Did you ever wonder how Singapore became such a prosperous country within less than a century? Economists give their answers to it, so read my article to check their answer.
As the “author” of the economic success in Singapore passed away last week, Singapore drew attention again. Specialists share their perspectives on the reasons why it became such a success, people living their share their gratitude to those who were at the very beginning of this event.
Lee Kuan Yew had this great vision for the country he was in charge of. Back then, before it announced its independence, Singapore was just a poor area with no future and great poverty. However, he changed the course of events completely and made it prosper. So what exactly did he do?
Lee Kuan Yew decided to start with what they had. Singapore is located in the “mouth of Malacca Strait”. It is there that almost a half of all world marine trade goes through in all the directions. It was important, so Yew decided to start from there.
He also offered his cabinet to start a campaign that will encourage foreign investors start their business in Singapore as well as support local ones. For that he reduced taxes and made it way easier to maintain certain level on the market as well as recognition than it was in Europe or elsewhere.
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It still is one of the biggest attractions for investors. Even young people boast of being able to launch a startup in Singapore within just a few hours. It is welcomed and supported with reduced taxes and all kind of simplified legal procedures.
Nevertheless, despite the simplicity of starting your own business in Singapore, it is very well-protected here. The government supports it in the view of the income it brings to the country.
As you probably know Singapore had nothing to brag about in terms of any natural resources or vast land. However, they were very wise when using what they had to its fullest extent. Thus, after announcing their independence from Britain in 1965, they changed their course into manufacturing.
That is what economist Friedman calls an example of right development: they did not try to achieve their success through following other countries; they used what they had and multiplied their resources.
Singapore population is more than 5 million people which makes it one of the countries with highest density. It is extremely multicultural. At least three fourth of the population are immigrants from red China with less than a quarter of both Malay and Indian residents.
Their power is in the free trade and fewer restrictions on the trading conditions; as some people claim free trade is one of the foundations for the total freedom in the state. Singapore authorities achieved it; and the only thing they struggle with right now is the inequality that is still widespread throughout Singapore.
Nevertheless, they focused on it and made it their biggest priority; so much effort might help solve this issue.
It is still a big question how they achieved such a success while so many cultures mixed on such a tiny area. They do not feel discriminated and respect the rights of others. Meanwhile, the government supports liberal immigration policies, so more people (yet mostly Asian) are expected to come and join this multicultural “pot”.
Right now Singapore population does not have one religion or political views. However, they are undivided and aiming for achieving higher standards in economy, education and other spheres. Way to go, Singapore!
People of Singapore are mourning for the author of this economic success, Lee Kuan Yew, and say that his loss is a great loss for the whole nation. However, they hope to achieve even more based on the principles he left for the future generations.
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