{"id":18877,"date":"2018-10-15T15:33:34","date_gmt":"2018-10-15T07:33:34","guid":{"rendered":"http:\/\/chinaworker.info\/?p=18877"},"modified":"2018-10-15T15:42:15","modified_gmt":"2018-10-15T07:42:15","slug":"carrie-lams-policy-address-pouring-money-into-the-sea","status":"publish","type":"post","link":"https:\/\/chinaworker.info\/en\/2018\/10\/15\/18877\/","title":{"rendered":"Carrie Lam\u2019s\u00a0policy address: “Pouring money into the sea”"},"content":{"rendered":"

Hong Kong\u2019s unpopular\u00a0government signals there\u2019s worse to come<\/strong><\/p>\n

Hong Kong society under Chief Executive Carrie Lam Cheng Yuet-ngor is anything other than \u2018stable\u2019. The government\u2019s slump in popular support deepens as corruption scandals, a worsening housing crisis, brutal inequality, and an endless stream of infrastructure \u2018white elephants\u2019 fill our daily lives.<\/p>\n

A 60-page report from Oxfam, published in\u2008September shows economic inequality in Hong Kong is greater than at any time since records began 45 years ago. Hong Kong\u2019s Gini coefficient, a measure of the wealth gap, is now at 0.539, compared to 0.458 in Singapore and 0.411 in the United States. Our city\u2019s minimum wage will reportedly rise a measly three dollars to HK$37.50 per hour next May, but in South Korea, with much lower per capita GDP and a lower cost of living, the hourly minimum wage is HK$58.<\/p>\n

The government\u2019s political crackdown to quell the democracy movement, and now specifically to root out all manifestations of \u201cHong Kong independence\u201d, escalates remorselessly. The expulsion from Hong Kong of Financial Times Asia news editor, Victor Mallet, whose family has lived in the city for seven years, establishes a new \u201cred line\u201d for government curbs on press freedom. Mallet is being punished for the \u201ccrime\u201d of moderating at a meeting with pro-independence politician Andy Chan Ho-tin at the Foreign Correspondents\u2019 Club (FCC) where Mallet is first vice president. Chan\u2019s party \u2013 if such a thing ever existed \u2013 was the first party to be banned in Hong Kong, on September 24, a month after the FCC\u2008meeting.<\/p>\n

Read More\u00a0\u27b3 China\u2019s heavy hand gives HKNP\u2019s Andy Chan Ho-tin a global platform<\/a><\/h4>\n

 <\/p>\n

Read More\u00a0\u27b3\u00a0Hong Kong government expels FT journalist, escalates repression<\/a><\/h4>\n

 <\/p>\n

If the aim of Mallet\u2019s banishment was to shock the overseas capitalist establishment, governments and mainstream media, it\u2019s a case of \u201cmission accomplished\u201d for the government. Rare protests have been heard from the US, Britain and the EU, heightening fears within Hong Kong\u2019s capitalist elite that punishing foreign media representatives in such a brazen way could open a new front in the increasingly dangerous US-China trade war.<\/p>\n

Such incidents could undermine Hong Kong\u2019s attempts to insulate itself from the trade war by playing its \u201cspecial status\u201d card. That this is a real concern is illustrated by the recent visit by Secretary for Commerce Edward Yau Tang-wah to Washington to lobby for guarantees that Hong Kong would not be drawn into the US conflict with China.<\/p>\n

\"\"<\/p>\n

Power Struggles<\/strong><\/p>\n

The Mallet affair has also stoked speculation of power struggles behind Lam\u2019s throne \u2013 specifically that her former boss, CY\u2008Leung, and his factional allies in the Central Government Liaison Office are working to undermine Lam in order to pressure her into adopting even more sweeping authoritarian policies.<\/p>\n

Several commentators have speculated that CY may be the real author of Mallet\u2019s expulsion. Lam has tried to keep a low profile over the issue, but can hardly afford to show softness now the deed is done. Her target audience is not primarily the people of\u2008Hong Kong \u2013 who can\u2019t and won\u2019t vote for her government \u2013 but her boss Xi Jinping.<\/p>\n

However, in the case of Mallet\u2019s expulsion it is questionable whether this move \u2013 in the current international climate \u2013 is helpful to Xi. Beijing has \u201cbigger fish to fry\u201d in managing its strained relationships with Western governments. While the local Hong Kong office of China\u2019s Ministry of Foreign Affairs declared it \u201cfirmly supports\u201d the Mallet decision, stressing that visa cases \u201cfall within a country\u2019s sovereignty\u201d, it can\u2019t be discounted that this incident was contrived by factional forces on the Hong Kong side, acting independently of Beijing, and not necessarily serving its wider interests. Throughout four months of intensifying conflict with the US, Xi\u2019s regime has shown considerable restraint and largely avoided inflammatory statements and acts (leaving this sort of thing to Trump).<\/p>\n

Lam has come under fire on other issues such as her handling of the Typhoon Mangkhut aftermath \u2013 the biggest storm ever to hit Hong Kong. It seems that hardliners, with\u2008CY\u2008to the fore, are using every opportunity to embarrass her government in Beijing\u2019s eyes as weak and ineffective. A major aim of this destabilisation campaign is to pressure Lam to speed up plans for introducing Article 23 anti-subversion legislation.<\/p>\n

Beijing has made clear that Article 23 is close to the top of its Hong Kong agenda. Lam is more cautious, sensing her government\u2019s lack of public support and knowing that the previous attempt to introduce Article 23 legislation fifteen years ago led to the disintegration of the Tung Chee-hwa\u2019s administration. Her moves to ban the Hong Kong National Party of Andy Chan, using a former colonial law, can partly be seen as a delaying tactic to satisfy Beijing that Lam has enough existing legal tools to enforce Beijing\u2019s repressive agenda without rushing headlong into a battle over Article 23, which runs the risk of a massive public backlash.<\/p>\n

Top-level divisions and power struggles are not new in Hong Kong, especially in recent years, as competition has sharpened between rival capitalist cliques \u2013 traditional Hong Kong-based groups versus more recent mainland-allied players. But there is an added dimension today as the regime of Xi Jinping is more and more distracted by its economic and geostrategic standoff with Trump\u2019s America, not to mention Xi\u2019s domestic problems with a sharp economic slowdown and heightened social unrest.<\/p>\n

In short, Xi\u2019s regime is itself hardly \u2018stable\u2019 and that also goes for the international environment within which all parties are forced to operate. A complex web of factional infighting \u2013 part of China\u2019s political tradition \u2013 increases the likelihood of sudden crises, policy miscalculations, and greater instability in Hong Kong, China and in their relations with the outside world.<\/p>\n

\"\"<\/p>\n

White Elephant Infrastructure Projects<\/strong><\/p>\n

The increase in US interest rates, as its economy begins to grow again, has already had an impact on Hong Kong due to the currency peg, which forces it to follow changes in US monetary policy. The cost of home loans is going up, ending an unprecedented era in which global liquidity flooded into Hong Kong after the 2008 financial crisis, pushing house prices up by more than 140 percent since then.<\/p>\n

\u201cHong Kong\u2019s property market is having its worst combination of fundamentals in 15 years,\u201d warned an analyst at CLSA, a mainland-owned investment company.<\/p>\n

If Lam\u2019s annual policy address in October was designed to shore up her support, this can only conceivably apply to one group \u2013 the billionaire class who are already the main recipients of government \u2018welfare\u2019 in the form of vast, largely unnecessary infrastructure spending.<\/p>\n

Read More\u00a0\u27b3\u00a0Hong Kong\u2019s controversial high-speed rail link to China opens<\/a><\/h4>\n

 <\/p>\n

The cornerstone of this policy address was the Chief Executive\u2019s proposal to push ahead with the monster \u2018East Lantau Metropolis\u2019 plan, first mooted in 2014, to sink at least HK$500 billion into a gigantic land reclamation scheme in the waters around Lantau. This policy says everything about a government that can\u2019t say no to the big property companies even when this further undermines its public support.<\/p>\n

Lam\u2019s proposal to build 1,700 hectares of artificial islands is much bigger than the 1,000 hectares envisaged in the 2014 plan. In April, the government set up a task force to undertake public consultations over Hong Kong\u2019s land supply options. Now it is pushing ahead with the most expensive option without waiting for the report. Hong Kong\u2019s housing crisis has never been about land shortage, as the government and property tycoons claim, but about the super-profits and financial speculation of these same tycoons.<\/p>\n

\u201cPouring money into the sea,\u201d is how many see the Lantau project, with the government conspicuously ignoring cheaper more readily available options such as building upon the 170 hectare Fanling golf course (which charges an annual membership fee of HK$340,000 while paying just HK$1,000 per year in rent to the government). This option could provide 115,000 residential units.<\/p>\n

Based on its track record of routinely overshooting budget estimates for infrastructure projects, many experts dismiss the government\u2019s \u201crumoured\u201d price tag of HK$500 billion for Lam\u2019s Lantau madness, and predict the real cost could be as much as HK$1.2 trillion, almost equivalent to the government\u2019s entire fiscal reserves.<\/p>\n

This is 14 times more than the cost of the Hong Kong-Guangzhou high-speed railway, for example, itself a monumental folly. Furthermore, it dwarfs the cost of establishing a universal pension system, priced at around HK$50 billion, which the government says it can\u2019t afford!<\/p>\n

Lam\u2019s plan syncs with Xi Jinping\u2019s now deeply troubled Belt and Road Initiative (BRI). The government\u2019s main aim is to realise the \u2018Greater Bay Area\u2019 plan (Guangdong-Hong Kong-Macau), to integrate Hong Kong with China\u2019s economy. The Lantau development is pivotal to this plan, which would also include new rail links, tunnels and a new bridge connecting Hong Kong Island and Kowloon to Lantau.<\/p>\n

Read More\u00a0\u27b3\u00a0\u2018Belt and Road\u2019: Imperialism with Chinese characteristics<\/a><\/h4>\n

 <\/p>\n

The government is trying to sugar this pill with wholly misleading claims that the artificial islands could be used to \u201csolve\u201d the housing crisis \u2013 creating land for up to 400,000 residential units to house 1.1 million people. 70 percent of these units will be reserved for public housing, Lam says. But what she actually means is subsidised saleable apartments, which are 10-20 percent more expensive than \u2018Home Ownership Scheme\u2019 (HOS)\u2008apartments, plus HOS units, so that the proportion of real i.e. rented public housing would be significantly lower than 70 percent.<\/p>\n

Lam\u2019s ever-increasing authoritarianism and neoliberalism will not abate by itself. Her rule has profited from an absence of serious organised opposition due to the total political disarray in the pan-democratic camp. A mass fight back needs to be built, and this requires re-tooling the democracy movement with a new, combative leadership, and a working class anti-capitalist political party as its main force.<\/p>\n

\"\"<\/p>\n","protected":false},"excerpt":{"rendered":"

Hong Kong\u2019s unpopular\u00a0government signals there\u2019s worse to come<\/p>\n","protected":false},"author":44,"featured_media":18882,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"tdm_status":"","tdm_grid_status":"","footnotes":""},"categories":[133,124],"tags":[4331,9857,7296,207,2514,1007,12334,12173,6581,12336,8452,12332,12330,12328,915],"class_list":{"0":"post-18877","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-hong-kong","8":"category-news","9":"tag-article-23","10":"tag-authoritarianism","11":"tag-carrie-lam","12":"tag-ccp","13":"tag-cy-leung","14":"tag-democracy","15":"tag-east-lantau-metropolis","16":"tag-hong-kong-national-party","17":"tag-neo-liberalism","18":"tag-pouring-money-into-the-sea","19":"tag-power-struggle","20":"tag-victor-mallet","21":"tag-wealth-gap","22":"tag-white-elephants","23":"tag-xi-jinping"},"yoast_head":"\nCarrie Lam\u2019s\u00a0policy address: "Pouring money into the sea" - 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