Singapore’s Tiger Leap - The Rapid Turn of a Small City-State into an Economic Giant

Mgr. Tobias Zander

Master's thesis

Abstract:

In the context of this academic work, the dramatic economic rise of Singapore as the smallest of the Four Asian Tigers will be examined against the background of the basic governance orientation of this newly independent state. Thus, the focus is particularly on the time period starting with Singapore’s seperation from Malaysia in 1965 and ending with the resignation of long-time Prime Minister Lee Kuan Yew, who shaped the development of the city-state like no other. A significant part of the study is devoted to the question what influence the political leader and his most important companions within the People’s Action Party, like Goh Keng Swee and Sinnathamby Rajaratnam, had with their economic policy preferences. Of further interest will be to what extend the path they have chosen is indeed a uniquely Singaporean one and whether it can be categorized either as a version of neoliberalism or state interventionism. The paper will be divided into several elementary chapters. The first of these chapters will concentrate on the historical background of the astonishing development of Singapore, which is probably the greatest example for a transformation of a third-world- into a first-world country within a few decades. While the focus is on the young state's economic orientation, other relevant political and social changes will not be left out, so that Singapore's success story will be comprehensively illuminated. The unfavorable initial situation of the resource-poor country will be considered in the context of internal and external tensions, not least to explain the importance of the PAP's strategic adaptability. The following part of the thesis will be a more detailed analysis of the reasons for Singapores tremendous increase in prosperity and quality of living in general. Many different relevant aspects for this closer examination will be discussed in relation to the controversiol main research question: Is Singapore’s succes the result of economic freedom or of state interventionism? Among those various aspects will be the incentives for foreign investments, the trade-openness or the tax policy, but also the cultures and the education system of the city-state. Finally, the aim of this paper is to examine Singapore’s authoritarian capitalism and its long-term stability, but also the possibility and advisability of imitation of this specific model by other emerging and developing countries. Must economic succes always lead to democratization? Does democracy result in an overstretched welfare state? What is to learn from Singapore’s sucess story and where could it go in the future? These and other questions will be investigated. Singapore's economic rise and the drastic increase in the level of prosperity of the local population cannot be attributed to technocracy and state dirigism. Rather, the strong economic growth was the result of the high level of economic freedom and the pragmatic government orientation that preceded this freedom.

Abstract:

In the context of this academic work, the dramatic economic rise of Singapore as the smallest of the Four Asian Tigers will be examined against the background of the basic governance orientation of this newly independent state. Thus, the focus is particularly on the time period starting with Singapore’s seperation from Malaysia in 1965 and ending with the resignation of long-time Prime Minister Lee Kuan Yew, who shaped the development of the city-state like no other. A significant part of the study is devoted to the question what influence the political leader and his most important companions within the People’s Action Party, like Goh Keng Swee and Sinnathamby Rajaratnam, had with their economic policy preferences. Of further interest will be to what extend the path they have chosen is indeed a uniquely Singaporean one and whether it can be categorized either as a version of neoliberalism or state interventionism. The paper will be divided into several elementary chapters. The first of these chapters will concentrate on the historical background of the astonishing development of Singapore, which is probably the greatest example for a transformation of a third-world- into a first-world country within a few decades. While the focus is on the young state's economic orientation, other relevant political and social changes will not be left out, so that Singapore's success story will be comprehensively illuminated. The unfavorable initial situation of the resource-poor country will be considered in the context of internal and external tensions, not least to explain the importance of the PAP's strategic adaptability. The following part of the thesis will be a more detailed analysis of the reasons for Singapores tremendous increase in prosperity and quality of living in general. Many different relevant aspects for this closer examination will be discussed in relation to the controversiol main research question: Is Singapore’s succes the result of economic freedom or of state interventionism? Among those various aspects will be the incentives for foreign investments, the trade-openness or the tax policy, but also the cultures and the education system of the city-state. Finally, the aim of this paper is to examine Singapore’s authoritarian capitalism and its long-term stability, but also the possibility and advisability of imitation of this specific model by other emerging and developing countries. Must economic succes always lead to democratization? Does democracy result in an overstretched welfare state? What is to learn from Singapore’s sucess story and where could it go in the future? These and other questions will be investigated. Singapore's economic rise and the drastic increase in the level of prosperity of the local population cannot be attributed to technocracy and state dirigism. Rather, the strong economic growth was the result of the high level of economic freedom and the pragmatic government orientation that preceded this freedom.

Keywords

Singapore, Malaysia, governance, authoritarian capitalism

Language used: English

Date on which the thesis was submitted / produced: 30. 1. 2023

Thesis defence

• Date of defence: 8. 2. 2023
• Supervisor: PhDr. Ing. Radka Havlová, Ph.D.
• Reader: Mgr. Jan Gazda, Ph.D.

CEVRO Institute

Master programme / field:
Philosophy, Politics, Economics / Philosophy, Politics, Economics