Via the Globalization Institute, sad news that is reaching us late:

Sir John Cowperthwaite was the main figure responsible for Hong Kong’s economic transformation, lifting millions of people out of poverty. While scholars like Milton Friedman and F. A. Hayek put an intellectual case for the free markets, it was Cowperthwaite who provided the textbook example showing laissez-faire policies leading to swift economic development. His practical example provided confidence to the Thatcher and Reagan governments, and was a key influence in China’s post-Mao economic liberalisation.

Cowperthwaite read classics at St Andrews and Christ’s College, Cambridge. While waiting to be called up by the Cameronians (Scottish Rifles), he went back to St Andrews to study economics. This Scottish education imbibed him with the ideas of the Enlightenment, especially the work of Adam Smith, who had been born nearby in Kirkcaldy. He was a liberal in the 19th century sense, believing that countries should open up to trade unilaterally. In 1941, he joined the Colonial Administrative Service in Hong Kong. When it fell to the Japanese, he was seconded to Sierra Leone as a district officer, before returning in 1946 to help the colony’s economic recovery. "Upon arrival," the Far Eastern Economic Review put it, "he found it recovering quite nicely without him." He quickly worked his way up the ranks and was made Financial Secretary in 1961, in charge of its economic policy for a decade.

When he became Financial Secretary, the average Hong Kong resident earned about a quarter of someone living in Britain. By the early 90s, average incomes were higher than Britain’s. Cowperthwaite made Hong Kong the most economically free economy in the world and pursued free trade, refusing to make its citizens buy expensive locally-produced goods if they could import cheaper products from elsewhere. Income tax was never more than a flat rate of fifteen percent. The colony’s lack of natural resources, apart from a harbour, and the fact that it was a food importer, made its success all the more interesting. Cowperthwaite’s policies soon soon attracted the attention of economists like Milton Friedman, whose television series Free to Choose featured Hong Kong’s economic progress in some detail.

Asked what is the key thing poor countries should do, Cowperthwaite once remarked: "They should abolish the Office of National Statistics". In Hong Kong, he refused to collect all but the most superficial statistics, believing that statistics were dangerous: they would led the state to to fiddle about remedying perceived ills, simultaneously hindering the ability of the market economy to work.

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