TNAG-1073-FCO40-1323-Policy-of-the-Government-of-Hong-Kong-on-education-including-1981 — Page 187

4

at an average annual growth rate of 11.3 per cent : this growth has latterly

been stimulated by the substantial increase in the labour force resulting

from immigration.

At current prices the preliminary estimate of per capita

expenditure on the gross domestic product in 1980 was HK$20,933, 19.1

per cent higher than the provisional estimate of $17,574 in 1979. Although

the growth rate of the supply of labour in 1979 and 1980 exceded the growth

rate of demand for it and the unemployment rate thus continued to increase,

it was still low (at 4.3 per cent in September 1980) by international

standards. While the rate of inflation (both domestically generated and

that arising from increases in the prices of Hong Kong imports) was high

in 1980, it was accompanied by a rapid growth rate in real terms for the

economy and with the relatively low unemployment rate.

1.7

With the recent achievement of nine years' free, compulsory and

universal education for the vast majority of the 6 14 age-groups (the

exceptions are noted later), together with greatly improved opportunities

for higher age groups, the cost to the community of the education service

is inevitably high. Current proposals for the improvement of primary and

pre-primary education are expected to add considerably to the total cost,

as will any significant expansion of tertiary education, where unit costs

are comparatively high. This has to be considered against a budget in

which the proportion of government expenditure on the social services

(education, medical and health, housing and social welfare) over the past

seven years (1974/75 1980-81) has been within a range of 40 - 45

per cent.

PO

The capacity for expansion is clearly not unlimited and

educational priorities have to be determined within the total needs of

the community as a whole.

y