The following is my answer to a Quora question: “Why is Singapore a developed nation?”
There is no set definition of when a developing nation becomes a developed nation. However, there are some general indicators that we can all agree upon by consensus.
Firstly, the country has to be wealthy. This means a high per capita income. This high per capita income is commensurate with low levels of poverty, a high standard of living relative to the region the country is in, and resultant lowered fertility rate. In this case, Singapore qualifies on all levels. However, high income per capita alone is misleading. For example, countries like Brunei and the United Arab Emirates have high per capita income, but the wealth disparity is vast because much of that wealth is held in one strata of society, and movement from one strata of society to another is difficult. In this case, the development is a facade, although many would still classify them as developed nations. The problem with these nations is that their wealth is tied to a single commodity or group of related commodities, which in this case is oil and gas. Should they fail to diversify adequately, they will revert to developing, or even failed state status once the market collapses for them. An example is Venezuela now.
Secondly, the country must have developed infrastructure. In this, we are not talking about shiny new buildings. Malaysia has that in abundance. We are looking at the transportation network, banking, the sewage network, the power generation network, and the overall infrastructure that keeps a nation running, and supports the economy. Again, Singapore easily qualifies.
Thirdly, we look at government policy history and budget, since that is an indicator of where the nation is heading. Developed nations tend to spend heavily on education and healthcare. Aside from defence, these two items are the largest in Singapore’s budget, and it shows. Singapore has among the best healthcare in the world, and one of the most educated populaces.
Finally, we consider the development of the country relative to the region it is in. For Singapore, that is Southeast Asia. In a region mired in corruption and inefficient governance, Singapore stands out as an island of stability in an ocean of political uncertainty. It has risen above the region to be amongst the world’s best in many indicators of human development, including extremely low crime and poverty levels, almost non-existent corruption, and one of the most efficient banking and other systems in the world, above other established developed nations.
Despite this, Singapore actually claims to be a developing nation, officially a newly-industrialised economy, and the OECD still considers us to be developing. According to the HDI, Singapore has been classified as developed since 1999. According to the World Bank, it has been since 1987. We are in no hurry for that title.
No comments:
Post a Comment
Thank you for taking the time to share our thoughts. Once approved, your comments will be poster.