L2Theconstruction of socialpolicy in Hong Kong

Productivism andneoliberalismtosocialpolicy

SOWK 3340Social Policy and Planning

Department of SocialWork, CUHK
14 September 2023

Lecturer: Eric Au Yeung

LECTURE 1 REVIEW
◼ Social Policy concern with the production and distribution

◼ Definition of Social Policy

◼ Different dimensions on Social Policy

◼ The Political economy of social policy in HK

◼ Social Policy and Social Work

 The State injected funds in
targeted sector of the economy
and led economic growth

Developmentalism and
State-led investment / State-led
the economic success economic development
of Japan after the 2nd
World War

How about the The connection between the

case of Korea? State, enterprise and Bureaucrats
Tnclusive welfave
– the so-called golden triangle
→

Economic development as the

bGf- Japan anlyAsid ountrics )
primary aim of social policy
7

(Selective Vs Inclusive welfare)

LECTURE 2 - CONTENTS 右派對政策台

▪ Productivism - The productivist welfare capitalism in

Hong Kong from colonial to Post 1997

▪ Right Wing ideology: Classic liberalism

▪ Impacts of Neoliberalism on social welfare and social

work in Hong Kong
PRODUCTIVISM
AND SOCIAL
POLICY IN
HONG KONG ⽣產主義
 ⽣產主義
PRODUCTIVIST WELFARE CAPITALISM

• The Notion of productivism “The two central aspects of the proactivist world
are a growth-oriented state and subordination of all aspects of state policy including social policy to
economic / industrial objectives” (Holiday I., 2000), “A growth-centred state and the subordination of all
aspects of state policy to economic goals, backed up by self-sufficiency and the family” (Holliday I., 2002)

• Priority is given to those policies that are likely to contribute to economic growth
政權模合化化
• Social welfare serve to promote economic growth and thus political legitimation. In
other words, social welfare is subordinate to economic development, the former
must give way to the latter whenever they are in conflict e.g. CSSA, Home
ownership scheme ]
polizicul 倾向 econ 成效排句政策
 PRODUCTIVIST + WELFARE CAPITALISM

(canb )
• Welfare and assistance is based upon needs, but not rights,
temporary and conditional delivered by voluntary (NGO/church) or
⼀

GoV 。
dsnally
private organizations rather than state agencies / institutions
1
HK 最初 nelyonNGO
Gor .

sumgrant
lump
: ⽪書線 govousult
⽩⽪書 wnfirmwelfme
:
} nowcaucelled
 PRODUCTIVIST + WELFARE
CAPITALISM (HOLLIDAY I., 2000)
提供⼀ X 改税收
→

• The expansion of social welfare provision was

mainly financed by government revenue
generated from )continuous economic growth
x×
rather than increases in taxation or any
contributory or cost-sharing schemes
• The myth of “positive non-intervention”: The
government has been taking active measures
to promote and maintain economic
performance of Hong Kong yet the
intervention for welfare provision is minimal
https://www.budget.gov.hk/2022/eng/io.html
強績⾦對沖 ; Self - gor 合供
omp
-
.

welfare 佔政府⽀出 : < 20 )

→ dependonewu . 收入幾多, 再比幾多落 welfae ,
 PRODUCTIVIST + WELFARE CAPITALISM
household
wAcmustc 市场中位以 計 ( ⼈越多 →$越少 )
Social security
;
enwweye ⼈返 Z
• Emphases on minimal provision, notably for basic social assistance, to ensure that wages and salaries are
not pushed above market-clearing levels, and that a dependency culture does not emerge
• Emphases on household-based provision to minimize the public burden
Education
• Core competence in literacy and numeracy, skills training. Investing in high-end human capital and
professional services =7 Gov 肯 deote $ 落⼈才 cg IS 7 F .

Health care : 對未來發管展有益

• “A good general standard of health throughout a community is an economic asset to it and helps the
condition the levels of energy and initiative which determine productivity, particularly in a free enterprise
economy such as Hong Kong … The economic loss due to sickness or disability, both to the individual
and to the community, should not be underestimated” (Medical White Paper 1964, para. 89)
Housing
• Providing lost-cost accommodation for workers and their families
• The functions of public housing in HK (公屋政策)其一是為了解決木屋區衍生出來的問題；其二是為
了背地裡對香港產品出口進行補貼」（施永青，「殖民地政府為何建公屋」，AM730 ，21/7/2011
國除競爭⼒ :
Chenperprneingbhal 1abow 要平的 (stable
→

HK
Gowie
9

.
pullfar tor
整⼯業廠 → 觀塘公屋⼀ → 市经可近的平返 2 t →

⼀⾞Gubsidy
 Economic growth as the prime objective
(Or sole objective) of state policy

Productivist Social policy must be subordinated to

Welfare economic growth
capitalism in
The limit of social rights for welfare
Hong Kong
and security

The emphasis on work and self-reliance

– welfare-to-work ideology
 SOCIAL POLICY PRINCIPLES IN THE
COLONIAL ERA

Sir John Coperwaite, Financial Secretary of the 1960s

I myself have no doubt . . . {social policy} tended to appear to

many to be more concerned with the creation of wealth than
with its distribution. I must confess that there is an element of
truth in this … my conviction {is} that the rapid growth of the
economy . . . produces a rapid and substantial redistribution of
income . . .
女 , :
cdulweltire
量入為出 depondon 政府收益決定撥援幾多落
Social Policy Principles in the
Colonial Era

Sir Philip Haddon-Cave, Financial Secretary in the 1970s

The notion of positive non-interventionism

Attempts to frustrate the operation of market forces

will tend to damage the growth rate of the economy
… , But … the government must play an active role in
the provision of those services and facilities essential
to life in a civilized community
The first Social Welfare White Paper, 1965

…it is of the greatest importance that social welfare services

should not be organised in such a way as to make it easier
for socially disruptive influences to gain a hold over the
community, or to accelerate the breakdown of the natural or
traditional sense of responsibility- for example by
encouraging the natural family unit to shed on to social
welfare agencies, public or private, its moral responsibility
to care for the aged or infirm…

The role of social welfare was:

• To provide basic and minimal assistance
• Discourage use
• Avoid disrupting status quo
• Preserve traditional family function
⑤
SOCIAL POLICY PRINCIPLES IN THE
COLONIAL ERATILL 90S
disdvantaged
最

for
The colonial moral economy of ⼝ welfare had continued
in the 1990s. The last governor, Chris Patten:

Quite deliberately, our welfare system does not exist to iron out
inequalities, It does not exist to redistribute income. Our welfare
programmes have a different purpose. They exist because this
community believes that we have a duty to provide a safety net to
protect the vulnerable and the disadvantaged members of society,
the unfortunate minority who, through no fault of their own, are left
behind by the growing prosperity enjoyed by the rest of Hong Kong.
The turnover of sovereignty in 1997. A new page in
politics and social policy?
The 1st Chief Executive, TUNG Chee Hwa
董建華⼀ freemarket
The law of the market is simple and clear.
Whoever achieves lower costs, higher
efficiency and better quality, and therefore
adds higher value to products, will
succeed (Para 12)

Hong Kong's development strategy will be

based on two principles, a free market in
economy and a prudent fiscal policy (Para 16)

We will work to improve Hong Kong’s

position as a premier financial centre by
maintaining a world class supervisory
regime without over regulation (Para 24)

歲為出審慎
政策 :

. Thvesteut ; ⼀定有 pofit 先做

freemarket
,

⼩政府
…It is only when the
market mechanism is
not working
properly that the
Government steps in
and exercises
necessary and
limited intervention.

Since its inception, …Weall desire a society of greater

the SAR Government harmony, in which everybody respects and
has carried on the treats others well. We should carry
tradition of fiscal forward our traditional virtues, such
. as filial
prudence and small piety, humanity, importance attached to education,
government. (Para and diligence. We favour consultation, not
199) confrontation. (Para 167)
 The Notion of
Small Government
and Big Market
Hong Kong is a highly externally oriented economy. Our strategy is to
“leverage the Mainland and engage ourselves globally”; to
strengthen our advantages; to encourage entrepreneurship and fair
competition under the principle of “Big Market, Small Government”;
and to consolidate our position as Asia’s world city and our role as a
key international financial, trading, transportation and information
hub of China.

Mr. Donald Tsang,

2005 Policy Address
FOSTERING ECONOMIC GROWTH

We maintain a simple and low tax regime while

prudently controlling government expenditure to leave most
of the wealth to the market and the public….
The current-term Government will continue to count on
forces and act in a rational and pragmatic manner in
collaborating with the market to grasp development
opportunities and create a better business environment to foster
robust economic growth… (Para 17, Budget Speech 2013-14, Mr.
John Tsang, then Financial Secretary)
 GDP Per Capita 2022

https://www.statista.com/statistics/270180/countries-with-the-largest-gross-domestic-product-gdp-per-capita/
 Personal Tax rate
60
57.1
55.8 2-17% in HK

50.2 42.7% in Finland

50 48 47.5
45 45 45 45
42.47
39.6
40 38

33

30

22

20

10

0
Sweden Danmark France Ireland Germany China Spain Taiwan UK OECD USA S.Koea New Singapore
Zealand

https://tradingeconomics.com/country-list/personal-income-tax-rate in 2021
荷蘭 比较意trydiffpolicnks
。
:

Corporate Tax Rate

45

40
40

35 33.3

29.79
30 28

25 25
24.27
25
22 22 22

20 19
17 17 16.5

15
12.5

10

https://home.kpmg.com/xx/en/home/services/tax/tax-tools-and-resources/tax-rates-online/corporate-tax-rates-table.html
 What do you think of the
unemployment relief fund 2022
during the Pandemic?
所疫基
_: 5
nrul
就業以可
⾦保企 1
失業 ( $)
00 : 1 次
問題 : 有⾏菜已經具緊錢
d Iusuvanel 網店 1 電腦脂 (
zoomye
.

→ 合理 ?
Even during the poorest time and the unemployment hit the peak, the Gov. was still
relucent to establish the unemployment relief fund to the individual unit 2022
HONG KONG
VERSION OF CONSERVATISM

• The supremacy of free market economy

• Simple and low tax environment
• Prudent public finance – small government,
prudent spending in welfare and social security
• Investment-directed public spending
• Minimal regulation
• Diligent labour force
• Welfare which stresses self-responsibility
RIGHTWING
IDEOLOGY
~ LIBERALISM
 CLASSIC LIBERAL VIEW ON
HUMAN BEING

• Individuals are rational beings who are motivated by

prospects for material gain
• They make use of free market to ensure that the economy
produces what they want
 CLASSIC LIBERAL VIEW ON THE
ROLE OF FAMILY

• The best suitable mechanism to provide care to the

needy members
• Family as the ‘first port of call’
• Family as a condition of self-sufficient
• Women as carers
• Traditional gender division of labor is upheld
CLASSIC LIBERAL VIEW ON THE
INDIVIDUAL MORALITY

• Poverty, unemployment and other social

disadvantages as personal failure and
personal responsibilities.
• Discourages welfare dependency
• Welfare recipients as burdening and damaging
 CLASSIC LIBERAL VIEW ON
FREEDOM AND STATE

• The major obstacle to freedom

• State is “tyranny of the majority” (Mill, 1859)
• The majority or the representative government often
individual liberty and create a conformist political culture
• Advocates of minimal state ⼩政府
• The role of state is to protect people from the
encroachments of other people → ⼤政府
mayaffatfreedom
 CLASSIC LIBERAL VIEW ON
FREEDOM AND STATE

• Emphasis of liberty
• Individuals should be free to explore their
interest and pursue the interests
0 9 電⼦爆Jevenharufulto
.
,
health → free tochone

• Education, science, and reason can prosper

freedom of people
 CLASSIC LIBERAL VIEW ON ECONOMY
• Advocates of laissez-faire & Economic liberalism
• The best institution for needs satisfaction
invisibuhand
through the free mechanism of demand and
supply
• Free market economy is capable of serving the
public good
• State should keep away from the free market
CLASSIC LIBERAL VIEW ON
SOCIAL POLICY
• Social policy (state intervention) is organized
collect power affecting the private affairs of
individuals
• Social policy (state intervention) is legitimized
only when it is used to ensure individual liberty
are not infringed by other individuals and groups
CLASSIC LIBERAL VIEW ON
WELFARE
• Minimal welfare 7 ouly for most dBadvantaged
• Selective not universal
• Conditionality and encourage exit
• Welfare should be enabling, not creating
dependency (Welfare to work)
• Punitive to prevent abuse
) balane
r between demand d supply
CRITIQUE ON WELFARE
1. Inhibits individual freedom
• Inhibits personal choice and incentive
2. Mistaken view of welfare → ~ 全退休保障
• State welfare undermines economic growth
• Rights over obligations
3. Wasteful and Inefficient
• Critique towards universalism
4. Damage economy
• Create economic burden, high tax
5. Socially damaging
• Erode individual morality
 要⽔煤和有化政府下 油局 政府
:

右派 gorimostu有 )
—

ny ? Nxwnyl
NEOLIBERALISM:
FURTHER DOWN THE ROAD
• Neoliberalism as a political and economic
Project

• Strengthens capitalism by
• Enlarges and deepens the operation of the
Market

• A co-product of globalization where global

economic integration and free trade through
treaty signing and global competition are
promoted.
 NEOLIBERALISM:
FURTHER DOWN THE ROAD

• Freedom for capital, goods and services

• Removals of any impediments to capital mobility
• The market is self-regulating and should be free from
any interference
• Trickling down notion of wealth distribution
• De-unionization of labor force
• Re-regulation / increase competition
 NEOLIBERALISM:
FURTHER DOWN THE ROAD

• Free from state and government control

• Reducing public expenditure and the
volume of the government
• Privatization / marketization – removes
public inefficiency
• Managerialism: Economy, efficiency and
effectiveness
 DIFFERENTIATION BETWEEN
CLASSIC LIBERALISM & NEOLIBERALISM

-Neoliberalism: The operationalization of market in social policy

 Privatization: Privatize public utilities, e.g. Link REIT, MTRC, MPF, VHIS

 Marketization: Induce competition and cost-effectiveness e.g. Lump sum

grant, project-based projects, outsourcing, service bidding
 Managerialism: KPIs, output assessment, FSA, SQS, SPMS in social services

-The above key concepts constituted the term New Public Management (NPM) in US,
UK, Australia and some other countries in 80s & 90s
TOWARD FLEXIBLE WELFARE:
FLEXICURITY : EXAMPLES OF FLEXIBLE WELFARE IN HONG KONG
❑ Waive of property’s rates
❑ Subsidizing electricity bill, water bill,..
❑ Profit tax and salary tax Refund
❑ Issuing digital cash coupon for all citizens
❑ Extra month(s) of CSSA, Old Age Living Allowance
❑ Work Incentive Transportation Scheme
❑ Working Family Allowance for low income family
❑ Project base: IEAPs for self-reliance, Youth
Employment and Training Program (YETP),
Community Care Fund, Samaritan Fund, Rainbow …
❑ Employment Support Scheme & Temporary
Unemployment relief under COVID-19
IMPACTS ON SOCIALWORK
• Social work has adapted to the new social climate –
-- becoming more remedial ?
-- becoming more problem-solving ?
-- becoming more punitive ?
-- becoming less client oriented ?
-- becoming less critical to the state ?
-- becoming less concerned with social justice but
more with maintaining social stability as control
and economic development?
LECTURE 2
TAKE HOME VALUE
1) Ideologies
• The Productivism
• Right Wing : Classic liberalism &
Neoliberalism

2) Welfare in Hong Kong

• The productivist welfare capitalism in Hong
Kong from colonial to Post 1997
• The impact of Right-wing on social welfare
THANK YOU