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India and Singapore attained Independence almost at the same time. Both the countries had similar socio-economic conditions after their Independence. However, today after 50 years of Independence, both nations are on a different page.
Singapore is known as the Asian Tiger, and is fuelling the region’s economic growth. It has overtaken many developed countries in terms of socio-economic indicators. Though Singapore is not as rich in natural resources as India, it has attained high socio-economic achievements based on trade, high-quality education and disciplined innovation for safety and prosperity.
In this article, we will know where Singapore Stands today, how it reached here, and which policies India should emulate to become a better nation.
Singapore’s Success
Today, Singapore has become a dream country for living and doing business. Just half a century ago, India was way ahead of Singapore, because it was a poor, swampy island nation with minimal resources for development. At that time, no one had imagined Singapore as it is today. But today, everyone is analysing Singapore’s development model, which has outperformed every other model in providing the best living standards to its citizens.
Following is the list of the significant socio-economic achievements of Singapore that India must aim for.
- Singapore has the 4th highest per capita income globally at USD 59500.
- The purchasing power of Singapore is 0.8 LCU.
- The unemployment rate is at 2.90%.
- It has a literacy rate of 96 per cent.
- Singapore citizens’ life expectancy is more than 83 years, making it the third healthiest nation.
- The highest percent of millionaires reside in Singapore. Thus, one in every six households has a millionaire.
- The government builds most of the houses in Singapore. Around 90 per cent of Singapore’s population has their own home.
- It has the world’s lowest crime rate.
- According to the corruption perception index, it is one of the least corrupt countries.
- The government possesses a surplus budget of 0-20 percent of GDP.
- Singapore is the easiest country for doing business.
- In 2019, Singapore was ranked 11 with a 0.938 Human Development Index.
- It is Asia’s first and only country with a AAA credit rating from the three major agencies – Standard & Poor’s, Fitch, and Moody’s.
- Singapore’s Changi Airport comes in the top 3 airports in 2021.
- Singapore’s Port is the second busiest seaport in the world.
Thus, Singapore has attained many awards and accolades with each passing year.
Key Factor Behind Singapore’s Success
Many consider Singapore as a tiny red dot on the map. However, the country focused on strengthening economically and militarily because of unfriendly neighbours. Due to the same reason, it developed cooperative links with other Asian countries and the West.
Singapore’s most extensive natural resource is its people. It is a multiracial country with a high premium on developing its citizens via education and merit rewards.
After separating from Malaysia in 1965, Singapore’s leaders focused on luring the industry and educating people. Then, in 1960, Singapore declared itself a centre for low-cost manufacturing to strengthen its economy. However, when this strategy became less feasible due to increased living standards and other competitive Asian countries, Singapore shifted its primary focus to trade. Singapore possesses a leveraged position in the Malacca straits, making it the second-largest shipping port globally. Its naval strategy focuses on solid maritime.
For further national development, the political and military leadership emphasises higher Education and developing an economic strategy to leverage the nation’s strengths and fill in a global place.
Singapore’s central solid leadership of Lee Kuan Yew was practical, insightful, and adaptable. The country sends its leaders to study advanced degrees from the world’s best educational institutes and bring back knowledge to Singapore. Leaders get high salaries to discourage corruption; however, if found guilty, the government levies substantial penalties.
Singapore’s forward-looking government, headed by Lee Kuan Yew, constantly assesses areas to develop next and then attempts to address them. Moreover, Singapore is a small nation with high government control, thus making it easy to execute changes in its strategic direction.
Singapore’s Policies India Can Emulate
Singapore’s Success lies in using trade as an effective development tool for the country after Independence. On the other hand, India took up an inward-looking foreign trade policy after its Independence.
However, India can still stimulate specific policies that have been the backbone of Singapore’s Success even after 50 years of Independence. They are –
- Lower the business taxation to attract businesses.
- Provide generous allowance to the start-up companies.
- Favour employers over an employee.
- A company requires clearances from multiple agencies for starting operations, whereas Singapore has only one agency named International Enterprise that takes care of all the necessary clearances. It also helps local companies go global.
- Government should support education.
- Besides education, health is another factor determining the quality of human capital. Singapore’s healthcare system relies on the “3M” framework. The three components of 3M are –
- Medifund – A safety net for those who cannot afford healthcare.
- Medisave – A mandatory health savings scheme shielding about 85 percent of the population.
- Medishield – A health insurance programme funded by the government.
Conclusion
After 50 years of Independence, India and Singapore stand at two different points in terms of socioeconomic conditions. Though Singapore was a small resourceless country yet, it managed to utilise and enhance its only natural resource – its citizens. However, India is rich in natural resources and manpower, yet it could not match Singapore’s Success. However, it’s never too late to change. Assimilating a few rehearsed policies can deliver unmatched results for India.
