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A critical analysis of the

extent to which
East Asian region
has used ‘Pacific Asian’ model to
achieve economic success

(Singapore Study)





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Course Title

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Introduction

Amongst the Success
stories of East Asian countries is Singapore
. The country’s system
of development involves effective resource management

structures

that ha
ve

c
lassified

it among
the ‘Asian Tigers’
.
Its high

s
ocial and e
conomic development

experienced

over the past decades
is attributed to quality management of resources, environmental protection and
economic
systems that apply to
Singapore’s

economy.
It is an example of the Pacific Asian Models of
economic development with
unique strategies in its

structural and manufacturing
elements
.
The
mixed economy started by opening its
doors to

the

external

markets
. This was

carefully

done

without compromising its

local

industries. This led to greater a
ccess to the global markets,
stronger business and regul
atory policies
in the
economy. As

the country continues to grow and
gain economic stability, it also faces challenges

in its domestic and global
spheres
.
Unemployment,
inequalities,
unfair trade, inflation and
global liquidity are some of its negative
factors

stemming from this growth
.


Effective administration

of economic agenda

through proper planning and resource
manipulation

i
s among the key elements of
Singapore’s

economic stability.
Without
amassing

debts through
borrowing
, the c
ountry has strateg
ically implemented the pacific Asian model

of
economic development
.

Its long term and short term goals
have
integrated

the regional
markets
and

policies

for a competitive advantage.
Its model

is focused towards regional growth through
sustainable
processes

that
positively impact

the environmental.
The approach taken by Singapore
is
focuse
d

on independent production with the importation of services and manufactured goods
(Greg 1995)
.
This strategic
design is reflected
in
its economic structures

and
policies.

Notable
among the factors is the

c
limate and air quality

maintenance which is

significant in the
strategic
management of Singapore’s economy (
Monthly Digest of Statistics, 2004
)
.

This paper critically
discusses these elements highlighting the strengths an
d weaknesses of Singapore’s economic
design.

Effective
Policies for Singapore
’s Export

and Manufacturing

Economy

Booth (1999) compares the success of East Asian economies to

the

Korean region to note
that
proper planning can influence regional development within a short period of time.
Singapore
’s success story is attributed to its industrial policies

and structural systems
.
Singapore
relies massively on

the manufacturing industry.

It has thus installed a system to match its
strength for greater benefit of the whole economy.

For instance, it

has

a competitive workforce
and

a

great
free economy suitable
for investment;
it’s

environmental, and welfare principles have
enhanced
sustaina
ble and social

development.

In essence, the

state

has

a reputable

business

environment

featuring among the least in
corruption

cases. It is also
has a

balance
d

import and
export business

that benefits its local and international investors
.


In Singapore, the state controls the distribution of resources
in order

to benefit the entire
economy.
Export promotion and the open trade strategies have enhanced its manufacturing
sector

giving its skilled workforce jobs while creating opportunities for investors
. It
s

implementation has worked well with the market economy to encourage private ownership
through trade
liberalization. In addition, its

integration

of the Asia Pacific policies

have spurred
the growth

of labour
intensive,

technology and electronics
sectors leading to a dynamic
shift

in
its exports.
Its human capital policies ensure a reliable skilled workforce for investors in
multinational companies and the Asian region.


Besid
es, the government structural development ensures lower tax rates to encourage
development. This plan has cleared hidden barriers to the investment activities as stakeholders
embrace
accountability.
To counter the harsh economic changes in the global econo
my, the
government designed strategies suitable for its position

in the Pacific and Asia
. The policies took
after
its

regional cooperation in the region helping the country to recover from the negative
trends.
Although other states in the area adopted similar plans, Singapore had an edge in certain
aspects.
Thanks

to its
high

revenue,
it managed to eradicate its

government

debt making it a
stable economy in the region and around the world.
Some of its major expo
rts are in electronics
,
manufacturing

and machines.

These industries consume a lot of natural resources and their
processes are bound to cause environmental degradation.
As a result, the government has put in
place structures to ensure that the economic gr
owth and development is sustainable.

Sustainable Development

With a high market based economy, t
he country is among states contributing to
environmental wellness through its practices (Hongyi and Huang 1995)
. Its manufacturing sector
comprising of

the petroleum, chemicals, refining, mechanical engineering, electronics and
biomedical industries

thrives because of its structures and policies
.

The economy is designed to
offer useful measures of the societies’ sustainable growth and development.
With

a GDP of

between 2
-
3% Singapore

demonstrates an economy in which there is increased economic
activities enabling the citizens to access jobs,
social amenities and opportunities

(
Talberth
, et al)
.

The reviews done in the economic structures have captured th
e essence of a
sustainable economy
with environmental protection activities included in the framework.
For example, the raw
materials used in the manufacturing process are imported in order to protect the natural
resources.

Its service industry covers
t
he financial, entertainment and
hospitality

industries among
others.

Infrastructure used for t
ransportation, storage and business services are developed for
long term benefits
; with sustainable designs
.
Singapore’s Economic Review

Committee

set up in
2001

is a structure se
t

up to ensure
increased employment rates (Singapore Economic
Committee, 2008)
. It
has often come up with

policy changes in the recession period
for

strategic
pragmatism
in

socio economic development.
Part
of this has been its regional trade partnership
with the Asian and Pacific states.
By offering incentives to businesses and taking advantage of
the export service industry

in the region
, Singapore
continues to reap the benefits of

the Pacific
Asian Model
o
f economic

development
.

For
further
sustainability, the state encourages the
creation of employment for the
economy. For instance
the fiscal

policies

designed to stimulate
productivity
through

the automation process
also provide for the creation of a

skilled workforce
to manage the process.

The manufacturing economy uses a lot of energy. In order to ensure sustainable
development, Singapore promotes new forms of energy like solar so
lutions
.
The state has
encouraged
innovation and the use of modern en
ergy

sources in its planning process
(
Pinderhughes, 2004). As

a sole manager of its resources, the government ensures that
its

urban
structures, infrastructure, waste management, building, construction, land use and

Strengths and Weaknesses of the
Singapore Approach

Although featured among the fastest growing economies,
Singapore

is vulnerable to
external influences of globalization.
It has a growing currency and i
t is one of the top world open
economies
. However, it

stands

at a risk of world

trends

influenced by international currencies

and unfair trade
structures
.
Technology and global market
factors

like

the recession
are bound to

affect its progress.

Its previous labor intensive system of production is being replaced by the
modern
mechanization process.

As a result, its
non skilled
citizens are bound to face
unemployment.

Despite

its diversified workforce, it also has o
ther challenges

which
include
the
high rates of

economic

inequalities. The social economic
disparities
hinder
soci
al development
.
It also has unfair

taxation
policies which
tend to affect the poor more than the rich
. In the country
the wealthy experience lower tax rates as compared to the low inc
ome earners and the middle
class.
Gender inequalities have

also

seen women facing job losses and discrimination at work
(Walsh, 2010).

Although

Singapore is

a mixed economy, t
he
government has

an upper hand in

the
management of its land, capital resources and labour.

This is a plus because it has encouraged
growth.

In

the 1980s it was among the

newly

industrial
ized countries

but today it’s among the
grown economies
. Its historical

economic

development has been

in
stages,
ranging
from a

period
of
instability to
growth

(Ichiro

2011
). It
is now among the internationally
recognized states with
remarkable developments in its Foreign Direct Investment and free market economy.


However, its development has encountered certain hiccups as seen during the regional
and international recessions.

In its growth period,

Singapore has

shown

tremendous changes in
the government fiscal policies, cost of living indices, and GDP.
Its technology driven
system
,
industry strategy and value added principles have
been redesigned constantly to ensure support

of

the
local investors
(Walsh
, 2010
)
.

Consequently an effective method of development should
offer a comprehensive approach for the wellness of all people.
The

Singapore
s
tate

is not

free
from unfair distribution of resources.


Conclusion

Singapore’s

economic growth between the 1960s and 2000

has placed it
among

the
world’s fastest growing economies
. This success is due to the collaborated efforts in its
institutions, leadership, policies and values. The result is sustainable development and economic
growth (
Wilson and Gavin, 2002
)
. Th
rough

careful planning
, the country has designed efficient
economic solutions in time crisis, policies and structures to manage globalization

and
technological advancement
. In return this

has

transformed Singapore’s econo
my

within a short
span
.
To ensure sustainability, the government encourages environmental conservation so that
the industrialized state enjoys its economic growth for longer.
This approach is in line with the
regional
Pacific Asian Model.
Modern Singapore has
adopted

strategies
to grow

over three
decades
-

from a small economy
it is among the

large

states with a unique

economic development
model.

Notable is its trade patterns, free market system, exchange rates and industrial sectors.

Crucia
l factors that have contributed to its
fast
growth include the government and non
economic factors
. Its modern service and manufacturing industries
continue to change with
modern trends of g
lobalization and technological advancements
. These

have impacted t
he
Singapore
economy positively and negatively.
Therefore, when considering the success and
failure of the Pacific Asian model in Singapore, it is ideal to compare
the

export led industry and
global factors.
As a regional giant,
the country

stands out as a
stable entity.
However, like other
world economies, it
faces threats

of environmental degradation and economic crisis.




References

Booth Ann,

1999,

Initial Conditions
and Miraculous

Growth: Why is South
East

Asia
Different
from

Taiwan and South Korea
,
World Development
Journal
, Vol 27
(2
), pp, 301
-
321

Greg Huff, 1995, What is the Singapore, Model of Economic Development?
Cambridge
Journal of Economics
, Vol 19, (2) pp, 735
-
759

Hongyi, L
i and Huang
Liang, 1995,
Health Education and Economic
Growth

in East
Asia,
Journal of Chinese
Economic

and Foreign
Trade
Studies
, Vol 3(2)
, pp 110
-
131

Ichiro Sugimoto, 2011,
Economic Growth of Singapore in the Twentieth Century:
Historical GDP Estimates and Empirical Investigatio
ns
, World Scientific,

Monthly Digest of Statistics, 2004, Department of Statistics, Singapore, Vol 43(1
-
4)

Pinderhughes Raquel, 2004,
Alternative Urban Futures: Planning for Sustainable
development in Cities throughout the World
, Rowman& Littlefield, UK

Si
ngapore Economic Committee, 2008, The Singapore Economy, New Directions,
Ministry of Trade & Industry, Singapore

Talberth John, Posner, Stephen, Hart Maureen and Costanza, Robert, 2009, Beyond
GDP: The Need for Measures of Progress, Pardee Papers, No, 4, B
oston

Walsh

John
, 2010, Impacts of the Current Economic Crisis on Southeast Labor Markets
,
Business

and Economic Horizons
, Vol 3(3),
pp, 123
-
134


Wilson Peter, and Gavin Peebles, 2002, Economic
Growth

and Development in
Singapore: Past
and

Future, Edward Edgar

Publishing
,