Positive non-interventionism

From Wikipedia, the free encyclopedia

Positive non-interventionism is the economic policy of Hong Kong rasied by Charles Philip Haddon-Cave in 1980 (or by John James Cowperthwaite in 1971). It is seen as a type of laissez-faire policy carried out today. According to Haddon-Cave,

"positive non-interventionism involves taking the view that it is normally futile and damaging to the growth rate of an economy, particularly an open economy, for the Government to attempt to plan the allocation of resources available to the private sector and to frustrate the operation of market forces"

Haddon-Cave goes on to say that the "positive" part means the government carefully considers each possible intervention to determine "where the advantage" lies, and although usually it will come to the conclusion that the intervention is harmful, sometimes it will decide to intervene.

This policy means that the government had to respond when industries with social obligations ran into trouble and when an institution needed regulation to prevent inequitable practices.