Good Essay On Strong And Sustainable Economic Growth In Singapore

Introduction

As strong and sustainable economic growth, can be defined as a situation where all the economic factor and resources within a country a fully utilized. It is a condition where both the natural and human made resources are fully utilized without compromising of the future generation. In achieving a strong sustainable economic resource the will of the present generation is utilized without compromise of the future generation. A sustainable economic growth can be retained by removing the leakages and the gap between growth, material possession and success.
Human should value the nature and know that human society together with its political economy is integrated and interdepended components for human nature and biosphere. It is important to safe guard the environment together with all the available resource by ensuring that, human do not involve themselves in hazard activities like pollution. In order to attain a sustainable economic growth we should ensure that there is a strong community value of natural and Nan made resources. Human should increase both forms of capital that is physical, human and natural capital to build a well sustainable economic growth .in addition; there should be respect, fairness and cooperation to ensure that all the resources a well-respected. (BERCUSON & CARLING, p. 32).

Rationale for promoting economic growth in Singapore

Currently, Singapore is ranked among the world’s strongest and the most competitive economies in the world. When compared to the situation in the past forty years, it can be evident that there has been much effort done by the government to improve its economic situation through various ways. The government together with the other stakeholders has made several efforts to improve the economic situation in Singapore. In the last forty years, the economy of Singapore was based on acute housing shortage and severe unemployment situation. The Economic Development Board (EDB) that was established in Singapore has played key role in economic development in the country. This included wealth creation and jobs for its population. This board was established in 1960.
The EDB is a government agency that has played an important role in redefining its economic value. It is an official government agency for planning and executing economic strategies to enhance the economic position of Singapore as a global hub for business and a lot of investment. The EDB aids in establishing and facilitating as well as supporting both the local and foreign investors from all over the world in the manufacturing and services sectors to come and develop and also expand new business opportunities, more so knowledge-intensive, capital-intensive, and innovation-intensive activities.
The EDB has the purpose to improve the investment promotion and improve economic situation in Singapore. When evaluated in 2006, EDB contributed more than 40 per cent of the Singapore’s GDP which enabled the country to achieve S$8.8 billion in the new manufacturing investments as a commitment whereas over S$2.8 billion committed in service companies in the new business spending as from the EDB Annual Report, 2006/ 2007. In conjunction with the ministry of Trade and Industry, the EDB is striving to provide a long-term planning and key strategic directions to the Singapore’s industrialization program in terms of the specific industrial trends and the key targets in the industrialization sectors.

Quality of life

There are several efforts made by the government to improve the quality of life of its population. These efforts are made by several sectors within the government to improve its economic situation as well as the quality of life of its population. In order to attract some of the foreign capital for its growth and to maintain its constant inflow, the state has to continuously invest in the physical infrastructure and in the education sector. This is done to upgrade the labour skills of its population. The improved skills help to equip the people of Singapore to improve their material of living.
The healthcare sector has also done a great job and improved more drastically. This is evident as from the training institutions for the nurses and doctors within the country. The government has also put in more funds to this sector for the construction of hospitals and clinics throughout the country to improve the health condition of the people of Singapore.
Political and civil rights of the people of Singapore has been enhanced by the policies which are regulated by the government agencies as well as some organizations which aims at enhancing equal rights to the people of Singapore. There are also some of the policies that govern politics within the country. There is a continual monopoly of power that has been enhanced in order to boost its economic prosperity.
Policies have also been set for the reasonable use of the resources within the country. These policies aim at regulating the use of land. The capital accumulation has also been one of the key functions that are set aside by the government. This has been achieved through attraction of foreign investors. This has been enabled by the favorable terms of trade as well as good policies, which has attracted most of the foreign investors throughout the world to come and invest in Singapore. This has enabled capital accumulation within the country. The favorable terms of trade has also encouraged entrepreneurship within the country.
The economic growth of Singapore can be described as one of best and fastest growing economy in the world. This is because Singapore is highly developed economy with the least corruption. The economy is ranked as the most open economy with the lowest taxes of less than 145 of the GDP. The economy has the third per capital of the growth domestic product in the world. The economy has a high purchasing power because the government has companies which are owned through a wealth fund. The companies usually hold the largest stakes in several of the nations companies such Aortal company. The economy of Singapore is a direct foreign investment in the world. The economy has low interest rates which makes the investors easy to invest in the nation hence making the economy to grow at an increasing rate. Due to highly attractive climate and stable political condition, Singapore has benefited from a lot of foreign investments and tourism. Singapore usually exports mainly electronic, chemical, and services. Due to less corruption in the nation the management and distribution of resources has contributed to the development of the economy. Water is usually scarce in the region and valued as very precious resource alongside with the land. Singapore usually relies on an extended concept of trade where it purchases raw goods and refining them for export. Example the county usually has oil refining and water refining. (GHESQUIERE. 2007, p. 47)
Singapore has a well build and strategic port .this usually makes it to compete against the surrounding nations in caring out trade activities. The country has the highest trade to GDP ratio in the world raging over 400% during 2008. The port of Singapore is said to be the busiest port in the word by cargo tonnage. In addition the communication network and infrastructure within the nation is well developed hence easing the movement of goods and services. The Singapore government usually uses the fiscal and monetary policy to promote high levels of saving and investment to increase the income which is used to fund the citizen’s health care and retirement need. (GHESQUIERE. 2007, p. 47)The countries saving rates have remained the highest in the world since 1970’s. Most of the companies in Singapore are registered as private limited companies this makes it easier for proper management which is associated with the private limited companies.

Challenges

The challenges which face the Singapore economy for the next 50 year include the following. First, the country has utilized all of its available resources. Singapore usually lack water and raw materials. The country larks proper sources of water and statistics shows that within the next 50 years water will be extremely scares within the nation. Since the oil is expected to distinguish within the next 50 years the prices of oil are expected to increase at an increasing rate. This is a challenge to the economy of the country. There is also a challenge of high interest rates caused by excess saving this will lead a slower economic growth rate of the country. There is also challenge in excess migration of foreigners in the country which can lead to social tension and political instability within the nation. The country is also facing a problem due to increasing in the retirement pension. Due increased medical care services the death rate in Singapore has relatively reduced.
The country has a larger number of the old people than the young ones. This means that more money must be set aside to cater for the retirement of the old people. This has made the nation to have a lot of baby goners who increase the amount of pension to lot of people in the country are. Another challenge is that the economy of the country is held by the foreigners. This means that the salaries are depressed and the citizens are not willing to work for the less paying jobs. Witching the next 50 years the country will face a high level of unemployed citizens. This has contributed to worsening income and leading to inequality of income as played in other industries. (GHESQUIERE. 2007, p. 47)
The economy of Singapore also faces income inequality which s has been brought by a lot of cheap foreigner’s workers. This method of growth will be unsustainable because there will be a lot of social tensions among the citizens and the foreigners who are continuing to accumulate within the country. There is also the fear of political instability which may be brought bay excess accumulation of foreigners who are willing to work at a cheaper labor. Due to excess and increased government and the need to increase employment, spending the country is expected to face a lot of challenges caused by inflation. (SUGIMOTO, 2011. p.37).

Strategies and programs for Singapore economic planning in the next fifty years

Singapore has put in place some of the best strategies that are geared towards the economic prosperity in the next fifty years. There are also several programs, which are facilitated by the government to enhance future economic growth within the country. The country has made many efforts to streamline the industrial situation in Singapore for its next fifty years. There has been efforts by the government to help the companies and industries to grow and be able to be a fully industrialized country in the next fifty years.
There have been some of the efforts by the government to ensure Singapore becomes economically stable nation. This has been aided by some of the economic reliance programs that have been propelled by the government. The government to help the country to improve its economic level has initiated a more planned, modern economic program. There have been efficient public services, an educated population, and an improved per capita share of the gross domestic product that has been one of its strategy to enhance economic growth in the next fifty years.
There have been efforts to enhance human resources through establishment of training centers. This is aimed at improving the skills for its population so as the people of Singapore can be more resourceful. By doing so, this will improve the human resource of the people and as a result help to boost its economic development in the next fifty years. Furthermore, there have been more efforts to improve and promote the co-existence of people and promote national teamwork. This has been enabled by promoting diversity of the people within the country. This aims at promoting national teamwork. This will help to promote peace within the country to realize an improved economy in the next fifty years.
The economy of Singapore is targeting to becoming an international oriented. There have been more efforts by the government to enhance international relationship. This is targeting to almost all the countries that might be of help to the economy of Singapore. This has been enhanced through reduced taxation on international trades with favorable terms of trade with other nations. There are also more strategies on improving innovation by creating a more conducive climate that promotes innovation within the country.
There are efforts by the government of Singapore to improve its economy by improving manufacturing sector. This is done by promoting manufacturing industries thorough low taxation that is expressed on the importation of raw materials as well as their exports. Through improved economy, there will be an improved international competitiveness. More efforts are also being made to reduce vulnerability to its population to enhance a more conducive environment to improve its economy.

Conclusion

In conclusion, the economy of Singapore may be viewed as one of the most and fasted growing economy in the world. The county has less corruption and embezzlements of funds. The economy of the county is the second highest per-capita. The country usually utilizes most of it economic resources. However, there are major challenges which are expected to face the economy of Singapore. For instance the nations larks proper sources of water and raw material. . But there also according to statistics due to high number of foreign workers who work in the country, the political stability of the nation may decorate. There inequality in income distribution which has been caused by a lot of foreign workers from other nations who are willing to be played at any low price available.

Bibliography

BERCUSON, K., & CARLING, R. G. (1995). Singapore: a case study in rapid development.
HUFF, W. G. (1997). The economic growth of Singapore. Cambridge, Cambridge University Press.
GHESQUIERE, H. C. (2007). Singapore's success engineering economic growth. Singapore, Cengage Learning Asia.
PEEBLES, G., & WILSON, P. (2002). Economic growth and development in Singapore past and future. Cheltenham, UK, Edward Elgar. http://catalog.hathitrust.org/api/volumes/oclc/49304654.html.
SUGIMOTO, I. (2011). Economic growth of Singapore in the twentieth century: historical GDP estimates and empirical investigations. New Jersey [u.a.], World Scientific.