Hong Kong’s first five-year plan promises a great future for the special administrative region by promoting and achieving five objectives. Among them, three spell out the desired goals while two spell out strategies. The goals are to be economically prosperous, to be competitive and influential, and to be happy (by enhancing social well-being through the social protection framework). The strategies, referred to as objectives, are expediting development of the Northern Metropolis for integrated development and making significant strides in integrating Hong Kong into national development.
Clearly, all residents should be able to share the vision of prosperity and happiness. The strategies are both logical and effective. What is needed is a good grasp of human nature, as well as the strengths and limits of both the market and the government. With the wisdom to capitalize on the strengths of the market and those of the government and to overcome any weaknesses with courage and humility, Hong Kong will develop the Northern Metropolis into a hub for innovation and an attractive metropolis for work and for living. The Northern Metropolis project will fly because Shenzhen and Hong Kong can complement each other given the geographical location. Integrating Hong Kong into national development allows Hong Kong and the Chinese mainland to support each other as part of the national development strategy.
The five-year plan discussed six areas in turn. The first is about enhancing the city’s four major centers, which have already been identified, including the international financial center, international maritime center, international trade center, and the international aviation hub. The second is about fostering emerging centers, including the international innovation and technology center, regional intellectual property trading center, international legal and dispute resolution services center in the Asia-Pacific region, and the East-meets-West center for international cultural exchange. In line with Professor Justin Yifu Lin’s New Structural Economics theory, comparative advantage is dynamic and does change. Apart from the four areas of traditional strength, Hong Kong should develop new areas of strength and support as new sectors and industries emerge.
The third is about strengthening economic and social integration into the Guangdong-Hong Kong-Macao Greater Bay Area. This is about realizing the agglomeration economies that the city can tap into as a partner city of the Greater Bay Area. The fourth is about developing the Northern Metropolis. The fifth is about improving livelihoods and wellbeing, which in my mind is very much the ultimate objective. Even the last subject discussed in the blueprint, namely development-security coordination, is important because without security and development Hong Kong can never have prosperity and happiness.
The government’s deep concern for the wellbeing of Hong Kong residents, especially of the underprivileged, is highly commendable. In particular, the community living room is an excellent policy innovation. The cost is relatively small, but the impact is huge. The idea has attracted much support from the private sector so it is not onerous on the public purse.
The government has made a huge effort in shortening the wait for public rental housing (PRH). The latest average waiting time figure has been cut to 4.8 years. I have previously proposed that to better benefit the deserving, the income ceiling for qualified PRH applicants should be raised by 50 percent so that more people can qualify. I have also suggested that those whose household income exceeds the ceiling should pay double rent, while those whose household income exceeds twice the limit should vacate the unit. This will greatly reduce the attractiveness of PRH and will allow more deserving households to benefit from it. I also have proposed that the government should adopt a “build to order” policy for Home Ownership Scheme (HOS) flats. All Hong Kong families and would-be families would be eligible to buy these flats at an average price of eight times the median annual household income of economically active households in Hong Kong (approximately HK$3.8 million, or $484,400). Given that the land deed would specify that owners must live in the flat and must not hold any other Hong Kong property, while the flats are only about 400 square feet and built on relatively low-cost land (i.e. per square foot land costing below the Hong Kong median), the means test and requirement for land premium repayment could be dispensed with. These flats can be resold to any local family at any time without any restriction.
I also want to echo my earlier suggestion to make life education that includes parenting and sexuality education part of the mandatory school curriculum as a better way to enhance Hong Kong’s fertility rate than monetary incentives. While the “build to order” arrangement for HOS housing with prices linked to the median household income for economically active households will help raise the fertility rate, money incentives have been shown to be ineffective and costly. Today, many local families opt for international schools because parents do not want their children to be subjected to the high-pressure environment of local schools. The high-pressure environment is very much a result of the lack of life education. If young people have gone through properly conducted life education, they will respect other people’s rights, take better care of themselves and will be better prepared for parenthood. Parenthood education cannot wait until young couples become parents, because many simply refuse to be parents, while many parents may not care, or may not have the time to participate in parenting workshops.
The author is an honorary research fellow at the Pan Sutong Shanghai-Hong Kong Economic Policy Research Institute, Lingnan University, and an adjunct professor at the Academy for Applied Policy Studies and Education Futures, the Education University of Hong Kong.
The views do not necessarily reflect those of China Daily.
