Improved social mobility is the single biggest development challenge for Hong Kong. Stepping into a teenager’s shoes is all the evidence one needs. A mere third of young people are optimistic about their future career development in the city. Even fewer are confident about their economic prospects. An inspiring vision is urgently needed. It should address the root causes of societal malaise: an overly narrow economic base, an outdated (some would say misleading) education system, and living conditions in dire need of renewal based on minimum quality standards. It’s time for policymakers to address the problems that have persistently hindered many people from realizing their potential and climbing the social ladder.
Anxiety about the future is understandable. A fifth of Hong Kong people (1.65 million) were living in poverty in 2021. The average monthly income of the poorest households fell by 22 percent from HK$3,500 ($449) in 2019 to HK$2,700 in 2022, mainly because of the COVID-19 pandemic. Fortunately, we have escaped the rampant inflation that is plaguing other economies. For years, income and wealth disparity has grown alongside top-line economic growth. Extreme financialization of the economy has generated significant prosperity, but at a cost: economic alienation of those uninterested or unable to participate in financial services, real estate, or trading.
Chief Executive John Lee Ka-chiu, speaking at the recent Digital Economy Summit, reinforced the government’s commitment “to foster a more vibrant and diversified economy”. That’s a noble aim, although the economy need not be all-digital. It so happens that Hong Kong is the most exposed to artificial intelligence (AI) job displacement, which should be a wake-up call for professional reskilling. Beyond the Silicon Valley dream of tech startups, policies to make vocational education attractive, and competitively compensated, would have more enduring societal benefits. The city’s unaffordable cost of living also discourages risk-taking and entrepreneurship.
At the root of the problem is a two-tiered education system, which is a historical relic perpetuating social division and one that should be dismantled. What if the educational attainment of every student, irrespective of socioeconomic status, was the guiding ambition of the government? The provision of quality education for a minority, based on the ability to pay, means large segments of society cannot access resources, thus further deepening institutional barriers to an integrated, resilient society. Annual tuition per student for private and international schools can cost up to HK$250,000. Contrast this with public schools eligible for a maximum HK$300,000 via the Quality Education Fund. Narrowing the gap does not mean restricting or bringing down those at the top.
It’s high time for a bold new vision for Hong Kong’s high-quality development
Unfortunately for families who are unable to pay, the public school system is ill-equipped to prepare young people to meet the demands of the competitive labor market. It’s not simply a function of rote memorization versus critical thinking, though that is a factor. Many lower-band public schools cannot provide quality teaching. While foreign talent attraction is important, leveling up local education is more urgent. It also creates a natural attraction for returnees who left Hong Kong to seek better education elsewhere.
Low-quality housing aggravates educational polarization and is a burden on societal development. Children studying in cramped, subdivided, substandard flats are at an immediate disadvantage. While temporary flats provide short-term alleviation, long-term solutions must be built on equitable access to quality homes, a foundation for productivity and progression. Imagine rapidly converting a brownfield site into a radically new model of high-design, minimal-cost accommodation with natural light, gardened common spaces, and quality amenities. It’s not inconceivable. Flats could be offered via lottery to the entire public housing waitlist, creating excitement and confidence in government.
Given our unique socioeconomic factors and institutions, it is time to define what high-quality development means in Hong Kong. It starts with ensuring basic needs are met, restoring optimism, and growing people’s sense of ownership in the future (Lee Kuan Yew’s basic formula for Singapore’s success!), especially among the youth. National policies can be leveraged to provide legitimacy while adapting to local realities. Common prosperity, a cornerstone of China’s vision for its high-quality development, carries less cachet among Hong Kong SAR’s policy and business leaders, despite visible, abhorrent levels of inequality.
A common refrain is that Hong Kong is capitalist, not socialist. It’s time to set aside such false dichotomies and address deep-rooted social problems. It requires moving beyond archaic economic ideas like low taxes — high land premiums that have become an obstacle to progress. Similarly, wealth redistribution should not be limited to handouts in the form of consumption vouchers, but instead rooted in smart investments in societal development: education, health and housing.
Hong Kong has traditionally looked to Western economic development models, premised on laissez-faire economics and the primacy of technology, markets and finance. The 2023-24 budget reflects ideological trappings, replete with buzzwords like digital economy, Web3 and GreenFi Centre. External validation is still sought through rankings on global competitiveness or GDP growth, despite being simplistic, often politically motivated indicators. It yields a narrow, reactive, and inadequate approach to development. To those struggling to secure their basic needs, a decline from fifth to seventh on the global competitiveness ranking is inconsequential and even irrelevant.
A fundamental rethink is needed. It starts with a clear vision of what high-quality development means in Hong Kong. To be truly competitive in the new era, there must be a greater focus on social mobility, quality of life, and opportunities for all. Continued failure will result in persistent inequality, lack of hope, and social polarization. It’s high time for a bold new vision for Hong Kong’s high-quality development.
The author is managing director at The Global Institute For Tomorrow, an independent pan-Asian think tank with offices in Hong Kong and Kuala Lumpur.
The views do not necessarily reflect those of China Daily.
