Is Singapore's present political system compatible with globalisation and the advent of a knowledge-based economy?

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Essay: Is Singapore’s present political system compatible with globalisation and the advent of a knowledge-based economy?

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        “Globalisation is a complex web of interconnectedness through which life is increasingly shaped by decisions or events taken at a distance.” (Heywood, 2002)

             When Singapore separated from the Federation of Malaya and gained its independence on August 9th 1965, the People’s Action Party (PAP) government then, under the leadership of Lee Kuan Yew, faced an overwhelming task of ensuring economic survival.  This was under the conditions of no natural resources, lack of manpower and the loss of access to Malaya’s large domestic market. Many people doubted Singapore’s ability to survive under these extreme conditions and believed that it would eventually return back to the Federation.  However, this was not the case, “not if

[Lee Kuan Yew] could help it (Lee, p.663).

 Thus Singapore was left to fend for its own.  The government had to quickly solve the pressing issues of housing and employment.  With that, the economy had to improve and it did.  Singapore eventually achieved considerable economic success, largely due to strategic tactics employed by the government such as free trade agreements, joining the World Trade Organization – manifestations of globalisation-that opened the local market.

Being open to an international economy, the PAP government had to deal with the challenges posed by globalisation.  The ease of travelling and the lure of ‘greener pastures’ and gradual socio-economic stratification, coupled with the increase in the number of educated people and the rising popularity of the Internet has seriously undermined the hegemony of the ruling party in various ways that I will discuss later.  

Therefore, in my humble opinion, globalisation will pose as an obstacle to the current political system ruled by the PAP, although the paper will also argue that it may not serve as a fatal blow to the functioning of this ruling party.

        According to Foreign Policy, Singapore was ranked top for the world’s “most global country” for 2001 (cited in Chan, 2001) and the Gross Domestic Product growth rate is a healthy 2.2 per cent for 2002.  With such a positive outlook for the future, it would seem that the citizens would be able to maintain their comfortable lifestyle and it may even improve as the country’s economy recovers.

        Ironically, the citizens have instead become increasingly critical of the performance of the government.  There has been a steadily rising number of people who have voiced their opinions over the dissatisfaction of policies, such as the uproar over the hike in bus fares last year (2002).  Many wondered if it was an appropriate time to raise the fares when the country was barely recovering from the financial crisis and were wary of the government’s stance on this issue.  The gradual income divide may be the underlying factor to the formation of this “consumption-based identity”.  Ten years ago, the upper fifth earned 11.4 times more than the bottom fifth.  This ratio grew dramatically to 17.9 times in 1999, then reaching a high of 21 times in 2000. (Tan, 2002) Furthermore, the Global Policy Forum found that the top 10 per cent here earned 34 per cent of the total income in the mid-1990’s, ahead of other countries such as the United States (25) and China (25). (cited in Tan, 2002)  One would suspect that egalitarianism has been traded for growth in the process of embracing globalisation.

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Having to compete with other countries in the global economy, the literacy rate amongst Singaporeans has to be of a comparable standard to developed countries so as to attract foreign investors.  According to the Ministry of Education, the graduate output from local universities saw a jump from 3409 people in 1984, to 9244 in 2000.  This trend is also noted in local polytechnics, where there is a significant rise of 3066 in 1984 to 14059 in 2000. (Ministry of Education, 2002)  However, the greater access to education and awareness has resulted in a rise in political participation, which in turn ...

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