A globalizing economy, sustainable livelihoods and equality of opportunities: the case of Hong Kong

Abstract

This article uses the concepts of sustainable livelihoods and equality of opportunities to frame the analysis of effects of unprecedented scale of globalization and the financial and economic crises on the labour market, with severe consequences for those low-skilled workers and their dependent children in Hong Kong. Dramatic economic restructuring and social transformation have radically challenged the established structure of the welfare regime in Hong Kong. Like other East Asian economies significantly affected in the globalization era and in the midst of economic crises, Hong Kong can no longer guarantee high economic growth and low unemployment. Economic restructuring and social transformation have brought significant changes in post-industrial society. New social risks arising from increasing global and complex societies and a breakdown of traditional and informal risk-sharing mechanisms bring enormous difficulties for certain social groups. New social risks have engendered a growing demand for public services while there are only limited resources meeting the growing needs. It is widely recognized that global processes of economic change have significantly shaped national economic and social policies. Economic competitiveness gives national governments impetus to adopt a welfare pluralist approach and thus further exacerbates unequal access to public services. These policy reforms may further widen the gaps between the haves and the have-nots and contribute to a divided society. In a changing and globalizing economy of Hong Kong, the extent to which welfare restructuring attains productive employment and sustainable livelihoods and ensures equal opportunities for people's future development is the current focus of debate.

Keywords:

• globalization
• sustainable livelihoods
• new social risks
• intergenerational poverty
• equality of opportunities

Acknowledgements

The author thanks the anonymous reviewers for their constructive and insightful comments.

Notes

1. Hong Kong has become a knowledge-based economy. Manufacturing industry in Hong Kong lost its competitiveness in the global market in the late 1970s. A decline in manufacturing industry was due to economic reform in mainland China since 1978. The reform offered foreign investors a massive labour force and industrial areas. The low production cost in mainland China attracted more Hong Kong investors to relocate their factories to the mainland. In addition, the open door policy also has resulted in an increasing number of visitors from the mainland to Hong Kong and it facilitated the growth of the service sector in Hong Kong.

2. The family solidarity index is composed of three indicators, namely ‘marriages per 100,000 people aged over 15’, ‘divorces as percentage of marriages’ and ‘reported domestic violence cases per 100,000 households’.

3. The British colonial government initiated a public cash-assistance scheme, which aims to meet the basic and special needs of those individuals and families in the community who are in need of financial and material assistance, in 1971. From July 1993, the Public Assistance (PA) Scheme and special needs allowance schemes were transformed into CSSA scheme and Social Security Allowance (SSA) scheme. The new schemes attempted to simplify administrative procedures and thus consolidated the basic rates and benefits under the special needs allowance scheme into specific standard rates.

4. This study is conducted by Oxfam Hong Kong and the Hong Kong Institute of Education between December 2009 and March 2010.