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What Singapore Can Teach Us
What Singapore Can Teach Us
*Housing. In America, public housing means ghetto. In Singapore, 80 percent of people live in public housing and virtually all of them own their homes, having received mortgage assistance from the government. Its part of the national strategy to build assets and foster the positive social behavior that comes with ownership. *Urban planning/climate change. A big chunk of the downtown bay area is now a reservoir via a feat of engineering I dont pretend to understand but which experts tell me is remarkable. Meanwhile, Singaporean officials dont debate whether climate change is real but instead are taking such impressive steps to cope that one U.S. guru told me its actually embarrassing as an American to look at what they have done. *Fiscal stewardship. This may be the founding generations most distinctive legacy. The giants of Singapores independence Lee, economic architect Goh Keng Swee, and others were educated in the United Kingdom and started out as Fabian socialists. But they concluded early on that Britains postBeveridge commission welfare state would become unsustainable as the population aged and risked undermining incentives to work, which they saw as the foundation of a strong society. The path they chose for social security was thus a different form of nanny state high forced savings, under which workers typically must contribute 20 percent of earnings to their account in the Central Provident Fund, with employers adding 15 percent more. The aim is to build up assets that can be tapped to buy homes, cover medical expenses and prepare for retirement. To be sure, there are serious questions today as to whether middle- and low-income people have adequate savings for these purposes now that Singaporeans live to 80, not 60, and new health treatments are pricey. But the culture of self-reliance this approach has imbued is strong. Whats more, the fiscal strength it has given the government to address emerging challenges is arguably unique at a time when Western democracies groan under the weight of trillions in unfunded entitlement liabilities. Singapore, if youve followed how this works, has exactly zero unfunded liabilities. Since the forced savings accounts are done by the individual for the individual and are not legislated entitlements, theres no redistribution involved. While critics and reformers tell me the years ahead will almost certainly see Singapore redistribute more amply to elderly and poor citizens at risk of falling through the cracks, no government is in a stronger fiscal position to update its social compact to cope with the age wave. In part thats also due to conservative budget rules and endowment-ethic investment practices that have left Singapore with more surpluses and reserves than virtually any other nation. Singapore is hardly perfect. Critics make a good case that the long rule of the Peoples Action Party has left it complacent and out of touch. In some ways the governments decades of exceptional performance have also created expectations that are impossible to sustain. Whats more, the great fruit of governments success, Singapores educated middle class, naturally seeks a greater voice now in politics (and is ushering in a fascinating new era Ill discuss next week). But the big thing to take away from the Singapore story thus far is this: While Americans fight endlessly about big government vs. small government yet do nothing to meet our biggest challenges, Singapore has ignored ideological claptrap and focused relentlessly on what works. Its low-tax, business-friendly environment is matched with major government activism in education, health care, infrastructure and housing. Singapore thus stands as the leading modern example of how government as pragmatic problem-solver can dramatically improve peoples lives. This ethos has virtually disappeared from U.S. governance at the national level. Liberals are wrong to ignore Singapores progressive achievements because of its (rightly criticized) shortcomings on civil liberties. Conservatives are wrong to miss the lessons of Singapores activist, hyper-competent government. It was roll-up-your-sleeves pragmatism that catapulted Singapore from third world to first in a few scant decades, and it is pragmatism, not ideological power games, that will be needed for American renewal. When it comes to effective governance, to paraphrase that famous scene in When Harry Met Sally, we could do a lot worse than to have some of what Singapores been having. Matt Miller, a co-host of public radios Left, Right & Center, writes a weekly online column for The Post.
http://www.washingtonpost.com/opinions/what-singapore-can-teach-us/2012/05/02/gIQAlQEGwT_print.html[7/25/2012 4:21:22 PM]