Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 73
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 74
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Warning (512): Unable to emit headers. Headers sent in file=/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php line=853 [CORE/src/Http/ResponseEmitter.php, line 48]
Warning (2): Cannot modify header information - headers already sent by (output started at /home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php:853) [CORE/src/Http/ResponseEmitter.php, line 148]
Warning (2): Cannot modify header information - headers already sent by (output started at /home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php:853) [CORE/src/Http/ResponseEmitter.php, line 181]
Notice (8): Undefined variable: urlPrefix [APP/Template/Layout/printlayout.ctp, line 8]latest-news-updates/singapore-stands-tall-against-us-in-balancing-growth-with-social-and-economic-equity-joseph-stiglitz-20057.html"/> LATEST NEWS UPDATES | Singapore stands tall against US in balancing growth with social and economic equity -Joseph Stiglitz | Im4change.org
Resource centre on India's rural distress
 
 

Singapore stands tall against US in balancing growth with social and economic equity -Joseph Stiglitz
-The New York Times

Inequality has been rising in most countries around the world, but it has played out in different ways across countries and regions. The US, it is increasingly recognised, has the sad distinction of being the most unequal advanced country.

Singapore, meanwhile, has had the distinction of having prioritised social and economic equity while achieving very high rates of growth over the past 30 years: an example par excellence that inequality is not just a matter of social justice but of economic performance.

Societies with fewer economic disparities perform better - not just for those at the bottom or the middle, but overall. There were many things that Singapore did to become one of Asia's economic "tigers", and curbing inequalities was one of them.

The government made sure that wages at the bottom were not beaten down to the exploitative levels they could have been. The government mandated that individuals save into a "provident fund" - 36% of the wages of young workers - to be used to pay for adequate healthcare, housing and retirement benefits.

It provided universal education, sent some of its best students abroad, and did what it could to make sure they returned.

THE FOUR WAYS

There are four distinctive aspects of the Singaporean model, and they are more applicable to the US than a sceptical American observer might imagine. First, individuals were compelled to take responsibility for their own needs.

For example, through the savings in their provident fund, around 90% of Singaporeans became homeowners, compared to about 65% in the US since the housing bubble burst in 2007.

Second, Singaporean leaders realised they had to break the self-sustaining cycle of inequality that has characterised so much of the West. Government programmes were universal but progressive: while everyone contributed, those who were well off contributed more to help those at the bottom. Third, the government intervened in the distribution of pretax income - to help those at the bottom, rather than, as in the US, those at the top.

It weighed in, gently, on the bargaining between workers and firms, tilting the balance toward the group with less economic power-in sharp contrast to the US. Fourth, Singapore realised that the key to future success was heavy investment in education - and more recently, scientific research and that national advancement would mean that all citizens would need access to the best education for which they were qualified.

Lee Kuan Yew, Singapore's first PM, and his successors took a broader perspective on what makes for a successful economy than a single-minded focus on GDP, though even by that imperfect measure of success, it did splendidly, growing 5.5 times faster than the US has since 1980.

Singapore also realised that an economy could not succeed if most of its citizens were not participating in its growth or if large segments lacked adequate housing, healthcare and retirement security.

By insisting that individuals contribute toward their own social welfare accounts, it avoided charges of being a nanny state. But by recognising the different capacities of individuals to meet these needs, it created a more cohesive society. Singapore's success is reflected in other indicators too. Life expectancy is 82 years compared with US's 78. Student scores on math and science are among the highest, and well ahead of the US.

The situation is not perfect. Some argue that this was possible only because Lee was not committed to democratic processes. It's true that Singapore, a highly centralised state, has been ruled for decades by Lee's People's Action Party.

Critics say it has authoritarian aspects: limitations on civil liberties; harsh penalties; insufficient multiparty competition; and a judiciary that is not fully independent. But it's also true that Singapore is rated one of the least corrupt and most transparent governments, and that it has taken steps to expand democratic participation.

There are other nations, committed to open, democratic processes, that have been successful in creating economics that are dynamic and fair, with less inequality than in the US.

Each of the Nordic countries has impressive achievements of growth with equity. Economic forces are global; the fact that there are such differences in outcomes (levels of inequality) suggests that what matters is how local forces — notably politics — shape global economic forces. Singapore and Scandinavia show they can be shaped in ways to ensure growth with equity.