Singapore economic miracle up close. From rags to riches: how an economic miracle happened in Singapore Singapore development in 20 years

Singapore has not always been a prosperous state. Today it is called a miracle, and millions of tourists and entrepreneurs choose this country for recreation and business. But not so long ago, the vast majority of the population of a small state lived in poverty. Politician Lee Kuan Yew brought change, and thanks to his efforts, the poor country became one of the most highly developed countries in the world.

Read in our story about how Prime Minister Lee Kuan Yew did the incredible, put an end to bandits, corruption, and raised money to a once impoverished state.

Singapore in the past and now

Rooting out corruption

Bribery and nepotism are the scourge of many bureaucratic systems. The author of the Singaporean "economic miracle", Lee Kuan Yew, has repeatedly said that in order to defeat corruption, one must be ruthless, ready to send relatives and friends to jail if they take bribes.

Lee Kuan Yew did not spare anyone. Several ministers went to jail for bribery. Moreover, one of the convicts was a close friend of the head of state for many years.

Lee Kuan Yew in his younger years

Today, Singaporean officials are paid high enough salaries to resist the temptation and not abuse their position. Singapore's independent media now have the opportunity to become a real fourth estate. Today, journalists closely monitor the lifestyle, income and costs of officials, their families and friends.

Often, it was the journalists who paid attention to the fact that the official lives beyond his means. An unclean employee risked losing not only his post and privileges, but even ending up in prison and being left without funds after paying an incredibly high fine of one hundred thousand dollars.

“Do you want to fight corruption? Start by planting three of your friends. You know exactly why, and they know why, "- such words are attributed to the father of the Singaporean nation.

The father of the nation, Lee Kuan Yew, said that he had two paths of government: to steal, in order to be included in the lists of the richest people in the world with family and friends, leaving the Singaporean people to live in poverty. Or become a servant of the people and bring Singapore to the top ten most developed countries in the world.

The Prime Minister chose the second path of government and became the most successful global politician and the head of a prosperous country.

Ruthless penitentiary system

The people of Singapore regard the father of the nation as a tough and just ruler. The country has a strict punishment system. Singapore has the highest death penalty rate, according to the penitentiary system. Most often, killers and drug dealers are sent to the gallows.

Also in Singapore there is an unusual type of punishment - beating with sticks. It is noteworthy that the overwhelming majority of the population approves of it. Minor crimes are punishable by very high fines and impressive prison terms. Obviously, a tough penitentiary system is a guarantee of a low crime rate.

Foreign investment inflow

The poor country was in desperate need of money. There are no minerals on the territory of Singapore, without which it is impossible to develop industry. The climate and the shortage of fresh water do not contribute to the development of agriculture. Only foreign investment could save the small state.

In the 1960s, China closed its borders to foreign capital. That increased the chances of the neighboring countries of the Celestial Empire: Singapore, Korea and Hong Kong. Lee Kuan Yew's government made every effort to attract foreign capital. Favorable conditions were created for foreign companies.

Mutually beneficial cooperation has allowed the creation of new jobs in the country, and Western companies have access to cheap labor and tax benefits. Non-intervention from the state guaranteed the inflow of foreign capital.

Reforms in education

The father of the Singaporean nation set a task: to raise a new generation of citizens: educated, capable of making decisions. Lee Kuan Yew initiated education reform, prioritizing high technology. The reform has affected all levels of education.

Singaporeans, having received a diploma of a young specialist, got a job in foreign companies in order to learn from the experience of leading manufacturers. Very soon they began to compete with them in the global market. Today Singapore is one of the largest centers for the production of high-tech electronics.

Effective state-owned companies

Today state-owned enterprises make up a significant share of the country's economy. Singapore Airlines became one of the first state-owned companies. The priority task of which is to provide passengers with a comfortable stay on the plane. The company has thought through every little thing: from a comfortable passenger seat to interactive entertainment. Singapore Airlines is considered to be the best in the world.

Modern Singapore is the result of thirty years of Lee Kuan Yew's rule. A successful politician managed to turn a third world country into an advanced power, which occupies a leading position in many ratings. The father of the Singaporean nation is a model of patriotism and an example to follow.

Do you think such an economic miracle is possible in our country?

Meet one of the strangest geopolitical entities on the planet - the city-state of Singapore!

Alexey Dmitriev

It is so small geographically and so large economically that we had to examine its cruel laws under a magnifying glass and its hanging gardens through a telescope.

Singapore celebrated its 50th anniversary on 9 August 2015. Lee Kuan Yew, the first prime minister of the republic, who in 1965 received a colonial port on a small island, which played the role of a transshipment base on the way from the Indian Ocean to the Pacific, did not live to see this anniversary for six months. The swampy islands lacked not only natural resources; they pumped drinking water there from neighboring Malaysia. The population - mainly those who came to work, spoke different languages \u200b\u200band worshiped different shantrap gods from the countries of Southeast Asia and India, British officials and Chinese merchants, through whose hands everything, including opium, went.

It was the elastic economic muscle of the Chinese community that served as the unspoken reason for Singapore's withdrawal from the Federation of Malay in August 1965. Lee Kuan Yew predicted that in a state of relaxed Malays, enterprising Chinese would be vigorously milked on the good reason that they had money.

Announcing his withdrawal from the federation to Singaporeans, Mr. Yu shed a tear. After that, no one else ever saw him weak. And ten years later, American diplomat Vernon Walters remarked: “Thank God that Lee Kuan Yew is running a small state! Otherwise, Brezhnev and Nixon would have to seek sympathy in each other's arms. "

Unconventional approach

The tiny city-state's visionary prime minister has come up with a clever way to survive. Firstly, this leader of independent Singapore, instead of driving out the troops of its former mistress, Great Britain, from the country, asked the damned imperialist invaders to stay here longer. Independence is independence, but sitting between Malaysia and Indonesia without the protection of a British bayonet is still extremely uncomfortable.

Moreover, the British military bases not only provided guarantees against external threats, but were also a reliable help in the event of mutinies. And as a fat, old bonus, one could consider the fact that these bases also provided jobs for more than 20% of Singaporeans.

Secondly, in addition to the imperialists, Lee Kuan Yew had great respect for the capitalists. He opened the doors of Singapore to big international business - European and American. Opened wide: duty-free import of goods, transparent minimum taxes and dozens of other economic benefits have made Singapore one of the five most investment-attractive countries in the world for a long time.

Did Lee Kuan Yew turn Singapore into an economic freeman because he was a liberal by conviction? Correct answer: no, it was not. And not the fact that he liked it all. But he liked being the master of Singapore, and he correctly calculated that the Western world would fight for the interests of its companies with anyone who encroached on the existing order of affairs here. In fact, Singapore became the heart of Asian trade, a small heir to the Great Silk Road. It was the main free economic zone of the region, and a golden rain fell on the country (in a good sense of the word).

A country the size of a cat, ruled by the word of one man, could afford such flexibility, such initiative, such cost savings that its sedentary but crowded neighbors could not. There was no place for volume production in Singapore, so hi-tech (electronics, biopharm) and financial services rushed there.

By the end of the 80s of the last century, over $ 500 billion of investments had flown into Singapore, new industries were introduced there: oil refining (with the highest environmental standards) and mass tourism. Today, 73% of the country's GDP comes from the service sector, and 27% from industry. Thus, the Singaporean society has safely stepped "from the third world to the first" - by the way, this is the name of the second volume of Lee Kuan Yew's memoirs "Singapore Story".

Mafia is mortal

One of the first feats of Lee Kuan Yew was the total and instant defeat of corruption. The ruler knew perfectly well that corrupt officials usually steal thousands and spoil them for millions, that serious Western corporations would not fully integrate into a market in which bribery, nepotism and lawlessness reign. And he, having enlisted the support of the British army, began to do a great job - to chop off the heads of a thousand-year-old hydra of Asian traditions.

The police was shaken up, almost all the judges were dismissed (they were replaced mainly by well-known lawyers, that is, that part of the lawyers who are always less entangled in corruption ties and schemes). Laws were formulated clearly and simply, and punishment for breaking them became swift and inevitable.

Even the closest friends and relatives of Lee Kuan Yew went to prisons, who did not immediately orient themselves in the new order. In a matter of weeks, the Singapore branches of the triads - Chinese criminal gangs - were liquidated. Ministers, judges, chiefs of police and other high-ranking officials were officially given such high salaries that the best brains flowed from the private sector to the government, who did not spend time building bribery schemes.

And today, according to Transparency International, the country is among the ten states with the lowest level of corruption. Transparent and effective legislation helped foreign companies not to be afraid of “spin-offs” and expropriations.

Education of the people

What else did Western companies need that came to Singapore? Good specialists within walking distance, order and cleanliness in the streets, total stability. The last two points were easy to handle. Draconian rules were introduced on the cleanliness of public places, hundreds of thousands of bushes and trees were purchased and planted. Then the visionary prime minister began to tighten the reins of government regulation.

Political stability and public order have become important ingredients in the Singapore recipe. In the 1960s, there were serious tensions between the Chinese majority and the Malay and Indian minorities. Since then, interethnic harmony has been sustained by harsh penalties for inciting hatred. Ignoring accusations of “enlightened authoritarianism,” the tough prime minister periodically tightened the screws, as a result of which protests and strikes became extremely rare, and same-sex love and communism were completely banned.

Residents of Singapore are very, very careful in their statements on the Internet, dozens of different topics are dangerous for them, ranging from criticism of the government to too expressive vocabulary on any subject in general.

The problem with traffic jams, which is traditional for Asian cities, was solved just as harshly. It has an extremely efficient public transport system (Mass Rapid Transit). But to have a private car, you need to buy a special license for it. They sell licenses at auctions for amounts exceeding the cost of the car itself. As a result, on a modest 700 sq. km (19% of them, by the way, Singapore washed up from the ocean over the past 49 years) of this island state, there is practically no congestion.

The number of certificates is directly proportional to the mileage of roads built over the past year. The savvy reader will have guessed, of course, that the money raised from these auctions goes to support Singapore's public transport.

And many Singaporeans also like to ride "Dracula" - as in Singapore they call cars, the right to own which allows you to use them only from dusk to dawn and on weekends and costs a third less.

While Singapore may seem boringly stable and secure from the outside, the People's Action Party government, which has a stranglehold on power for 50 years, behaves as if enemies are rattling weapons outside the country and a fifth column is rearing its head inside.

Population participation in elections is mandatory and often curious. Those living in the Tanjong Pagar constituency, from which Mr. Yu himself was nominated, were automatically counted as having voted for him; at the same time, the media are toothless, and reliable English libel laws are used against the opposition, with the threat of bankruptcy if the case goes to court.

And although the former tension in relations with Malaysia and Indonesia has long disappeared, the service of young people in the army, created according to the Israeli model, is mandatory, and a fifth of the budget is spent on defense. One of Lee Kuan Yew's catchphrases: “We decide what is right and what is wrong. We don't care what the people think ”.

When the law is fierce

As a result, today for 5 million of the population of all crime - a couple of hundred thefts a year. On the streets - not a candy wrapper. Everyone has heard about the monstrous fines for spitting out chewing gum, spitting and smoking in public places. Unlike the rest of Southeast Asia, you can safely drink tap water here.

Prostitution, and that, is compactly limited to a couple of blocks in the Geylang area, and its female practitioners are registered and regularly undergo medical examinations.

The elevators are equipped with urine odor detectors, which, in the event of someone's momentary weakness, will block the doors, detaining the culprit, and send a signal to the police.

There is important news in the editorials: law enforcement officers finally managed to figure out from which apartment in a huge high-rise building for several months cigarette butts were flying down. The perpetrator was fined S $ 19,800 and forced labor to clean the trash to stigmatize the violator. They are fined $ 500 for not flushed water in a public toilet, $ 5,000 - if a private wifi hacked.

According to the World Bank, the republic is ranked eighth in terms of GDP per capita, but it is flogged with bamboo rods for graffiti, vandalism and racial abuse. As well as criticism of the government, which amounts to a violation of public order.

On the warning that someone who is found to have more than 15 grams of heroin or 200 grams of cannabis will die, you come across as you exit the plane - Singapore is leading in the number of executed death sentences per capita. Another winged quote from Lee Kuan Yew: "If I am not afraid, I am meaningless."

Creation of man

But I had to tinker with the first point of the program mentioned above, and here great success has not yet been achieved. Lee Kuan Yew believed that the most important part of the population was the well-educated middle class.

When people have something to lose and have a head on their shoulders, they will be safer than any other social group. There was practically no middle class in Singapore in the 60s, and it took about half a century to grow it carefully.

In 1965, out of 1.9 million of the population, 300 thousand people were squatters and another 250 thousand huddled in the central regions of 18 people each under one roof. Then the government came up with a large-scale construction and ownership of inexpensive state apartments, based on the fact that, becoming owners of real estate, Singaporeans, especially former immigrants, will take more care of the order and cleanliness of the place in which they live.

And besides, they will receive a humbling agility in the form of real estate and deep gratitude to their native government. And it worked! Today 85% of residents live in state-owned apartments and are happy that their real estate has risen tenfold in the secondary market.

Infused with square meters, patriotic and nationalist sentiments soar over Singapore today higher than the Air Force fighters sweeping over the heads of Singaporeans on Independence Day.

Singapore is not a nanny state. There is zero tolerance for non-working elements looking for an opportunity to sit on the neck of the state. The familiar principle “He who does not work, he does not eat” has been elevated into a state philosophy.

Therefore, there is practically no unemployment in the country; it is socially unacceptable for a Singaporean to be unemployed. And if you consider that Singapore has one of the best educational systems in Asia, then it's a shame. To make university education widely available, every Singaporean between 6 and 16 years old has a so-called "educational savings account", which is filled by both parents and the state. At the same time, the country sends especially promising minds to the most prestigious world scientific and educational centers.

This often awakens creative freedom in them, because the Singaporean educational model, which has adopted many Confucian precepts, from school to universities, is purely pragmatic and focuses on "physics", and leaves little room for "lyricists". Strict adherence to a set of rules is paramount, and independent individuals get it from both teachers and parents.

Nevertheless, the average level of intellectual and creative abilities among Singaporeans, alas, still lags far behind the world's best indicators. It is not we who are engaged in racism, this is how Lee Kuan Yew spoke out. In the late 1980s, he decided to correct another ancient Eastern tradition - the conviction that a wife should be more stupid than her husband. Lee Kuan Yew made heated speeches about the need to marry women with higher education, and you, dear bastards-fellow citizens, turn up your noses from smart ladies, prefer to woo chubby unreasonable youngsters, that's the gene pool that suffers.

These speeches, by the way, offended even all willing Singaporeans, and the Popular Action Party paid with votes in the next elections. However, this did not stop the father of the nation. Something like the state marriage agency of Singapore was created - the Social Development Division, which, however, was engaged, however, not so much with marriages as with overseeing demographics in general. For example, it obliged the Department of Resettlement and Development until 1991 not to sell state-owned apartments to the lonely, because the government advocated an increase in the number of marriages and an increase in the birth rate.

By the way, when the USSR was respected, father Yu forced his son to learn Russian and later worried that premature publicity had undermined the country, while it was necessary to start with the economy. Unlike North Korea and many democracies that stumble enough in their path, the Singaporean phenomenon seems to successfully challenge liberal notions that unlimited freedom is a precondition for prosperity.

The overwhelming majority of the population supports the new leader and agrees to endure restrictions on personal freedoms for the sake of stability and welfare of the state. Big business still prefers not to interfere in politics in a country where financial success is considered one of the main manifestations of patriotism.

But when assessing the success of Singapore, it is important to understand that most of the companies successfully operating in the country came here from completely different living conditions.

There are practically no innovations in place here; everything, from technology to work methods, is not born here, but in those parts of the planet where freedom of thought and action is still a top priority. And trying to look back at Singapore as a perfect example of the use of a whip is as meaningful as sticking a Mercedes badge on a homemade scooter - in the sincere belief that these details - badges, fines and public flogging - are the main driving force of the design.

However, Singaporeans are far removed from their postcolonial ancestors. They are 12 times richer, much more educated and highly aware of what is happening in the world. They are already starting to snap (so far in social networks) at the restrictive measures that their grandfathers and grandmothers dutifully endured for the benefit of the idea. And the further, the louder the voices of critics: in the last elections of 2011, the share of votes of the permanently ruling Popular Action Party dropped by 6.5%.

Those elections showed that it is important to listen to the opinion of the people and that the paternalistic management style no longer works. The Singapore government is trying to move away from teachings to dialogue with citizens through the new Our Singapore Conversation program, giving them the opportunity to speak up on sensitive topics and develop civic and democratic views that were previously discouraged.

The Popular Action Party fought back the rejection of social programs in support of the poor and the elderly and began to respond to anti-immigration sentiments among Singaporeans not with a fist, but with explanations. Of course, Lee Kuan Yew would have solved the issue differently. But the architect of the Singaporean "economic miracle" is gone, and times are changing.

The Republic of Singapore is a city-state located on the island of the same name and several dozen other smaller islands. For 50 years, this country has turned from a beggar to one of the richest in the world. The Singapore phenomenon is perhaps Asia's most famous economic miracle.

Singapore is one of the smallest states in the world, its area is only 710.2 square kilometers (for comparison: the area of \u200b\u200bUfa is 708, and Moscow is more than a thousand square kilometers). Until the middle of the 20th century, the country was an English colony, in 1951 it acquired the status of a self-governing state within the British Empire. In 1963, the city-state became part of Malaysia, but in August 1965 it seceded and became independent.

Prior to modernization, Singapore was a poor third world country with no obvious economic advantages and significant reserves of natural resources. Even the country had to import fresh water from Malaysia. Most of the population lived in slums and was illiterate. The country was rife with corruption, drug trafficking and maritime piracy.

The modernization of the state began with the coming to power in 1959 of the founder of the Social Democratic People's Action Party, 36-year-old Lee Kuan Yew, a former lawyer who received a London education. He called himself and his team "bourgeois leaders with an English education."

Lee Kuan Yew served as prime minister until 1990, but even after resigning as prime minister, continued to direct the work of the cabinet, serving as senior minister from 1990-2004, and then almost until his death in 2015 as minister-mentor ...

Lee Kuan Yew's reforms allowed the country to make an economic breakthrough. Today Singapore is one of the world leaders in high-tech industries such as electronics and pharmaceuticals, the largest financial and oil refining center. Nominal GDP per capita at purchasing power parity of the country in 2017 reached 93 thousand dollars - the third largest in the world after Qatar and Luxembourg. Since 2016, the indicator has grown by 4.8 thousand, or 5.38%. Almost 3% of the country's population are dollar millionaires.

How did you manage to achieve these results in a short time - during the reign of one person, in just a couple of decades? Modernization of Singapore was ensured by efforts in four key areas, such as: economic reforms that set the vector for investment and innovation development, social modernization, an effective fight against corruption, and political stability.

Fighting corruption: the carrot and the stick

Today Singapore is one of the least corrupt countries in the world. However, in the 1950s, bribes were taken openly, this was a tradition of local authorities. The new government has set the task of eradicating corruption, regardless of personal connections and making no exceptions. A special Anti-Corruption Bureau was created in the country, reporting personally to the Prime Minister. The bureau's employees were endowed with broad powers, had the right to detain and search suspects in corruption, to investigate their relatives and guarantors, to investigate any offenses that were revealed during the development of a corruption case. Members of the Cabinet of Ministers and even relatives of the Prime Minister became the objects of anti-corruption investigations. As a result, a number of high-ranking officials ended up in prison, some are still serving their sentences. Many corrupt officials fled the country.

When a close friend of the prime minister was convicted of corruption, Lee Kuan Yew sent him to prison. The press widely covered the case when the Minister of Social Development, caught in a bribe of 315 thousand dollars, after talking with Lee Kuan Yew, committed suicide.

Simplifying regulation and enhancing the prestige of the civil service has become another area of \u200b\u200bthe fight against corruption. The powers of officials were regulated in detail, a number of prohibitions and restrictions were established for them, decision-making procedures became much simpler and more transparent.

The salaries of judges and civil servants were raised. Thus, the salary of a Singaporean judge has reached several hundred thousand dollars a year (in the 1990s it exceeded a million dollars a year). The salaries of civil servants in positions of responsibility have been raised to a level comparable to that of top managers in private corporations.

Lee Kuan Yew argued that people in political positions should be paid big salaries: they deserve it by representing a decent and honest government. If they are underpaid, it will be easier for them to succumb to temptation, the prime minister said. In a revision in 1989 and 1994, salaries for Singapore's top civil servants were raised to the point where they became the largest in the world.

Today, officials are regularly interviewed about the pitfalls of corruption. They systematically receive advice on how not to accidentally get involved in corrupt schemes. Officials are warned about accountability under the law on the prevention of corruption. Bureau staff regularly lecture college students about the dangers of corruption, both for themselves and for the whole society.

Civil servants annually submit a special declaration that they have no debts. The provision of false information by an official in such a declaration leads to dismissal from the civil service.

Officials are prohibited from accepting any gifts in the form of money or in any other form from people in business with them. It is also forbidden to accept invitations that could place an employee of a government department in any kind of dependent position. If an official cannot refuse a gift (for example, in accordance with the protocol of the visit of a foreign delegation), he can accept it, but must immediately give it to the head of his department. An official can take a gift only if he pays for it in advance at a price determined by the accounting department of his department.

Simple and transparent business environment

The government has relied on attracting foreign investors, developing the financial market and high-tech industries. Singapore has adopted simple and transparent procedures for registering and regulating businesses. The city-state became the first country in Asia that was able to establish very favorable conditions for foreign corporations, and the latter began to open branches in the country. A simple and transparent taxation system with low tax rates was established. To avoid double taxation, Singapore immediately signed about 70 agreements with foreign countries.

Simultaneously with the simplification of the business environment, the city-state government implemented a consistent industrial policy in which government leverage played a significant role. The authorities allocated priority sectors, invested in them and developed them, and then these segments, having reached a certain level of development, like locomotives, pulled the entire economy forward. In the 1960s, the stake was placed on oil refining (raw materials were delivered from Indonesia) and the creation of a modern seaport. These two directions made it possible to turn the country into a major center of world trade and provide the population with jobs. Singapore remains the world's third largest refining center (after Houston and Rotterdam).

In the 1970s, a new priority area appeared - the electronics industry, in which small Singapore was able to take the place of one of the world leaders. The development of the industry has allowed not only to create high-paying jobs, but also to equip Singaporean enterprises with the latest technology.

In the 1980s, an IT plan was adopted, within the framework of which a total computerization of state institutions took place, which gave an impetus to the development of the computer industry at the expense of government orders. This prompted private companies to accelerate their computerization as well, giving the computer industry an additional boost. Today Singapore is one of the most computerized countries.

At the end of the 20th century, the government found a new priority - the development of pharmaceuticals and biotechnology.

Currently, preferential programs for business continue to operate in the country. So, for small and medium-sized enterprises, dozens of programs of preferential lending have been developed, the state helps them in recruiting personnel, compensates for up to 90% of the costs of training and retraining. Foreign high-tech companies investing in research and development receive a ten-year tax exemption.

Social modernization

The most important role in the modernization of the country was played by the reform of the education system, which took place in the 1960s – 1970s. Minimum educational standards binding on all schools were created. Among other things, it became mandatory to study English and teach a number of subjects in it. The government has invested in educating Singaporean students at the best universities in the world, while establishing leading research and education centers in its homeland. There are now four universities, five technical universities, a number of private institutes and branches of many foreign universities in Singapore.

Another important social aspect is the successful housing and communal reform. The state has made a bid for citizens to buy apartments in their ownership, and not live in rented housing. In four decades of independence, more than 90% of Singaporeans have moved to government-sponsored apartment buildings. Moreover, 80% of families have already bought this housing as personal property.

The population density in the city-state is approaching five thousand people per square kilometer. Therefore, in solving the housing problem, the government of Lee Kuan Yew has focused on high-rise buildings of 20-25 floors and integrated neighborhoods.

The Central Savings Fund (CFF) has become a key instrument of the housing reform. Each working Singaporean receives a special personal account in it, to which he is obliged to transfer 20% of his salary, the same amount is transferred by his employer. These funds are charged with bank interest and are not taxed. While a person is working, up to three quarters of the funds on the account can be used to purchase an apartment and up to one quarter for treatment. To move into a new apartment, it is enough to accumulate 20% of its cost, and the rest is paid in installments. After retirement, people receive the entire balance from the account and can dispose of it as they wish.

The sheer scale of the government's housing program and its reliable source of funding such as the CFB have made the construction industry a powerful engine of Singapore's economic development. Private companies used the experience in the construction of multi-storey residential areas to develop the hotel stock, and a hotel boom began in the city-state. Thanks to him, Singapore can comfortably receive up to six million tourists a year: this is twice the country's population.

The success of the Asian city-state is interesting, first of all, because it took place in the absence of obvious advantages and was ensured by an exceptionally competent state policy. However, there is nothing among the measures that is not known to a wide range of decision-makers: support for priority industries, simplification of procedures and improvement of business conditions, and fight against corruption. Much of this has been used many times in different parts of the world. It is obvious that success was not ensured by unique measures, but by their intelligent application by highly motivated professionals.

O.S. Goryacheva

Singapore Records

Changi International Airport in Singapore is the largest aviation hub in all of Southeast Asia, with a passenger traffic of over 36 million people a year. In 2012, the airport was ranked second in the list of the best in the world, according to the Airports Council International (ACI).

Country seaport It is also one of the largest in the world: it can simultaneously house more than a thousand transport ships, but it has been repeatedly recognized as the most environmentally friendly in Asia.

Country crime rate - extremely low. There are 0.32 murders per 100 thousand people per year. For comparison: in the US - 5.35. Nevertheless, the police on the streets are almost invisible - the law enforcement agencies are monitoring with the help of video cameras.

The country has the death penalty, it is used for the most serious crimes - especially brutal murder, drug trafficking, corruption, high treason and encroachment on the life of the president.

Singapore is the fourth leading financial center in the world after London, New York and Hong Kong, more than 130 world banks are concentrated here. The inflation rate in the country is kept at the level of 2-3%.

The city has a fountain of wealth - the largest fountain in the world, listed in the Guinness Book of Records. Its height reaches 28 meters.

At the Singapore Zoo, animals are not in cages: they walk freely around the territory. For this, the zoo is considered one of the most humane on the planet.

Singapore Flyer - the tallest Ferris wheel in the world, its height is 165 meters (the height of the London Eye, the London analogue, 135 meters).

Maternal capital

The city-state government has announced a goal to increase its population by 30% by 2030. The Baby Bonus program offers cash payments to parents who want to have more children. Since 2001, all Singaporean citizens who have at least one child have received bonuses. In addition, at birth, the child's account is credited with funds that can be used to pay for kindergarten or medical services. Since March 2016, the lump sum payment for the first child is 8,000 Singapore dollars (6,000 US dollars), and for the third and all subsequent children, the amount of payment can reach 10,000 Singapore dollars (about 7.5 thousand US dollars).

One of the most talked about economic breakthroughs is the Singapore Miracle. What is it? What were the prerequisites for its emergence? What are the reasons for the emergence of one of the most resilient and successful economies in a small and poor area?

general information

The recognized father of the Singapore miracle is Lee Kuan Yew. He ruled the island for thirty-one years. The ruthless pragmatist and calculating strategist was able to transform the tiny territory lacking natural resources into a full-fledged prosperous economic system. He was able to rally the people of Singapore to achieve what is called an economic miracle, in which public and private capital has miraculously intertwined, making the people of Singapore one of the richest in the world.

How did they achieve this? At what cost? What did they have to go to? What state of affairs has been created in the country?

How it all started

The creator of the Singapore economic miracle, Lee Kuan Yew, was born into a family of Chinese immigrants. He was educated at school, interrupted by the Japanese occupation. After that, he traded on the black market. For some time, Lee studied at the London School of Economics, after which he transferred to Cambridge. It was there that he began to consider himself a consistent socialist. Therefore, after returning to Singapore, he joined the trade union movement, where he quickly established himself as one of the best lawyers. In 1954, he founded the People's Action Party, and Lee himself took over as secretary general. In 1959, when Singapore gained de facto independence, the MHP was able to take a majority of the seats in parliament. At the same time, its secretary general becomes the country's prime minister.

The first steps

It cannot be said that he was very lucky with the country. The situation was dire. Therefore, the author of the Singapore Economic Miracle decided to unite in a federation with Malaysia. He hoped that this would help overcome the colonial past. But the union did not last long. A series of violent clashes between different ethnic groups and ideological contradictions led to the fact that Singapore was expelled from the federation and gained full independence.

As Lee later recalled, it was not an easy decision, and he had to make a painful choice. But military and commercial ties were maintained between the countries. Also, Britain agreed to leave its military base here as a guarantee of the security of states.

Changes in the state

Now let's look directly at the Singapore economic miracle itself and its causes. In the aftermath of the Malaysian situation, Lee embarked on an ambitious program of change that would eventually transform Singapore into a modern industrialized nation. Initially, all spheres of the city-state's life were taken under strict control. First of all, politics. And even now, Singapore is one of the most regulated societies in the world.

Li's opponents quickly ended up in jail without investigation or trial. The press was heavily censored. Access to information from abroad was restricted. A large number of journalists were arrested. Everything was subordinated to the primary needs. The justification for these actions was that the newspapers were financed by foreign ill-wishers. It should be noted that this has borne fruit. From 1960 to 1980, the gross national product per person increased fifteen times.

What is the essence of the Singapore economic miracle

Lee Kuan Yew chose a competent development strategy. Initially, it was decided to jump over other countries in the region and attract international companies. He also understood the importance of good neighborly relations with such a regional giant as China. His personal friendship with the leader of the People's Republic of China Deng Xiaoping could greatly help him in this. They also relied on the educated population. Widespread support and stimulation of learning was introduced, and the marriage of smart and successful people was promoted.

And most importantly, a fierce fight against corruption, which was an integral part of colonialism, was launched. In addition, a stake was made on the construction of cheap housing, industrialization and job creation.

Demographic and social policy

Singapore has the most difficult situation in the world in terms of population reconstruction. This was largely due to certain imbalances in demographic policy. So, for example, there are taxes on children. True, educated girls are exempt from them. They taught all people to be polite, less noisy. All graffiti was promptly destroyed. The rules of decent behavior were literally drilled into people's heads. But what is the Singapore Exchange worth now!

The economic miracle showed that, while it was difficult, it all paid off with increased prosperity. Although such a tough approach caused discontent among the country's young residents, who regularly voted for the opposition. An interesting, albeit unattractive, policy is being pursued today.

In 1982, Lee Kuan Yew noticed that smart men choose beautiful but stupid wives. Whereas intellectually developed women find it difficult to find a mate. Therefore, a reward is introduced for men who marry certified girls. If there is no education, then, starting with the second child, you have to pay a fine. Also, people without a diploma are offered a large sum of money for sterilization. Free cruises are offered for educated couples.

Elections

During his tenure, Lee Kuan Yew was able to win the election seven times in a row with the party. He only retired in 1990. And now he holds the record for the longest tenure as prime minister. Although even after his resignation, he actively participated in politics.

Why could he win the elections for such a long time? How did Singapore turn from a poverty-stricken country into a leading industrial power in Asia?

Many believe that success came at the cost of personal freedoms and through the persecution of opposition-minded media. But the man who created the Singapore miracle told Chinese television in 2005 that in the new world it is necessary to find small corners, niches for oneself, where it is possible to be in a useful role for the whole world. This approach and tangible changes allowed him to stay in power for a long time.

Country today

What is Singapore today? It is quite difficult to answer this question unequivocally. The territory on which the Singapore miracle was performed occupies only six hundred square kilometers (four times less than Moscow). Only five million people live there (half the size of the capital of the Russian Federation). More or less friendly relations have been established with all neighbors, although one should not forget about significant regulation. Singapore is home to many high-rise buildings with high wages, some of the largest in the world.

And this came from an impoverished country that even imported construction sand. Why, fresh water was brought in from abroad. The Singapore miracle was also accomplished thanks to substantial ideological control. Thus, at the time of Lee Kuan Yew's rise to power, about a third of the population sympathized with the communists, whom the prime minister considered personal ideological opponents.

About corruption

To attract investors, an individual approach was widely practiced. As Lee Kuan Yew recalled, everyone was greeted. To help expand production, the government went out of its way. But international investors are intimidated by corruption. Lee Kuan Yew described this situation as one of the features of the Asian lifestyle. He acknowledged that rewards are accepted openly, and it's part of life. It was decided that corruption should be fought by simplifying decision-making procedures and removing ambiguity in laws. Clear and simple rules should be issued. And if necessary - cancel permissions and licensing. No sooner said than done.

In addition, the salaries of judges were sharply increased. The best private lawyers were involved in their positions. Judges received several hundred thousand dollars a year, in the 90s this amount exceeded a million. The mafia groups, the so-called triads, were brutally and brutally suppressed. Civil servants in positions of responsibility received salaries commensurate with the monetary awards paid to senior executives in private corporations. An independent body was created to fight corruption in the highest echelons of power. Investigations were even initiated against Lee Kuan Yew's close relatives. Ministers who were convicted of corruption, sentenced to imprisonment, committed suicide, or, at best for them, simply fled the country.

Now Singapore is deservedly considered one of the least corrupt countries in the world. This is what happens when there is no condescension even to people close to the ruler. And it deserves respect and inheritance.

Legal changes

Particular attention was paid to instilling the principle of the rule of law before people and equality before him. To make people feel the change, significant attention was paid to increasing the number of homeowners. A system of mortgage lending was created, and housing construction grew. Unusual for us and at the same time strict laws are being introduced. Thus, it was forbidden to spit on the ground, smoke in public places, throw used paper, park cars in the city center, and leave water in saucers (this attracted mosquitoes). In case of violation, the person was fined 1,500 Singapore dollars.

In addition, it is forbidden to drive alone after six. If the speed exceeds 80 km / h, special sirens installed in the car deafen the drivers. Each car owner is obliged to give a lift to fellow travelers and work colleagues. The death penalty is prescribed for theft, violence, drugs and corruption. Implemented in the form of hanging. Whip punishment is practiced.

Can achievements be used for our benefit?

Certainly. Although it is necessary to take into account a number of specific features. Thus, Singapore is a relatively small country in terms of area, which does not actively face logistical problems. In addition, it is necessary to take into account a rather unfavorable situation (at the time of the reign of Lee Kuan Yew, there were an overwhelming number of young and active people). And although now our birth rate is much better than in Singapore, then the situation was much better. Therefore, it is necessary to take into account the high level of burden that goes on society.

Moreover, not all solutions can be applied in our case. So, for example, it was decided to replace the police personnel from Malays with Chinese. This was done due to the greater discipline of the latter. We will not be able to carry out such a trick because of the disproportion.

Conclusion

So the Singapore economic miracle was briefly reviewed. Of course, there are many specific points that have not been described. But all of this proves that you can achieve a better situation if you make real efforts to achieve your goal, and not imitate vigorous activity, which sometimes takes more resources than solving important problems. I would like to see peace and tranquility reign in our country, crime stayed near zero, and people could lead a wealthy and comfortable life. But one should not forget about the negative aspects of such a policy. Thus, Singapore is now experiencing significant demographic problems, and freedom of speech and expression is severely suppressed. You have to pay a price for everything.

Singapore gained its independence only in 1965. At this point, the island nation was among the poorest and most problematic in the world. The country does not have large reserves of natural resources, fresh water - and that was delivered from Malaysia. The Singapore miracle is that today the capital of the state can be compared to New York in America. Thanks to the wise policy of the Prime Minister of the Republic, the economy of this corner of the earth flourished in a short time.

Who revived Singapore?

Singapore miracle - merit of the country's Prime Minister, Lee Kuan Yew He was born in 1923, studied in his home country and graduated from Cambridge in Britain. In 1949, after returning to his homeland, Lee devoted himself to the practice of law. He was a permanent member of trade union movements. From 1959 to 1990, he served as prime minister. It was under the leadership of this great man that the country managed to move from the category of "third world" countries to the category of the richest states. The prime minister's unusual policy was based on the desire to revive the country at the expense of a successful and developing people.

What became the basis for the development of the state?

The secret of the Singapore miracle is hidden in Lee Kuan Yew's unique approach to the country's development. He emphasized that all citizens of the state are overly interested in their personal growth and high income. The law of natural selection was also taken into account, which plays a key role in nature. Lee's parenting concept was the basis for a radical change. She allowed to change the statistics according to which the majority of intelligent and educated women never get married or have children. Parallel to this phenomenon, successful men gave priority to either poor or poorly educated Malaysians. The prime minister decided to form a powerful basis for the development and creation of highly intelligent families that will give life to a healthy and intelligent generation, which in the long term will have a beneficial effect on the economy as a whole.

Marriage Agencies - the Basics Under the leadership of the government, the two largest marriage agencies have been formed and have contributed to the Singapore economic miracle. The main task of the organizations was to unite men and women of the same intellectual level and social status. One of the agencies is still working today, helping young highly intelligent people to create good families. The second helps the rest of the young people in the country. The selection of partners was carried out taking into account the personal characteristics of each person. Employees of the organizations organized personal meetings, created all conditions for the favorable development of relations. After marriage, the young family received encouragement from the state in the form of a housing loan. Uneducated women, in exchange for solving the issue of housing, agreed to sterilization. Highly intellectual representatives of the country, on the contrary, were encouraged for the birth of a child.

It all starts from a young age

The Singapore miracle became possible not only through the formation of new ties. It was preceded by significant reforms in the education system. It was decided to provide all children with the same developmental conditions. There was no division among kindergartens and schools. Every year, IQ tests were carried out in each educational institution, organized by British scientists. The children who showed the best results automatically became the students of the best school in the country, Raffles. It was here that the training of the future leadership of the state took place. This approach has provided the country with highly intelligent personnel. There is a shortage of specialists with medium and low qualifications.

An integrated approach gave stunning results

Lee Kuan Yew created the Singapore miracle gradually. And it became a natural consequence of an integrated approach to the transformation of the nation, which took into account a large number of factors. The modernized education system has borne fruit. Today the state holds the first place in the world in terms of intellectual development. A constant influx of young people with good education and intelligence ensures the continuous development of the state. The system of re-education of citizens has led to a reduction in crime, since chaos and development are by nature simply incompatible.

What is the government's policy based on?

Singapore's economic miracle and its causes are rooted in a tough state rule based on the rule of law, which bridged shortcomings such as lack of natural resources, minerals and fresh water. The world crises of 1998 and 2001 did not affect the country in any way due to its extraordinary development. The country has adopted unquestioning obedience to the law. Any legislative violations imply full responsibility on the part of the offender, whose social status does not play a role in this matter. At the core of Singaporean society is discipline at every social level. Family discipline is built on the traditions of three cultures at once: Chinese, Malay and Indian. The people of Singapore have unique personality traits such as high levels of efficiency and cunning, business acumen and a drive for success. The "father" of the Singapore miracle drew attention to one more peculiarity of the people - its obedience. A society of law, order and financial success is culturally driven.

Global changes at the economic level

The author of the Singaporean miracle, Lee Kuan Yew, was not only concerned with restructuring society. During his reign, it was decided to develop the oil refining business. Cooperation was established with Brunei and Indonesia, which, although they were engaged in the development of oil deposits, could not process it independently and efficiently. The largest world companies were invited to implement the project. It was with the help of their funds, experience and connections that the largest oil refining industry today was built. Immediately after the heyday of this segment of the economy, construction began on the first Singapore port, of which there are already four.

The creator of the Singapore miracle initiated the construction and development of the airport, banking, electronics, trade and tourism. These are all the prerequisites for the splendor of modern Singapore. The state, which back in the 1970s was drowning in debt, today has $ 300 billion in investments abroad. Moreover, the government has about $ 200 billion at its disposal for future projects. Singapore, which has a population of about 4 million, is home to at least 50,000 millionaires and billionaires. The Singapore miracle, Lee Kuan Yew, which he worked all his life, is today considered an example for many countries of the world. Although Li is now retired, he remains a minister-adviser and bears the proud title of leader and father of the nation.

Encouraging Investors and Fighting Corruption

According to Lee Kuan Yew, the modern Singaporean miracle can be observed thanks to the active attraction of investors to the country in all possible ways. The government literally got out of its way to help foreigners implement their projects. According to unofficial data, foreign investors save at least five hundred billion dollars in the country's banks. Today, the country's GDP is equal to 55 thousand dollars per capita. It is for this indicator that the country is almost twice ahead of Saudi Arabia, Great Britain, Germany and even America. The state is also at the forefront of the level of intellectual development of the population. The fight against corruption can be called a special part of the history of the island state. The authorities have greatly simplified decision-making mechanisms and limited the number of permits and licenses. The term of criminal punishment for bribes was significantly increased. There has been an expansion of the powers of law enforcement agencies. An investigation, for example, can now be launched because of life beyond the means of the families of officials.

Integration into the global banking system

The Singaporean economic miracle, Lee Kuan Yew, did not go without integration into the world banking system. The country got the status of a financial center because it made possible round-the-clock banking services. The country has occupied a niche that was previously vacant. So, funds from Zurich, whose banks open at 9 am, are redirected to Frankfurt, and then to London. With the banks of Zurich closed at lunchtime and the later closure of financial institutions in Frankfurt and London, New York is taking over, replaced by San Francisco. Due to the specifics of time zones, from the time of the closure of banks in San Francisco and until 9 am in Switzerland, the financial world previously slept. Today this niche belongs to the banking segment of Singapore. This approach to the development of the financial industry has made the country not only a major financial center in the region, but also provided it with a worthy place on the world stage. According to experts, the Singaporean economic miracle is the standard of how an effective economic system should be built.

What does Singapore look like today?

Since 1965, one of the poorest countries in the world has become the richest country in the world. What everyone can see today was achieved by the Singaporeans exclusively with their own strength and intellect. The hi-tech world financial center is sterile clean. The concern for the environment is evident in a small number of cars. The reason for the absence of traffic jams is hidden in the too high cost of cars and the price of obtaining a permit for transport management. The little things that make the life of the country's citizens better are visible everywhere. That only there are benches installed at an angle, allowing everyone sitting to clearly see the number of the approaching transport. The country has severe fines. A cigarette butt thrown out of a window can cost an offender about 15 thousand dollars. Not only the country's economy, but all aspects of its life look flawless.