Hong Kong accolades abound.

The tenth anniversary of the return by Britain of Hong Kong to Chinese rule spurred a flurry of evaluations of the place of Hong Kong not only in the world economy but as a consumer market as well. Clearly, Hong Kong is doing well.

But the more important question is, `Why is Hong Kong doing so well?'

From one prospective, Hong Kong appears to be a "capitalist" entity operating within a "communist" environment. Indeed, a June 21, 2007 review by the International Herald Tribune (Neuilly), noting Hong Kong's prosperity, said the Special Administrative Region (SAR) was "capitalism in Communist embrace."

From another prospective, Hong Kong looks as though, against all odds, it has managed to hang onto its internationalist cachet as a place to do business and live the elusive `good life' as well. In this regard, a very long June 29, 2007 Hong Kong "special report" by The Australian (Sydney) said of the mixed breed Hong Kong market economy, "the buzz is back."

More than one reviewer took note of the fact that as Hong Kong's market sectors have lost a measure of diversity, and economic activity has coalesced around banking and finance, the gap between rich and poor has increased. This was strongly emphasized in a review published on July 8, 2007 by a prominent newspaper, the Taipei Times (Taipei City) possibly expressing the envy of a rival market economy.

In fact, wherever and however in the world market diversity is compromised, the gap between rich and poor reappears, and governments, even enlightened ones, seem not to have the theoretical wherewithal to manage the problem.

Challenges to economic theory aside, one element of Hong Kong's success has not been widely recognized. And that is the enormous strength and flexibility that comes from centuries of Chinese tradition and creativity mixed with British tradition and creativity.

The impact of culture on economics (and vise versa) is currently becoming better understood and appreciated with anthropologists, psychologists and assorted scientists magnifying each others' ideas. And what a rich laboratory Hong Kong could turn out to be.

HONG KONG WORKER SKILLS DEVELOPMENT WILL PROMOTE PROSPERITY

The population growth rate for Hong Kong is below the regional average, due in part to a birth rate of 8 per thousand inhabitants, which is lower than the average of 12 per thousand for East Asia. Job creation has kept up with growth of the labor force in recent years, and it is likely that the situation will improve further in 2007. Unemployment is running about 4.4 percent, higher than the government would like.

Hong Kong's population reached 7.0-million people mid-2006, which amounted to a small fraction of East Asia's 1.5-billion inhabitants. According to data released by the Population Reference Bureau (PRB), Hong Kong's population will reach 8.1-million by 2025. Also, according to that source, Hong Kong is going to have a population of 8.7-million people in 2050.

Obviously, 100 percent of Hong Kong's population lived in the urban area during 2006, and the SAR's population density is one of the highest in the world at 16,915 people per square mile. Hong Kong is about the same size as Martinique but Hong Kong has 17.5 times as many residents. The CIA's World Factbook, indicates that 13 percent of Hong Kong's population was birth to 14 years old in 2006, while 74 percent was 15 to 64 years old, and 13 percent of the populace was 65 years of age and over.

The CIA estimates that the country's population growth rate will be 0.56 percent in 2007. According to the United Nations Population Division, in the year 2050, 14 percent of Hong Kong's population will be birth to 14 years old, while 51 percent will be aged 15 to 59, and 35 percent of the populace will be 60 years of age and over.