DISCONTENT OVER GROWING WEALTH INEQUALITY
Two main underlying reasons have spurred the government into action. Widespread discontent over the growing wealth inequality – epitomised by sky-high property prices and the prevalence of cage homes and other SDUs – is widely believed to have contributed to the violent protests in 2019, which were met with even tighter control from China, including the imposition of the national security law in 2020.
In his latest policy address, Mr Lee acknowledged that the city’s housing affordability crisis was “an issue of great public concern”.
Ironically, direct pressure from Beijing seems to have finally jolted Hong Kong into action. Over the past few years, China’s top leaders, including President Xi Jinping, have repeatedly urged the city to focus on improving people’s livelihoods, including addressing its housing crisis.
In 2021, Xia Baolong, China’s top official in charge of Hong Kong, publicly challenged the city to eliminate cage homes and subdivided flats by 2049. If such a call were made on the Chinese mainland, local officials would have quickly jumped into action and rolled out a comprehensive plan, complete with a target ahead of the suggested deadline.
Alas, for those Hong Kong officials who now look to Beijing for guidance, it took them more than three years to develop such an unambitious plan to rename and improve existing subdivided flats.
For many of Hong Kong’s officials, the prevalence of disgraceful cage homes and subdivided flats is still largely viewed as a housing issue. The truth is that they are the most depressing signs of poverty and inequality spreading across Hong Kong.
A report released by Oxfam Hong Kong in October revealed that more than 1.39 million people were living in poverty in the first quarter, a rate of 20.2 per cent, with the poorest 10 per cent of households surviving on roughly HK$1,600 (US$205) a month. In contrast, the city’s richest households earned 82 times more money, compared with 34 times in 2019.
Hong Kong must be bold in tackling poverty and inequality head-on. On this, Mr Lee can learn directly from Beijing.
In 2015, when Mr Xi vowed to eradicate absolute poverty by the end of 2020, about 70 million people lived below the poverty line. He took personal charge, adopted a whole-of-government approach, and developed a holistic plan. Eight years later, in 2021, Mr Xi declared a “complete victory”, saying nearly 100 million people had been lifted out of poverty.
Wang Xiangwei is a former Editor-In-Chief of South China Morning Post. He now teaches journalism at Hong Kong Baptist University.
