Singapore: the Development Paradox
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Singapore: The Development Paradox Singapore: The Development Paradox * Ho Si Quy Abstract: Singapore is known as the 20th century miracle of the world. Following three decades of perseverance and determination of the leader, Mr. Lee Kuan Yew, the poor town of Singapore has risen to become the “capitalist heaven”. A prosperous society. A healthy environment. A government of integrity. The whole world wants to imitate Singapore but there are things that cannot be copied and things that no country would want to replicate. Singapore developed under inexplicable paradoxes, the biggest one being the fact that the country “took off” and “turned into dragon” in a relatively authoritarian environment. Freedom and democracy were under heavy scrutiny. The market economy was vibrant, but its “invisible hand” was manipulated by the state. The city-state upheld Asian characteristics but also shared Western ideologies. It paid special attention to socialism in development but also succeeded in establishing a capitalist society. The willpower of Lee Kuan Yew is regarded as the crucial factor that has helped realize Singapore’s success story. He is also the cause for which Singapore does not only appeal to the world by positive things. Prosperity, however, has overshadowed the less humanitarian aspects of Singapore’s development, concealing and erasing the “dark spots” in history. Key words: Singapore, development paradox, Lee Kuan Yew, democracy, development, dictatorship. When Lee Kuan Yew passed away in Burton, Peter Montagnon, Kevin Brown and March 2015, the whole world talked about Jeremy Grant, 2015; Carton Tan, 2015; him, about the way he had transformed David Reed, 1979; Tom Plate, 2011). This Singapore from a poverty-stricken fishing imitation, however, consists of the unfeasible – village in the 1960s into the busiest trading for the past 50 years, Singapore has been port 30 years after, an island country worthy associated with the name and identity of Lee as “the jewel of prosperity”. Besides the Kuan Yew. Singapore and Lee Kuan Yew countless praises that seem to go beyond are the two sides of the same coin. One words, the “founding father of Singapore” cannot have one side without the other. This was also subjected to criticism, from mild to is itself a paradox.(*) violent. All over the world, especially in The island state is very small in size, the developing countries, controversies over Lee population is only 5 million people, there Kuan Yew seemed to have intensified are no natural resources, “a heart without a although Singapore – “the miraculous body” – those were the exact words of Lee symbol of development” – is still a model that most countries want to replicate (John (*) Prof., Ph.D., Institute of Social Sciences Information. 5 Vietnam Social Sciences, No. 5(169) - 2015 Kuan Yew (Michel Schuman, 2009: 57). the undeniable admiration shown by the This heart had to make the world its body. people, Lee Kuan Yew is still considered as And Singapore succeeded in realizing the a leader with an “iron fist” who ran the impossible. This is the second paradox. country in a totalitarian, authoritarian Many scholars regard Lee Kuan Yew as manner, even though that was only a form a follower of socialism. In his early years, of “soft autocracy” (Carlton Tan, 2015). His he used to shake hands with communist most prominent argument was that movements and during his lifetime, there democracy itself had been flawed since the were various occasions when he expressed very first assumption that all human beings harsh criticism against capitalism. In the are equal and can contribute equally to the end, however, he devoted his entire life to common good (Han Fook Kwang, Warren building capitalism. Singapore is the striking Fernandez and Sumiko Tan, 1998: 383). example of the success of a “capitalist heaven”, This is the fifth paradox. of “clean capitalism” (James Heartfield, 2015; Lee Kuan Yew was also a firm believer Nathan Lewis, 2011), a capitalism that in the value of social responsibility, a core bears no resemblance to Max Weber’s value of Confucius. He built the modern concept. This is the third paradox. Singapore based on the model of Asian Lee Kuan Yew was a firm believer in the values. According to him, Western values market economy. He once warned “never differed significantly and hence, were think that you can fight the power of the unlikely to fit. Nevertheless, the Singapore market” (Michel Schuman, 2009: 57) yet of today resembles the West more than any the Singapore he built is the typical of the other country in Asia, even Japan. This is state intervention in the market economy, the sixth paradox. both at the macro and micro level. It is As a person, Lee Kuan Yew is known to mostly likely that the relationship between be simple to the point of easy-going, realistic the state and the market in Singapore in the to the point of pragmatic, open to the point past decades has gone beyond Friedrich of liberal, intelligent to the point of wise, Hayek or Keynes’ theories on the free determined to the point of uncompromisable. market. This is the fourth paradox. But he is also a person who cannot “do Lee Kuan Yew was very fond of anything sloppily, from wearing an overly democracy. In his early years, democracy shiny pair of shoes to making an important was the driving force behind his ideologies. decision”; a person who does not limit He understood very well the value of himself to any theory or advice, even democracy. Singapore, nevertheless, has Macchiavelli or Confucius, the two theories taken the shape of a rather “authoritarian that he was very much fond of. He avoided capitalist” model. Meanwhile, in spite of debates on doctrines and only pursued actual 6 Singapore: The Development Paradox solutions to development issues (Michel Malaysia. Two decades later, in 1985, Schuman, 2009: 58). The renowned magazine Singapore’s GDP per capita stood at USD Life commented on Lee Kuan Yew in 1965 10,811, surpassing the poor country threshold – a comment that has been quoted by many (USD 960/capita according to United so far – that he was “the most brilliant man Nations’ standards, or USD 875/capita around, albeit just a bit of a thug”(1). This is according to the World Bank’s standards). the seventh paradox. By being able to avoid the middle income During the 31 years under Lee Kuan trap, Singapore continued to develop and Yew’s premiership, Singapore developed become a newly industrialized country remarkably under the seven inexplicable (NIC), one of the four Asian tigers, and a paradoxes listed above. The personal character miracle of the 20th century. By 2003, of Lee Kuan Yew was no doubt an important Singapore’s GDP per capita in purchasing factor, if not a decisive one. Although the power parity (PPP) was recorded at USD country followed the same development 29,663 while the country’s human development model as South Korea and Taiwan, the index (HDI) of 2005 was 0.925, ranking biggest paradox of Singapore was how the 25th out of 177 countries. In 2007, the country grew and “took off” under relatively country’s per capita GDP (in PPP) reached authoritarian circumstances. A few generations USD35,163, the HDI of 2009 was 0.944, were sacrificed for development. South ranked 23/182. In 2011, the per capita gross Korea “took off” with harsh labor, with tears national product (GNP) in purchasing power and even blood. Taiwan “took off” when its parity of was USD52,569; HDI 0.866, rank leaders were startled by their credits as well 26/183. In 2013, the per capita GNP (in as sins. Singapore, on the other hand, is said PPP) reached USD52,613; HDI reached to have paid the most “tolerable” price in 0.895, rank 18/186. In 2014, the respective return for its “take-off”. Real prosperity has figures were USD 72,371/capita/year, 0.901, concealed historical “dark marks”, nevertheless, and 9/186(2) (UNDP, 2003, 2005, 2007, the authoritarian, totalitarian and hostile acts 2011, 2013, 2014). as evidenced in the following sections, can hardly be forgotten, especially for those who were involved. (1) Lee Kuan Yew, Prime Minister of Singapore: In the 1960s, the real gross domestic brilliant, but a Bit of a Thug. “Life” No 16, July, 1965. p. 43. http://www.oldlifemagazines.com/july- product (GDP) of Singapore was USD 500 16-1965-life-magazine.html. per capita. Singapore at that time was (2) Annual GDP figures in Human Development Reports might be inconsistent as UNDP changed its extremely poor, struggling to find a computation methodology in 2010. Compared with development pathway in the aftermath of data from WB, CIA or IMF, statistics on GDP and GNP also vary due to conversion into USD PPP independence and the shocking split from (Purchasing Power Parity). 7 Vietnam Social Sciences, No. 5(169) - 2015 Figure 1: Singapore in the Lee Kuan Yew Years Source: The Economist, March 22, 2015(3) Singapore’s governance system is considered (despite this being lower than the country’s as the most politically transparent and least own records in 2011 and 2012), only after corrupt in the world. In the annual rankings six countries, namely Switzerland, Norway, of Transparency International, Singapore Sweden, Finland, New Zealand and Denmark. has remained constantly in the top of least Singapore remained the world’s leading corrupt countries. In 2005, Singapore’s transparent country(4). corruption perception index (CPI) of 9.4 put In order to achieve this, Singapore had to it in the top 5 most transparent countries, go through a tireless battle ever since Lee only after Iceland, Finland, New Zealand Kuan Yew took office.