Development Policies of Singapore: Dynamics of Internationalisation versus Regionalisation

Abstract

Singapore is one of the few indisputable success stories of post-war economic development. The country therefore is something of a role model for less developed countries as to what has to be done in order to promote development, in spite of the fact that many characteristics of Singapore (e.g., small size, strategic location) sometimes make it difficult to draw parallels to other countries. This paper aims at summarising the policies employed by the Government in order to promote growth and development. In particular, the relation between internationalisation and regionalisation of the economy is addressed. In the core of the development strategy was originally an outward-oriented philosophy, largely relying on foreign direct investment and creating a conducive environment for investors, playing down the traditional entrepot role of the city state. Later on, with rising income levels, the problem of industrial upgrading became increasingly important. Promoting more advanced industries and services, heavy investment in human resource development and outward direct investment with an emphasis on the region then became the main thrusts of the country's development policy. Regional free trade has also been strongly supported by Singapore.