Hong Kong's Wealth Gap: Impacts, Solutions, and a Call for Action

Despite being one of the most affluent cities in the world, Hong Kong's economic success is not equally shared by its citizens. The persistent problem of the wealth gap has deteriorated in recent years and led to negative consequences such as escalating social conflicts and a widened education gap. This essay will discuss these impacts created by this problem before exploring some possible solutions.

The unequal distribution of wealth has resulted in dissatisfaction with the government, resentment against the rich, and mounting social unrest triggered by this sentiment. This antagonism towards the upper class and the government is prevalent among nations in Asia with mass demonstrations against soaring living expenses [1]. Similar tensions between haves and have-nots can be seen in Hong Kong, as illustrated by the recent 'Occupy Central' movement, and the protest organized by dock workers.

Discontent with the government is also growing, and if the situation is not rectified, there will possibly be more protests and even riots in the city, thereby undermining the effectiveness of the government.

As well as the disrupted social harmony, growing income disparity has resulted in unequal education opportunities and a knowledge gap between the rich and the poor. According to Poon and Wong [2], the education reform in Hong Kong has promoted new approaches to learning and studying which are 'seemingly neutral yet can be unfair to underprivileged students'. The current curriculum places a great deal of emphasis on extra-curricular participation and online learning, which put students from poorer households at a distinct disadvantage. This has possibly led to far more students from high income families being able to enter university than those from low income households [3].

To combat the problem of rising social tensions over income inequality, some measures should be adopted to redistribute wealth in the society and protect the livelihood of the poor. One possible way, as suggested by Li et al. [4], would be to reform the tax structure. By placing greater responsibility on the most affluent residents more tax funds can be collected, which can in turn generate more revenue for the government to provide better social welfare, such as housing and education, for the underprivileged. As the amount spent on social benefits is directly relevant to wealth disparity [5], when resources in the society are reallocated by revising the taxation system and enhancing social welfare, wealth can be more evenly shared by the public.

Concerning the expanding gap in academic achievements, the Education Bureau needs to implement policies to ensure that students from both affluent and working-class families have equal education opportunities, which include access to quality schools, enrichment activities, computers as well as other learning resources. In the short term, more generous financial aids and scholarships can be granted to needy students to support their studies and involvement in extra-curricular activities. In the long run, the government should review its education reform strategies. Direct Subsidy Schools, as pointed out by Law [6], charge high school fees which are unaffordable for many. In order not to aggravate the rich-poor divide in education, the government should limit the number of DSS schools and also impose a ceiling on their school fees.

The widening wealth gap has created many problems including potential social upheaval and growing inequality in education opportunities. These challenges can be tackled by wealth redistribution measures such as adjusting tax rates, and education policies review such as increasing subsidies for needy students. Unless the Hong Kong government acknowledges the severity of the problem and makes determined efforts to remedy the situation, the disparity between rich and poor will continue to grow.