តើគំរូនៃភាពរុងរឿងរួមរបស់ទីក្រុងប៉េកាំងអាចដំណើរការបានទេសម្រាប់ទីក្រុងហុងកុង?

Hong Kong must act quickly to reduce income inequality and the poverty rate, provide affordable housing and ensure fair competition

In doing so, the city could serve as an example of what is achievable when capitalism extends beyond just generating wealth for a few

Hong Kong, a cosmopolitan metropolis with one of the world’s most dynamic economies, brands itself as “Asia’s world city”. It is demoralising to witness how the poverty rate in this renowned global financial centre continues to rise year after year.

The poverty rate was 21.4 per cent in 2019 without taking into account social security allowances and government relief subsidies, and 9.2 per cent when government interventions are factored in.

The wealth disparity in Hong Kong is believed to have reached a 45-year high in 2017; the richest 10 per cent were found to be earning 44 times more than the poorest 10 per cent in 2016. This inequality is anticipated to have grown as a result of the Covid-19 pandemic, which has disproportionately affected the poor.

If Hong Kong is to avoid transforming into a stratified society, which could result in increased social and political instability, this bleak reality must be addressed. We should thus reflect on whether Beijing’s policies towards establishing “common prosperity” could be the solution to Hong Kong’s poverty problem.

Mao Zedong introduced the concept “common prosperity” in the 1950s. Achieving common prosperity entails the equitable distribution of wealth and resources, with no group benefiting unduly at the expense of others. This demands universal access to fundamental services such as education, health care, transport, and other necessities, as well as job opportunities.

From Deng Xiaoping’s introduction of market reforms to Chinese President Xi Jinping’s socialist world view, successive leaders have had different approaches to achieving common prosperity.

In his August presentation to the Chinese Communist Party Central Committee for Financial and Economic Affairs, Xi stressed that, by 2035, solid progress must have been made towards common prosperity, and the goal basically achieved by 2050.

Raising taxes on the wealthiest, passing antitrust legislation, providing public services and safety net programmes for the poor, and establishing infrastructure plans are just some of China’s efforts to reduce inequality over the years.

In addition, Beijing seeks to achieve common prosperity through the so-called “third distribution” system, which entails encouraging businesses to engage in large charitable activities. Shenzhen-based internet services company Tencent has launched a 100 billion yuan (US$15.5 billion) investment in common prosperity, for example.

Beijing has stressed that common prosperity does not mean egalitarianism and does not imply “killing the rich to help the poor”.

To achieve common prosperity in Hong Kong, policymakers must take into account the city’s unique characteristics and realities, as well as the fundamental problems of the Hong Kong economic system so they can craft and implement effective policies.

“Hong Kong is a capitalist, open and small economy,” Hong Kong’s Financial Secretary Paul Chan Mo-po said in an interview with mainland Chinese political scientist Eric Xun Li. “We believe in active non-interference and a free market, and we have been trying to alleviate poverty by cash initiatives, such as social security allowance.”

Chan added: “In tackling poverty, we also try to ensure equality in opportunity. This is different from the concept of common prosperity.”

Chan is accurate in his assessment of Hong Kong’s need to remain a “free market”. However, for far too long, this policy of so-called “equality of opportunity” has only resulted in a grossly unequal outcome, leaving the poor with few options.

Hong Kong’s yawning wealth gap is an inextricable component of unfettered capitalism. The government must go beyond merely providing social security benefits to alleviate poverty; it must facilitate economic growth for all in society. Businesses must also be held accountable for their social responsibilities.

The MTR Corporation, for example, should contribute to public housing development above and along the railway lines to help alleviate the existing public housing scarcity. Eighty per cent of the government land allocated for public housing has in the past not been immediately ready for development, whereas land sold to developers is ready for construction.

Residential property prices in Hong Kong have soared 262 per cent over the past 12 years, despite salaries remaining virtually unchanged. Affordable housing, which should be a basic right, is becoming increasingly unobtainable.

It is also evident that stronger antitrust legislation is required to break up corporate monopolies over many services. Monopolistic behaviour goes against the fundamental principles of a free market, which relies heavily on the companies’ freedom to compete.

A free market should not result in a “winner-takes-all” situation where some businesses gain an unfair edge over others, resulting in increased prices and poorer services for everyone except the wealthy.

Hong Kong must recognise that common prosperity encompasses not just financial prosperity but also social, mental and physical well-being. It does not solely advocate for income redistribution or a reduction in economic freedom, but rather focuses on social equality, and corporate and personal social responsibility.

While wealth disparity is unavoidable in a capitalist system, we must admit that our current wealth gap cannot be tolerated in the long term. It is no longer acceptable to protect businesses while allowing those who have worked hard their entire lives, but still do not have a basic standard of living, to continue to suffer.

Since the mainland is Hong Kong’s largest trading partner, Hong Kong has an essential role to play in helping China achieve common prosperity, by sharing best practices and serving as a role model for what is achievable when capitalism extends beyond just generating wealth for a few.

SCMP