Globalization and its inequality

The plan of outsourcing the job of IT department by HSBC triggers the alarm that even professionals cannot stay away from the influence of globalization. As mentioned by Friedman in his book ‘The World is Flat’, professionals like accountants and software engineer are facing the increasing threats from counterparts in India and China. It has been long perceived that only the lower class of the society in the developed countries fall victim to globalization. The phenomenon of shrinking population of middle class has drawn the attention of social scientists. Ohmae Kenichi大前研一, a popular academic in Japan, has mentioned in his publications that shrinking middle class population in developed countries or ‘M shaped society’ will be the trend in this century.

Here in Hong Kong, the robust stock market fueled by booming Chinese economy gives us the illusion that people from all social classes can reap the fruit of growing economy. However, sluggish wages and ongoing outsourcing of professional jobs are still haunting the middle class. The lack of social mobility as a result of the replacement of permanent jobs by temporary jobs renders young graduates no hope on their career path.

Mr. Tsang is about to launch his election campaign. He was blessed by the Chinese leaders that it was the best time for Hong Kong after the Heng Sang Index had hit 20000 points. He has to be aware that only the 20% of the population are benefited from it according to 20/80 principle. He and his cabinet have to figure out ways of soothing the pains suffered by 80% of the population even in the apparently blooming economy.