The Singapore's Economic Model - Essay Example

The Singapore's Economic Model At a time when Singapore gained independence, it was a poor and a small country, which had to import even building sand and fresh water. Countries neighboring with Singapore were set unfriendly. Moreover, the bulk of the population sympathized with the Communists. The country's economy was on the lower level; there spread such phenomena as corruption and organized crime groups, the so-called triad. However, the new head of state, Lee Kuan Yew, whose reign took place between 1959 and 1990, was able to solve many internal problems of the country. Deprived of resources, Singapore has risen from the level of a third world country to the level of highly developed countries. The ruler Lee Kuan Yew was able to make a reality of extraordinary economic growth model, which reincarnated the fallen country into the prosperous, business and trading center in South-East Asia. This economic development strategy of the government was based on the free market of capitalism and on the attracting foreign investors and their capital. The so-called “Singapore's model” was a source of inspiration and aspiration to a high standard of living for many other politicians in Asia, which also developed. In my opinion, the economic model can be justified by two important principles. Firstly, it is unique in supporting funds in fiscal policy, and secondly, because of it happening conceptualization of social and economic growth policies. The main difficulty in acceptance of the Singapore's model is that you first need to fulfill certain criteria for its long existence and future high success of the country. Otherwise, the adoption of the model may be unwanted consequence. The central action in the implementation of the Singapore's model is a social agreement concluded between the authorities of the PAP government and the people. Its meaning lies in the fact that the society was ready to submit to state control, start to work hard and give up some individual rights. In turn, the Government was to provide an environment that is favorable to promote the prosperity and improve the life of the country. Upon receipt of independence from Malaysia, another main task of the government was to show foreign investors that at the moment new-independent state is a safe place to invest and storage their capital. The government not only introduced changes to the laws of their country, but also showed a willingness to destroy corruption and worker unrest. Thus, it guarantees complete safety of property of investors that are attracted spiritual prosperity of capitalism. Further, a small country that can offer only the hard-working people, has developed a plan to win the confidence of international partners. While Singapore can not take a certain place in the international market such as Hong Kong, which relied on the support of the Bank of England. To avoid the risk of devaluation and inflation, the government carefully defines the priorities of implementation of each economic plan. It has conducted a number of economic disciplines, thanks to which in 1997 (during the crisis) Singapore can stand out as an island of stability in a sea of ​​inequality. The Singapore government stubbornly fought against corruption, from which the country suffered from the acquisition of independence. While it could be said that corruption was practically part of the lifestyle of Asian people and they openly took bribes and various fees. To prevent corruption, the government has chosen a way to simplify the various procedures for decision-making and create a new simple laws and rules that had no ambiguity. The composition of the police is consisted mostly of Chinese than Malayan. The salaries of judges and civil servants were raised to high levels. Moreover, it was established the agency, which also fought hard against corruption. Thus, many ministers who accepted bribes were sentenced to various prison terms. Many of them fled from Singapore or committed suicide. After the mid-20th century has been corrected educational system. The English language has become a major in teaching in higher education, and pupils were required to learn this language. It is worth noting that the government invested huge sums to train their students in the best universities of the world. Currently, the Republic of Singapore takes pride of place in the world market. However, the economic development of the country has both positive and negative sides. To the benefits I can carry a highly competitive environment, a highly educated population, a great level of prosperity, favorable investment climate, as well as the successful fight against corruption. Weaknesses include the fact that Singapore is poor on the fresh water supplies and it come from Malaysia. Also, there is a shortage of area and professionals. In conclusion to all the items regarded in this essay, it may be noted that the story about the raising of Singapore from the lowest countries and the further successful development refers to the study on an international level. Many less developed countries now face similar difficulties that had previously stood in front of a small city-state. The leaders of the third world should pay their attention to the model of the successful economic improvement, as well as to accept and to bear in mind all the flaws inherent in this model. Yet, despite its small size, Singapore is one of the most globalized countries in the world. This title is due to the desire of the government of the state and of the people not only to be able to survive in the modern world, but also occupy a worthy place of honor on the world market among other highly developed countries. For its success in the competitiveness Singapore must skillfully and eruditely attract foreign investors, as well as to manage quality with incredible flow of various goods and services. Thanks to a rational economic plans and skillful management of the policy Singapore holds leadership and stands out against other countries in Southeast Asia. Singapore is a country with an open economy and the crisis has put its mark on it in the same way as in many other states. However, despite the crisis, the country receives additional benefits. This is due to policies to attract investors, which the government fulfills. However, the development of the country does not stop. The program is to transform the state into more global and contemporary center held on the plans and therefore variety of projects that are invested hard. Moreover, Singapore's economy grew significantly in real estate investments. The economic program of the country has already made a significant step and led to active European investment in Singapore. Indeed, the state dominated by low taxes, stability, clear legislation for all and a strong currency. The highest growth reached industries such as tourism, real estate and management direction. Work sited A worldwide student journal of politics, 2003. Model for Development: A Case Study of Singapore’s Economic Growth. Retrieved from < https://about.illinoisstate.edu/critique/Documents/Fall%202003/TaymazFinal.pdf> Read More