LS secondary 1
I. What is quality of Iife? What is it like in Hong Kong?
2. How can we measure quality of life?
3. What factors affect quality of life?
4. Are you satisfied with your quality of life?
What is quality of life?
According to the World Health Organization (WHO), quality of life is an abstract
concept that covers one's physical health, psychological state, personal beliefs,
social relationships and relationship with the environment.
Q1 Quality of life includes economic, political, cultural, social and environmental
aspects, as well as the subjective feelings of different people. Therefore, there is
no universal definition for ‘quality of life'. The explanation of the concept provided
by WHO represents only one of many alternatives.
Broadly speaking, quality of life refers to the level of satisfaction and the sense of
security we experience in our daily lives. This involves both material and nonmaterial aspects.
Q2 Can you identify what material life and non material life are?
What is the relationship between the two and quality?
Material life refers to the pleasure and satisfaction obtained not by spending
money.
Non-material life refers to the satisfaction obtained not by spending money. The
level of satisfaction on the enjoyment they provide directly affect our quality
Q3 Major factors affecting quality of life
1. Economic factors
Economic factors directly affect people’s material life. When the economy is
good, the unemployment rate tends to be lower and people receive higher
incomes, which promote a better material life.
2. Political factors
Politics is closely linked to our non-material life. For example, political
stability, social policies, freedom of speech, the freedom enter or leave the
region, the right to vote, etc. affect our non-material life.
3. Social factors
Social factors include average life expectancy, the mortality rate,
environmental hygiene, press freedom, social welfare benefits, etc. They
affect both our material and non-material life.
How can we measure our quality of life?
Objective and subjective factors affecting quality of life
We can find out more about our quality of life using objective and subjective
measures.
Objective measures can be quantified and used for statistical analysis
Examples are the Gross Domestic Product (GDP), unemployment rate,
expenditures on education and public health which clearly reflect the quality of
life of the general public.
Subjective measures involve personal feelings and views which are often affected
by our values, cultural background, personal goals and standards. Therefore
quality of assessment based on these measures can differ from person to person.
1.
2.
3.
4.
Both material life and material life affect our quality of life.
Quality of life is mainly affected by economic, political, and social factors.
Assessment of quality of life involves objective and subjective factors.
Since quality of life is affected by many factors, different people have a
different understanding of the concept.
Chapter 2 The formation of an entrepot
1. What is economic restructuring? How many phases of economic restructuring
has Hong Kong experienced after it opened its door to trade in 1841?
2. What made Hong Kong grow from a fishing village to an industrial city? And
then to an international trading and financial centre?
3. How did these economic restructurings affect the daily lives of people in Hong
Kong?
4. What is a knowledge-based economy? In what ways does it improve our living
standard?
S. Why is it necessary for Hong Kong to transform itself into a knowledge-based
economy?
Does Hong Kong meet the criteria for developing into such an economy?
Hong Kong’s history of economic restructuring
Q1 What is economic restructuring?
Economic restructuring refers to a change in job nature for the majority of the
working population which leads to a long-term change in the employment
structure. For instance, the employment structure may change from one that
mainly relies on agricultural production to one that is based on industrial
production.
Q 1 Hong Kong has experienced three phases of economic restructuring since it
first opened its door to trade:
The relationship between economic restructuring and quality of life
In the long run, economic restructuring will result in changes in the employment
structure. In other words, our job nature and source of income will change, which
can affect our lifestyles and quality of life.
Q 2 The formation of an entrepot
Between 1841 and1950, Hong Kong grew from a fishing village to a world-class
entrepot. What drove the development of the re-export trade in Hong Kong?
How did the development affect people at that time? The following are the
reasons why Hong Kong became an entrepot.
1. Natural resources
Victoria Harbour in Hong Kong is recognised as one of the three best natural
harbours in the world. The deep, wide harbour, together with the surrounding
mountains, provides good shelter from storms and tides. Hong Kong’s warm
climate keeps the water in Victoria Harbour from freezing. This allows cruise
ships and other ships to use the port all year round.
2. Location
Hong Kong is well positioned on the shipping routes. It is located on the south
coast of the mainland of China and in the centre of the Asia-Pacific region. It
serves as an important gateway for entering China, and vice versa.
3. Government policy
The British occupied Hong Kong in 1841 and declared the area a free trade port
in the same year. The open trade policy attracted talent, capital and
technology from all over the world. To facilitate the re-export trade, the
British government invested heavily in developing the infrastructures such as
the port and piers. Hong Kong became the entrepot which connected
China and the rest of the world.
Quality of life during the period as an entrepot
Hong Kong went through two major stages in its development as an entrepot.
How did the quality of life change during this development?
From 1841 to 1898: Early formation of an entrepot
During Hong Kong’s early period as an entrepot，
The main trading activities were Opium and coolie trading. Traders took advantage
of Chinese people’s need to escape from poverty. They smuggled people into
areas where demand for labour was strong. Hong Kong then became the hub of
illegal coolie trading.
Though illegal, slave trading promoted Hong Kong’s economic prosperity.
Infrastructure such as piers, warehouses, roads, housing, etc. were built, and ·
many Chinese were employed. Among those who were employed, however, most
lived at subsistence level and few were able to make a fortune.
Chapter summary
Chapter 3 Form an entrepot to an industrial city
The first phase of economic restructuring
After a century of development, the re-export trade in Hong Kong had grown
on a significant scale. Although the trade stopped during the Japanese
occupation, economy recovered quickly after the war. However, the embargo
against China in 1950 severely hit Hong Kong’s re-export trade. As a result,
Hong Kong was forced to develop its industries.
Factors causing the first phase of economic restructuring
The Second World War
During The Second World War (from 1939 to 1945), industries in Europe
suffered severe destruction. Daily necessities such as shoes and torches had to
be imported from other countries. This favoured the growth of Hong Kong’s
industries.
The civil war in China
Between 1945 and 1949, there was a civil war in China between the Communist
Party of China and the Chinese Nationalist Party. Tens of thousands of people
fled southwards to Hong Kong to escape from the war. These refugees became a
source of labour for the development of industries. Besides, they brought with
them a large amount of capital, machinery and knowledge. As a result, Hong
Kong’s industries developed rapidly.
The Korean War
In 1950, the Korean War broke out and China sent troops to assist North Korea
in the conflict against the South Korean army, which was supported by the
United Nations (UN). The UN thus imposed an embargo against China. Although
the embargo severely hit the re-export trade between Hong Kong and China, it
brought about Opportunities for Hong Kong to develop industries.
The Government’s efforts to promote industrial development
Starting from the 1960s, the Hong Kong government has adopted the policy of
non-intervention, laissez faire policy, and free trade policy (which means
imposition of zero tariff on imports). These policies created a favourable
environment for business development and directly increased the
competitiveness of Hong Kong’s exports.
What is industry?
Industry refers the activities that involve the manufacturing or provision according
and services.
According to the production process, industry can be divided into three types:
Primary industry: The process in which natural resources are obtained directly
from nature e.g. agriculture
Secondary industry: The process in which raw materials are turned into semifinished or finished products, e.g. manufacturing.
Tertiary industry: The process in which services are provided, e.g. service industry.
Industrial development in Hong Kong
The chart on the next page shows the changes in numbers of workers and
factories for various industries since the 1950s when industrial development
began in Hong Kong. Read carefully the information and answer the questions.
Try to summarise the characteristics of Hong Kong’s industry
i. Mostly small factories，representing over 70% of the total number of
factories.
ii. Mainly developing Hong Kong Industry.
In the face of keen competition overseas, how did Hong Kong's industrial sector
turn its limitations into advantages?
Limitations in Hong Kong: the scarce land supply and lack of natural, which
made it unsuitable for developing heavy industry or expanding the scale of
production.
Advantages in Hong Kong: Small business is more flexible and can adapt quickly
to changes in the business environment.
The development-of Hong Kong’s industry
During the latter part of the 1940s, there was a civil war in the mainland of
China between the Communist Party of China and the Chinese Nationalist Party.
Many people fled to Hong Kong. During this period, Hong Kong went through its
first phase of economic restructuring. The capital and labour force from the
mainland greatly facilitated the development of labour-intensive industries
here. Between the 1960s and the 1980s, textile and garment manufacturing
were the most important industries in Hong Kong.
Hong Kong’s industry was export-oriented. During the early stage of
development, South East Asia was the in market for Hong Kong products.
Starting from the mid-1950s, however, Europe and America gradually replaced
South East Asia as the most important markets for Hong Kong exports.
Characteristics of Hong Kong’s industry
1. Due to scarce land supply and lack of natural resources in Hong Kong, it is
difficult to develop heavy industries. As a result, most of the industries in
Hong Kong belong to light industries.
2. The scale of production is small for most factories in Hong Kong. Businesses
are flexible and independent, and are able to adapt to external changes
quickly.
Therefore, Hong Kong’s exports are competitive in the international market.
1. After Hong Kong became an industrialised city, how did transportation
facilities change when compared to those found at the end of the 19th
century? How important was this change to the development of industries?
2. What is the difference between the fashions in the 1970s and that of the
entrepδt period? Which one do you prefer? Why?
3. What do you think living standards were like in Hong Kong during the
industrial period? Were there any improvements compared with that at the
end of the 19th century?
4. Compare the quality of life in Hong Kong during the industrial period
and the entrepδt period.
Quality of life during the early stage of industrial development in 1960s
During the 1960s, Hong Kong gradually developed into an industrial city. Hong
Kong people generally led a better life than before in terms of economic
conditions. However, social welfare was severely inadequate. The government
did little to solve the problems of insufficient provision of healthcare and
education. In addition, inflation and housing shortage further worsened the
situation.
In 1966, the Star Ferry increased its fares and many people participated in
protests against the fare increase. This later developed into riots that lasted for
days. The event showed people’s frustration and dissatisfaction with what was
happening in society. The following year, a bigger riot, known as the '1967 riot',
broke out and lasted for several months, causing 51 deaths and more than 1,000
injuries. Tension in society， was so high that the government had to step in. By
formulating youth and social welfare policies, the government was able to
gradually improve the livelihood of the people. In addition, the government set
up the Housing Authority which began to build public housing estates on a large
scale. All of these measures improved people’s living standards.
Quality of life during the economic crisis in-the 1970s
In the early 1970s, Hong Kong’s economy was badly hit by keen competition
from other South East Asian countries and the worldwide oil crisis. Many
companies went bankrupt and this led to massive unemployment. This lyrics
shown in Later on, Hong Kong engaged in economic diversification and
eventually overcame the tough time.
In the late 1970s, the mainland of China carried out economic reforms and
opened up its markets. This pushed Hong Kong through the second phase of
economic restructuring. Because of this, life for Hong Kong people improved in
the 1980s.
I. Factors behind the first phase of economic restructuring: changing from an
entrepδt to an industrial city:
a. The Second World War
b. The civil war in China
c. The Korean War
d. The Hong Kong government’s effort develop local industries
2. Most industries in Hong Kong were light industries, and were mainly
manufacturing.
3. Most factories in Hong Kong operated on a small scale. They were flexible and
able to adapt quickly to market changes.
Chapter 4 From an industrial city to an international trading and financial
centre
The relocation of local-industries to the mainland of China
During the 1960s and 1970s, Hong Kong’s industrial development grew rapidly. In
the 1980s, however, much of Hong Kong’s manufacturing industry moved to the
mainland of China. Do you know why? Was it related to the city’s second phase of
economic restructuring?
Factors of production
They are the resources employed to produce goods or services. There are four
major factors of production.
1. Land
3. Labour
2. Capital
4.Entrepreeurship
What advantages and disadvantages are there for the toy factory to move to the
mainland of China?
Reason for Hong Kong industrial relocation
1. High wages
Hong Kong’s industries were mostly labour-intensive. After 30 years of
development starting in the 1950s, the supply of local labour had reached its
limit. / It caused the shortage of labour and wages to increase, thus raising
production costs.
2. Land shortage
The supply of land for industrial land is insufficient, this raised both land and
rental costs. In the 1980s, the rapid development of the real estate industry
further pushed up land and rental costs, which directly increased production
costs for local industries.
3. The opening-up of the mainland market
In 1978, China adopted its reform and opening-up policy. The policy encouraged
foreign and Hong Kong businesses to invest and establish factories there. With
its huge supply of cheap labour and land, Hong Kong businesses were attracted
to relocate their factories to the mainland of China.
Impact of industrial relocation on Hong Kong
1. A fall in demand of local goods affected negatively the standard of living of the
manufacturing workers.
2. Manufacturing industries became less and less important than before in Hong
Kong.
3. Relocation of factories decreasing production costs of Hong Kong product and
keep it’s competitiveness.
4. The reduction in the number of factories helped reduce pollution and improved
the environment of industrial areas.
The second phase of economic restructuring
In the 1980s, many manufacturers in Hong Kong began to relocate to the mainland
of China after the implementation of its reform and opening-up policy in 1978.
Hong Kong thus experienced its second phase of economic restructuring,
transforming itself from an industrial city to an international trading and financial
centre.
Can you tell what economic restructuring took place in early 1980s.
Hong Kong’s second phase of different stages time. Hong Kong was transformed
from industrial city to an international financial and trading centre.
Hong Kong’s economic diversification
Hong Kong’s economy has been diversifying since the 1970s. In addition to
manufacturing, it has developed its trading and financial sectors.
After the adoption of the reform and opening-up policy in the mainland of China,
Hong Kong’s economy became even more diversified. The structural change in the
economy accelerated Hong Kong’s transformation from an industrial city to an
international trading and financial centre.
Reasons for the second Phase of economic restructuring
1. China’s reform and opening-up policy.
In 1978, China officially opened up its doors and began developing business
and trading relationships with other countries. With its market information
and business connections, Hong Kong is able to connect China with the rest
of the world. In its role as a middleman, Hong Kong re-exports a large
quantity of goods from the mainland to the rest of the world and vice versa.
As a result, the re-export trade in Hong Kong has revived and prospered.
Moreover, Hong Kong's well-developed financial system makes it the main
source of capital for mainland companies. International companies and
individual investors who are eager to invest in China look upon Hong Kong as
the base for their business expansion into China. This has boosted the
development of Hong Kong’s financial sector.
2. Economic freedom
The Hong Kong government adopts positive non-intervention and free trade
policies. Foreign currencies and capital can enter and leave the market
without restrictions. Both local and foreign companies are allowed to move
their capital or profits from Hong Kong to any destination in the world
freely. Therefore, many companies are interested in investing in Hong
Kong’s financial markets.
3. Good location and infrastructure
Hong Kong is located in the centre of the Asia-pacific region and the most
efficient international airport and container ports in the world. These
conditions are favourable for Hong Kong’s financial markets.
4. Well-developed telecommunications network
Hong Kong has advanced telecommunications facilities, which connects
the city to every market in the world. Hong Kong is also one of the freest
places for the flow of news and information. It receives and sends the latest
commercial and financial news efficiently and effectively.
5. Externally-oriented economy
Hong Kong has a small domestic market and most of its industrial products
are produced for export. On the other hand, due to its lack of natural
resources, daily necessities such as food, raw materials and energy all have to
be imported. This makes Hong Kong an externally oriented economy.
6. Low tax rate
Hong Kong’s tax rate is low by international standard, The tax system is also
simple, making it very attractive to foreign investors.
7. Favourable time-zone
Hong Kong’s financial market operates in a time-zone which fills the gap
between that of America and Europe. When the American and the European
markets are closed, investors can continue trading in the Hong Kong market.
This allows investors to carry out trading almost 24 hours a day.
8. The rise of Asia
Following Japan's rapid economic growth and the rise of the four little
dragons in Asia, Hong Kong became the base for trading and economic
activities in the Asia-Pacific region. Multinational companies set up offices in
Hong Kong, enhancing local economic development.
9. Widespread use of the English language
In Hong Kong, we have many foreign professionals and local experts in
different fields. Moreover, English, the most commonly-used language in the
world, is widely used in Hong Kong. All of these factors have contributed to
the development of Hong Kong into an international trading and financial
centre.
Chapter summary
1. Reasons for industrial relocation to the mainland of China:
1. high wages pushed up production costs
2. insufficient land supply made rentals expensive
3. the reform and opening-up policy adopted by the mainland of China provided cheap
4. labour and cheap industrial land
.
2. The impact of industrial relocation:
a. caused unemployment for local manufacturing workers
b. manufacturing industries became less important
c. allowed Hong Kong products to maintain their competitiveness in the international
market
d. helped reduce pollution in industrial areas in Hong Kong.
e. In the 1970s, Hong Kong began to diversify its economy. The manufacturing, trading,
and financial services industries developed at the same time.
3. In the 1970s, Hong Kong began to diversify its economy. The manufacturing, trading,
and financial services industries developed at the same time
4. Reasons for the second phase of economic restructuring:
a.
b.
c.
d.
the reform and opening-up policy of the mainland of China
economic freedom
good location and infrastructure
well-developed telecommunications network
e.
f.
g.
h.
i.
externally－oriented economy
low tax rate
favourable time zone
the rise of Asia
widespread use of the English language
Chapter 5 The impact of the second phase of economic restructuring on quality
of life
2: Group discussion
1. Based on the above story about industry relocation, what problems do you think
economic restructuring causes?
In scene one, because of competition and rising production costs, manufacturing
businesses were badly affected. Full-time workers were forced to become parttime workers, causing underemployment problem. In scene two, workers lost
their jobs and became unemployed due to industrial relocation to the mainland of
China.
2. If you were June, what would you plan to do?
~
______________________________________________________________________
Underemployment refers to the situation where an employee involuntarily
/unwillingly works less than the normal standard working hours (i.e. below 35
hours per week in Hong Kong), while he is capable to work for longer hours.
1. During the period when Hong Kong was an industrial city, which type of labour
was required in Hong Kong? Why?
Low-skilled labour 口 Highly skilled labour 口 Reason:___________________
2. Then, after Hong Kong was transformed into an international trading and
financial centre, which type of labour was required? Why?
Low-skilled labour 口 Highly skilled labour 口 Reason:___________________
3. Besides underemployment and unemployment, what other problems wi ll arise
due to economic restructuring?
Economic restructucturing could lead to the problem of _____________. During
the course of economic restructuring, a _________ between the nature of the
labour force available in the market and that required by employers occurs. It
leads to a situation where there is a shortage of highly skilled labour on the one
hand and a surplus of low-skilled labour on the other.
4. From the situation identified in Question 3, how will the quality of life in general
be affected? Why?
_______________________________________________________________
The impact
The impact of the second phase of economic restructuring on low-skilled
workers
The relocation of the manufacturing industry away from Hong Kong has led to the
massive unemployment and underemployment of workers. Their incomes fell
sharply, badly affecting their quality of life.
Unemployment and underemployment may worsen and lead to family and social
problems such as family disputes or social unrest, which will in turn affect the
overall quality of life in Hong Kong.
The impact of manpower mismatch on our quality of life
Manpower mismatch occurs when employers are unable to find suitable employees and
employees cannot find suitable jobs thus causing both parties to Waste resources.
For example, during the course of developing from an industrial city to an international
trading and financial centre, the demand for labour changed from low-skilled to highly skilled.
Although there was a huge supply of low-skilled labour in the market, employers could not
find enough highly skilled labour. The mismatch between the demand and supply in the labour
market affected productivity in Hong Kong, its competitiveness and hence the overall quality
of life.
The impact of the second phase of economic restructuring on quality of life of
less educated people
1. Underemployment
During the course of economic restructuring, underemployment has occurred within
certain industries.
2. Unemployment
Industrial relocation has resulted in a decline in the demand for local workers and led to
unemployment.
3. Manpower mismatch
In simple terms, the labour force available in the job market does not match what
employers want. In other words, although there is surplus labour available in the market,
employers cannot find suitable personnel. During the course of economic restructuring, it
is common for job seekers and job vacancies to be mismatched.
The existing demand of labours has been decreasing greatly that they cannot find their
job. Jobs seeker cannot find their jobs inmarket.
4. Reduction in income
When workers change jobs (e.g. switching from the manufacturing sector to the service
sector), their incomes will normally be reduced. Despite many years of working
experience, they may not be able to obtain better pay since their past experience is usually
irrelevant (冇關係) to the new job.
Economic restructuring and inequality of wealth distribution
1. Increase of marginal workers
Since the 1980s, Hong Kong industries have been relocating to the mainland
of China. As a result, the working class has been threatened by
unemployment. As most manufacturing workers are low-skilled and less
educated, they could only get low-paid and unskilled jobs even if they
managed to switch to the service industry. A large pool of low-paid workers
was thus formed, leading to an increase in the number of marginal workers.
They did not benefit from economic restructuring.
2. Widening gap between the rich and the poor
In the latter part of the 1980s, (1) a vast amount of capital flowed into the
property sector due to the real estate boom. However,(2) speculation
pushed up rents and selling prices in the property market and cost of
business. This resulted in a higher cost of doing business. In order to remain
competitive,(3) labour costs had to be reduced, thus worsening working
conditions for the working class. This in turn widened the gap between the
rich and the poor. On the other hand, (4) a huge amount of wealth had been
created over the past 20 years from trading and financial developments in
Hong Kong. Although this had improved the living quality of many people,
some people did not benefit from the prosperity and a wide wealth gap
resulted. After the Asian Financial Crisis in 1997, (5) more marginal workers
were created, which further widened the wealth gap in Hong Kong.
Chapter summary
I. The second phase of economic restructuring brought underemployment, unemployment
and reduced income to the low-skilled working class. Some became marginal workers,
leading to family problems and worsening their quality of life.
2. Job opportunities and incomes in the service industry increased after the second phase of
economic restructuring. The quality of life was enhanced for people working within this
sector.
3. Hong Kong was successfully transformed from an industrial city to an international
trading and financial centre. This created wealth for certain groups of people in society.
However, some people suffered. Therefore，the wealth gap between the rich and the
poor widened.