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The role of Civil Society Organization in HongKong

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The role of Civil Society Organization in HongKong Powered By Docstoc
					         Contested Space: The Role of
         Civil Society Organizations in
         Hong Kong




Conference on Governance,                 Presentation by –
Organizational Effectiveness,                  Dr Patrick Ho
and the Nonprofit Sector         Secretary for Home Affairs
Makati City, Philippines        Government of the Hong Kong
5-7 September 2003              Special Administrative Region
    Nonprofit sector
   What is the nonprofit sector?
       The nonprofit sector comprises mainly civil society
        organizations (CSOs)

       CSOs are organizations which operate outside the
        confines of the market, the government and the
        family

       CSOs bring people together in a common cause to
        solve problems

       Nonprofit sector is also known as civil society or
        the third sector
                                                          2
 Nonprofit sector
Role
 CSOs can find solutions to market failures
  and to social problems that appear intractable
  to the Government

Policy
 Government’s policy is to encourage and
  facilitate the development of a vibrant third
  sector in Hong Kong


                                                  3
    Policy statement
   In his 2000 policy address, the Chief
    Executive said that –
    “In Hong Kong, voluntary organizations already
    provide a vast array of services, but still have great
    potential to improve in terms of both quality and
    quantity. I hope that apart from having a highly
    efficient and modernized market economy and a small
    and effective government, Hong Kong can also boast
    a dynamic and growing sector of voluntary service.
    We will continue to enhance our working partnership
    with these organizations. Together we will build a
    better future for Hong Kong.”

                                                             4
    Nonprofit sector
   The nonprofit sector is a significant social,
    economic and political force in Hong Kong

   Social
       CSOs are major providers of welfare, education
        and health services
   Economic
       CSOs command significant resources
   Political
       CSOs are a powerful interest group


                                                         5
         Conceptual Framework
    Mandate                                                    Public
                                                             Authorities
                                                Statutory
                                    Advisory      bodies
                                                               Examples:
                                   committees
Market    Government   appoints                              Urban Renewal
                                                                Authority
                                                            Hospital Authority
                                                            Housing Authority


                                                     The public sphere



          CSOs                    Subvented
                                    NGOs


                                                                       6
            Conceptual Framework
     Interaction among Government, the market and CSOs


 Non-market
                               Government
     fairer
 allocation of     provides
   services,       funding                 provides
                                           services             pay taxes
 guaranteed
  standards
                               provide services
                  CSOs                                       The public
                                       donations
                                                  provide
                   donations                      services        pay for services
   Market
better choices,                 Private sector
    market
  efficiency                                                                    7
    Contested space
   Is the nonprofit sector getting too large in
    Hong Kong?

   Are CSOs competing unfairly with the market?

   Should the Government play a more active
    role in the provision of direct services?




                                                   8
    Overview of CSOs


   Overview of the scope, size, structure
    and funding base of the nonprofit
    sector in Hong Kong




                                             9
    (a) Scope
   Kinship groups / clansmen’s associations /
    neighbourhood groups
   Traditional Chinese charities
   The “Big Six” (NGOs)
       Tung Wah Group of Hospitals, Po Leung Kuk, Yan
        Chai Hospital, Pok Oi Hospital, Lok Sin Tong and
        Yan Oi Tong
   CSOs (Western-style NGOs)
   Philanthropic institutions and foundations
       e.g. Hong Kong Jockey Club, Shaw Foundation


                                                       10
    (b) Size
   According to the “List of Approved
    Charitable Institutions and Trusts of a
    Public Character” (section 88 of the
    Inland Revenue Ordinance (Cap. 112)),
    there are 3,896 CSOs in Hong Kong
   Section 88 organizations are tax-exempt
   Many smaller CSOs are not registered
    under section 88

                                         11
    (c) Structure
   Welfare Services
       (subvention: HK$7.5 billion in 2002-03)
       (Lotteries Fund: HK$1.4 billion in 2002-03)
   Primary and Secondary Education
       (subvention: HK$24.6 billion in 2002-03)
   Health services
       (subvention: HK$30.6 billion in 2002-03)
   Culture, recreation and sports
       (subvention: HK$0.48 billion in 2002-03)
   Environmental protection
   Human rights
                                                      12
    Funding base
   Government (grants or subvention)
       e.g. Lotteries Fund, Community Investment and
        Inclusion Fund
   Corporate donations
   Individual donations – fund raising from the
    public
   Large private funds and foundations
   The Hong Kong Jockey Club Charities Trust
   Community Chest of Hong Kong
   Fees and charges for services

                                                        13
    Issues
   Public mandate
       public perceptions of the nonprofit sector
       competition between the market and CSOs
   Effectiveness
       how well the grants and donations are used by
        CSOs?
   Transparency
       How open are these CSOs?
       Disclosure of interests


                                                        14
    Issues (cont.)

   Accountability
       Responsibility and answerability of CSOs
   Governance
       The role of management boards of CSOs and the
        role of executive staff
   Role of Government
       Friend or foe (facilitation or regulation) of CSOs
       Equal partnership


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