For the second year running, FinanceAsia has ranked the finance ministers of the Asia-Pacific region’s 12 largest economies.
We're releasing the results day by day, from lowest to best. For the results so far, click here. For last year's results, click here.
FinanceAsia considers several factors when thinking about how to compare the performance of these men over the past 12 months. The role’s responsibilities and powers vary between countries but each minister contributes to fiscal policy and the budget, accesses capital markets, regulates financial institutions, and drives reform. Investor perceptions are one way to view how good a job they are doing, particularly when times are tough.
But the hardest criterion is independence. Most finance ministers serve at the pleasure of their prime ministers, presidents, or military dictators. Their ability to get things done requires political deftness, mastery of policy, sway over the bureaucracy, and the will to fight for the public interest.
Today's finance minister has an enviable record for keeping the books in the black and maintaining healthy reserves but has been criticised for spending on big-ticket developments rather than coming up with policies to help the city's poor.
Ranked No5: John Tsang Chun-wah, Hong Kong
Financial secretary John Tsang Chun-wah has been criticised for being too conservative with Hong Kong’s abundant fiscal reserves but last year he won applause by increasing government expenditure by 11% and extending measures to help the middle and lower class.
The measures – including a salaries tax rebate, increased tax allowance for parents, and waiver on property rates – were well-received by middle and lower income groups aggrieved by the city’s sky-rocketing property prices. But some critics see them as no more than short-term sweeteners and remain cautious over their effectiveness in tackling income inequality in the long run.
Tsang has faced complaints over insufficient government spending to address the city’s aging population, and was criticised after using public money to support private hospitals instead of expanding public healthcare services.
The government is also still dragging its feet over a proposed universal retirement protection scheme, claiming that it threatens financial sustainability in the long term.
In addition, Tsang has faced a backlash for setting aside large chunks of government revenue for so-called white elephant projects like the Guangzhou-Shenzhen-Hong Kong Express Rail Link and a third runway for the airport. Many citizens have expressed doubts over the need for such projects and believe the money could be spent on other policies that cater to the needs of the poor.
But, on a positive note, Tsang is recognised for his efforts to diversify Hong Kong’s heavily finance- and tourism-dependent economy by setting aside funds for creative industries, although such efforts could have been bigger.
Credit is also given to Tsang for keeping budget surpluses in every year since he came into office in 2007, while maintaining the city’s competitiveness even during difficult periods of the economic cycle.
TOMORROW: A finance minister making some smart calls
