Recent news reports have leaked that the coming Policy Address on October 13, 2010 will not allocate large proportions of public expenditures to help the most vulnerable groups in society, aka lower class families. Different pressure groups as well as political parties have urged the government to do something to help the poor.

Based on statistics produced by the Census and Statistics Department, the latest Gini Coefficient for Hong Kong has reached 0.533, the highest since 1971. In reality, the Gini Coefficient is directly related to the gap between the rich and the poor; it means that the higher the number of the Gini Coefficient, the wider the gap between the rich and the poor. At an earlier era in Hong Kong, say in the 1950s, although economy was underdeveloped, the problem of "poverty" was not seen to be the tremendous social problem it is today. One of the major reasons may be that people could make extra efforts at their jobs. There were chances to get ahead. By contrast, in the present situation, Hong Kong has become a well-known, developed international city and it's automatically assumed that all citizens have a better quality of life and a better living standard. Lamentably social problems such as housing, elder care, and youth employment have been growing worse. Conditions for those who fall into these groups are deteriorating. The prime example, Shum Shui Po District, faces a myriad of social problems. It is the poorest district. There is a crisis over bed space in a district where people are forced to live in "cage homes". There are prevailing problems with hygiene and problems for single and elderly people. Most important is the problem of bed space apartments and cage homes. This blight on the community as a whole is becoming worse, even to the extent it has attracted increasing attention among overseas media. In addition, more people are unable to afford the daily necessities under current inflation; the staggering rise in real estate values, and the corresponding increase in societal tension.

Article 5 of the Basic Law stipulates that the capitalist system and way of life shall remain unchanged for fifty years. This provision guarantees that Hong Kong will not become a welfare state or a socialist city nor will the government raise taxes significantly. It is commonly believed that the policy will attract business or professionals, encouraging them to remain in Hong Kong and to invest here. The low tax policy is good for Hong Kong and it shall be maintained. However, the government can do better on improving the lives of the people under the low tax policy.

There is no doubt that the concerns about livelihood have become a social imperative. Yet, the Hong Kong government remains ossified in colonial times, embracing the "muddling through the stones" policy, i.e., no long-term planning on any policy. This cannot obtain for long in the face of the rapid advance of the mainland, intensified competition and globalization. As a result, I urge the government to provide a comprehensive picture of Hong Kong's population in the next five to 10 years so that we can have better planning for housing, education, for youth and the elderly. For example, the government could consider re-building a certain amount of Home Ownership Scheme Flats. In order to avoid repeating the mistakes of the so-called "85,000", the government should provide statistics on the percentage of new immigrants from the mainland in recent years and over the next decade.

Rent subsidies may also be considered to solve the immediate problems of the potentially homeless "middle class". In addition, the government ought to provide housing subsidizes in accordance with the exact proportion of our population. Critically, many poor people are facing the reality of being unable to pay for daily necessities. The government should conduct a number of feasible measures such as providing food, or medical assistance in addition to expanding the Transport Support Scheme to all districts to help the poor.

For the purpose of achieving social harmony and stability as well as strengthening good governance of Hong Kong, the HKSAR government should not merely stress economic development; it is of paramount importance that it investigate deeply the subcutaneous social problems and to have good plans for the future. In fact, good social development can bring positive effects on economic development. All in all, a strong population plan is vital for the improvement of livelihood for all walks of life in Hong Kong.

The author is member of the Legislative Council of Hong Kong and associate professor at School of Law, City University of Hong Kong.

(HK Edition 10/01/2010 page4)