Many recent articles in your paper have focused on Hong Kong's rapid growth rate and commendable levels of economic development over the past 50 years. Much to the envy of the rest of the world, for instance, the real annual average GDP growth rate per capita was 8.4 per cent between 1975 and last year. But much still needs to be done to improve living standards in Hong Kong. Statistics show 10 per cent of the population is in absolute poverty. Another piece of evidence that indicates the extent of inequity in society is the rise in the Gini coefficient during 1995 and 1996. This is an indicator of inequity in society: the larger the coefficient, the greater the level of inequity. Increases in the disparity between the rich and the poor should not just be discounted as an inevitable consequence of Hong Kong's growth. It is imperative that the new administration addresses this issue. Policy measures to redistribute income from the rich to the poor are essential to Hong Kong's future economic growth and stability. For instance the adoption of a wealth tax and increasing transfer payments to the poor would be examples of prudent policy measures. NAME AND ADDRESS SUPPLIED
