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An analysis of the social and political transformation of Hong Kong, primarily focusing upon the period 1984-1998 - a period marked by the mobilization and politicization of Hong Kong people. This study adopts a two-tiered conceptual model of political systems to explain the transformation of Hong Kong during this period. The model, first proposed by Claus Offe, describes a system where political activity is the result of the operating sytem that determines how the nation-state will function. Against this model, the author examines two overarching issues and their effect on Hong Kong's social and political processes: the economic modernization of the territory and the July 1st retrocession. The consequent tensions created are shown to have played a decisive role in the unique development of Hong Kong's social and political systems.