HK's Tung: Down, but back in again

On the surface Tung retains the full support of Beijing -- but even there doubts have been expressed

(CNN) -- Tung Chee-hwa begins his second term as Hong Kong's Chief Executive Monday with public confidence in his leadership continuing to slide.

A just-released poll by an academic group, the Hong Kong Transition Project, said dissatisfaction with the 65-year-old leader had almost doubled from 29% five years ago to 58%.

Only 33% of Hong Kong residents were happy with Tung's performance, down from 50% when Beijing took back sovereignty over Hong Kong in 1997.

The most obvious reason for Tung's low popular esteem is the economy: there was no growth 2001 and GDP is expected to expand by only 1% to 2% this year.

Unemployment is at an unprecedented 7.4% while those who have jobs are facing pay cuts and longer working hours.

And with property prices having fallen at least 60% from their all-time high of 1997, Hong Kong's middle class, which makes up the bulk of taxpayers, has become even more disgruntled.

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While the administration spin-doctors have put the blame on events such as the Asian financial crisis and the September 11 terrorist attacks, many Hong Kong observers have pointed their fingers at what they say is Tung's weak and indecisive leadership.

In his address on Monday marking the fifth anniversary of the establishment of the Special Administrative Region (SAR), Tung said his first priority was to "set a clear direction and adopt effective measures [to revive the economy]."

Failed initiatives

Yet, according to Hong Kong City University political science professor Joseph Cheng, "the chief executive has precisely failed to lay out concrete blueprints for the coming five years."

Moreover, whatever initiatives Tung may have come up with before he has been unable to follow through.

For example, property developers and owners alike have attributed the fall in real estate prices to the objective, unveiled by Tung with much fanfare in 1998, that 85,000 housing units would henceforward be made available every year.

The goal, motivated by Tung's wish to speed up home ownership for every family in the SAR, was quietly abandoned in 2000.

Also in 1998, the SAR government released an ambitious plan to develop the hi-tech sector.

Yet the initiative has fizzled out for lack of follow-up actions.

And Hong Kong has lagged behind not only Singapore and Bangalore but also mainland Chinese cities such as Shenzhen and Shanghai in technological capacity.

Kingmakers

Apart from issues of personality and style, Tung's indecisiveness seems to stem from his anxiety to please power blocs in the community, particularly those to which he is beholden for political support.

For example, his tendency to waffle on housing policy is in large measure a function of his perceived loyalty to real estate tycoons, several of whom are considered kingmakers with close ties to the Beijing leadership.

On the surface, Tung enjoys the full support of Beijing's top cadres.

Both President Jiang Zemin and Vice-Premier Qian Qichen, who were in Hong Kong Sunday and Monday, professed their "full confidence" in Tung's performance.

Yet it is hardly a secret that Beijing's leaders have qualms about Tung's ability and leadership qualities.

For example, Premier Zhu Rongji pointed out last year that the SAR administration had a tendency to "discuss things without coming to a decision -- and failing to take action even when a decision has been made."

In an apparent effort to streamline decision-making and project a bolder leadership style, Tung last month introduced the accountability or "ministerial" system under which he is empowered to appoint all 14 policy secretaries, who report to Tung and serve at his pleasure.

The chief executive has also expanded the executive council or cabinet by inducting, among others, the chairmen of two political parties that are deemed pro-government and pro-business.

This move will ensure that the SAR administration can ram through almost all bills through the legislature.

The upshot is that the democrats -- an omnibus term for politicians seeking a faster pace of democracy -- have been left out in the cold.

Independent legislator Margaret Ng pointed out that Tung's ministerial system would "hurt Hong Kong's democracy further because checks and balances that still exist will be further weakened."

Other democrats have asserted that the only thing that Tung is decisive about is boosting his own powers -- and currying favor with Beijing, the ultimate source of his authority.