1. SOSC 103D Social Inequality in HK Lecture 13: Defining poverty in HK

2. L13: 21.03.072 Development and Poverty Relations between development and poverty Year 1971197619811986199119962001 Gini Coefficient 0.420.430.4510.4530.4760.5180.525

3. L13: 21.03.073

4. 4 Development and Poverty What is the nature of poverty in the 1960s; and does it different from those in the 1990s? 1960s: ‘ Making Ends Meet ’ (by D. Faure) E.g. Inadequate food, Poor housing conditions

5. L13: 21.03.075 Development and Poverty 1990s: ‘ Disempowerment and empowerment ’ (Lui & Wong) Old population Industrial restructuring of the economy Marital and family problems -> single parent families New immigrants from Mainland China

6. L13: 21.03.076 How to define poverty? In terms of money/ resources? living style? citizenship?

7. L13: 21.03.077 Defining Poverty – Absolute Poverty Standard Approach Specify the minimum or basic subsistence level Estimate the percentage of income spend on food(50%) Example: HK ’ s low income families in 70s and 80s Advantages: Convenient; Straight-forward Disadvantages: Narrow conception of poverty; Static

8. L13: 21.03.078 Relative Standard Approach Poverty is defined in relative nature Poverty is measured with reference to the degree of inequality in society Measures of poverty line (The Hong Kong Council of Social Service): Half of the median household income (HK$9,000 for family of 4) Hong Kong ’ s Case (1.12 million people out of a total population of 6.9 million who live below the poverty line ~ 16%)

9. L13: 21.03.079 Relative Standard approach (cont ’ ) Advantages:  Links poverty to income inequality in the society  Poverty means more than receiving welfare (the definition that usually used by governments) Disadvantages:  Difficulties in collecting right income information  Exaggerates the amount of poverty: ignore the help in kind received by the poor  Underestimates poverty: income is not the sole measurement

10. L13: 21.03.0710 The Style of Living Approach 9 items included in a deprivation index (Chow, 1983): 1. Do all members have a permanent bed for their own use? 2. Does the household have a television set? 3. Does the household have a refrigerator? 4. Do members usually consult doctors when ill? 5. Does the family go out to celebrate on occasions? 6. Does the family eat fresh poultry apart from festivals? 7. Does the family present gifts to relatives or friends on days of events? 8. Do household heads give away “ red pocket money ” during the Chinese New Year? 9. Do household heads take friends now and then to restaurant ?

11. L13: 21.03.0711 The style of living approach (cont’) Wong & Lee (2002) 1. To cut expenses, would you avoid taking bus 2. Would you avoid switching on lighting at home even when necessary 3. Do you have difficulties in affording red pocket money in the last Chinese New Year 4. Would you buy food right before the market closes because of cheaper prices 5. Is any of your household member without a fixed bed to sleep 6. Are you having insufficient food for at lease one meal during last week 7. Do you have difficulties in buying medicine when you get ill (9.4%)

12. L13: 21.03.0712 Number of poor people receiving welfare in HK The number of people that receive social assistance:  295,700 CSSA cases or 534,220 recipients:

13. L13: 21.03.0713 Who are the poor people in HK?? Cases of CSSA (in year 2004)

14. L13: 21.03.0714 Suggested Reading: Wong, Hung & Lee, Mim Ming (2002) "Study of Hong Kong Poverty Line" (in Chinese, with English summary) http://web.swk.cuhk.edu.hk/~hwong/publication/ Research_monograph/poverty_line_study_report.pdfhttp://web.swk.cuhk.edu.hk/~hwong/publication/ Research_monograph/poverty_line_study_report.pdf.