Singapore’s turbulent beginnings were crucial in forging our path to stability: SM Lee

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Singapore’s turbulent beginnings were crucial in forging our path to stability: SM Lee
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SM Lee Hsien Loong spoke of Singapore’s journey and lessons in building its institutions, economy and society.

In a speech delivered on Nov 12 at the annual Edwin L. Godkin Lecture at Harvard University’s John F. Kennedy School of Government, Senior Minister Lee Hsien Loong spoke of Singapore’s journey and lessons in building its institutions, economy and society. Here is an excerpt from his speech:Senior Minister Lee Hsien Loong speaking at the annual Edwin L. Godkin Lecture at Harvard University’s John F. Kennedy School of Government on Nov 12.

Fending off the communist threat was one of the reasons why Singapore merged into a new Federation of Malaysia. We saw that as our independent future. But in the Federation, we encountered another fundamental conflict of priorities – between multiracialism and racial equality on the one hand, and race-based politics and the dominance of one ethnic group on the other hand.

That is why, if others try to replicate our recipe, or even if we ourselves were to traverse all over again the same journey and hope to come here again, we may not end up in the same spot. So first lesson is, we are path-dependent; the history matters.The second lesson is, we paid close attention to building a high-quality government and high-quality institutions. We built up the public service. We kept government careers attractive and salaries competitive.

Ministers do have to get re-elected. But because in Singapore they are likely to get re-elected if they deliver results, they know the buck stops with them. Hence, they have every incentive not to kick the can down the road, but to deal seriously with difficult problems. Hence also, we were able to get the right combination of politics and policy – a combination that worked for Singapore.

These key moves early on in our nation-building journey enabled us to build effective and efficient state institutions and agencies that delivered high-quality public services, while keeping the tax burden low. We practised free market principles, without becoming purist or dogmatic. We believed that market forces were essential to allocate resources efficiently, and generate the impetus for development and wealth creation.

We applied economic principles to social policies too, for example, controlling traffic congestion, pricing essentials like electricity and water, building public housing, designing welfare schemes, and even controlling access to casinos. We even started companies, state-owned companies operating efficiently without subsidies, and profitable – a multiple contradiction in terms – but they exist in Singapore: Singapore Airlines, DBS Bank, Singtel and several others.

We also forged a national identity out of the polyglot immigrant communities who had made their home in Singapore. We made English our common working language. We kept Malay as our national language, and kept Chinese and Tamil as two other official languages. Finally, we pursued an active foreign policy, even as we provided for our security and defence. Small nations cannot determine the course of the world events, but we must not think that we have no agency.

Besides skilful diplomats, it must have soldiers who are willing to fight and die to defend the country. We have invested steadily in our security and defence, building up a modest but credible armed force based on national service, as I explained earlier. This reservoir of confidence and trust widens the Government’s political and policy space, enables us to think long-term, and lets us make politically difficult but essential moves. For example, to raise consumption taxes to pay for the growing healthcare needs of an ageing population, and to do so coming out from Covid-19.

We could do so only because people trusted the Government – both the public service and the political leaders. Also, people trusted one another and our society was united. Hence, we came through Covid-19 with relatively light casualties, livelihoods intact, and our social capital, public confidence and trust all strengthened. And for that, we will long be thankful.But Covid-19 will not be our last challenge.

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