Singapore. The Socio-Economic Development Of A City-State:
1960-1980

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Judged by the three primary components of underdevelopment mentioned in the introductory chapter, Singapore has succeeded in escaping from the clutch of underdevelopment.

Health, education, social services and high per capita output without poverty and indebtedness have shown considerable improvement.

Furthermore Singapore now possesses a diversified economy with worldwide markets, geared to secondary and tertiary production. Scientific and technological methods are implemented in its industries on a large scale. Singaporeans have gained self-esteem by their own successful efforts and through government guidance .

Before 1960 Singaporeans had no identity of their own. Now they are striving after a national identity. Their ties with the city-state have fastened as the fruits of economic- and social development became widely distributed among the people. Affinity with China has lessened even though many Singapore Chinese have relatives in China. The numerous contacts (trade or otherwise) with people abroad have contributed to Singapore’s wealth. They have also made Singapore more vulnerable; but through careful maneuvering it is hoped the risks will be minimized.

When the People’s Action Party came into power in 1959 the prospects for Singapore were somber. Singapore which had come about as a trading port and later as a military outpost for the British was threatened in its existence when the old Colonial empires disintegrated. Formerly Singapore was a junction for the Colonial powers for the distribution of goods. Singapore imported spices, rubber, timber and copra from the region. These primary products were exported to the industrial nations from which Singapore in turn imported manufactured goods. As the Colonial empires ceased to exist Singapore was cut off from its hinterland. Malaysia and Indonesia became independent and sought to bypass Singapore in their trade with the developed nations. Singapore’s problems were worsened by severe unemployment and a Chinese communist revolutionary overspill. Agitation, tensions and labor unrest scared away (potential) multinationals and local entrepreneurs.

After the brief merger with Malaysia Singapore was forced to take hold of her ground in view of the other alternative decline and decay. The Singapore leaders accepted the major recommendations formulated by the UN Industrial Survey Mission. Plans were drafted to achieve and to steer industrialization.

The government believed it had to fulfill three conditions before industrialization could be implemented.

First, it had to bring about industrial stability by dismantling the communist party and fostering discipline in employer-employee relations.

Secondly, as Singapore lacked the necessary economic know-how for speedy industrialization, it had to attract multinationals which were seeking new sites for sub-factories.

Thirdly, it embraced the free enterprise system as the framework for industrialization.

Thus from the very start the philosophy was: View the current situation. Examine your capabilities to cope with that situation. The skills and capabilities you do not posses you must acquire from abroad when possible.

Chapter one provides the historical perspective for the problems facing Singapore between 1959 and 1980. Singapore was able to survive the turmoil through the implementation of various strategies.

Chapter two provides an outline of the structural changes in the Singapore economy. Upgrading and restructuring have been the continuous policy.

Chapter three sketches the influence the economic development and the changing economic structure has exercised on employment and the standard of living in Singapore.

Chapter four is the first out of five chapters treating key factors that contributed to economic and social development as mentioned in the preceding chapters of Part One. The first key factor we distinguish is the central location of Singapore within a commodity rich region and its central location between East Asia, West Asia and Europe. The next key factor is the other ‘natural’ asset Singapore possesses namely: the people. Singapore’s basic policy is to maximize the potential of its people so they can contribute the most to themselves and the country. Education has been the key factor in this policy. Because Singapore is a small society it is believed its people have to be good, and competitive in business. Singaporeans have been able to prosper through ability and performance due to meritocracy.

Chapter five also mentions the availability of administrative- and political capabilities in Singapore as a precondition for development. Stability has been another precondition for growth in Singapore. Political stability and stability in labor relations enabled the government to pursue its development policies whilst at the same time it facilitated the attraction of multinationals and capital to the island. Free enterprise has always been supported by the Singapore government. The quickest way to develop expertise, technology, and skills was by inviting multinationals and learning from them. The free enterprise system enabled Singapore to operate as a global city in world wide markets and to attract capital. Last but not least the role of government is treated.

A Biography about Raymond Le Blanc can be found here.
 

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