Singapore development issues
Two different views, both well worth reading
Pressure Builds on Singapore’s System
by Hugo Restall
(Far Eastern Economic Review) During the National Day festivities last month, Singapore Prime Minister Lee Hsien Loong’s gloomy prognosis for the economy—a “bumpy year” ahead—was overshadowed by even more dire warnings that the city state is about to start running low on its main resource, people. With an aging society and one of the lowest fertility rates in the world at 1.29, the government is pulling out all the stops, doubling the budget of baby-making incenftives to $1.13 billion. Meanwhile, in order to make Singapore a more tolerant and pluralistic place, political videos will be allowed, as well as protests in a downtown park.
It’s all straight from the ruling People’s Action Party’s standard playbook. Play up the anxiety of a small nation beset on all sides, in need of a strong government to take positive action to avert disaster. Individual citizens who are failing to live up to the expectations of society need to be brought back into line. At the same time, leaders are willing to give those citizens a few of their rights back, as long as they are not used to undermine harmony.
Letters
The PAP’s Challenge
Hugo Restall (“Pressure Builds on Singapore’s System,” Sept, 5, 2008) painted a bleak picture of a system that was losing its ability to generate economic growth and bind its people together.
Singapore faces the same challenges of globalization as other advanced economies: competition from low-cost competitors and pressures on the wages of less-skilled workers. In response, we are restructuring the economy, promoting new investments and entrepreneurship, and providing direct assistance to the poor.
Consequently, Singapore has averaged 7% economic growth and 3% productivity growth over the last five years, and has one of the lowest unemployment rates internationally. We are not doing too badly.
