Lecture 9: Hong Kong as a Divided Society - PDF

1 Lecture 9 Hong Kong as a divided society: From land of opportunity to land of inequality? Today’s Lecture  I. Standard definition (SD) - explanations and myths to the land of opportunity and inequality  II: High definition (HD) (1) – Understanding mobility pathways in HK  III: H...

1 Lecture 9 Hong Kong as a divided society: From land of opportunity to land of inequality? Today’s Lecture  I. Standard definition (SD) - explanations and myths to the land of opportunity and inequality  II: High definition (HD) (1) – Understanding mobility pathways in HK  III: HD (2) - The Middle Class Debate in Hong Kong  IV: HD (3) - Hong Kong as Global City and the China opportunities?  V: HD (4): Recent development: the China opportunity and the University dream?  VI: Conclusion 2 3 https://www.bbc.com/news/magazine-22000973 4 “Why can't I become the next Li Ka-shing?” [RefugeeTycoon]  Tang: Instead of complaining about the wealth and power of the city's richest man…  “I would only say Hong Kong offers free and open opportunities for people to create their universe and realize their dreams.” http://www.scmp.com/article/968546/road-rich-pickings The Lifestyle of Rich and Not so famous  The 12th Most Expensive HK$5.5 billion to keep her Divorces Ever (2013) in the lifestyle and daughter's education.  Samathur Li Kin-ka, a Hong Kong property tycoon and Covered properties, yachts billionaire heir, was ordered and more than HK$32 by a court to pay million in annual expenses. $154,000,000 to his ex-wife, Florence Tsang Chiu- Miscellaneous item wing…The couple were included HK$5 million for married in 2008 and divorced clothes, HK$140,000 to in 2008. It's believed to be the take care of her dog and biggest divorce settlement HK$1.8 million for food. ever filed in Asia. http://www.businessinsider.com.au/ 6 uReply - Your perfect match! 7 Hong Kong Dream: becoming middle class?  The rise of the middle class in Hong Kong as an indicator of upward mobility in the 1970s Example: Kornhill 康怡花園 1986 https://www.youtube.com/ watch?v=zqWhZUqd8cQ http://www.scmp.com/comment/insight-opinion/article/1412624/dont-take-hong-kongs- middle-class-be-misers 8 Hong Kong Dream: becoming middle class  How was ‘middle class’ described in media?  The ‘middle class dream’ was one that was shared by many because ‘middle class’ meant a stable income, a chance to accumulate wealth and the hope of a better life.  Having high education levels and professional standing, the middle class is a major group of taxpayers who have driven Hong Kong’s development. NEWS- The Standard: Middle class feeling the squeeze, 2014 9  The Life of the poor  “That would be happy news! If I have HK$3,000 each month, I wouldn’t need to go so faraway to fetch newspapers. I can just collect some cardboard downstairs and that should be sufficient for me to live on. I can pay my rent and eat cheaply and that would be enough.” Source: www.scmp.com/news/hong-kong/article/1624253/cardboard-dreams-day-hong- kong-elderly-woman-who-must-scavenge 10 Housing issues – e.g. subdivided units in Hong Kong http://cdn2.i- scmp.com/sites/default/files/styles/980x551/public/2013/05/28/img688h6lu.1_ed1_p age16_35956533.jpg?itok=Z0xvT2K9 11  Some possible S.D. Images? IndustrializationS.D. 1 – HK was a land of opportunity? Open and fair social 1950s-1980s mobility structure? Globalization  S.D. 2 – Birth of a M-Shaped society under globalization? 1970s-2010s  S.D. 3 – China opportunities are open for HK’s young entrepreneurs?  S.D. 4 – University degree Post-2000s improve upwardly mobility? Rise of  S.D. 5 – HK becomes a land of social unrest inequality? A closing social mobility structure for youths? 12  Inequality  polarization?  Divided society, polarization, inequality, dual city etc. – interchangeable terms?  All of the above carry different meanings.  Polarization = or =/= inequality.  A process: income (M shape society), political view  Some possible causes of income polarization?  Inequality: class, gender, age, ethnicity  I.e. Fair? Or unequal access to economic, health, education, political right.  Our focus: for social mobility, inequality affected by class inheritance and class openness. Hamnett, Chris. 2011. Urban Inequality: Its Definition, Measurement, causes, and Importance.” P.23-40 in Hong Kong Divided? Structures of Social Inequality in the Twenty-First Century. Edited by Stephen W.K. Chiu and S.L. Wong. HK: HK Institute of Asia-Pacific Studies. CUHK. 13 Asian Four Tigers: Industrialized society  restructured mobility 14  2.1 Framework of analysis: John Goldthorpe – class scheme  Class formation in Britain  More complex than ‘capitalist’ vs. ‘proletariat’.  How far social classes, identifiable as social collectivities, retain in the same class position over time?  Influence voting behavior and political action  British 'political arithmetic' tradition (rational)  Determine ‘life chance’  Class structure in postwar Britain shaped the class mobility experience  Upward mobility opportunities made the attainment of class consciousness more difficult.  Tunnel effect (Lui Tai Lok) See also: Wong, Thomas W.P., and Tai‐lok Lui. 1992. Reinstating Class: A Structural and Development Study of Hong Kong Society. Occasional paper no. 10. Hong Kong: Social Sciences Research Centre, University of Hong Kong. 15  Tunnel effect (Lui Tai Lok) By Foaukmaod (Own work) [CC BY-SA 3.0 (http://creativecommons.org/licenses/by-sa/3.0)] 16 2.2 Sociologist’s argument:  The common deficiency of existing analysis (S.K. Lau’s minimally integrated society of HK)  Non-structural approach to ‘social structure’, ‘society’ : e.g. ‘refugee mentality’ – a cultural explanation.  The HK Chinese society is perceived as some amorphous (無組織的) entity. : atomized + utilitarian familism.  HK mobility path similar to Asia than the West.  Sociologists argued: class and class differences are the fundamental constituents and features of HK social structure. Wong, Thomas W.P. and T.L. Lui. 1992. Reinstating Class: A Structural and Developmental Study of Hong Kong Society. Hong Kong: Social Sciences Research Centre, University of Hong Kong. 17  Study of social mobility pathway in HK (Wong and Lui 1992)  Postwar period of high mobility  Structural mobility (absolute rates) VS circulation mobility (relative rates; zero sum)  Why? Growth, expansion of education, absence of old ruling class because of war and revolution  Different dreams for different people?  Professionals; affluent working class; entrepreneurs? Wong, Thomas W.P., and Tai‐lok Lui. 1992. Reinstating Class: A Structural and Development Study of Hong Kong Society. Occasional paper no. 10. Hong Kong: Social Sciences Research Centre, University of Hong Kong. 18 Employment relations affect life chance Service Class Middle class; employer more I. Upper service class willing to provide mobility path II. Lower service class and to invest in their career; more ‘market’ oriented Intermediate Class III. Routine non-manual Influenced by both the ‘service employees relationship’ of the middle class (commerce/admin/sales) and the labour contract of the IV. Petty bourgeoisie (small working class. proprietors, artisans, contractors) V. Lower-grade technicians Working Class Laborer, blue collar; hourly / VI. Skilled manual workers daily wage / piece rate / VII. Semi-skilled and unskilled employer no investment, insecure workers, agricultural workers - lack of welfare and benefit 19 Wong and Lui (1992) 20 2.3 Wong and Lui (1992) result  Hong Kong people’s social-mobility opportunities, or life chances, differ with their class position.  Offers evidence about the “structural” or constraining effect of class. (i.e. class still matters)  Class-based differential mobility opportunities also explain class differences in social orientations and social actions. Absolute mobility - Expansion of higher classes; contraction of Petty Bourgeoisie service intermediate working Wong and Lui (1992) What has happened? Matched changes in Census occupational structure % (1961-91). 1961 1971 1981 1991 Managers and 5.1 5.0 5.9 14.0 administrators Professionals 3.1 2.4 2.6 9.2 Clerical support workers 5.8 8.2 12.0 15.9 Sales workers 13.7 10.4 10.3 59.9 Service workers 15.1 14.7 10.3 Craft and related 49.8 52.8 50.8 workers Skilled agricultural and 7.3 3.9 2.1 fishery workers Other 1.1 2.7 0.7 1.0 Total 100.0 100.0 100.0 100.0 LegCo Research Brief. Issue No. 2 2014-15. Social Mobility in Hong Kong 23 How about intergenerational mobility? Intergenerational immobility = 23.1%; i.e. mobility = 76.9% (any direction – up and down) Illustrative purpose: a further study in 2006 24 Overall mobility rates during rapid industrialization (1992 data)  High Total Mobility Rates: 76.9%  44.4% upward mobility  happy!  18.6% downward mobility  sad…  13.8% horizontal mobility (*movement to positions that differ from those previously held, but do not involve any change in 3-folded class  E.g. IIIIV  High mobility rate in intermediate classes (either up or down). (Tunnel effect?)  High stability among ‘top’ middle class (service) and ‘bottom’ working class. 25 Wong and Lui (1992) New! Credential path : Government funded university places Table: Percentage of relevant age group for whom FYFD places available University Grants Committee 27  2.4 Mobility pathways: past and now Post war: Nowadays:  land of opportunities  Path 1: Credential path  Without pre-existing  Path 2: reproduction of ruling class (war) class / professional (e.g.)  Path 1: credential path  Some would argued: the 2% (university degree closing up of holders) entrepreneurial path due  Path 2: entrepreneurial to the land hegemony path 98%  Hegemony of related businesses/industries  Unaffordable shop rent 28 29 3.1 How to define ‘middle class’?  “It may not be necessary to set a salary limit [in defining the middle class] – [they] drink coffee and like French movies.” (John Tsang financial secretary)  Stable and educated families of moderate affluence. (according to HK Post)  Economic capital – own properties HK$2m-8m, assets HK$0.5m-6m, income HK$30k-60k (according to The Standard newspaper) 30  [2nd question by Lui and Wong 1992] Political outlook of middle class – their class interests and actions?  Different occupational groups’ life experiences, interests and orientations differ, thus they are (even within same class) not homogeneous.  Middle class often precede the majority in awareness and action. Political involvement (orientations and actions) of some active middle- class members are an indicator of the potentiality of their class as a social and political force.  What facilitate or obstruct the transformation of the class consciousness and actions of the few into those of the majority?  Can members of HK society be differentiated one from another in terms of class interests and actions? Lui, Tai-lok and Thomas W.P.Wong. 1998. Class Analysis and Hong Kong (in Chinese). Hong Kong: youth Literary Book Store. 31 Sociologist’s findings (I): class consciousness?  Do class positions differentiate their social orientations and social actions? Does class matter? (1992)  79% feel themselves belong to a class.  Subjective class membership is fairly equal to objective class membership.  Lower classes when compared with higher one were more likely to see:  Conflicts between classes as inevitable.  Employers have to exploit workers in order to make profits.  Average wage-earner receive less than one contributes. Wong, Thomas W.P. and T.L. Lui. 1992. Reinstating Class: A Structural and Developmental Study of Hong Kong Society. Hong Kong: Social Sciences Research Centre, University of Hong Kong. 32 Sociologist’s findings (II): Life chance?  Ways that respondents handle certain problems differed in terms of class positions:  Higher classes solve through market (mortgage, outsourcing child care, gentrification of neighborhood)  To find a job, working/lower class members rely more on resource network of relatives and friends (i.e. importance of social capital; also expecting intervention of the government) Wong, Thomas W.P. and T.L. Lui. 1992. Reinstating Class: A Structural and Developmental Study of Hong Kong Society. Hong Kong: Social Sciences Research Centre, University of Hong Kong. 33 Why Middle Class associated with ‘social stability’ - Rearguard (not vanguard) Politics?  Vanguard vs. Rearguard? (forefront of new developments VS reactionary or conservative)  Credential path (~2% university): the elitist education system contributing to their advantage.  Entrepreneurial path: opportunities by the rapid structural changes of the economy.  Rearguard! Middle class’ vested interests in the continuation of the capitalist, with less need to create or join its own political groups.  Meanwhile, the (post-1967) working class does not present itself as an organized force which can threaten the interests of the middle class.  (favor) Stability, so speaking! Lui, T. L. 2003. “Rearguard politics: Hong Kong's middle class.” The developing economies 41(2), 161-183. 34 35 The Global City – a concept  Global city is commanding nodes of the global economy.  Dispersal of production but centralization of control: corporate headquarters.  Concentration of producer services (law, accounting, advertising).  A “hourglass” shaped society. Sassen, Saskia. 1991. Global city: Hong Kong, New York, London and Tokyo. Princeton, NJ: Princeton University Press. 36 4.1 Middle class in the global city  are they shrinking?  M-shaped society (Kenichi Ohmae)?  Social congestion?  Decrease in openings of upward mobility?  Fear of disappearance of the middle class – symbol of openness and opportunity. 37 Hong Kong’s Changing Opportunity Structures? Sociologists’ view:  No slackening(放緩) of mobility but accelerated mobility competition.  HK society is still open and allows for upward mobility, though primarily in short range movement.  Expansion of ‘upper space’ was an outcome of the continuous growth and development of HK economy.  Split of middle class  Higher end (capital intensive: finance, insurance) – embedded in global/regional network vs. middle (teachers, SW, medical personnel) – embedded in local / domestic institution.  But shrinking is true for manufacturing related occupations.  Still: rearguard of politics continue (for middle class). Lui, T.L. 2009. “Hong Kong’s Changing Opportunity Structures: Political Concerns and Sociological Observations.” Social Transformations in Chinese Societies. 5: 141-164. 38 4.2 Rising income inequality: economic or social cause?  Gini coefficient HK household: 1976 (0.429)  2011 (0.537)  Economic reasoning: Technological change as a cause  New technology (IT) requires more human capital (knowledge, culture etc).  Widening income gap between highly and less educated. 39 Alderson, Arthur and Francois Nielsen. 2002. “Globalization and the Great U-Turn: Income Inequality Trends in 16 OECD Countries.” American Journal of Sociology 107(5): 1244-1299. 40 Kuznet curve (sector dualism):  1. those with SID last digit ‘2’ please raise 2, the others raise 1; calculate  2. now all people around 2 please raise 2, the others 1; calculate  3. now every one, except SID last digit ‘1’ (rich can't pass three generations), raise 2 (inverted U) Diffusion of education (skill vs. unskill)  1. those with SID last digit ‘2’ please raise skilled, the others unskilled;  2. now all even no. SID (last digit) raise skilled, the odd no. unskilled  inequality  3. now every one raised skilled (inverted U) (note: but ‘U’ also possible, stratifying) Changing role of women  1. (only) All men please raise ‘men’  result?  2. All women ‐ please also raised ‘women’  inequality Labor market institutions (all put up paper first)  1. All with group project  Strong institutional resistance put up your paper (fewer low wage ‐ but increase unemployment), rest put down  2. ‘Everyone’ (individual and group) now being ‘Weak institutional resistance’ and raise your paper (more low wage ‐ income inequality, less unemployment) North‐South Trade  1. All odd no. SID skilled ; all even no. SID unskilled; all (paper) money go to 'SKILLED’ (around you)  inequality Foreign Direct Investment (FDI)  1. now, pass all you paper (money) to the person next to you; bargain for a better salary (no money no talking)  2. keep passing it to the other sides, as spatial barriers removed (financialization)  global city vs. others 41 Polarization in the global city (capital-intensive production)  Mcjobs and Professionals as typical jobs in Global City.  Growth of high income and low income, middle income (aka factory jobs) disappeared  HK % change median monthly income 1991-2001: Managers / administrators (116.7%); service workers / shop sales (82.2%); elementary occupations (51.4%)  Most developed cities and nations saw a widening income gap in the last two decades. Sassen, Saskia. 1991. Global city: Hong Kong, New York, London and Tokyo. Princeton, NJ: Princeton University Press. 42 Chiu and Lui (2004): polarizing income of occupations Chiu, Stephen W.K. and T.L. Lui. 2004. “Testing the Global city-Social polarization Thesis: Hong Kong since the 1990s.” Urban Studies 41(10): 1863-1888. 43 HK as the ‘freest market’ global city (weak institutional resistance)  Income at top level increase faster than lower levels (.  Rapid shrinking manufacturing sector and related median income decreased.  Result of local institutions plus government policy framework  Little intervention from state during industrial restructuring - faster and thorough restructuring compared to other East Asian countries.  “Residual” welfare system - similar to USA Chiu, Stephen W.K. and T.L. Lui. 2004. “Testing the Global city-Social polarization Thesis: Hong Kong since the 1990s.” Urban Studies 41(10): 1863-1888. 44  How much are welfare and taxes reducing inequality in HK? Chiu, Stephen W.K. 2008. “Family Changes and Income Inequality under Globalization: The Case of HK.” Presentation at CPU; original source Census and Statistics Department 2007 (109-111)45  But there are social factors other than economic structures The uReply result and the flipping result?  Sassen emphasizes changes in economic structure only.  Yet - Feminization of workforce.  Continual homogamy of partners / men and women with similar backgrounds (e.g. education).  Therefore a polarization of families with high and low incomes, magnifying effects of globalization. (the uReply!) Chiu, Stephen W.K. 2008. “Family Changes and Income Inequality under Globalization: The Case of Hong Kong.” Presentation at CPU 46   Higher correlation between husband and wives’ income, from 0.333 in 1991 to 0.382 in 2001  The reason: educational homogamy Chiu, Stephen W.K. 2008. “Family Changes and Income Inequality under Globalization: The Case of Hong Kong.” Presentation at CPU Other globalization-related factors  Globalization and producer services demand professionals, including women.  Foreign Domestic Helpers (FDHs) filled the gap left by working wives.  HK’s migration policy welcomes people with diverse qualifications (talents vs. new arrivals from mainland). 48  Wives of ‘higher income husband’ tended to participate in labor market (e.g. outsourcing child care) (vs. lower income) Chiu, Stephen W.K. 2008. “Family Changes and Income Inequality under Globalization: The Case of Hong Kong.” Presentation at CPU 50 NEXT LECTURE (18 November) Current youth experience? 51 Two sources of social grudges: 52  The China’s opportunity thesis: by 2010, yes for some, not so for others  The expected opening of new opportunities for Hong Kong people on the mainland has yet to fully materialized.  Instead of seeing more Hong Kong residents finding the mainland to be a newly developed environment for career development, the trend has reversed. Lui, T. L. 2014. “Fading Opportunities: Hong Kong in the context of regional integration.” China Perspectives, (1), 35. 53 Fading Opportunities: by 2010, age differences – getting older Lui, T. L. 2014. “Fading Opportunities: Hong Kong in the context of regional integration.” China Perspectives, (1), 35. 54  Fading Opportunities: by 2010, occupational differences – focusing on the high end Lui, T. L. 2014. “Fading Opportunities: Hong Kong in the context of regional integration.” China Perspectives, (1), 35. 55  Fading Opportunities: by 2014, window closing or yet to open?  Subtle divisions along sectoral cleavage  Separate those benefiting directly from new opportunities. Most jobs came from company based in HK than from mainland labor market.  Changes in employment within middle class, restricted to those delivering producer services.  E.g. versus locally embedded service job – teacher.  New kind of unevenness in social structure (impact on opportunities in mainland China).  (Local) Young people have yet to catch the China’s opportunities?  Gov’t emphasis on Mainland opportunities could become source of people’s growing anxiety. Lui, T. L. 2014. “Fading Opportunities: Hong Kong in the context of regional integration.” China Perspectives, (1), 35. 56 Two sources of social grudges: 57  Recent social mobility path? 2007 overall similar to 1989 Absolute mobility: overall, middle class is expanding and working class is shrinking. Wong, Y. L., & Koo, A. (2016). Is Hong Kong no Longer a Land of Opportunities after the 1997 Handover?. Asian Journal of Social Science, 44(4-5), 516-545. 58  Yet, something new for equality of class mobility  Barriers for people to move across boundary became weakened i.e. easier to move to other class – especially from intermediate class.  Yet, stronger class inheritance effect in 2007 – especially top service and working class, despite the top is expanding and the bottom is shrinking.  Inequality of class mobility still exists. Wong, Y. L., & Koo, A. (2016). Is Hong Kong no Longer a Land of Opportunities after the 1997 Handover?. Asian Journal of Social Science, 44(4-5), 516-545. 59 Recent development of the credential path? Commodification of education  market > state in HK In 2013, admission to publicly funded universities: Hong Kong: ~18% South Korea: >80% Taiwan: in theory 100% Singapore: 26% Research Brief. Issue No. 2 2014-15. Social Mobility in Hong Kong 60 Path 1: Credential path (opening structure) + Path 2: reproduction of class (closing structure) Life chance – you are here because… Being A Child: Hong Kong (贏在起跑線) https://www.youtube.com/watch?v=HUKc2pHEepc Research Brief. Issue No. 2 2014-15. Social Mobility in Hong Kong 61 Two sources of social grudges: 62 Monthly income difference between Form 5 level and other education level in 2011 (Age: 15-25) (U degree still good, cross sectional) Overall Male Female Degree ADHD Form 5 (reference) High diploma Form 4 or below Matriculation Higher Diploma Associate degree Postgraduate http://www.pentoy.hk/趙永佳、梁懿剛：青年「下流」-讀書無用？ (2014-12-18) 63 Longitudinal downward: Education, occupations and income of youth  The income of young people decreased and the median monthly income of young people is lower than the whole HK working population.  Non-degree education cannot improve the income level of young people. Median (HKD) Income ratio 2001 2011 2001 2011 Year Education Form 5 or below 9,494 8,500 0.77 0.71 Matriculation and non- 11,170 9,000 0.91 0.75 degree Bachelor or above 17,313 15,500 1.41 1.29 Total 11,170 10,000 0.91 0.83 64 Longitudinal downward: Education, occupations and income of youth  The percentage of young people in the middle class occupations declined overall  The increase of education level cannot bring advantage for them in the labor market  frustration? Form 5 or below Matriculation Bachelor or and non-degree above Year 2001 2011 2001 2011 2001 2011 Occupations Managers and administrators 1.6 1.0 3.2 1.8 10.2 10.7 Professionals 0.7 0.0 6.7 1.3 29.6 24.0 Associate Professionals 12.3 10.3 36.8 29.4 42.7 38.7 Clerical support workers 31.3 28.3 31.2 37.0 11.0 18.2 Sales and Service workers 26.9 38.1 15.1 22.9 5.1 6.8 65 Longitudinal downward: Same degree, different ‘prize’  ‘The silver spoon’ - The children of rich and famous  new elite class?  Overseas qualifications becoming more important? In 2009:  51,300 students studying at tertiary level overseas.  74,146 UGC students in HK.  Who is capable of studying abroad, who is staying? 66 67 Conclusion SD HD 1 The freest economy allows - The postwar intergenerational ‘free’ mobility for locals mobility was evidently high, but class without constraint during still exercised its impact in restricting industrialization. access to or leaving from certain class. 2 Education as one path of -Internal stratification of differential mobility opportunities of high education -Entrepreneurial path is closing up 3 Young entrepreneurs and -The expected opening of new the opportunities in opportunities for Hong Kong people on mainland China the mainland has not fully materialized -Structurally, young people have yet to catch the China’s opportunities 68