are:

# Wages do not fall enough during recessions to prevent unemployment from rising. If the demand for labour falls, this lowers wages. But because wages have fallen, the probability of 'shirking' (workers not exerting effort) has risen. If employment levels are to be maintained, through a sufficient lowering of wages, workers will be less productive than before through the shirking effect. As a consequence, in the model wages do not fall enough to maintain employment levels at the previous state, because firms want to avoid excessive shirking by their workers. So, unemployment must rise during recessions, because wages are kept 'too high'. # Possible corollary: Wage sluggishness. Moving from one private cost of hiring to another private cost of hiring will require each firm to repeatedly re-optimize wages in response to shifting unemployment rate. Firms cannot cut wages until unemployment rises sufficiently (a coordination problem).

The outcome is never Pareto efficient.

# Each firm employs too few workers because it faces private cost of hiring rather than the social cost — which is equal to and in all cases. This means that firms do not "internalize" the "external" cost of unemployment - they do not factor how large-scale unemployment harms society when assessing their own costs. This leads to a negative externality as marginal social cost exceeds the firm's marginal cost (MSC = Firm's Private Marginal Cost + Marginal External Cost of increased social unemployment) # There are also negative externalities. Each firm increases the asset value of unemployment for all other firms by hiring. But the first problem clearly dominates since the 'natural rate of unemployment' is always too high.

Some possible practical implications of Stiglitz theorems

While the mathematical validity of Stiglitz ''et al.'' theorems are not in question, their practical implications in political economy and their application in real life economic policies have been subject to considerable disagreement and debate. Stiglitz himself seems to be continuously adapting his own political-economic discourse, as we can see from the evolution in his positions as initially stated in ''Whither Socialism?'' (1994) to his own new positions held on his most recent publications.

::Once incomplete and imperfect information are introduced, Chicago-school defenders of the market system cannot sustain descriptive claims of the Pareto efficiency of the real world. Thus, Stiglitz's use of rational-expectations equilibrium assumptions to achieve a more realistic understanding of capitalism than is usual among rational-expectations theorists leads, paradoxically, to the conclusion that capitalism deviates from the model in a way that justifies state action—socialism—as a remedy.

::The effect of Stiglitz's influence is to make economics even more presumptively interventionist than Samuelson preferred. Samuelson treated market failure as the exception to the general rule of efficient markets. But the Greenwald-Stiglitz theorem posits market failure as the norm, establishing "that government could potentially almost always improve upon the market's resource allocation." And the Sappington-Stiglitz theorem "establishes that an ideal government could do better running an enterprise itself than it could through privatization" (Stiglitz 1994, 179).

The objections to the wide adoption of these positions suggested by Stiglitz's discoveries do not come from economics itself but mostly from political scientists and are in the fields of sociology. As David L. Prychitko discusses in his "critique" to ''Whither Socialism?'' (see below), although Stiglitz's main economic insight seems generally correct, it still leaves open great constitutional questions such as how the coercive institutions of the government should be constrained and what the relation is between the government and civil society.

Politics

Clinton administration, 1993 - 1997

Stiglitz joined the Clinton Administration in 1993, serving first as a member during 1993-1995, and then as Chairman of the Council of Economic Advisers during 1995-1997, in which capacity he also served as a member of the cabinet. He became deeply involved in environmental issues, which included serving on the Intergovernmental Panel on Climate Change, and helping draft a new law for toxic wastes (which was never passed).

Stiglitz's most important contribution in this period was helping define a new economic philosophy, a "third way", which postulated the important, but limited, role of government, that unfettered markets often did not work well, but that government was not always able to correct the limitations of markets. The academic research that he had been conducting over the preceding 25 years provided the intellectual foundations for this "third way".

When President Bill Clinton was re-elected, he asked Stiglitz to continue to serve as Chairman of the Council of Economic Advisers for another term. But he had already been approached by the World Bank, to be its senior vice president for development policy and its chief economist.

As the World Bank began its ten-year review of the transition of the former Communist countries to the market economy it unveiled failures of the countries that had followed the International Monetary Fund (IMF) shock therapy policies - both in terms of the declines in GDP and increases in poverty - that were even worse than the worst that most of its critics had envisioned at the onset of the transition. Clear links existed between the dismal performances and the policies that the IMF had advocated, such as the voucher privatization schemes and excessive monetary stringency. Meanwhile, the success of a few countries that had followed quite different strategies suggested that there were alternatives that could have been followed. The U.S. Treasury had put enormous pressure on the World Bank to silence his criticisms of the policies which they and the IMF had pursued.

Stiglitz always had a poor relationship with Treasury Secretary Lawrence Summers. In 2000, Summers successfully petitioned for Stiglitz's removal, supposedly in exchange for World Bank President James Wolfensohn's re-appointment – an exchange that Wolfensohn denies took place. Whether Summers ever made such a blunt demand is questionable – Wolfensohn claims he would "have told him to fuck himself".

Stiglitz resigned from the World Bank in January 2000, a month before his term expired. The Bank's president, James Wolfensohn, announced Stiglitz's resignation in November 1999 and also announced that Stiglitz would stay on as ''"special advisor to the president"'', and would chair the search committee for a successor.

:"Joseph E. Stiglitz said today [Nov. 24, 1999] that he would resign as the World Bank's chief economist after using the position for nearly three years to raise pointed questions about the effectiveness of conventional approaches to helping poor countries."

In this role, he continued criticism of the IMF, and, by implication, the US Treasury Department. In April 2000, in an article for ''The New Republic'', he wrote:

:"''They’ll say the IMF is arrogant. They’ll say the IMF doesn’t really listen to the developing countries it is supposed to help. They’ll say the IMF is secretive and insulated from democratic accountability. They’ll say the IMF’s economic ‘remedies’ often make things worse – turning slowdowns into recessions and recessions into depressions. And they’ll have a point. I was chief economist at the World Bank from 1996 until last November, during the gravest global economic crisis in a half-century. I saw how the IMF, in tandem with the U.S. Treasury Department, responded. And I was appalled''."

The article was published a week before the annual meetings of the World Bank and IMF and provoked a strong response. It proved too strong for Summers and, yet more lethally, Stiglitz's protector-of-sorts at the World Bank, Wolfensohn. Wolfensohn had privately empathised with Stiglitz's views, but this time was worried for his second term, which Summers had threatened to veto. Stanley Fisher, deputy managing director of the IMF, called a special staff meeting and informed at that gathering that Wolfensohn had agreed to fire Stiglitz. Meanwhile, the Bank's External Affairs department told the press that Stiglitz had not been fired, his post had merely been abolished.

In a September 19, 2008 radio interview with Aimee Allison and Philip Maldari on Pacifica Radio's KPFA 94.1 FM in Berkeley, California, Stiglitz implied that President Clinton and his economic advisors would not have backed the North American Free Trade Agreement (NAFTA) had they been aware of stealth provisions, inserted by lobbyists, that they overlooked.

Initiative for Policy Dialogue

In July 2000 Stiglitz founded the Initiative for Policy Dialogue (IPD), with support of the Ford, Rockefeller, McArthur, and Mott Foundations and the Canadian and Swedish governments, to enhance democratic processes for decision-making in developing countries and to ensure that a broader range of alternatives are on the table and more stakeholders are at the table.

Commission of Experts on Reforms of the International Monetary and Financial System

In 2009, Stiglitz chaired the Commission of Experts on Reforms of the International Monetary and Financial System, informally known as the Stiglitz Commission, which was convened by the President of the United Nations General Assembly "to review the workings of the global financial system, including major bodies such as the World Bank and the IMF, and to suggest steps to be taken by Member States to secure a more sustainable and just global economic order".

Support to the 2011 Spanish Protests

On July 25, 2011, Stiglitz participated to the "I Foro Social del 15M" organized in Madrid (Spain) expressing his support to the 2011 Spanish protests. During an informal speech, he made a brief review of some of the problems in Europe and in the United States, the serious unemployment rate and the situation in Greece. "This is an opportunity for economic contribution social measures," argued Stiglitz, who made a critical speech about the way authorities are handling the political exit to the crisis. He encouraged those present to respond to the "bad ideas", not with indifference, but with "good ideas". "This does not work, you have to change it," he said.

Books

Along with his technical economic publications (he has published over 300 technical articles), Stiglitz is the author of books on issues from patent law to abuses in international trade.

''Freefall: America, Free Markets, and the Sinking of the World Economy'' (2010)

In ''Freefall: America, Free Markets, and the Sinking of the World Economy'', Stiglitz discusses the causes of the 2008 recession/depression and goes on to propose reforms needed to avoid a repetition of a similar crisis, advocating government intervention and regulation in a number of areas. Among the policy-makers he criticises are George W. Bush, Larry Summers, and Barack Obama.

This book does not require an economics background in order to be of value to the reader. Rather it explains Stiglitz's views on the recent economic crisis in terms which make it relevant to the average homeowner, retirement investor, and voter in the United States. He explains how without fundamental changes in economic policy and regulation the position of the US in the world political and economic arena may deteriorate significantly.

''The Three Trillion Dollar War: The True Cost of the Iraq Conflict'' (2008)

''The Three Trillion Dollar War'' examines the full cost of the Iraq War, including many hidden costs. The book also discusses the extent to which these costs will be imposed for many years to come, paying special attention to the enormous expenditures that will be required to care for very large numbers of wounded veterans. Stiglitz was openly critical of George W. Bush at the time the book was released.

''Stability with Growth: Macroeconomics, Liberalization and Development'' (2006)

In ''Stability with Growth: Macroeconomics, Liberalization and Development'', Stiglitz, José Antonio Ocampo (United Nations Under-Secretary-General for Economic and Social Affairs, until 2007), Shari Spiegel (Managing Director, Initiative for Policy Dialogue - IPD), Ricardo Ffrench-Davis (Main Adviser, Economic Commission for Latin America and the Caribbean - ECLAC) and Deepak Nayyar (Vice Chancellor, University of Delhi) discuss the current debates on macroeconomics, capital market liberalization and development, and develop a new framework within which one can assess alternative policies. They explain their belief that the Washington Consensus has advocated narrow goals for development (with a focus on price stability) and prescribed too few policy instruments (emphasizing monetary and fiscal policies), and places unwarranted faith in the role of markets. The new framework focuses on real stability and long-term sustainable and equitable growth, offers a variety of non-standard ways to stabilize the economy and promote growth, and accepts that market imperfections necessitate government interventions. Policy-makers have pursued stabilization goals with little concern for growth consequences, while trying to increase growth through structural reforms focused on improving economic efficiency. Moreover, structural policies, such as capital market liberalization, have had major consequences for economic stability. This book challenges these policies by arguing that stabilization policy has important consequences for long-term growth and has often been implemented with adverse consequences. The first part of the book introduces the key questions and looks at the objectives of economic policy from different perspectives. The third part presents a similar analysis for capital market liberalization.

''Making Globalization Work'' (2006)

''Making Globalization Work'' surveys the inequities of the global economy, and the mechanisms by which developed countries exert an excessive influence over developing nations. Dr. Stiglitz argues that through tariffs, subsidies, an over-complex patent system and pollution, the world is being both economically and politically destabilised. Stiglitz argues that strong, transparent institutions are needed to address these problems. He shows how an examination of incomplete markets can make corrective government policies desirable.

Stiglitz is an exception to the general pro-globalization view of professional economists, according to economist Martin Wolf. Stiglitz argues that economic opportunities are not widely enough available, that financial crises are too costly and too frequent, and that the rich countries have done too little to address these problems. ''Making Globalization Work'' had sold more than two million copies.

''Fair Trade for All'' (2005)

''New Paradigm for Monetary Economics'' (2004)

''The Roaring Nineties: A New History of the World's Most Prosperous Decade'' (2003)

''The Roaring Nineties"'' is Stiglitz' analysis of the boom and bust of the 1990s. Presented from an insider's point of view, firstly as chair of President Clinton's Council of Economic Advisors, and later as chief economist of the World Bank, it continues his argument on how misplaced faith in free-market ideology led to the global economic issues of today, with a perceptive focus on US policies.

''Globalization and Its Discontents'' (2002)

In ''Globalization and Its Discontents'', Stiglitz argues that what are often called "developing economies" are, in fact, not developing at all, and puts much of the blame on the IMF.

Stiglitz bases his argument on the themes that his decades of theoretical work have emphasized: namely, what happens when people lack the key information that bears on the decisions they have to make, or when markets for important kinds of transactions are inadequate or don't exist, or when other institutions that standard economic thinking takes for granted are absent or flawed. Stiglitz stresses the point: "Recent advances in economic theory" (in part referring to his own work) "have shown that whenever information is imperfect and markets incomplete, which is to say always, and especially in developing countries, then the invisible hand works most imperfectly." As a result, Stiglitz continues, governments can improve the outcome by well-chosen interventions. Stiglitz argues that when families and firms seek to buy too little compared to what the economy can produce, governments can fight recessions and depressions by using expansionary monetary and fiscal policies to spur the demand for goods and services. At the microeconomic level, governments can regulate banks and other financial institutions to keep them sound. They can also use tax policy to steer investment into more productive industries and trade policies to allow new industries to mature to the point at which they can survive foreign competition. And governments can use a variety of devices, ranging from job creation to manpower training to welfare assistance, to put unemployed labor back to work and cushion human hardship.

Stiglitz complains bitterly that the IMF has done great damage through the economic policies it has prescribed that countries must follow in order to qualify for IMF loans, or for loans from banks and other private-sector lenders that look to the IMF to indicate whether a borrower is creditworthy. The organization and its officials, he argues, have ignored the implications of incomplete information, inadequate markets, and unworkable institutions—all of which are especially characteristic of newly developing countries. As a result, Stiglitz argues, the IMF has often called for policies that conform to textbook economics but do not make sense for the countries to which the IMF is recommending them. Stiglitz seeks to show that these policies have been disastrous for the countries that have followed them.

''Whither Socialism?''

''Whither Socialism?'' is based on Stiglitz's Wicksell Lectures, presented at the Stockholm School of Economics in 1990 and presents a summary of information economics and the theory of markets with imperfect information and imperfect competition, as well as being a critique of both free market and market socialist approaches (see Roemer critique, op. cit.). Stiglitz explains how the neoclassical, or Walrasian model (''"Walrasian economics"'' refers to the result of the process which has given birth to a formal representation of Adam Smith's notion of the "invisible hand", along the lines put forward by Leon Walras and encapsulated in the general equilibrium model of Arrow-Debreu), may have wrongly encouraged the belief that market socialism could work. Stiglitz proposes an alternative model, based on the information economics established by the Greenwald-Stiglitz theorems.

One of the reasons Stiglitz sees for the critical failing in the standard neoclassical model, on which market socialism was built, is its failure to consider the problems that arise from lack of perfect information and from the costs of acquiring information. He also identifies problems arising from its assumptions concerning completeness.

Papers and conferences

Stiglitz wrote a series of papers and held a series of conferences explaining how such information uncertainties may have influence on everything from unemployment to lending shortages. As the chairman of the Council of Economic Advisers during the Clinton Administration and former chief economist at the World Bank, Stiglitz was able to put some of his views into action. For example, he was an outspoken critic of quickly opening up financial markets in developing countries. These markets rely on access to good financial data and sound bankruptcy laws, but he argued that many of these countries didn't have the regulatory institutions needed to ensure that the markets would operate soundly.

He co-authored a paper titled "Implications of the New Fannie Mae and Freddie Mac Risk-Based Capital Standard" with Peter Orszag in 2002 in which they concluded "on the basis of historical experience, the risk to the government from a potential default on GSE debt is effectively zero."

Private life

Stiglitz married for the third time on October 28, 2004, to Anya Schiffrin, who works at the School of International and Public Affairs at Columbia University.

Publications

; Books:

2010, ''Freefall: America, Free Markets, and the Sinking of the World Economy'' ISBN 978-0393075960, W. W. Norton.

2010, ''Time for a Visible Hand: Lessons from the 2008 World Financial Crisis'' ISBN 978-0-19-957880-1, edited with Stephany Griffith-Jones and José Antonio Ocampo, Oxford University Press, 2010

2008, ''The Three Trillion Dollar War'' ISBN 978-0-39-306701-9; by Joseph Stiglitz and Linda Bilmes, W. W. Norton.

2006, ''Making Globalization Work'' ISBN 0-393-06122-1, Penguin Books, August 2006.

2006, ''Stability with Growth: Macroeconomics, Liberalization, and Development'' ISBN 0-19-928814-3 (Initiative for Policy Dialogue Series C); by Joseph E. Stiglitz, Jose Antonio Ocampo, Shari Spiegel, Ricardo Ffrench-Davis, and Deepak Nayyar; Oxford University Press 2006

1996, ''Whither Socialism ?'' Stiglitz, Joseph E., (Wicksell Lectures), MIT Press, January 1996.

2000, ''Frontiers of Development Economics: The Future in Perspective'', edited with Gerald M. Meier, World Bank, May 2000.

2001, ''Rethinking the East Asian Miracle'', edited with Shahid Yusuf, World Bank and Oxford University Press.

2002, ''Principles of Macroeconomics'', third edition, with Carl E. Walsh, W.W. Norton & Company, March 2002.

2002, ''Economics'', Third Edition, with Carl E. Walsh, W.W. Norton & Company, April 2002.

2002, ''Peasants Versus City-Dwellers: Taxation and the Burden of Economic Development'', with Raaj K. Sah, Oxford University Press, April 2002.

2002, ''Globalization and Its Discontents'', W.W. Norton & Company, June 2002.

2003,''Towards a New Paradigm in Monetary Economics'', with Bruce Greenwald, Cambridge University Press. Cambridge. Description and chapter-preview links.

2003, ''The Roaring Nineties'', W.W. Norton & Company, forthcoming in October 2003.

''Fair Trade for All: How Trade Can Promote Development'' (Initiative for Policy Dialogue Series C)– by Joseph E. Stiglitz, Andrew Charlton; Hardcover

2000, 3rd ed. ''Economics of the Public Sector.''

2002, ''The Rebel Within: Joseph Stiglitz and the World Bank'' by Joseph E. Stiglitz (Editor), Ha-Joon Chang (Editor), ISBN 1-898855-91-9, Anthem Press, Wimbledon Publishing Company (Paperback - February 25, 2002)

2005, ''The Development Round Of Trade Negotiations In The Aftermath Of Cancun'' by Joseph E. Stiglitz, Andrew Charlton (Paperback - January 30, 2005)

2005, ''A Chance For The World Bank'' by Joseph P Stiglitz (Foreword), Jozef Ritzen, ISBN 1-84331-162-3, Anthem Press, Wimbledon Publishing Company (Paperback - May 30, 2005)

1986, 'Economics of the Public Sector' by J.E.Stiglitz ISBN 0-393-96651-8, W.W.Norton, New York. (Re-printed 1988, 2000)

1981, 'Theory of Commodity Price Stabilization' by David M.G. Newbery and Joseph E. Stiglitz ISBN 0198284179 ISBN 978-0198284178, Oxford University Press [Hardcover: 512 pages]

''Readings in the Modern Theory of Economic Growth'' by Joseph E. Stiglitz (Editor), Hirofumi Uzawa (Editor)

; Book chapters:

2009. "Regulation and Failure," in David Moss and John Cisternino (eds.), ''New Perspectives on Regulation'', ch. 1, pp. 11-23. Cambridge: The Tobin Project.

2001, New Ideas About Old Age Security: Toward Sustainable Pension Systems in the 21st Century , edited with Robert Holzmann, World Bank, January 2001.

; Selected scholarly articles

2007, "Prizes, Not Patents" post-autistic economics review, issue no. 42

1998, Distinguished lecture on economics in government: The private uses of public interests: Incentives and institutions. Journal of Economic Perspectives, 12, 3–22.

1998, ''Redefining the Role of the State - What should it do ? How should it do it ? And how should these decisions be made?'' Paper presented at the Tenth Anniversary of MITI Research Institute, Tokyo, March 1998.

1996, The World Bank Research Observer: No 2: August 1996 by Joseph Stiglitz

1993, “Post Walrasian and post Marxian economics,” ''Journal of Economic Perspectives'', vol. 7, pp. 109–14

1993, “Market socialism and neoclassical economics,” in Bardhan, P. K. and Roemer, J. E. (eds.), ''Market Socialism. The Current Debate'', New York: Oxford University Press

1989, “Principal and agent,” in J. Eatwell, M. Milgate and P. Newman (eds.), ''The New Palgrave. Allocation, Information and Markets''. New York: W. W. Norton

1987, “The causes and consequences of the dependence of quality on prices”, ''Journal of Economic Literature'', vol. 25, pp. 1–48

1981 (with A. Weiss), "Credit Rationing in Markets with Imperfect Information", ''American Economic Review'', vol. 71, pp. 393–410

1977 (with A.K. Dixit), “Monopolistic Competition and Optimum Product Diversity”, ''American Economic Review'', vol. 67, pp. 297–308

1976 (with M. Rothschild), “Equilibrium in Competitive Insurance Markets: An Essay on the Economics of Imperfect Information”, ''Quarterly Journal of Economics'', vol. 90, pp.  629–650.

1974, “Incentives and Risk Sharing in Sharecropping”, ''Review of Economic Studies'', Vol. 41, No. 2, 219-255.

1974, “Alternative Theories of Wage Determination and Unemployment in LDCs: The Labour Turnover Model”, ''Quarterly Journal of Economics'', vol. 81, pp. 194–227

1971 (with M. Rothschild), “Increasing Risk: II. Its Economic Consequences”, ''Journal of Economic Theory'', Vol. 3, pp. 66–84

1970 (with M. Rothschild), “Increasing Risk: I. A Definition”, ''Journal of Economic Theory'', Vol. 2, pp. 225–243

; Articles in popular press:

2011, "Of the 1%, by the 1%, for the 1%", Vanity Fair, May 2011

2010, Review of

2009, "Wall Street’s Toxic Message", Vanity Fair, July 2009

2009, "America's socialism for the rich", The Guardian, June 2009

2009, "Capitalist Fools", Vanity Fair, January 2009

2007, "The Economic Consequences of Mr. Bush", Vanity Fair, December 2007 Issue

2007, Where is the World Going To, Mr. Stiglitz? directed by Jacques Sarasin, First Run Features.

2002, "Implications of the New Fannie Mae and Freddie Mac Risk-based Capital Standard", for FannieMae Volume I, Issue 2 March 2002

; Video and online sources:

2010, Freefall: Joseph Stiglitz at the Commonwealth Club

2008, The Three Trillion Dollar War a panel discussion with Joseph Stiglitz and Linda Bilmes regarding their new book, `''The Three Trillion Dollar War: The True Cost of the Iraq Conflict''.` Feb 28, 2008 at Columbia University.

2007, Where is the World Going To, Mr. Stiglitz? directed by Jacques Sarasin, First Run Features.

World Bank Video presentation

Online access to Stiglitz published papers, at his own website

See also

List of economists

List of Jewish Nobel laureates

References

External links

Joseph E. Stiglitz at Columbia University

* Joseph Stiglitz committee chair profile at Committee on Global Thought at Columbia University

Information and the Change in the Paradigm in Economics 2001 lecture at NobelPrize.org

Profile and Papers at Research Papers in Economics/RePEc

Publications at the National Bureau of Economic Research

Column archives at Project Syndicate

Joseph Stiglitz with Matthew Bishop at the 92nd Street Y, January 2010

Interview at The Commonwealth Club, February 2010

Free Markets and the World Economy with the Australian Broadcasting Corporation, July 2010

Category:Academics of the University of Oxford Category:American anti-globalization writers Category:American economists Category:American Nobel laureates Category:Amherst College alumni Category:Ashkenazi Jews Category:Clinton Administration personnel Category:Columbia University faculty Category:Development economists Category:Development specialists Category:New Keynesian economists Category:Fellows of All Souls College, Oxford Category:Fellows of Fitzwilliam College, Cambridge Category:Fellows of Gonville and Caius College, Cambridge Category:Fellows of the British Academy Category:Fellows of the Econometric Society Category:Information economists Category:International development Category:International Panel on Climate Change lead authors Category:Jewish American writers Category:Massachusetts Institute of Technology alumni Category:Members of the United States National Academy of Sciences Category:Members of the Pontifical Academy of Social Sciences Category:Nobel laureates in Economics Category:People from Gary, Indiana Category:Princeton University faculty Category:People associated with the University of Manchester Category:Public economists Category:Stanford University faculty Category:United States Council of Economic Advisors Category:World Bank Chief Economists Category:Yale University faculty Category:Keio University faculty Category:1943 births Category:Living people Category:Foreign Members of the Royal Society Category:Faculty of Sciences Po Category:Gerald Loeb Award winners

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name	James Beeland Rogers, Jr.
birth date	October 19, 1942
birth place	Baltimore, Maryland, USA
occupation	investor, financial commentator, and author
alma mater	Balliol College, OxfordYale University
website	www.jimrogers.com
footnotes	}}

James Beeland Rogers, Jr. (born October 19, 1942) is an American investor, financial commentator, and author based in Singapore. He is chairman of Rogers Holdings and Beeland Interests, Inc. He was the co-founder of the Quantum Fund with George Soros and creator of the Rogers International Commodities Index (RICI).

Rogers is an outspoken proponent of the free market, but he does not consider himself a member of any school of thought. Rogers acknowledged, however, that his views best fit the label of Austrian School of economics.

Biography

Rogers was born in Baltimore, Maryland and raised in Demopolis, Alabama. He started in business at the age of five by selling peanuts and by picking up empty bottles that fans left behind at baseball games. He got his first job on Wall Street, at Dominick & Dominick, after graduating with a bachelor's degree from Yale University in 1964. Rogers then acquired a second BA degree in Philosophy, Politics and Economics from Balliol College, Oxford University in 1966.

In 1970, Rogers joined Arnhold and S. Bleichroder. In 1973, Rogers co-founded the Quantum Fund with George Soros. During the following 10 years, the portfolio gained 4200% while the S&P advanced about 47%. The Quantum Fund was one of the first truly international funds.

In 1980, Rogers decided to "retire", and spent some of his time traveling on a motorcycle around the world. Since then, he has been a guest professor of finance at the Columbia University Graduate School of Business.

In 1989 and 1990, Rogers was the moderator of WCBS' ''The Dreyfus Roundtable'' and FNN's ''The Profit Motive with Jim Rogers''. From 1990 to 1992, he traveled through China again, as well as around the world, on motorcycle, over 100,000 miles (160,000 km) across six continents, which was picked up in the ''Guinness Book of World Records''. He tells of his adventures and worldwide investments in ''Investment Biker'', a bestselling investment book.

In 1998, Rogers founded the Rogers International Commodity Index. In 2007, the index and its three sub-indices were linked to exchange-traded notes under the banner ELEMENTS. The notes track the total return of the indices as an accessible way to invest in the index. Rogers is an outspoken advocate of agriculture investments and, in addition to the Rogers Commodity Index, is involved with two direct, farmland investment funds - Agrifirma, based in Brazil, and Agcapita Farmland Investment Partnership, based in Canada.

Between January 1, 1999 and January 5, 2002, Rogers did another Guinness World Record journey through 116 countries, covering 245,000 kilometers with his wife, Paige Parker, in a custom-made Mercedes. The trip began in Iceland, which was about to celebrate the 1000th anniversary of Leif Eriksson's first trip to America. On January 5, 2002, they were back in New York City and their home on Riverside Drive. His route around the world can be viewed on his website, jimrogers.com. He wrote ''Adventure Capitalist'' following this around-the-world adventure. It is currently his bestselling book.

On his return in 2002, Rogers became a regular guest on Fox News' ''Cavuto on Business'' which airs every Saturday. In 2005, Rogers wrote ''Hot Commodities: How Anyone Can Invest Profitably in the World's Best Market''. In this book, Rogers quotes a ''Financial Analysts Journal'' academic paper co-authored by Yale School of Management professor, Geert Rouwenhorst, entitled ''Facts and Fantasies about Commodity Futures''. Rogers contends this paper shows that commodities investment is one of the best investments over time, which is a concept somewhat at odds with conventional investment thinking.

In December 2007, Rogers sold his mansion in New York City for about 16 million USD and moved to Singapore. Rogers claimed that he moved because now is a ground-breaking time for investment potential in Asian markets. Rogers's first daughter is now being tutored in Mandarin to prepare her for the future. He is quoted as saying: "If you were smart in 1807 you moved to London, if you were smart in 1907 you moved to New York City, and if you are smart in 2007 you move to Asia." In a CNBC interview with Maria Bartiromo broadcast on May 5, 2008, Rogers said that people in China are extremely motivated and driven, and he wants to be in that type of environment, so his daughters are motivated and driven. He also stated that this is how America and Europe used to be. He chose not to move to Chinese cities like Hong Kong or Shanghai due to the high levels of pollution causing potential health problems for his family; hence, he chose Singapore. He has also advocated investing in certain smaller Asian frontier markets such as Sri Lanka and Cambodia, and currently serves as an Advisor to Leopard Capital’s Leopard Sri Lanka Fund. However, he is not fully bullish on all Asian nations, as he remains skeptical of India's future - "India as we know it will not survive another 30 or 40 years". In 2008 Rogers endorsed Ron Paul for President of the United States.

Rogers has two daughters with Paige Parker. Hilton Augusta(nicknamed Happy) was born in 2003, and their second daughter Beeland Anderson in 2008. His latest book, ''A Gift To My Children'', contains lessons in life for his daughters as well as investment advice and was published in 2009.

On November 4, 2010, at Oxford University’s Balliol College, he urged students to scrap career plans for Wall Street or the City, London’s financial district, and to study agriculture and mining instead. “The power is shifting again from the financial centers to the producers of real goods. The place to be is in commodities, raw materials, natural resources."

In February 2011 Rogers announced that he has started a new index fund which focuses on "the top companies in agriculture, mining, metals and energy sectors as well as those in the alternative energy space including solar, wind and hydro." The index is called The Rogers Global Resources Equity Index and the best and most liquid companies, according to Rogers, go into the index.

Books

1995: ''Investment Biker: Around the World with Jim Rogers''. - ISBN 1-55850-529-6

2003: ''Adventure Capitalist: The Ultimate Road Trip''. - ISBN 0375509127

2004: ''Hot Commodities: How Anyone Can Invest Profitably in the World's Best Market''. - ISBN 140006337X

2007: ''A Bull in China: Investing Profitably in the World's Greatest Market''. - ISBN 1400066166

2009: ''A Gift to My Children: A Father's Lessons For Life And Investing''. - ISBN 1400067545

Further reading

External links

The Millennium Adventure, Official Jim Rogers website

The Rogers International Commodity Index A site for information on the RICI

The Jim Rogers Blog

;Articles

"An Early Christmas for Jim Rogers". - ''BusinessWeek'' - December 8, 2004.

"Invest In Commodities – and Keep Your Shirt". - November 23, 2006.

"We Want Our Kids To Learn Chinese". - MySinchew. - July 19, 2008. - (article about Rogers' life in Singapore)

"Adventure Capitalist". - ''PODER Magazine''. - April 2010.

;Interviews

Curated Interview With Jim Rogers From Market Wizards

Jim Rogers on the British Pound, US Dollar, And China

Jim Rogers, The Adventure Capitalist

Jim Rogers and George Soros Started the Quantum Fund

rediff.com: The Money Interview/Jim Rogers, investor, globetrotter

Financial Sense Newshour's Ask The Expert: Jim Rogers:

*2003.

*May 6, 2004.

Riverside Conversations: a 3 Part TV Series with Marc Faber

SCMP video interview, September 8, 2008.

Investors Chronicle interview. - (on the decline of the US/Europe, emerging markets, commodities). - November 2008.

Bloomberg Night Talk interview. - November 24, 2008.

Jim Rogers on The Lew Rockwell Show:

*"The Crash of '08". - December 12, 2008. - (*.MP3 audio)

*"Economic Advice to My Children (and You)". - May 17, 2009. - (*.MP3 audio)

Bloomberg TV Jim Rogers Special. - December 24, 2008.

''TIME'' Q&A: Jim Rogers:

*April 28, 2009.

*October 31, 2008.

Interview from March 2009 on Channel 4

Jim Rogers Sat 3 Interview German TV Sat 3

References

Category:Austrian School economists Category:1942 births Category:American investors Category:American money managers Category:Living people Category:Hedge fund managers Category:Financial analysts Category:Stock traders Category:Stock and commodity market managers Category:Columbia Business School faculty Category:Yale University alumni Category:Alumni of Balliol College, Oxford Category:People from Demopolis, Alabama

zh-min-nan:Jim Rogers de:Jim Rogers fr:Jim Rogers it:Jim Rogers he:ג'ים רוג'רס lt:Jim Rogers nl:Jim Rogers ja:ジム・ロジャーズ no:Jim Rogers sv:Jim Rogers zh:占·羅傑斯

The Chinese property bubble is an alleged ongoing real estate bubble in residential and/or commercial real estate in the People's Republic of China. The phenomenon has seen average housing prices in the country triple from 2005 to 2009, possibly driven by both government policies and Chinese cultural attitudes.

High price-to-income and price-to-rent ratios for property and the high number of unoccupied residential and commercial units have been cited as evidence of a bubble. Critics of the bubble theory point to China's relatively conservative mortgage lending standards and trends of increasing urbanization and rising incomes as proof that property prices are justified.

Evidence

For bubble

Chinese property developers are now experiencing their own credit crunch due to Chinese government funding restrictions and fire sales are expected which will reduce prices rapidly and individual property loans are also drying up Significant numbers of vacant or under-performing commercial and residential properties and the continued construction of property despite these facts, including an estimated 64 million vacant apartments. High price-to-income ratios for real estate, such as in Beijing where the ratio is 27 to 1 years , five times the international average(27 to 1 is based on a double income household so 54 to 1 for a single income household of roughly 6,500USD/yr) High price-to-rent ratios for real estate, such as in Beijing where the ratio is 500:1 months compared to the global ratio of 300:1 months Homes are readily available in the Minneapolis area for 100 times the monthly rent A weak secondary market for Chinese homes, with the ratio of secondary to primary residential property transactions at 0.26 for the first half of 2009 (four times as many new home purchases as secondary sales). Comparably, Hong Kong had a ratio of 7.25, and the U.S. had a ratio of 13.45. Chinese companies in the chemical, steel, textile and shoe industries opening real estate divisions, expecting higher returns than in their core businesses Residential housing investment as a share of China's GDP has tripled from 2% in 2000 to 6% in 2011, similar to the peak of the U.S. housing bubble.

Against bubble

Home prices slowing or falling in Chinese cities. Trends of increasing urbanization and rising incomes in China that could continue to support real estate prices Comparatively conservative mortgage lending practices, particularly in contrast to those at the height of the United States housing bubble

City statistics

Shanghai

Real estate prices increased by over 150% between 2003 and 2010

Tianjin

Projected to have more prime office space than can be absorbed in 25 years at the current rate

Expert opinions

Supporting bubble theory

Standard & Poor's has downgraded its outlook for China real estate development sector to negative from stable, following a tightening of credit conditions in the country and slower sales. Cao Jianhai, professor at the Chinese Academy of Social Sciences, who was quoted in an April 2009 report saying "Prices may not fall in the near term but I expect a collapse starting next year, followed by many years of stagnation." Andy Xie, independent Shanghai economist, who was quoted in a March 2010 report saying "China's property market is a massive bubble." Zhang Xin, CEO of Beijing real estate developer SOHO China, who was quoted in a January 2010 report saying "We don’t really have a view on when it will end; [but] we do have a view that this is a bubble." Ms. Zhang does not expect a significant drop in pricing.

Opposing bubble theory

The World Bank, which said in a November 2009 report that Chinese home prices had not outpaced increases in incomes on a nationwide level, therefore dispelling worries of a looming bubble. However, in its March 17, 2010 quarterly report, the group said China needed to raise interest rates to contain the risk of a property bubble.

On April 6, 2011 the Economist Intelligence Unit’s Access China service released a follow up report to the October 2010 report ‘CHAMPS: China’s fastest-growing cities’ entitled ‘Building Rome in a day: The sustainability of China’s housing boom. The report forecasts the population and average income in close to 300 Chinese cities, and the subsequent demand for housing in China which during the next decade. The report states that ‘with China’s property market being an important global economic indicator, China’s housing boom will present opportunities for investors in sectors such as furniture, cars and building materials.’ Regarding China’s urban population, the report forecasts that between 2011 and 2020 it will ‘increase by 26.1% or over 160 million people, while urban per head disposable incomes will increase by 2.6-fold to 51,310 RMB (about US$7,500 at current exchange rates).’

Alleged causes

Low interest rates and increased bank lending, beginning in 2003 under Wen Jiabao which allowed cheap credit for the construction and purchase of property while making competing debt investments less appealing Local government reliance on land sales for income (accounting for up to 50% of revenue), incentizing the continued sale and development of land Limited access to foreign investments for Chinese citizens, increasing the appeal of domestic investments such as property Spending from the China economic stimulus program finding its way into real estate Cultural pressures encouraging home ownership, particularly for men seeking a wife

Government response

In July 2011 the Chinese Government raised interest rates for the third time this year

A new nationwide real estate sales tax was introduced in China in late 2009 as a measure to curb speculative investing.

In early 2010, the Chinese cabinet announced it would monitor capital flows to "stop overseas speculative funds from jeopardizing China's property market" and also begin requiring families purchasing a second home to make at least a 40% down-payment.

A mortgage discount for first-time property buyers – which had offered fixed, 5% 20-year mortgages at just above 4% – was also eliminated.

In early 2011, Beijing banned the sale of homes to those who have not lived in Beijing for five years. Beijing also limited the number of homes a native Beijing family could own to two, and allowed only one home for non-native Beijing families.

See also

Real estate in the People's Republic of China

''Dwelling Narrowness''

Nail house

References

External links

Ghost town, Mongolia: Inside China's empty cities Duff McDonald, December 21, 2010 Fortune Magazine/CNN

Real estate bubble in China? - Part 1, Part 2 (video)

China's Empty City (video)

Utopia, Part 3: The World’s Largest Shopping Mall (video)

Category:Economic history of the People's Republic of China Category:Real estate bubbles

Name	Marc Faber
Birth date	February 28, 1946
Alma mater	University of Zurich
Occupation	Investment analyst
Nationality	Switzerland }}

Marc Faber, born February 28, 1946, is an investment analyst and entrepreneur.

Background

Faber was born in Zürich and schooled in Geneva, Switzerland, where he raced for the Swiss National Ski Team. He studied Economics at the University of Zurich and, at the age of 24, obtained a Ph.D. degree in Economics magna cum laude. Faber is best known for the ''Gloom Boom & Doom Report'' newsletter and its related web site featuring "Dance of Death" paintings created by Kaspar Meglinger.

During the 1970s Faber worked for White Weld & Company Limited in New York City, Zürich, and Hong Kong. He moved to Hong Kong in 1973. He was a managing director at Drexel Burnham Lambert Ltd Hong Kong from the beginning of 1978 until the firm's collapse in 1990. In 1990, he set up his own business, Marc Faber Limited. Faber now resides in Chiangmai, Thailand, though he keeps a small office in Hong Kong.

Faber has a reputation for being a contrarian investor and has been called "Doctor Doom" for a number of years. He was the subject of a book written by Nury Vittachi in 1998 entitled ''Doctor Doom - Riding the Millennial Storm - Marc Faber's Path to Profit in the Financial Crisis''. Faber has become a frequent speaker in various forums and makes numerous appearances on television around the world including various CNBC and Bloomberg outlets, as well as on internet venues like Jim Puplava's internet radio show. Dr. Faber's also engaged the Barron's Roundtable and the Manhattan Mises Circle, lecturing on "Mirror, Mirror on the Wall, When is the Next AIG to Fall?"

Marc Faber Ltd.

Faber's company, Marc Faber Limited, acts as an investment advisor concentrating on value investments with tremendous upside often based on contrarian investment philosophies. Faber also invests and acts as a fund manager to private wealthy clients. Faber is a regular speaker on the investment circuit, often quoted in the financial press for his non-conformist viewpoint and alternative investment philosophies. His current tag-line is: 'buy a $100 US bond and frame it to teach your children about inflation by watching the US bond value diminish to almost nothing over the next 20 years'

Faber is famous for advising his clients to get out of the stock market one week before the October 1987 crash. However Faber said that this prediction was "accidental".

He lost money shorting US stocks in 1999 although his call was later vindicated. He admits that market timing is very difficult. Nevertheless, his market advice since 2000 is quite accurate. Faber predicted the rise of oil, precious metals, other commodities, emerging markets, and especially China in his book ''Tomorrow's Gold: Asia's Age of Discovery''. He also correctly predicted the slide of the U.S. dollar since 2002 and the 5/06 and 2/07 mini-corrections. He stated that there are few value investments available, except for farmland and real estate in some emerging markets like Russia, Paraguay, and Uruguay. He believed in early 2007 that a major market correction was "imminent." (Fox News, 2-2007); however, by 5/2007 he was saying that U.S. equities were moderately overvalued — less so than those of emerging markets.

In a June 2008 interview with Bloomberg, he goes over his bearish views on a wide spectrum of investments: stocks, real estate and commodities. He is extremely critical of the Fed's inflationary actions. However, his views for the short-run were almost entirely deflationary except for holding precious metals; Faber still views hyperinflation as a certainty within the next 10 years. He also correctly expressed temporary bullishness for the U.S. dollar in the middle of 2008 before it dramatically recovered and positive expectations for holding the Japanese yen. In December 2008, Faber said, "I think a recovery will not come in the next couple of years, maybe in five, ten years' time" On March 9, 2009, Faber correctly predicted a U.S. stock market bottom but incorrectly stated that the rally would last only six months.

Writings

Faber writes the monthly investment newsletter ''The Gloom Boom & Doom Report'' which is subject to charge. He has also authored several books.

Dr. Faber has been a regular contributor to several leading publications around the world in the past, among them ''Forbes'' and ''International Wealth'' which is a sister publication of the ''Financial Times''. He has contributed regularly to several websites such as Financial Intelligence, Asian Bond Portal, Die Welt, Finanzen, Boerse, AME Info, Swiss Radio, Apple Hong Kong and Taiwan, Quamnet, Winners, Wealth and Oriental Daily. He has also written occasionally for the ''International Herald Tribune'', ''Wall Street Journal'', and ''Borsa e Finanza''.

Faber has been long term bearish about the American economy for a number of years and continues to be so. He concluded his June 2008 newsletter with the following mock quote:

"The federal government is sending each of us a $600 rebate. If we spend that money at Wal-Mart, the money goes to China. If we spend it on gasoline it goes to the Arabs. If we buy a computer it will go to India. If we purchase fruit and vegetables it will go to Mexico, Honduras and Guatemala. If we purchase a good car it will go to Germany. If we purchase useless crap it will go to Taiwan and none of it will help the American economy. The only way to keep that money here at home is to spend it on prostitutes and beer, since these are the only products still produced in US. I've been doing my part."

Funds

Marc Faber serves as director or advisor of a number of investment funds that focus on emerging and frontier markets, including Leopard Capital’s Leopard Cambodia Fund and Leopard Sri Lanka Fund.

References

External links

Marc Faber interview on Bloomberg September 2007 before rate cut decision

Faber's website

Comprehensive Interview w/ Marc Faber (Bloomberg TV)

Bloomberg interview

Financial Sense News Hour Jim Puplava ''Ask the Experts''

Video of a wide ranging discussion of the US Dollar, credit crunch and emerging markets on CNBC Oct. 22, 2007

interview with RTL Z 16-03-2010

Video of a June 2008 Bloomberg News interview critical of Fed chairman and entitled: Marc Faber Says Oil, Stocks, Real Estate Are Overvalued

Dr. Doom: Short Treasuries, Buy Hard Assets — 29 December 2008 interview

The Marc Faber Blog

Marc Faber Newsletters of Note

Investment Hocus Pocus

A Modern History of Investment Booms

Marc Faber blog

Category:Austrian School economists Category:1946 births Category:Drexel Burnham Lambert Category:Living people Category:Swiss businesspeople Category:Hedge fund managers

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