To ensure Hong Kong’s economic prosperity, young people must be allowed the freedom to pursue personal well-being

According to Nobel laureate Amartya Sen, economic prosperity is not an end in itself; it is no more than one means to the end of enriching people’s lives. When personal well-being is excluded, the future darkens and economic decline soon follows. As Hong Kong’s economic future is all about its youngsters, their quest for well-being must be considered.

As Hong Kong is a financial hub, many people in the city work extremely hard to support its economic performance. And on multiple occasions during the protests triggered by the now-withdrawn extradition bill, the government has said Hong Kong’s economy is suffering, and this is leading to a deterioration in social well-being.

This resonates with those who helped to build this economically vibrant city. They are especially critical of young protesters because, to them, quality of life hinges on economic prosperity.

Although the extradition bill has been withdrawn, Hongkongers’ fear of the Communist Party regime continues to intensify. This drives youngsters to crusade for personal well-being. But the ongoing contentious protests both weaken the economy and create a divergence in the understanding of “quality of life”. These different views – the pursuit of economic prosperity versus personal well-being – divide Hong Kong.

GDP, a common measure of economic performance, is an estimated sum of the final goods and services produced and traded in a market. But high GDP does not always translate into high GDP per person. For example, China’s GDP per capita ranked 65th in 2018, according to the World Bank, while Hong Kong’s was 10th.

So, countries with a high GDP can struggle to achieve a good quality of life for their citizens. Over the past few decades, welfare economists have warned that GDP does not accurately measure a society’s well-being; even where there is substantive growth. GDP quantifies economic performance but provides no information on personal happiness.

Economists such as Sen realise that economic prosperity is no more than one means to achieve personal well-being. In the 1990s, he proposed the Capability Approach which evaluates individuals’ capability to develop a good life.

As Hongkongers will tell you, GDP not a perfect prosperity gauge

Sen formulated two core concepts: “functionings”, which refer to states and activities such as feeling safe or having a good job, and “capabilities”, which refer to the freedoms and opportunities to achieve the former.

Around the same time, economist Mahbub ul Haq developed the Human Development Index by combining GDP, life expectancy and education indices to shift the UN’s economic policy from one that was income focused to a people-centred approach.

Inspired by Sen’s research, University of Chicago law professor Martha Nussbaum added human dignity to the Capability Approach equation. Human dignity, says Nussbaum, is required in the pursuit of an enriching and socially just life.

Unlike internet banks, fund managers, cash-rich conglomerates and real-estate developers that have an economic stake in Hong Kong, the city’s young people have an entirely personal stake in Hong Kong’s future. Their fear of losing the capability to pursue their well-being under Beijing’s rule is very real.

For these youngsters who look beyond financial benefits, the rhetoric of economic prosperity rings false. Their idealism is at odds with the values of older Hongkongers, who have sacrificed personal liberty in exchange for economic advancement.

Refuse the protesters everything, and they will fight to the end

As the future key stakeholders of society, Hong Kong’s youngsters are fighting for long-term opportunities and freedoms for their well-being. They demand the “capability” to achieve welfare across the spectrum: personal, political, social and economic.

As Sen puts it, “even as a means, merely enhancing average economic opulence can be quite inefficient in the pursuit of the really valuable ends”. This suggests Hong Kong’s economic prosperity can only be sustained when individuals have the capability to access the freedoms that bring personal well-being and ensure human dignity.

Unfortunately, as long as Hong Kong faces turbulence and Beijing’s interference, the means to the end of enriching lives may not be realised any time soon.

Dr Enoch Hsu has been a transfer-pricing economist in China, Hong Kong and the US since 1999 and was previously an economics professor at Santa Clara University