Hong Kong protests reveal a government failing to protect its citizens’ economic and social well-being

The Hong Kong government has been more focused on global rankings and pleasing big companies than supporting its citizens. And in one international ranking – happiness – the city has been lagging, and this helps to explain protesters’ anger

Enoch Hsu

Published: 9:00pm, 27 Oct 2019

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What must the Hong Kong government do to resolve the social and economic deadlock? It’s not clear that anyone has the answer, but it has been evident so far that poor policymaking has provided no answers for the economic inequalities and social insecurity in society.

Human insecurity exists when government policy fails to address local socio-economic needs, and this is the situation Hong Kong finds itself in. Its huge income disparity is nothing new, and lately the people of Hong Kong have shown they are deprived of human well-being and happiness, according to the World Happiness Report.

As the government fails to address economic equality and social security for its people, Hong Kong’s global economic position is weakened.

In response to the economic challenges caused by the anti-government protests, the government has announced relief measures for the economically deprived. These ad hoc measures barely scratch the surface for those living with economic insecurity.

Over the years, the government has done little to aid those who suffer most from income inequality. When formulating economic and tax policies, officials have focused mainly on helping large enterprises thrive in the global market.

Hong Kong’s “cardboard grannies”, such as these women on the streets of Sham Shui Po, have become symbols of its income inequality problem. Photo: Felix Wong

However, this globally focused economic policy lacks focus on an individual’s rights and interests and instead allows large enterprises unprecedented access to global economic resources. This has led to extreme economic inequality, and this disparity continues to grow.

According to the 2019 World Happiness Report, Hong Kong was ranked 76th out of 156 nations. The happiness index evaluates six social factors that affect an individual’s well-being – levels of GDP per capita, life expectancy, generosity, social support, freedom, and corruption. Since 2010, Hong Kong’s happiness index has shown a slight downward trend.

Hong Kong was an unhappy city long before anti-government protests

Although it ranked ninth in GDP per capita globally, the city ranks ranked 76th in social support and 66th in freedom. This implies the government is failing to implement policies to enhance Hongkongers’ sense of social security.

Socio-economic injustice is a combination of social insecurity and economic inequality. Hong Kong’s economic policy largely aims to benefit multinationals while undercutting public expenditure for health, education, housing, and the like. By allowing power and wealth to accumulate in the hands of a few, government policy has further marginalised vulnerable local groups.

In recent months, concern has heightened over ineffective public policy. Many Hongkongers now believe they are being deprived of their local social and economic beliefs, plus their cultural identity.

The anti-government protesters are not restricted to local youth, but consist of men and women from different social spectrums. Not only are they fighting against structural injustice created by the government, they are also contesting policies that deny them socio-economic justice.

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The Hong Kong government has been apprehensive about carrying out social reforms because it is unsure how they may impact the city’s global economic status. Current economic policy cannot reduce local poverty, close the wealth gap or alleviate economic injustice for Hongkongers.

Invoking the Emergency Regulations Ordinance to suppress social freedom further exacerbates people’s insecurity. According to Harvard University economist Carmen Reinhart, the out-of-control anti-government protests in Hong Kong could trigger a “very significant global slowdown, or even recession”.

The world is watching closely to see whether the government can restore security to its people. The civil unrest in Hong Kong has rattled the confidence of the international community, which sees human rights being trampled. The Hong Kong government must revolutionise its political and social structures to curb socio-economic injustice once and for all.

First and foremost, the existing global-centric policy must not be at the expense of promoting well-being and ethical conduct in society. And officials must ensure they preserve people’s dignity and liberty, and stop power and wealth being hoarded by the rich.

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

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