global studies final paper

LOCAL CONTEXT

· In the 1840s the United Kingdom took control of Hong Kong as a result of the Opium Wars.

· Around the 1960s, there was a large amount of immigrants into Hong Kong and the most part of people come from mainland China, this immigrantion movement provided plenty of labor force. This is one of the most important factors promoted Hong Kong economy grow faster. However, due to the limited natural resources and industries factors,  the Hong Kong economy switched its focus from manufacturing to the service industry during the 1980s and 1990s.

· On July 1st, 1997 the United Kingdom released control of Hong Kong, returning it back to China.

· Hong Kong is one of the most expensive cities to live in the world.

· Hong Kong has around 7 million people and 1 in 5 are below the poverty level. But Hong Kong recently rose to the top as having the highest concentration of ultra rich people in the world.

· Even Though the government spends $92 billion a year on welfare, the poor are still unable to get out of poverty because of the high cost of housing For example, if you have $500,000, you are only able to buy one house that it’s size only like a parking spot.

· Only 7% of land in Hong Kong is used for housing and 70% is not even being used for any type of infrastructure.

GLOBAL CONTEXT

· The influence of the United Kingdom’s control over Hong Kong is still clearly seen today through its thriving capitalist economy. This has allowed Hong Kong to develop into a huge player in the global economy.

· Part of Hong Kong’s economic appeal is that works off of a “free economic” system which means there are very low taxes, no GST (goods and services) taxes, and minimal corporate taxes. However, because of these low taxes, the government has to get it’s money from some other source. This source being (high) property taxes.

· But because of the little hope of being able to rise above poverty in Hong Kong, 60% of young adults are working towards being able to leave Hong Kong permanently.

· This will cause many problems. Firstly, nearby countries as well as countries who are perceived to have “more opportunities” will see an increase in Hong Kong migrants.

· Secondly, it will leave Hong Kong with a population mainly composed of elderly people who are reliant on government subsidies and an extremely small working class.

· This will also affect Hong Kong’s economy because it will leave this city with a very small population of younger people who are able to work.

CONTEMPORARY SITUATION

· Because of the unaffordable housing prices, the gap between the affluent and the poor is growing even faster.

· 30% of Hong Kong’s poor live in public housing but there is still a growing five year waitlist to get into public housing.

· According to recent statistics from Hong Kong government,  the richest 10 percent of households – with a median monthly income of $14,000 – earned 44 times more than the poorest 10 percent making an average of $330.

· The main targets of this unfair distribution of wealth, are the elderly who are too old to work anymore and have no one to look after them.

· The government also recently raised the qualifying age for elderly benefits from 60 years old to 65 years old; forcing people to work longer.

· This poverty problem has contributed to Hong Kong being one of the lowest birth rates in the world.

SOLUTIONS

· The government needs to stop prioritizing profits made from the market economy and start focusing on the well-being of its citizens. The government can do this by first lowering the cost of housing and placing an even distribution of taxes on other commodities. The government can then start taxing big corporations but instilling benefits and tax breaks for big businesses who give to charity and invest in public housing for the poor.

· Hong Kong needs to create more job opportunities to lower unemployment and raise the minimum wage.

· We also need to work on improving the educational system in Hong Kong and expanding those who can access this education.

· For now though, we can start by supporting organizations such as The Hub which works to support poverty stricken young children by providing them with food, health services, education, and a space to play.