Accountable government behind call for Hong Kong democracy
- Beijing addresses the population’s dissatisfactions, why cannot Hong Kong’s government do the same
I will argue that demand for democracy is a simplified catchphrase; what lies beneath is a call for a more representative government accountable for improving the general population’s livelihood in Hong Kong.
The Beijing government, despite being a one-party ruler, has demonstrated its ability to address major dissatisfactions of its population. It launched a massive campaign against party corruption, reined in highly polluting heavy industries to improve air quality and imposed price caps on real estate and limited foreigners’ ability to buy properties in China to improve affordability of housing. In contrast, the Hong Kong government has done little to lighten the economic and social woes faced by its citizens.
Similar to other developed economies, since the 2008 financial crisis, Hong Kong has seen an astronomical increase in asset prices. Property prices have increased at a compound annual growth rate of about 12 per cent from 2008 to 2018. GDP, by contrast, has increased at a rate of only 4 per cent during that time.
People born during or before the 1970s have enjoyed good career opportunities and have managed to buy property before prices took off after 2008, whereas it has become difficult for people born in the 80s and almost impossible for those born in the 90s to buy a home. And, for the last 10-plus years, only the financial sector has seen significant growth.
Yet most of the coveted financial jobs have gone to immigrants from the mainland. Young Hong Kong locals face less promising career prospects than previous generations.
Anger against immigrants has been used in the US and Europe by populist politicians to gain mass support. Those countries experience low-single-digit percentage population growth from immigrants. In contrast, Hong Kong has seen that about 15 to 20 per cent of immigrants have come from the mainland during the past decade or so. In addition, last year there were about 50 million visitors from the mainland to a city with a population of 7.5 million people. There are cultural and habitual differences so it is not difficult to understand that a portion of Hong Kong would feel resentful towards mainlanders.
For the most part, our Hong Kong government has not done much to address any of these woes. They are seen by a portion of the population as trying to:
● Maintain the status quo in the interests of powerful businesses and lobby groups;
● Please Beijing more than pay attention to the interests of Hong Kong people. Despite the accountability system of senior officials, there really has been no accountability to speak of.
Hong Kong is of financial and strategic value to China. It is a matter of national pride to make Hong Kong a showcase for “one country, two systems”. If China, out of political consideration, does not allow Hong Kong citizens more freedom to elect their own officials and make them more accountable in the near term, then it must strengthen the governance of the SAR.
Not by imposing more police or political control; but by making Hong Kong officials more accountable to address the woes of its citizens. There are several initiatives I can think of. First, introduce public housing schemes for citizens of various economic strata. Second, introduce more exchange programmes for Hong Kong university students to study or have work internships on the mainland. Third, get state-owned enterprises in Hong Kong, especially those in the financial sector, to hire Hong Kong graduates. Caps on immigration and tourist visas from the mainland should be introduced as well. Also, diversify the Hong Kong economy away from heavy reliance on finance and retail tourism. Lastly, allow qualified candidates from a wider spectrum of political ideology to serve Hong Kong.
If anything, the last few months have shown the government cannot continue to govern Hong Kong based on the niche support of business and political interest groups, instead of addressing the needs and wants of most of its citizens.
Cynthia Ng is founder and chief investment officer of a Greater China equities investment fund
