Hong Kong  

Household expenditure is above the global average at 26% of GDP, while the domestic savings rate ranks inside the top 20, worldwide. The ratio of physical capital per worker is the 11th highest, internationally. Unemployment and inflation rates are both low at 4% and 2%, respectively, while Hong Kong’s very high level of foreign direct investment, equivalent to 26% of its GDP, indicates its attractiveness to foreign investors. The vast majority of exports are finished products, ranking Hong Kong in the top five on this variable. Less than 1% of loans are in default, a low proportion worldwide, while an interest margin of 2.4 percentage points ranks Hong Kong inside the top 25, indicating an efficient banking sector. Data on terms of trade are not available.

There are only five start up procedures required to set up a business, ranking Hong Kong in the top 10 worldwide and yielding a high number of newly registered businesses – almost 75,000 in 2007. In terms of value added by the service industry, Hong Kong performs best in the Index on this variable at 91% of GDP. The bandwidth and number of secure internet servers are among the top 20 on this variable. There is also a high number of personal computers, at 65 per 100 people, which is the 10th highest rate, internationally. In addition to a strong communications infrastructure, there is high investment in technology; more than half of the Hong Kong’s exports are ICT and high-tech. The proportion of national income spent on R&D is over 1%, which ranks Hong Kong in the top quartile worldwide, and royalty receipts are also high, suggesting Hong Kong is able to capitalise on its intellectual property.

Note: for this sub-index, there were no data on Hong Kong available. We drew on a panel of regional experts in order to estimate Hong Kong’s ranking.

Less than nine out of 10 primary age children are in school, ranking Hong Kong in the bottom quintile internationally, but for those in school there is one teacher for every 17 students, a ratio well above the global average. Educational expenditure is over $10,000 per student, ranking Hong Kong 11th of all countries for this variable. The secondary and tertiary school enrolment rates are about average, with 85% and 33% of the eligible population enrolled. There are only 98 girls for every 100 boys in schools, suggesting mild inequality of opportunity. While the workforce benefits from an average level of secondary schooling that ranks in the top 10, tertiary schooling per worker is much lower, with an average value of only 3.6 years, ranking Hong Kong in the bottom half on this variable.

In Hong Kong, health-adjusted life expectancy is at 75 years and only 2% of the population are undernourished, both being the best-performing rates on these variables. Infant mortality rates are also extremely low, ranking Hong Kong among the top three, globally. The whole population has access to improved sanitation facilities, but only 73% are satisfied with the quality of their drinking water, which is an average number worldwide.* Only four-fifths are happy with their general level of health, leading to a ranking just below the median, and the number of doctors per person is also about average, compared globally.* Most people in Hong Kong report good personal health: less than a fifth consider themselves to have health problems, just 17% reported physical pain the previous day, and over three-quarters said they were well rested. On all three variables, Hong Kong ranks in the top 20.*

State-sponsored torture and political imprisonment are rare for residents, ranking Hong Kong in the top 15 worldwide on this variable. Personal security is not a significant problem, with the world’s second lowest homicide and assault rates and 87% of residents reporting that they feel safe walking the streets at night.* Respect for the property of others is also high, with only 6% reporting theft in 2008, ranking Hong Kong seventh.* Data for Hong Kong on the numbers of refugees, group grievances, human flight, and civil war casualties were unavailable.

In Hong Kong, the rule of law applies to all residents, including the government, and the regulation of economic and commercial activity is of the second highest quality, globally. Bureaucratic processes in Hong Kong are effective and efficient, ranking in the top 10, worldwide. Just 39% of residents think there is widespread corruption in local businesses, and less than a quarter think the same of local government, ranking Hong Kong in the top 10 for both variables.* More than eight out of 10 people stated that they think the judicial system is fair and just, while nearly three-quarters are confident in the honesty of the electoral process, ranking Hong Kong in the top 20 in both variables.* Data for residents’ confidence in the military and political participation were unavailable.

While Hong Kong rates poorly on variables rating freedom of religion and speech, 92% of residents report they are satisfied with their freedom of choice in their daily lives, ranking the country in the top 10 worldwide.* Hong Kong is also a very tolerant nation, with three-quarters considering their area a suitable place for ethnic minorities and a very high 84% of residents recommending their area as a good place for immigrants to live.*

Four out of 10 people in Hong Kong trust others, ranking their level of trust in the top 15, worldwide.* Many people report that friends are important to them, but Hong Kong ranks in the bottom third worldwide on the proportion of people who feel they can rely on family and friends in times of need.* The social support also extends beyond a network of family and friends as 15% of residents undertook voluntary work in the previous month, and a high 62% donated to charity.* Just over half reported they had helped a stranger in the past month, a percentage that ranks in the top 40.* All data on group membership in Hong Kong were unavailable.*

* Data taken from the Gallup World Poll

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