Background Facts About Singapore

The Republic of Singapore consists of an island off the tip of Malaysia. It attracted British and Dutch interest due to the spice trade and later became a British colony. Midway through the 20^th Century, Singapore gained full internal government. It has since become a booming tourism center as well as a advantageous trading point for various foreign interests.Unlike in the United States, where 5% of the population lives below the poverty line, people in developing countries have a much higher percentage of their population below the poverty line.

People in Singapore, however, are not subject to the same statistic. Singapore has nearly eliminated poverty within its borders, as have a few other Southeast Asian nations. The majority of these nations have been under an authoritarian rule, Singapore being the exception with its parliamentary republic style of government.

This government has enacted strict laws which, when broken, are followed by severe punishment. It is these laws which have divided many Singaporeans as to whether or not the government should be praised for the low crime rate and cleanliness of Singapore, or condemned for their harsh policies.

Concept of Poverty and its Measurement

In Singapore, households form the basic unit for poverty measurement and analysis. A private household refers to a group of two or more persons living together int he same house and sharing common food or other arrangements for essential living.

Poverty is linked directly to the standard of living in a place and what the people in a country or region perceive is the social norm. Because of this Singapore is most commonly described in terms of money for its statistical measurement of poverty. Thus, we must look into the overreaching facets of Singapore's economy and social improvement or policing techniques to completely understand how the island nation as a whole has managed to practically eradicate poverty.

Singapore not only provides a large amount of accessible public benefits it also provides the many more opportunities through its economy for a person to be prosperous rather than poor. The understanding of these topics and their facilitation can help other countries in the region have the same results that Singapore has spent the last 30 years achieving.

Quick Statistics:

Singapore

Gross Domestic Product (GDP)	$235.70 billion
Population	4.66 million
Labor Force	3.03 million
Unemployment Rate	2.99%
Population Below Poverty Line	0.00%

Philippines

Gross Domestic Product (GDP)	$317.964 billion
Population	92 million
Labor Force	36.81 million
Unemployment Rate	7.6%
Population Below Poverty Line	30%

Vietnam

Gross Domestic Product (GDP)	$241.8 billion
Population	86 million
Labor Force	47.41 million
Unemployment Rate	4.9%
Population Below Poverty Line	7.8%

Human Capital Policies and Education

Singapore lauds its use of human capital development (HCD) as a national economic policy. Because the country has no natural resources aside from its location and deepwater natural harbor, it relies largely on its human capital to generate economic success and wealth (Gross, 1999).

What is "human capital"? Human capital is defined by Brad Keeley (2007), author of Human Capital, as "our knowledge, skills learning, talents and abilities." Human capital is capital like any other - it's an asset that yields income and output over time. Gary S. Becker and Jacob Mincer claim that personal incomes vary according to the amount of investment in human capital; that is, the education and training undertaken by individuals or groups of workers. A further expectation is that widespread investment in human capital creates in the labor-force the skill-base indispensable for economic growth (Marshall, 1998).

Singapore has depended heavily on external trade, but because of competition with its lower-costing neighbors, is shifting from a labor-based economy to a "high technologies, value-added clean, capital-intensive products, and sophisticated business and financial services" economy (Gross, 1999). It has invested in this human capital-based economy by investing heavily in education and training for its citizens.

All Singaporeans must attend primary 6 education and government schools as part of National Education. The People's Action Party is the largest provider of preschool education through its community arm. According to the Economic Development Board of Singapore, a public university named Singapore University of Technology and Design will open in 2011, and the government seeks to provide higher education for 30% of each cohort.

Singapore values human capital development so much that there's a summit dedicated to the subject every year! The aims of the Singapore Human Capital Summit are:

• generating new knowledge and ideas on human capital management and leadership practices;
• advocating the latest thinking and practices on human capital management that work; and
• demonstrating the value and effectiveness of good human capital practices in enhancing an organisation's competitiveness.

The Summit is exclusively for CEOs, Chief HR Officers and Directors with people management and development responsibilities.

Because the emphasis the Singaporean government places on education leads not only to economic success, but also to better educated citizens, it can be viewed as both a means and an end. Other countries in the region can learn from Singapore's investment in education to not only improve the value and ability of their citizens, but to give everyone - wealth or poor - a fighting chance to contribute to the prosperity of their country as well as their own life.

Sources

1. Becker, Gary S. "Human Capital." The Concise Encyclopedia of Economics. 2008. Library of Economics and Liberty. Retrieved March 24, 2010 from the World Wide Web:
2. "Education - Singapore Economic Development Board." Homepage - Singapore Economic Development Board. 2010. Web. 24 Mar. 2010.
3. Gross, A. "Human Resource Issues in Singapore." 1999. Retrieved March 24, 2010 from PacificBridge.com:
5. "Singapore Human Capital Summit 2009." 2010. Singapore Human Capital Summit 2009. Web. 24 Mar. 2010.
6. Keeley, Brian. Human Capital: How what you know shapes your life. 2007. Retrieved March 24, 2010 from OECD.org:
7. Marshall, Gordon. "Human-capital theory." A Dictionary of Sociology. 1998. Retrieved March 24, 2010 from Encyclopedia.com: "

Diversity of Economy

As a small city-state, Singapore isn't blessed with the abundance of natural resources that larger Asian nations are. However, the country has experienced economic growth over the last fifty years that has allowed it to maintain a high degree of employment. This strength is based on the diversity of Singapore's economy, which balances export, production of electronics and natural goods, tourism, and other income sources.

Over a quarter of Singapore's gross domestic product is based on manufacturing, and that sector is itself well-diversified, including electronics and chemical refining. Duty-free imports and exports, coupled with a deep, large port, make Singapore an attractive hub for import/export throughout Asia. The legalization of gambling, and the construction of several world-class casino resorts, has led to a booming tourism industry, with over ten million tourists arriving in 2007.

This economic diversity has allowed Singapore to weather repeated economic storms, since a contraction or outright collapse in any one industry cannot wipe out the country's entire economic base. Even during the current economic downturn, unemployment in Singapore has remained low. In December 2009, only a year after the worst economic collapse worldwide in decades, unemployment in Singapore was 2.99 percent.

The success of this diverse economy directly reflects upon the poor in the country. Because Singapore devotes a a large portion of its monies into public programs, the lower class of citizens have more of a chance to arrange jobs, find affordable housing (mentioned later), and improve their own lives. Other countries in the region that find themselves relying on a rather narrow diversity of economy can feel the results in the large number of poor citizens in their country. For a government to help reduce poverty, it is up to the policy makers to help stimulate multiple industries in their own country and attract varying investments from outside to stimulate their own economies.

Sources

1. "Gross Domestic Product by Industry" . Singapore Department of Statistics. 2007.
2. “Year Book of Statistics”, Singapore. Singapore Tourism Board.
3. “Cities of the World”, ed. By Stanley D. Brunn, 2009.
4. Singapore's “New Stat News”, http://www.singstat.gov.sg/

Defense Force and the Reduction of Crime

Crime is the cause and consequence of poverty. Singapore’s reduction of crime has been underway. Singapore has twelve times the population of Vancouver and has half its crime rate. “The crime rate in Singapore is 745 per 100,000.”³ “The women make up more than 10% of prison population in only six countries, one of which is Singapore.” ³ Since 1988, Singapore has been enjoying a decreasing crime rate for 9 consecutive years. In Singapore there are very harsh penalties for crime. The punishments for crimes such as drug trafficking, murder or kidnapping are usually sentenced to the death penalty and caning is performed on anyone that undergoes trial. “When armed militia controlled drug cultivation and production, crime syndicates traded guns for natural resources, and corrupt officials facilitated human trafficking.” ² The final result could only be more poverty, greater instability and enormous suffering.

Singapore has one of the lowest crime rates in the world. “The low crime rate has been achieved by the combination of deterrence, enforcement and rehabilitation under a very effective criminal justice system. Deterrence is provided by tough laws, pushed by a strong executive and enacted by a very responsive legislature; a very robust and efficient world class court system; a police force also aspiring to be world class in its total policing capabilities, which includes at its bedrock, community policing in a strong, symbiotic partnership with the community it polices, strong enforcement by incorruptible officers and an austere but humane correctional system which aids rehabilitation whenever possible.”¹ Governments, institutions, and civil society groups must ensure the causes of corruption are aggressively fought, including in the private sector. Keeping a strict enforcement of law has a large effect on the reduction of crime which in return has lasting effects on the elimination of poverty.

Connection of Poverty and Crime

History has proven that there is a direct link between crime and poverty. Poorer areas in a country are often the ones when most of crime originates or is committed. Through the combined influence of crime prevention and the absence of pressure from government corruption, many people do not have to resort to crime to make ends meet. Many other outlets are much more appealing than the hard hand of Singapore law and often is the road taken by its citizens. Many other countries many have problems with the authoritarian mantra that Singapore polices its citizens, but none can argue with the results.

Sources:

1. “Crime and Punishment in Singapore”. Pacific Rim Magazine. Web. 23, Mar. 2010. http://www.langara.bc.ca/creative-arts/publishing/prm/2003/singapore.html
2. Crime Is both Cause, Consequence of Poverty, Third Committee Told as It Begins Discussion of Crime Prevention, International Drug Control”. United Nation Information Service. Web. 23, Mar. 2010. http://www.unis.unvienna.org/unis/pressrels/2005/gashc3817.htm”
3. “Facts and Figures”. Buy Singapore. Web. 23, Mar. 2010. http://www.buysingapore.com/FactsnFigures.aspx
4. “Singapore 2007 Crime & Safety Report”. Overseas Security Advisory Council. Web. 23, Mar. 2010.

Trade Generation by the Government

Government Initiatives

Singapore has established itself as Southeast Asia’s leading port and industrial center, as well as a leading banking and commercial center. The Government of Singapore has taken many steps to formalize their trade and industry. The Ministry of Trade and Industry was established by the Government of Singapore in 1979. It was created with the purpose of “promoting economic growth and [to] create jobs, so as to achieve higher standards of living for all.”¹ Through the establishment of Free Trade Agreements with multiple countries around the world, along with joining many Multilateral and Regional trading systems such as the Association of Southeast Asian Nations (ASEAN) and the World Trade Organization (WTO), Singapore has established itself as an enticing entity for foreign countries to trade with. In terms of investment, the government has also established Investment Guarantee Agreements (IGAs) with 35 different nations which outline legal framework to guide investment norms and protection when other countries invest in Singapore (and vice versa). This has helped to prevent exploitation of the Singapore workforce, keeping standards in the workplace relatively high.

Growth

Rooted in strong manufacturing and service sectors, Singapore continues to thrive on these two “twin engines of growth.”¹ Today, there are over 7,000 Multi-National Corporations in Singapore.¹ The island-state’s major industries is expected to continue to grow at an annual 9.7 percent this year.² This large increase in growth can only translate into more jobs and opportunities for the lower class to come out of poverty. While there is not defined poverty line by the government, as Minister George Yeo states:

“many in the bottom 10% have significant wealth in the form of CPF [state retirement funds] savings and their homes. They are not an underclass.”³

^{Effect on Poor and Model for Other Cities}

Singapore’s success was due to the strong middle class which emerged to build Asia’s second-richest country. This sort of effort must be made by other governments in other south Asian countries. Government support for industry is key to alleviating poverty in the region.

Currently, To achieve higher growth rates, the government has increasingly allowed large numbers of foreign workers to make up a labour force which was depleted due to the low birthrates (3 per 1000).³ With a large influx of cheap foreign workers, the poverty line is beginning to take on darker shade. Singapore must be careful not to neglect their poor in order to stay competitive.

Sources

1. "Ministry of Trade and Industry." Ministry of Trade and Industry. Web. 17 Mar. 2010. .
2. Economists Raise 2010 Growth Outlook for Singapore to 6.5%." Channel NewsAsia. Web. 17 Mar. 2010.
3. "What Happened to Singapore, the Land of Plenty? | The Online Citizen." The Online Citizen - A Community of Singaporeans. Web. 18 Mar. 2010. .

Affordable Public Housing

At the turn of the century, Singapore was growing rapidly, and slums were expanding in the central area of the city. The Singapore Improvement Trust (SIT) was implemented to help house the homeless. However, because the SIT was not given the power to build large scale housing projects, by 1947 homelessness in the central city was still rampant; 72% of the population, about 680,000 people, lived in the city center, and about a third of the population lived in approximately 4 square kilometers. In 1959 the SIT was abolished, having only been able to give housing to 8.8% of Singapore’s population.

In 1960, Singapore established the Housing and Development Board (HDB) tasked with developing affordable government housing in the small, densely populated nation of Singapore. The HDB, which provides most of the housing in Singapore, operates as a private developer supported by public funding. It has extensive powers of land acquisition and urban planning, and it also manages industrial, commercial, recreational and religious land.

A buyer of a flat from the HDB must be a permanent resident or citizen of Singapore. In addition, he or she must be 21 years of age and have a family. Flats range in size from 3-room to “executive mansionette” size, varying widely in cost. This wide variation means that 80-90% of the population, both wealthy and the poor, live in public housing, eliminating the associated social stigma. The wide variation in prices and availability of low price homes in Singapore means that homelessness is rare.

Other Southeast Asian cities willing to implement such government programs could feasibly provide low-cost housing in high density areas, helping to ease the burden of homelessness, slums and shantytowns on cities. Singapore’s HDB is widely viewed as a success.

Sources:

1. Housing and Development Board, (2010). HDB InfoWEB. Retrieved from http://www.hdb.gov.sg/
2. Augustine, Tan, & Phang, Sock-Yong. (1991). The Singapore experience in public housing. Times Academic Press for the Centre for Advanced Studies.
3. Chua Beng-Huat, (1997) Political Legitimacy and Housing - Stakeholding in Singapore
4. Lim, William S.W., (1983) ‘Land acquisition for housing with Singapore as a case study’ in Land for Housing the Poor,” Select Books

Public Accountability and Corruption

Public Accountability:

Singapore requires the Government to account to Parliament regarding their funding use. The thought behind this action is that the resources do not belong to him and therefore he or she must report to the owner of the resources in this case Parliament represents the people of Singapore. The Auditor- General audits the spending habits of Town Councils, ministries, statutory boards, and then reports the results to Parliament through the President on the audit findings. The President appoints the Auditor to ensure that the public funds are accounted for used effectively, efficiently, and economically, and complied with related laws. Once, the Auditor General reports to the Parliament the report is made public once it is tabled in Parliament.

Anti Corruption in Government:

History:

When Singapore became a self-governing state in 1959, the historical government service proved to be filled with corruption (Ali, 2000). This rampant corruption presented problems for the new governing state due to the previous weak laws, uninformed people who were unaware of their rights, unfair pay differences for public officers (who resorted to corruption to make ends meet), and difficulty gathering evidence to make cases (Ali, 2000). Political leaders quickly instated laws that gave more powers to Corrupt Practices Investigation Bureau (CPIB) so that they could carry out their duties effectively (Ali, 2000).

Legal Measures to Prevent Corruption:

1. Legislative Measures
2. Administrative
3. Preventive Guidelines
4. Actions taken against corrupt government officers
5. Court Punishment for corruption
6. Departmental Punishment for Corruption
7. Roles of Government Agencies

Today:

In Singapore, the laws are being regularly reviewed in order to prevent future corruption. Regular talks are given by the CPBI to public officers about the consequences of corruption (Ali, 2000). If a Public Officer is convicted of corruption he or she can face a fine up to $100,000, the offender can be sentenced to imprisonment to up to five years, repay any bribe received, and the court can seize properties as well (Ali, 2000). Departmental Punishment for corruption can also be dismissed from service, have rank reduced, receive a fine, be forced into retirement, or receive deferment/stoppage of increment (Ali, 2000).

Impact on Poverty:

Corruption acts as a regressive tax on the poor that robs resources from already hard-pressed households. For those who cannot afford to bribe are left even worse off without access and turned into forgotten citizens. Singapore’s actions have prevented corruption in the governmental offices. The corruption of government affects the development of initiatives at the core by skewing decision-making, budgeting and implementation processes. For a country, the results produce multiple and destructive forces: increased corruption reduced sustainable growth and slower rates of poverty reduction.

The Economist stated “of all the ills that kill the poor, none is as lethal as bad governance”. According to the Transparency International Corruption Perception Index’s report in 2009, currently 6 of the 10 most corrupt countries are located in Asia, with costs exceeding over $9 billion every year per country. High corruption levels are correlated to increased poverty which leads to a decrease on human rights, resulting in poor education, health, trade, and environmental quality (Keuleers, 2005). If other countries emulate the anti corruption structure of Singapore, there would be many positive impacts. The people would benefit by having improved quality of life, their country will increase in prosperity, decrease poverty, and move forward with globalization/trade.

Sources:

1. Poverty and Corruption, Transparency International, 2007. http://docs.google.com/viewer?a=v&q=cache:SLdOs8j2DsoJ:moodle.vsoint.org/file.php/1/moddata/data/6/10/79/Poverty_and_Corruption.pdf+corruption+poverty+singapore&hl=en&gl=us&pid=bl&srcid=ADGEESigOH7qfbaivF4AdOOk4T1VHvbbw2_kdA7t6aTtoM7Z0IesOdIbYfQyG5Tgf8tWW-vYFUT-fzJizXAvwr636X_2_H-YiRn2IsSzYGKdFGH2pJWb3G39Kq7pU9lo_u-cH9MavdgS&sig=AHIEtbS4sOLuy5dFyJe0Duao1qjI-Ri2PQ
2. Ali, M. (2000). Retrieved 2009, from http://www.tdri.or.th/reports/unpublished/os_paper/ali.pdf
3. Keuleers, P. (2005, September). Corruption, poverty and development. Retrieved 2010, from http://www.oecd.org/dataoecd/62/54/35593188.pdf
4. Transparency International Corruption Perception Index’s Report
5. http://www.transparency.org/policy_research/surveys_indices/cpi/2009/cpi_2009_table

6. Auditor General’s Office Singapore: http://www.ago.gov.sg/doc/r39a.pdf