The economic miracle that was Singapore

Singapore, a small country in Southeast Asia has been dubbed an economic "miracle."  On what account they call it so, I am not so sure.  I always thought a miracle was something that only a Divine Being could perform when something is deemed hopeless. To the secular, it may be called magic, like when Cinderella's fairy godmother turned a pumpkin into a coach as her ride to the Palace ball.

So how did this once  upon a time sandbar  called Singapore become an economic "miracle." Did it suddenly find favor from a god who decided that Singapore needed a better economy? Or did Singapore's government have magical qualities that could just wave a wand and turn this little backwater place into an economic tiger?

Let's take a look at what kind of people populate this city-state. It has a diverse population,  the result of considerable past immigration. The Chinese in Singapore are Singapore's largest ethnic group making up three-quarters of the country's population. The Malays are the next largest ethnic group and Indians make up around 9%. It was once a British colony and first joined the Federation of Malaya in 1963. It seceded from the federation and became an independent state in 1965.

Singapore, the largest port in Southeast Asia is one of the busiest in the world. Its focal position at the southern extremity of the Malay Peninsula where it dominates the Strait of Malacca that connects the Indian Ocean to the South China Sea has contributed immensely to its growth and prosperity.  A former trading entrepots of the British empire, Singapore  has experienced remarkable economic growth  catapulting it to the most advanced economy in Southeast Asia. What factors contributed to this tiny nation's success are worth looking into.

The People's Action Party, a major conservative center-right political party is one of the three contemporary political parties in Parliament. Its main objectives during its formative years were to seek  Singapore's independence through a merger with the Federation of Malaya, to create a multi-ethnic society and to establish a democratic-socialist government that would be fair and just to all its citizens. True to its name "Action," it has been so successful with attaining its goals that in its 63rd year as of 2022, it is  considered the longest, uninterrupted ruling party among multiparty parliamentary democracies in the world.

Singapore's rapid economic growth and its improved social welfare  has been largely attributed to the PAP's ability to maintain its control over a diverse citizenry.  However,  the PAP  has often suppressed and co-opted domestic opposition  -- notably through internal-security laws that allow political dissidents to be held indefinitely without trial. Moreover, it has promoted a national paternalistic ideology through a variety of laws and corporate institutions. The emphasis of this ideology has been a rigid public morality focused on personal appearance and cleanliness,  political loyalty,  and family planning. This form of "discipline" I believe is what enabled  the government of Singapore managed a diverse population into acquiescence and conformity, doing whatever the government wants.

Western democracies winced as they watched an authoritarian rule that was unfolding. But perhaps that was necessary as this tiny nation  has not been gifted with an abundance of natural resources. Without natural resources, it seemed destined for failure but former Prime Minister and statesman Lee Kuan Yew thought otherwise. "His vision," wrote Henry Kissinger, "was of a state that would not simply survive, but prevail by excelling. Superior intelligence, discipline, and ingenuity would substitute for resources."

During his 30-year tenure as prime minister, Lee Kuan Yew forged what is now arguably the strongest, most advanced, and most stable country in Southeast Asia. Singapore's meritocratic system supported by one of the most efficient governments in the world,  is due largely in part to LKY's fierce pursuit of his dream of an advanced and progressive Singapore.  While Singaporeans view him with respect and admiration,  the same cannot be said of the West who criticized his almost authoritarian rule over the city-state. Meanwhile, supporters argue that it was a necessary style of leadership to transform Singapore into what it is today. But by all accounts, Lee Kuan Yew created a blueprint for developing countries to emulate,  even if his leadership style raised some eyebrows. Whether he was right or not is up for debate. But who can argue with the magnitude of success that he was able to achieve? When he took over, per capita income was only $400. Now just  two generations later, it's over $65,000. What  a "miracle" indeed that was !

 

(I am grateful to Atty. Nestor Corpuz, my fellow Batacqueño for having planted the idea of writing about Singapore and the discipline that LKY forged on his people )

(Noralyn Onto Dudt has had lengthy discussions with the Japanese bankers and financiers at the International Monetary Fund/World Bank on finances and economy when she was asked to  edit their evaluation reports on world projects that they were conducting in developing countries.)