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Having a laugh at the Kowloon City wet market last December. Hong Kong’s rankings in the World Happiness Report have fallen from 46th when the report was first published in 2012. Photo: May Tse
Opinion
Inside Out
by David Dodwell
Inside Out
by David Dodwell

Hong Kong can lift its misery by making happiness serious business

  • Focusing on economic growth has left Hong Kong sadly at 76th in the World Happiness Report. The city must get serious about tracking happiness to have a stab at a meaningful future
  • To start, try the OECD’s Better Life Index, which tracks 11 qualities such as housing, secure jobs and civic engagement
On Saturday, my Outside In column examined the shortcomings of gross domestic product, and how it mismeasured the progress we are making in our lives. And if our economists are right that we should not just be measuring our progress in terms of the stuff we produce and the stuff we consume, the next logical step is to ask what instead we should be measuring.

The consensus answer starts with Aristotle’s eudaemonia, roughly translated as happiness with a bundle of virtue mixed in. In the 1700s, Jeremy Bentham took things further with his utilitarianism – “it is the greatest happiness of the greatest number that is the measurement of right and wrong”.

We can then segue forwards to University of Southern California professor Richard Easterlin, and his controversial 1974 paper “Does economic growth improve the human lot? Some empirical evidence”. His firm answer was no: wealth had tripled in the United States since 1960, but measures of happiness had stagnated.

Since Easterlin’s “discovery”, thousands of academic papers have been published trying first to identify what makes us happy, and then to distil that into an index to use instead of GDP.

As “unhappiness” in various extreme forms has broken out across the world over the past year – not just in Hong Kong, but also in France, Chile, Catalonia, India, Lebanon – the need has never been greater to identify the sources of our malaise, and what we need to do to treat it.
From the Better Life Index by the Organisation for Economic Cooperation and Development (OECD) and the United Nation’s World Happiness Report, to more specific efforts such as Canada’s Index of Well-being, Maryland’s Genuine Progress Indicator, Britain’s National Accounts of Well-being Accounts, the Happy Planet Index that aims to track the environmental sustainability of our behaviour, and even Denmark’s homely fondness for hygge, authors identify key ingredients that consistently coincide with perceived improvement in our lives.

The World Happiness Report relies on six measures: income, healthy years of long life, people to turn to, trust in others, perceived freedom, and habits of generosity. Professor Richard Layard, at the London School of Economics, home of “happiness economics”, adds work stability.

Immediately, you can see where Hong Kong is in trouble, even though the index misses other criteria that I think are generating stress and unhappiness in Hong Kong: household incomes are moderately high by global standards, but have stagnated for most of the population since the 1998 Asian financial crisis, checked by the bursting of the dotcom bubble in 2000, the severe acute respiratory syndrome, or Sars, epidemic in 2003, and the 2008 global financial crisis. For a community to suffer wage stagnation and persistent job insecurity for more than 20 years must surely severely sap morale.
Anxieties about future freedoms are also at boiling point, for obvious neighbourly reasons. Angst has been turbocharged by artificial intelligence-driven social credit schemes being developed on the mainland that snoop deep into ordinary people’s daily lives.
Inside the most recent World Happiness Report is a chapter called “The sad state of happiness in the United States and the role of digital media”. It notes striking jumps in teen depression since smartphones became common in 2011, and notes strong connections between a collapse in social interaction and a lack of sleep as important risk factors for unhappiness. There are surely lessons for Hong Kong here.
Not surprisingly, Hong Kong ranked a miserable 76th in the 2019 World Happiness Report, down from 46th when the report was first published in 2012, and must surely have plummeted even further over the course of 2019’s season of violent protests.
Hong Kong is ahead of China (93rd) and Malaysia (80th) but behind the Philippines (69th), Japan (58th) and Singapore (34th). Most striking, we are far behind east Asia’s happiest economy – Taiwan, at 25th. Quite what makes Taiwanese people so much happier when they share Hong Kong’s anxieties about the mainland is not terribly clear. Perhaps the simple freedom to participate in robustly democratic elections really does make all that difference.
Further contributing to Hong Kong’s overall misery must surely be the extremity of inequality, the stratospheric unaffordability of property, and the tiny shoebox spaces that families are forced to squeeze into and call home. A world-beating public transport system might impress outsiders, but as Professor Layard said: you’ll never see any difference in human happiness because of how quickly you can travel from London to Liverpool.
Low and simple taxes, paid by barely half the population, might impress the Heritage Foundation, but not so much local people when they coincide with poor old-age security. It is not an accident that the world’s happiest communities as ranked in the World Happiness Report – Finland, Denmark, Norway – are those that pay strikingly high tax rates in exchange for solid assurances of impeccable health care and financial security in old age.

Hong Kong discovers the price of being the world’s most free economy

We have for decades boasted that Hong Kong ranks highly in competitiveness, or economic freedom, or the independence of our judiciary, but these are accolades – measures of success or progress – that remain unconvincing for and unappreciated by local people when they look for progress in their lives.
On the (perhaps naive) assumption that Carrie Lam Cheng Yuet-ngor’s administration is forming plans to dig our community out of the miserable hole we find ourselves in after half a year of shocking violence and street protests, launching initiatives aimed at improving livelihoods and putting some puff back into economic growth may be necessary, but not sufficient. We must also find satisfactory ways to measure our future progress.

Most useful to Hong Kong might be the OECD’s Better Life Index, which builds on 11 qualities essential to well-being: housing, stable income, secure jobs, community, education, environment, civic engagement, health, life satisfaction, personal safety and work-life balance. Hong Kong scores terribly by most of these qualities, so this index would provide an impeccable starting point to explain our misery and track progress towards more fulfilling lives.

As Professor Layard notes, such an index would not just show us how to get ahead. It would also show us how to get along. That would not add up to Denmark’s warm and fuzzy hygge, but would surely point us towards a happier and more meaningful future.

David Dodwell researches and writes about global, regional and Hong Kong challenges from a Hong Kong point of view

This article appeared in the South China Morning Post print edition as: For a happier future
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