It is estimated that there are nearly 1.2 million people in Hong Kong living below the “poverty line”,accounting for about 17% of the total population. The Commission on Poverty of the HKSAR Government is in the process of setting a “poverty line”, with an aim to facilitate the Government in studying the problem of poverty and reviewing anti-poverty measures. In this issue, Dr Chung Kim-wah, Assistant Professor at the PolyU Department of Applied Social Sciences, will share with us his insight into this issue.

1/ What is the difference between “absolute poverty” and “relative poverty”?

Conceptually, “absolute poverty” refers to the situation when one is not able to make ends to meet the most basic level of living, i.e. to free from hunger, to have a basic shelter, to adequately cloth himself and the family and to sustain physical health. It is later generally accepted as a concept to define the minimal requirements necessary to maintain minimal standards of food, clothing, health care and shelter.

As many societies became affluent, the problem of “absolute poverty” was gradually believed to be less a major concern. However, social expectations on what constitutes “reasonable living standard” evolved. For those who are not able to meet that social expectation, the concept of “relative poverty” applies.

For example, in Hong Kong, some people who are not able to afford internet connection, not able to send their children to extra-curricular activities, or cannot afford to own a television set (or a mobile phone) are referred to as living in “relative poverty”, even if he/she and his/her family can afford adequate food, have enough clothing, etc. In Europe, an “international poverty line standard” is being used to define relative poverty. Households with an accumulated income of less than 50% of the median equivalized household disposable income will be defined as living in “relative poverty”.

2/ Can “poverty line” be used to define and measure Hong Kong’s poverty problem? Why?

“Poverty line” is a widely used policy and conceptual tool of different governments to understand more precisely who is poor and what living in poverty is like. It helps to define poverty problem clearly and to offer a starting point to direct efforts of poverty relief policies. The existing income and asset standard for Comprehensive Social Security Assistance (CSSA) is sometimes justified as a good equivalent to poverty line. However, the nature of CSSA is just “Social Assistance” which is directed to help those people who are not able to make ends meet for the most basic living standard. It is therefore just a standard on “absolute poverty”. The assistance provided by CSSA is also only set at a level just adequate for living maintenance. As the major poverty problem in the Hong Kong society is “relative poverty”, it is therefore timely for the society to have a “poverty line” which is able to reflect the nature and extent of poverty problem in Hong Kong.

3/ How can the Commission on Poverty set a credible “poverty line” with social consensus?

To set a “poverty line”, the Hong Kong Government should have an open minded attitude to incorporate views from the general public as well as scholars who have been studying and researching on poverty problem. The Commission on Poverty should be representative enough in its structure and membership. The process of developing the “poverty line” should make reference to some widely used international standards.

4/ When setting the “poverty line”, what Hong Kong factors should the Government include? What difference would these factors make in the calculation of the population living in poverty?

Hong Kong is basically an affluent society, but has 1.15 million people living in “relative poverty” if the “international poverty line standard” is adopted, according to the 2011 data released by the Hong Kong Council of Social Services in October 2012. Just simply applying the European concept here may over-simplify the matter though it is a good starting point. In borrowing overseas concepts, the Government has to carefully consider the unique social and economic situation of Hong Kong. Many Hongkongers are in fact “income poor” but “asset rich” (i.e. they have property, bonds, stocks or even a taxi license). Yet, though with cash or assets in hand, many people are not protected by retirement protection (such as pensions). It is therefore necessary to have an overall profile of Hong Kong people’s income, assets, entitlements etc, for the Commission on Poverty to consider what factors should be taken into account when setting up the “poverty line” for Hong Kong. With this, more appropriate policies could be developed to target at those who should be taken care of by social policy measures to relieve poverty.

5/ After setting a “poverty line”, what measures can the Government implement to reduce the number of people living under the poverty line?

On top of “public assistance” type poverty relief measures (such as the CSSA), the Government should aspire for a set of comprehensive measures which could help people who are living in the margins to transcend from their living situations. Poverty relief should not be just “belly filling”. A society should offer assistance for people to improve and become better. It is hoped that, with a better understanding on the number of people living in “relative poverty” and a clearer picture on how life is like for those living in the margins, the Government could develop comprehensive, sustained and coordinated policy efforts in “living improvement”, “personal development” (such as skill training), “community network building”, as well as other income or social service support for households exposing to different living and social risks conducive to poverty.