HK Govt Blames Protests for High Poverty Rate

Law Chi-kwong says the poverty rate is lower than reported

 

Yesterday the government said Hong Kong's poverty rate reached a record high last year, and the protesters were to blame.

In its annual poverty report, the government said 21.4 percent of residents were considered poor last year, up one percentage point from the year before. It said 1.49 million of Hong Kong's total population of 7.52 million were under the poverty line -- which is calculated at 50 percent of the median monthly household income before government allowances and subsidies.

The median monthly household income in 2019 was HK$28,900, which is difficult for a family to live on, and half that at HK$14,450, even worse.

Govt report says 1.49m are below the poverty line

Nevertheless, the government had the gall to blame the situation of the poor on the anti-government protests last year and the trade war between China and the United States, saying the "double whammy" caused the SAR's first economic recession in a decade.

"The unrest caused severe disruptions and battered sectors related to consumption and tourism that involved substantial lower-skilled jobs. Grassroots families were particularly hard-hit," it said, adding that the labour market worsened in the second half of 2019.

How can the government blame poverty on the protesters, when it was the government that came up with the extradition bill in the first place and refused to listen to 2 million people protesting against it that caused the months-long protests that rocked the city? 

And in any event, why does the government even allow employers to pay its workers such low wages to start with? It is the government itself that does not value these grassroots families to start with.

Perhaps after receiving a lot of heat for this weak explanation of why there are so many people in Hong Kong, the Secretary for Labour and Welfare Law Chi-kwong hit back, and began interpreting the numbers differently.

On a radio show today he claimed it was wrong to extrapolate there were 21.4 percent of people living below the poverty line in Hong Kong, based on the report his administration published.

Critics say report only tells half the story

"It doesn't tell us how many people are actually living below the poverty line. It tells us how many people would be living in poverty if the government does nothing at all," Law said.

He explained that after factoring in various social security allowances and government relief subsidies, the poverty rate was only 9.2 percent, or 640,000 people. That meant the so-called post-intervention poverty rate marginally improved by 0.1 percentage points from 9.3 percent in 2018, he said.

Law added the efficiency of the government's social welfare programs helped 850,000 residents out of poverty through Comprehensive Social Security Assistance, and Old Age Living Allowance.

However, in many cases the government makes it very difficult to be eligible for CSSA, and the allowance for seniors is a very small sum each month, less than HK$1,500.

Ng Wai-tung, community organizer for the Society for Community Organization, said the welfare chief's analysis also did not reflect the whole picture.

"It's only half correct," Ng said. "On the one hand, it reflects the scale of low-income groups before any government assistance, but on the other hand, it underestimates the harsh reality that so many people are not even earning enough to make ends meet."

White elephant projects like Kai Tak waste money

Perhaps one thing Law and Ng can agree on is that the poverty rate could climb higher next year due to the coronavirus pandemic that greatly impacted areas such as tourism, hospitality, retail and construction.

Law said the government has already rolled out multiple poverty-alleviation schemes this year.

While the effort is appreciated, the government's investment in the poor is pittance compared to how much it throws into white elephant projects like the Hong Kong-Zhuhai-Macau Bridge, the Kai Tak Cruise Terminal, and Disneyland.

If the government put more effort into really helping the poor, it would benefit Hong Kong's economy even more. Social mobility is what makes an economy stronger and gives hope to people.

But it seems the Lam administration is keen on blaming others for high poverty rates, when it is those in the position in power who have caused this problem of inequality in the first place.