Introduction

The Chief Executive of the Hong Kong Special Administrative Region (SAR), Mr Tung Chee Hwa, announced (1997a) several welfare measures that brought new hope for Hong Kong people who had been living under a colonial welfare system for over 150 years. As Tung (1997a, para 12) declared at his first Policy Address, “to promote the well being of the people is the most fundamental task of a responsible government”. In response to the housing problem, the new regime had three commitments: “to build at least 85,000 flats a year in the public and private sectors; to achieve a home ownership rate of 70% in 10 years; and to reduce the average waiting time for public rental housing to three years” (Tung, 1997a, para 52). Concerning the financial needs of older people, he increased the Comprehensive Social Security Assistance (CSSA) scheme monthly payment for older claimants by HK$380. Regarding education, he planned to change all primary schools from half-day to whole-day schooling, and also introduced a non-means-tested loan scheme to benefit 50,000 full-time tertiary students. However, the Hong Kong government suddenly changed these policies following the outbreak of the East Asian economic crisis. In response to rising social needs caused by Hong Kong's economic downturn, the Hong Kong SAR even cut public expenditure, withdrawing its housing commitments, and reduced the level of social security benefits. Against this background, this chapter analyses the underlying causes, patterns and basis of Hong Kong's welfare management.

Socioeconomic pressures on welfare provision

Socioeconomic changes have put tremendous pressures on the Hong Kong SAR. In the field of housing there are a large number of “less fortunate households in the private sector who have pressing housing needs” (Fung, 1996). There are 150,000 applicants on the waiting list for public rented housing and the number increases at the rate of 2,000 per month. The average waiting time for an application, however, can be as long as seven years. In addition, 620,000 people in temporary housing and squatter areas are seeking permanent public housing (Eastern Express, 21 May 1996). Thus, many households have long been living in overcrowded and poor housing.