The following is my answer to a Quora
question: “What
are the chances of Singapore going bankrupt?”
Singapore is a sovereign state. Technically, it is impossible for a sovereign
to go bankrupt unless the state ceases to exist, because there will always be
people generating economic activity, meaning, the state will eventually be able
to pay off a debt. What you are asking
is really the chances of Singapore ceasing to exist, the dissolution of the
state. In that sense, while there is
that possibility due to many factors, both political and natural, it is
unlikely. Singapore is well run in comparison to most nations in the world,
with policies that address events decades in the future. It has a strong military, a network of
alliances and, most importantly, it is wealthy. Money buys friends and options.
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