channelnewsasia online headline screams PM Lee warns against
protectionism (see
http://www.channelnewsasia.com/stories/singaporelocalnews/view/298888/1/.html).
While PM Lee was specifically talking about how some foreign
countries are resisting govt-linked investments from Singapore
Government Investment Corp/Temasek Holdings, I can see lots of
parallels, and contradictions, in his statement against
protectionism.
In a world of openess, clean money is suppossed to move freely
across national borders. Cash-rich Spore diversifies its savings
by spending its money not only propping up internal business, but
also buying foreign ones. But when one govt wants to buy stakes in
what are a foreign govts quasi-govt companies or companies that
have national impact (like telephony companies), obviously the
latter govt would object/not-be-happy for reasons of
security/soverign pride etc.
Singapore has now major shares in banks and phone companies (and
others) across Asia and Australia, and some of these countries are
unhappy about it.
So, PM Lees wise words are Protectionist
policies
will not
make things better. Instead, they will choke off growth, and
worsen the
prospects for the vulnerable segments of society.
I argue, on another matter, that it is exactly Peoples Action
Partys protectionist policies in the local politics of Singapore
that has not made
things better (i.e. the lack of strong alternative political
parties). Instead, PAP may choke off the growth of a viable
opposition, and worsen the prospects for smooth political
transitions when the PAPs steam runs out.
You see, PM Lee laments that the global world of
business-acquisition is not a level playing field for
small-but-rich Singapore, but yet on the local political field, the
PAP is just as protectionist and ignorant of the
consequences.
An avalance of contradictions?
