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Books :Lion without teeth
Published
on Jul 1, 2007
Singapore is
brilliant at self-promotion, says an Australian analyst, but it is
no financial dynamo. Much of the world has been deluded by its
hollow roars of success
Singapore, the modern city-state known for its
authoritarian ways and conservative government, has a reputation
for functional efficiency and capitalist success.
The smallest member of Asean geographically is often touted as one
of Asia's great success stories - a gleaming city that emerged from
the tropical swamps under a strict but wise autocrat, Lee Kuan
Yew.
But a fascinating new book by Australian Rodney King looks deeper
into the "the Singapore Miracle" and reveals that a lot of the
city's supposed successes are in fact hot air.
Reports of Singapore being a dynamic commercial melting pot are,
King says, simply the oft-repeated claims of a government that
tolerates little dissent, and city leaders who may actually have
stifled the sort of entrepreneurial dynamism you get in places such
as Hong Kong, Shanghai, Taiwan and maybe even Bangkok.
King is a Perth journalist who lived in Singapore for a number of
years and worked briefly at the Straits Times.
"The Singapore Miracle - Myth and Reality" casts doubt on the
city-state's claims of cutting-edge efficiency, global
competitiveness, economic freedom and transparency. Most
Singaporeans are not as affluent as their government makes out,
King says in his extensively documented, 500-page tome.
"Books about Singapore usually praise its achievements or criticise
its authoritarian rule," he writes. "But few ever probe its widely
publicised claims that it is a brilliant success that other
countries should follow."
King argues that Singapore's workforce productivity is often
mediocre and well below that of the West and Asian economies such
as Hong Kong.
"The country also displays endemic inefficiencies at both macro and
micro-economic levels. The performance of the construction,
financial and service sectors is second-rate, while Singapore
Airlines does not deserve the top rankings it receives."
Singapore, he says, has "a dependent and underdeveloped economy".
Multinational companies and state enterprises predominate, and the
economy has "low entrepreneurial and innovative capacities and an
under-educated workforce".
The city-state's supposed affluence is also largely a myth.
"About 30 per cent of the population still lives in poverty by
Western living standards," he says. And Singapore's Housing
Development Board, Central Provident Fund and state-run health
schemes have severe shortcomings.
What Singapore has been good at, he says, is marketing
itself.
"Singapore has brilliantly sold itself to the world as an amazing
success story to attract foreign investment and talent. It's
managed to get most Western think-tanks and ratings agencies to
give it top scores for such things as competitiveness,
transparency, economic freedom, etc.
"These bodies reflect the interests of foreign capital and their
methodologies are shoddy and incompetent at times. And the
statistics they are fed by the Singaporean authorities are often
dubious and designed to put Singapore in the best light.
"To sell itself to the world Singapore has also denigrated and
patronised its lesser-developed neighbours."
Singapore was hardly an economic backwater when Lee Kuan Yew took
power in 1959, says King, who has no special regard for the
premier, who held office through his People's Action Party (PAP)
for 31 years. Lee is now known as a "Minister mentor" and elder
statesman.
"Lee is always carefully listened to, and rather too politely ...
his views and lectures often receive reverential attention from
opinion lenders, American think-tank experts and others who often
have little direct first-hand knowledge of Singapore."
In the early to mid-'60s, Singapore had one of the highest living
standards in Asia, with one of the best-educated and
hardest-working populations. Its strategic location and magnificent
harbour - with extensive British-built shipyard facilities -
alongside one of the world's busiest sea-lanes, meant that it
became a natural transport hub. And these features were a great
asset for industrialisation.
The strategies Lee used to develop Singapore were an open-door
policy to foreign capital and export orientation to tap into global
trade. They helped the city-state enjoy double-digit growth from
the '60s to the '80s.
But the Lion City became heavily dependent on foreign capital while
state enterprises focused on infrastructure and "nation-building
concerns".
Entrepreneurial and innovative capacities have suffered because of
a lack of domestic competition and the predominance of state
bodies. Public servants running state boards often have little
experience of the private sector "and no idea how to run a
business", King and other analysts say.
"The local private sector, normally the seedbed of innovation in
most market economies, is stunted and starved of venture capital,"
King writes. "The country's capacity for indigenous research and
development and entrepreneurial and innovative endeavours remains
limited.
"Heavy state control of the economy is exercised through an
extensive layer of state enterprises. The state imposes this
control through layers of red tape.
"The government also manages a big chunk of the people's savings
through forced savings … and owns 72 per cent of the city-state's
land. Moreover, the government controls the unions and most of the
labour force. Equally mythical are Singapore's claims to being
transparent. Nothing could be more untrue. The operations of
Singapore's government and bureaucracy are swathed in
secrecy."
King counters claims of high home-ownership levels, saying 86 per
cent of Singaporeans rent government flats from the Housing
Development Board on 99-year leases.
The author is provocative but very thorough. Every aspect of life
in the city-state is analysed in detail.
"Singapore's flaws are hidden by the PAP state's vigorous marketing
campaign," he says. And most local and foreign journalists "are
usually too restricted or intimidated by government defamation laws
and other penalties to challenge or refute" the "river of
statistics" promoting Singapore's achievements.
There is a wealth of statistical and anecdotal material in this
book to counter the official lines - or lies. Economists and anyone
with an interest in Singapore should take note. This book could
change the way you view our industrious neighbour.
But, perhaps the saddest facet of King's work is not what he's
written, but the fact that the people who most need to read his
book may find it hard to get, if Singaporean bookshops refuse to
stock it, as he expects.
singapore not only denigrated and
patronised its lesser-developed neighbours but also like to teach
leaders of big countries with thousands of years of civilisation,
like china and russia, how to govern their
countries!
