HKDF Newsletter
Issue 17 January 2001

Global Poverty and Hong Kong’s Response


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Mr CHONG Chan-Yau, Executive Director of Oxfam Hong Kong, was the Foundation’s guest speaker on 25 September 2000. This is a summary of his remarks.

CHONG Chan-Yau

Global Poverty
‘We live in a world of unprecedented opulence of a kind that would have been hard to imagine a century or two ago. And also we live in a world of remarkable deprivation, destitution and oppression.’ Amarya Sen, ‘Development and Freedom’.

In the UN Millenium Report, we find the following statement:

  • ‘The benefits of globalization are obvious: faster growth, higher living standards, new opportunities. Yet a backlash has begun, because these benefits are so unequally distributed, and because the global market is not yet underpinned by rules based on shared social objectives.’
  • We still have 1.2 billion people living with less than US$1 per day.
  • The three richest individuals have income equal to 600 million people or the combined GDP of 48 countries.
  • Over 800 million are without adequate food while the world has produced enough food for the entire population.
  • Over 125 million children are without primary education; most of them are girls.
  • In more than 80 countries, per capita income is less than 10 years ago.

While we have seen employment growth in part of East Asia, in the past two decades, the situation in Latin America and sub-Saharan Africa is worse.

 
Contents
Alan LUNG Ka-lun, Chairman:
Some reasons for "Thinking about 2007"
Alan Leong
Preserving free speech in Hong Kong
William Overholt
Hong Kong - Between Third World and First
Christopher Westland
The New Economy - Has Hong Kong Got What It Takes?
CHONG Chan-Yau
Global Poverty and Hong Kong's Response
Lam Pun Lee
Monopoly and Public Utilities in Hong Kong
Stephen Vines
Why the World Sees Hong Kong as China's New Colony
Thinking About 2007 Workshop



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We live in a world of unprecedented opulence of a kind that would have been hard to imagine a century or two ago. And also we live in a world of remarkable deprivation, destitution and oppression.

 

Within countries, the gap between rich and poor is widening. Hong Kong is just one example perhaps more so than many places. While GDP per capita is among the highest, we rank 79 measured by gini coefficient.

We are not suggesting that globalisation causes poverty. But at least we can conclude that globalisation may be able to benefit just a few globally, regionally and sectors of a population. But we are making this as a challenge: whether globalisation can be managed to solving our deteriorating global poverty.

The WTO may set rules favourable to the rich and powerful. Increased financial and capital flows may produce disturbances to vulnerable markets and economies. The Asian financial crisis has sent tens of millions of poor people back to poverty.

Another issue relating to global poverty is natural and man-made disasters. Most wars and conflicts in the past decades occurred in developing countries. Where is our international security system? Rich governments are actually reducing their commitment to long term and short-term aids.

Freedom From Want – UN Millenium Initiative
In his Millennium Report, the UN Secretary-General identifies pressing challenges faced by the world's peoples and proposes a number of priorities for Member States to consider at the Millennium Summit. He also recommends several immediate steps that can be taken at the Summit itself. Outlined below are details of one of the four new initiatives he is proposing:

'FREEDOM FROM WANT': the Development Agenda
Poverty: To halve, by 2015, the proportion of the world's people (currently 22 per cent) whose income is less than one dollar a day.
Water: To halve, by 2015, the proportion of people who do not have access to safe drinking water (currently 20 per cent).
Education: To narrow the gender gap in primary and secondary education by 2005; and to ensure that, by 2015, all children complete a full course of primary education.
HIV/AIDS: To halt, and begin to reverse, the spread of HIV/AIDS by 2015 by:

  • adopting as an explicit goal the reduction of HIV infection rates in persons 15 to 24 years of age - by 25 percent within the most affected countries before the year 2005, and by 25 percent globally before 2010.
  • setting explicit prevention targets: by 2005 at least 90 percent, and by 2010 at least 95 percent, of young men and women must have access to the HIV-preventive information and services.
  • urging every seriously affected country to have a national plan of action in place within one year of the Summit.

Clearing the Slums: to endorse and act upon the 'Cities Without Slums' plan launched by the World Bank and United Nations to improve the lives of 100 million slum dwellers by 2020.
Youth Employment: to develop strategies to reduce joblessness among youth.
Building Digital Bridges: to review their policies in order to remove regulatory and pricing impediments to Internet access, to make sure people are not denied the opportunities offered by the digital revolution.
Private Sector: to develop strong partnerships with the private sector, at both national and international levels, to combat poverty in all its aspects.

Developed countries in particular are urged:
Trade Access: to grant free access to ttheir markets for goods produced in poor countries -- and, as a first step, to bbe prepared to adopt a policy of duty-free and quota-free access for essentially all exports from the least-developed countries at the UN Conference on the Least Developed Countries in March 2001.
Debt Relief: to implement the expansion of the debt relief program for Heavily Indebted Poor Countries agreed last year without further delay, and to be prepared to cancel all official debts of the heavily indebted poor countries, in return for those countries
making demonstrable commitments to poverty reduction.
ODA: to grant more generous development assistance, particularly to those countries that are genuinely applying their resources
to poverty reduction.
HIV/AIDS: To work with the pharmaceutical industry and other partners to develop an effective and affordable vaccine against HIV; and to make HIV-related drugs more widely accessible in developing countries.
Attacking Poverty - World Bank initiative
The World Bank’s The World Development Report 2000, subtitled "Attacking Poverty" gives the clear message that "growth is not enough" to solve the world’s growing problem of poverty.

It prescribes action in three areas to ensure that the poor benefit, rather than lose out, from globalised growth:

  • Opportunity: the poor must be encouraged to take advantage of opportunities in the local and global economies, beginning with access to land and education.
  • Empowerment: Poor people must also be empowered by having a voice in the economic and development policies drawn up to support them, thereby reducing the risk of discrimination based on gender, race, ethnicity or social status;
  • Security: the poor must enjoy some security from events outside their control, such as contagious diseases, sudden economic shocks, crop failures, natural disasters and violence.

What Can Hong Kong Do?
In participating in issues of globalisation, Hong Kong should not hesitate to advocate for the vulnerable. Mr. Donald Tsang, for example, proposes to regulate international flow of speculative capital. There are other issues such as the impact of trade and capital flows on labour.

Hong Kong is also in a position to make financial contribution alleviate global poverty. Hong Kong SAR Government should be complimented for setting up a disaster relief fund in 1994. This Fund is covers relief work carried by international NGOs based in Hong Kong in humanitarian responses in natural and man-made disasters. The upper limit of the annual commitment is $50 million.


"Mass poverty in the midst of global prosperity [and global interconnectedness] is morally unacceptable, politically unsustainable and economically wasteful."

 

We believe that this Fund should continue. We also believe that the HKSAR Government should serious consider setting up a Development Fund. The UN recommendation on such a fund is 0.35 per cent of GNP. For HK, we can start with a modest sum. The HK ODA Fund can be channeled through NGOs to avoid involving the HKSAR Government in unnecessary political considerations. Such fund has several advantages: It is a furtherance in fulfilling HK’s obligation as a global citizen. It adds to the effort in addressing global poverty. It gives HK a good image. It also supports HK people in broadening their worldview.

Finally, Hong Kong should also develop an active policy in addressing the impact of globalisation on its own people especially in the area of the widening gap between rich and poor.

Conclusion
I’d like to echo a remark by an Oxfam Executive Director: "Mass poverty in the midst of global prosperity [and global interconnectedness] is morally unacceptable, politically unsustainable and economically wasteful."

 

The above does not necessarily represent the views of the Foundation


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