Liberal Studies Project Stage 2 (By Sam)***

1. Statistics shown the poverty issue is never resolving and it revolts more severely. In 1996, there are 85700 households that have less than HK$4000 per month, but in 2000, the number increases to 178000. It is 8.4% of the total households in Hong Kong.
2. Who are the victims of poverty?
a. The new immigrants from the China Mainland. Because of the language, education qualification and the degree of adaptability, they may not be so easy to find employment. Their jobs are mainly unskilled and under-paid.
b. In 1996, the government statistic shows us that 14.1% of the total population of the poor is aged about 60. The elderly retired without much retirement support are the victims of poverty.
c. In 1988, there are 49000 factories, but in 1997, it reduces to 25000. In 1988, there are 830000 workers, but in 1997, it reduces to 280000. Hong Kong society is a post-industrial society, and its characteristics are a “service society”, “information society”, “knowledge society” and “network society”.Such society is especially unfavorable to the semi-skilled and unskilled workers.
d. Globalization is another factor threatening the poor. In order to lower the cost of production, sub-contracting becomes a normal practice in contemporary businesses. Sub-contracting brings the cost of production down as well as the wages.
e. Since the 1990s, there are 150 people daily from the China Mainland to immigrate to Hong Kong. Most of them are unskilled, and they have low market value. At the same time, many of them are below 30 years old, and their arrival directly challenge the existing labor market. On the one hand, they lower the salary, and on the other, they easily replace the unskilled job of those who are 40. Unemployment and employment but in poverty (due to the low wages) are the results of this change. In fact, we find that the rate of unemployment is very high within the aged group of mid-40s.
f. Learning a new skill for the middle-age workers is more difficult than we are supposed to be. Furthermore, in a new economy, a new skill is important as well as the new attitude and mentality, and the latter is something related to the educational background.
g. The unemployment rate of teenagers is about 20%. In the past, when we still had our industries, many of them could be the apprenticeship.
3. The Dilemma faced by different parties in handling the poverty issue.
a. Hong Kong is a small economy with scarce natural resources. It maintains itself as a small government and let the market to balance the flow of economy. Hence, it may be negligible effort to deal with poverty issue.
b. Globalisation and to diminish the cost of production as well as the maximization of profits will cause the poor in a more unfavourable condition. One local government can help much in such situation. Policy is a piecemeal effect only.

By Sam Kwok