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In 2002, Hong Kong civil servants were the envy of many people. Their salaries, fringe benefits and employment terms compared favourably with international standards. However, as civil servants staggered from one disaster and mistake to another, the public had an impression that their performance did not match their liberal remuneration. While private sectors were announcing massive lay-offs, pay-cuts and reduced benefits in the sluggish economy, the Hong Kong government was under pressure to reduce civil service pay, and at the same time, to increase public accountability and improve performance.