Inequality and Poverty in Hong Kong (2019)

Inequality: Social and Political Consequences

• Inequality's consequences include poverty and social unrest.

Defining Poverty (Hong Kong, 2019)

• The Commission on Poverty uses a relative poverty measure.
• The poverty line is set at 50% of the median monthly household income before policy interventions (taxation and social welfare transfers).
• Median CSSA income is HKD2,455.
• Poverty lines vary by household size, ranging from 4,500forsinglepeopleto4,500 for single people to 4,500forsinglepeopleto23,000 for 6+ person households. (These figures are from 2019 data).

Poverty Rates (Hong Kong, 2019)

• Post-intervention: 9.2% poverty rate, with 0.287 million poor households out of 0.642 million people.
• Pre-intervention: 21.4% poverty rate, with 0.649 million poor households out of 1.491 million people. (These figures are theoretical pre-intervention estimates.)

Poverty Lines by Household Size (2009-2019)

• Charts show poverty lines changed over time, varying by household size. The amounts increased over the 2009-2019 period.

Welfare Model of Hong Kong (Recap)

• Hong Kong's welfare model historically has been strongly influenced by the colonial past and a need for social stability, which has led to a paradox.
• A strong state role in funding services (e.g., healthcare, education, housing since the 1950s).
• This has been contrasted with a limited state capacity due to a 'small government' ideology.
• Hong Kong's welfare system is residual (more focused on individual and family support).
• It is highly institutionalized but differs from others concerning financial conservatism, low tax rates, and non-interventionism in the economy.

Welfare Model of Hong Kong (Recap) - Continued

• Economic growth is crucial for funding welfare programs (trickle-down effect).
• Emphasis on self-reliance over government support is a key feature.
• Family, rather than the state, often plays a leading role in 'informal care'.

Productivist Welfare Capitalism (lan Holliday)

• Hong Kong's welfare model fits a 'facilitative' subtype, prioritizing economic policy over social policy.
• Social rights are minimal and linked to productive activity.
• Stratification effects in the job market are meant to encourage productivity.
• State-market-family relationship is prioritized toward economic growth.
• Private and public sectors work together.

Post-1997 Poverty Policy Issues

• Excessive focus on promoting economic development and human capital.
• Hope that universal education would empower the poor, but university admission rates were still low.
• Poverty policy frequently neglected the problems of the working poor and social exclusion.

How Welfare Model Impacts Poverty in Hong Kong (Micro Level)

• No official poverty line until 2013.
• The government frequently frames poverty as a cultural (dependency) issue to control expenses.
• The government emphasizes family and individual responsibility as main solutions to poverty.
• Government assistance (Social Security Assistance) doesn't reach all eligible elders. (Only 57% apply for benefits).

Explaining Poverty in HK (Macro Level)

• Globalization, foreign direct investment (FDI) and de-industrialization have led to poverty.
• The polarized service sector, working poverty (including flexible employment, part-time, and informal work) and lack of sufficient income for basic needs, such as food, contributes to the problem.

Possible Impacts of Living in Poverty in Hong Kong

• Poverty leads to deprivation.
• Social exclusion.
• Lack of social capital, subjective poverty (identity and efficacy), intersection of poverty and other factors like gender, ethnicity, and age.

Political Consequences of Social Inequality

• What are the ramifications of social inequality in terms of social mobilization, social movements, and social unrest? (Are they short-term or long-term?

S.D. - Inequality → Strain/Frustration → Social Movement Displacement?

• Social frustration is a key factor. Perceptions of fairness (both social and individual) are linked to a desire for upward social mobility, among other factors.
• Unequal conditions are potentially related to youth frustration (higher rates exist in HK and Taiwan than in Macao).
• People with high frustration and unfairness views are more motivated to engage in political action.

H.D. 1 - Inequality Matters (HK-Taiwan Comparisons)

• Taiwan and Hong Kong inequality levels measured through Gini coefficients.
• Perceived income inequality in Taiwan is higher than in Hong Kong.
• Trend in income inequality is an influencing factor more frequently than the actual increase in inequality.

H.D. 2 - Social Movements and Political Opportunity Structure

• Social movements are embedded in existing institutional environments.
• Their growth is partly constrained or facilitated by political opportunity structures.
• Social movements interact with and can reshape the political environment.

Changes in Political Opportunity Structure (1970s-2009)

• 1970s - 1997: increasing accessible political environment for social movements.
• 1997-2009: decrease in accessible avenues for social movements. This was because there was not much change in governance.

Conclusion: Social Inequality and Social/Political Movements

• The conclusion points to a relationship between social inequality and social/political movements.

Changing Political Opportunity + Social Inequality (Summary Table)

• Summarizes the changing political opportunities and correlates with social inequality in Hong Kong.