Hong Kong's post-war economic development has been quite unique. As the only example of its kind, it does not have any other model with which to compare, and positioning is not a problem. It did not set out to become a trading centre, manufacturing base, shipping hub, financial centre, or anything else for that matter. The economy was already firmly established by the time anybody actually realized that something tangible was developing.

When we talk about positioning Hong Kong, the question is who is going to perform this important task. The government definitely will not, because it does not want to carry this responsibility. It would rather leave economic development to the business sector.

The business sector, however, does not have a central nervous system. Its individual members act according to their capitalistic instincts, and winners are selected by the "invisible hands" of the market. Nobody is there to take care of the macro-problem of positioning.

The positioning issue arises from two recent problems. First and foremost, Hong Kong's economy has been in serious trouble since the reunification. It is a bit better now that it enjoys massive support from the central government, but it still lacks vitality and a sense of direction. Many would think that if we could determine a new position for Hong Kong, we might be able to find our way out of the current quagmire.

The second problem is that neighbouring cities are quickly catching up, and Hong Kong's economy is quickly being integrated with the Greater Pearl River Delta region. This points to the problem of the division of labour.

Neighbouring Guangzhou and Shenzhen are very familiar with the administration driven, planned economic model, and positioning is thus one of those topics that comes up every year, and then every five years. They subscribe to the idea of positioning, and they have a whole set of mechanisms devoted to it. As expected, they sometimes manage to achieve their planned objectives, but sometimes they do not. Car manufacturing was never listed in Guangzhou's last five-year plan, for example, but it is emerging as its biggest industry over the coming period. This is a most pleasant surprise.

The division of labour between Shenzhen and Guangzhou has not been easy at times, either. As a Special Economic Zone, Shenzhen can choose not to listen to the Guangdong Provincial Government, especially on matters concerning the economy. The division of labour and coordination between the two cities has long been problematic, and in many instances, the central government has had to step in to stop internal rivalry between them.

With Hong Kong in the picture, the situation is now much more complicated. After the reunification, a system of annual joint meetings between the Governor of Guangdong and the Chief Executive of Hong Kong was initiated. For various reasons, and to everybody's disappointment, little has been accomplished over the eight sessions that have already been held. With this in mind, I would like to suggest that we dispense with this arrangement, forget about the bureaucratic protocol, and adopt the Pan-Yangtze River Delta system of joint meetings between participating cities. Under the coordination of the central government, this model has proved to be more meaningful and fruitful.

The role of the central government is especially important in our case because Hong Kong is so unique. Under the "One Country, Two Systems" model, it is a free market economy with minimal government interference, a mode of operation completely different from its neighbours. It is both psychologically and operationally not used to cooperating with other people. Without coordination from Beijing, Hong Kong can easily be portrayed as an unreasonable and uncooperative bully. In many cases, especially when viewed from an unsympathetic perspective, Hong Kong does behave like this. It needs understanding and guidance throughout the painful process of integration with the motherland.

I honestly do not think repositioning Hong Kong under central coordination is the solution to all its economic problems, but it will greatly help in two ways.

First, it would settle the problem of division of labour and eliminate excessive competition between cities within the Greater Pearl River Delta region. Recently, for example, there have been suggestions to move the dying GEM board to Shenzhen to cater to mainland private enterprises under Hong Kong management. This is a very innovative idea with mutually beneficial potential, but without agreement from Shenzhen and approval from Beijing, it will never materialize. The same can also be said about the Shenzhen Airport. The most logical arrangement would be to integrate the two systems, with Hong Kong Airport focusing on international flights, while Shenzhen would handle all domestic routes. It is also necessary to improve transportation to Shenzhen Airport and streamline transfer arrangements between the two airports.

Second, through coordination, the central government would acquire a more acute sense of what role Hong Kong should play in the bigger chessboard of national development. This is a way of positioning Hong Kong within the national and international framework. Like it or not, this is inevitable, but something which is still fuzzy in everybody's mind, including those of our top decision makers, who always want to leave Hong Kong alone. Essentially no part of "one country" can be left completely alone. For one thing, once our central leaders have made up their mind on what is good for both Hong Kong and the country, they will have a much clearer priority of what preferential measures to give to Hong Kong in the future. If the Special Administrative Region does not have a clear sense of direction, it is at least comforting to know that some people in the capital do. At this particular moment, it is imperative for the central government to clearly position Hong Kong, or it will miss the boat and suffer the consequences in the not too distant future.

The author is a delegate to the Chinese People's Political Consultative Conference and a political affairs commentator.

Editor: Yan