How Hong Kong’s war on poverty can be won
Paul Yip says even though policy intervention has had some effect on poverty rates, real change requires a better job market and training to boost income levels among the poorest, along with a combination of community effort and visionary government planning
The Hong Kong government has spent considerable resources on achieving this reduction. Nevertheless, the continued increase in the number of older-adult and single-parent households has brought extra difficulties, as their poverty rate is worse than that of the general population.
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What does it mean to be poor in Hong Kong?
The poverty gap, measured by the amount needed to lift the income level of poor households above the poverty line, has widened from 2015. This is mostly due to no change in earnings among the low-income group and a bigger increase among high-income earners. A group of households in the poverty trap has become the hard core poor, and this situation can only be remedied by a radical and fundamental change in their earning levels.
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What can we learn from this poverty line, especially with relation to formulating social and public policies to address the situation? The rise in the number of poor among older adults should be viewed with caution, as many can be income poor but asset rich. Elderly people who are both income and asset poor should be given more help, especially if they have no support from children.
The poverty rate among the unemployed is eight times higher than among those with jobs, and the jobless rate among those aged 15-19 is about 14 per cent, against 3.4 per cent for the general population. The government has pointed out that continued economic growth with a good job market would be the most effective in improving livelihoods. But we also have 8 per cent working poor in the population.
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Should the government employ those who have been hired by outsourcing companies to provide services to its own departments? Providing a stable and more favourable working environment for these low-skilled workers would also benefit their families and children. They can live on their salary rather than accept the low-income subsidy, which is government money anyway.
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Sadly, there is neither a short cut nor a silver bullet to improve the quality of life for Hong Kong’s poor. Recurrent cash support is a short-term solution and likely to be ineffective without employment conditions where wages among low-skilled workers can be improved. Genuinely needy older adults should also be clearly identified.
With the workforce expected to peak next year and then steadily decline, it is important to make the current and incoming workers more productive. We also need to diversify our economy to create more space and opportunities for the young. The Hong Kong government can help to boost and diversify our economic portfolio. At present, it is fighting an uphill battle in containing the spread of poverty in a rapidly ageing society. The war against poverty still requires a community response, along with strategic and visionary planning. Hard work, dedication and community efforts will pay off.
Paul Yip is chair professor of social work and social administration at the University of Hong Kong. The project is supported by the Hong Kong Jockey Club Charities Trust