EditorialOfficial poverty line is far from perfect
- As Hong Kong’s society ages, a more targeted approach is needed so that those with genuine needs are not left out in the cold
The government’s use of a poverty line to tackle Hong Kong’s widening wealth gap was once hailed as a policy breakthrough. But the surge in the number of poor people to a 10-year high has put officials on the defensive. They said the approach was not a good way to make sense of the situation and could not fully reflect the effectiveness of relief measures.
Their remarks have left many wondering whether the government is merely trying to play down its failure in alleviating poverty. With a record 1.4 million people, or one in five, living below the poverty threshold in 2018, the situation is worrying. The numbers shrank to 1.024 million after taking into account government aid, such as the Old Age Living Allowance and Comprehensive Social Security Assistance.
To be fair, the government has rolled out an array of measures to relieve the plight of the poor over the years. But the recurrence of headlines saying poverty has hit new highs is not just shameful for a city infamous for its disparity between rich and poor. It also deals a blow to the government’s image and calls into question the approach used in helping those who go without.
Introduced by the previous administration in 2013, the poverty line defines individuals and households as poor when they earn less than 50 per cent of the median monthly household income before taxation and policy interventions. But it does not take into account people’s assets and the benefits of other one-off allowances. The figure would be as low as 910,000 when other relief measures are included. But it is still uncomfortably high.
Officials are adamant that poverty-relief measures are effective, but the poverty line may not be a good tool to communicate with the public as it cannot reflect the effectiveness of policies in full. That raises questions about whether it is a good tool for assessment. If the existing approach cannot reflect the situation in a meaningful way, an overhaul should be considered.
The pressure on the government will only increase as more people retire and become officially poor in our rapidly ageing society. A more targeted approach is needed so that those with genuine needs are not left out.