In fight against poverty, Hong Kong needs basic respect for workers
Paul Yip says Hong Kong's efforts to reduce poverty must be built on a social contract that supports paying workers a decent wage, even if it chooses not to go the way of a welfare state
The Hong Kong government has made it a priority to reduce poverty. This is good news. It is, of course, the duty of any responsible government to alleviate poverty in the community. However, it is also important to realise that a certain proportion of the population will always be below a relative poverty line (in Hong Kong's case, 50 per cent of the median household income).
The suggestion to reduce the figure to a single-digit percentage is nearly impossible, given that it is simply a statistical distribution of income in the community. The proportion of Hong Kong's population below the poverty line has been around 15-20 per cent in the past two decades. The latest figure is 19.6 per cent.
As the chief secretary rightly pointed out, the real test lies in devising effective poverty alleviation measures. Our real challenge is to help the less fortunate to improve themselves.
A recent visit to Oslo, Norway's capital, provided some interesting comparisons. There, a hamburger costs the equivalent of about HK$60, or three times as much as in Hong Kong. On the other hand, Norway's median household income is also about three times higher than it is here. A bus driver earns as much as a teacher or a lecturer in an academic institution. The top 10 per cent of income-earners make three to four times as much as the lowest 10 per cent. In Hong Kong, the top 10 per cent earn more than 10 times as much as those in the bottom 10 per cent.
There is no statutory minimum wage in Norway but most people, if not all, earn enough to pay tax; t ax revenue is over 40 per cent of gross domestic product. Workers in McDonald's earn the equivalent of about HK$160 an hour. The Norwegian community believes that people who sell burgers deserve a decent salary. People accept the high cost of living, and are prepared to pay to reduce social inequality. Of course, average home prices are only about half of those in Hong Kong.
Visitors to Norway are concerned about the high costs, but it doesn't stop them visiting, to experience the beautiful scenery, blue skies, clean air and rich culture.