INTRODUCTION
This is an analysis of the success of Singapore based on the model of perspiration. The essence of this paper will focus on how Singapore’s model of perspiration is the benchmark of Asia’s economic growth. A conclusion will end this paper taking on the key points that have been discussed all through the paper.
ANALYSIS
The basis of the author for posing the premise is the statement of Krugman (1994), between 1966 and 1999, the Singapore economy grew a remarkable 8.5percent per annum, three times as fast as the United States; per capita income grew at a 6.6 percent rate, roughly doubling every decade. This achievement seems to be a kind of economic miracle.
But the miracle turns out to have been based on perspiration rather than inspiration; Singapore grew through a mobilization of resources. The employed share of the population surged from 27 to 51 percent. The educational standards of that work force were dramatically upgraded: while in 1966 more than half the workers had no formal education at all, by 1990 two-thirds had completed secondary education. Above all, the country had made an awesome investment in physical capital: investment as share of output rose from 11 to more than 40 percent.
The author believes that the model posed by the success of Singapore is also the benchmark of the success of the economic growth in
Asia. According to Business Dictionary (2008), benchmark is the set of standards, used a point of evaluating performance or level of quality.
It can be drawn from a firm’s own experience, from the experience of other firms in the industry, or from legal requirements such as environmental regulations. Hence, taking into consideration as to what is happening in the economy of several Asian countries and the success of the economy of Singapore, the model of perspiration is the benchmark of it.
It is the author’s perception that the meaning of model of perspiration is the system wherein the success of the organization or to be more specific Singapore, through the happening of a series of mobilization and realization of proper ideas that are presently available but have realized thru the exhaustion of effort. On the other hand, model of inspiration means that one’s success was taking into consideration but the realization of it has not transpired, because the idea has not been used.
Today, according to Kuroda (2008), Asia’s record on economic growth and poverty reduction has been nothing short of stunning. The dramatic growth that has spread by several Asian countries has brought tremendous benefits to the people of Asia, and to the world. He also further stated that the per capita income in developing Asia as a whole grew in real terms, from less than 0 in 1967 to over 00 in 2005. During a small period, the average life expectancy rose from 53 years to more than 67 years.
Furthermore, it is proper to say that the resource of Asia is with abundance hence the proper utilization of such resources must be taken into consideration. The first thing that made Singapore progress is the fact that they know that the country lacks enough laborers who are skilled or had enough educational background to be part of a highly competitive. Hence, the allocation of enough budgets to make the educational aspect of the country progress is the key for the subject company’s success.
According to Li (2002), the conceptual contract between poverty and equality is that there must be a bottom line of economic survival, and that everyone should have an equal opportunity to progress upward from the bottom line. Hence governments, maintain a rather small public sector, and provide incentives to various economic agents, who will exercise their choice and freedom in expanding economic welfare.
Furthermore, at the economy-wide level, an increase in output generates higher earnings and incomes for households. The output-income-expenditure relationship in macroeconomics points squarely to the importance of output generation to prior expenditure.
Hence, the importance of letting the citizens know the value of their outcomes and their efforts are vital to the existence of the economy is also necessary. The success of Singapore was attributed to the fact that the skills of the citizens are given an apparent in the country because they have been given the proper acknowledgement in the economic setting by giving them the proper education hence giving them the position in the development of industries.
According to Hiroshi (1992), in the banking aspect, the expansion of the trade between Southeast Asia and the West facilitated the development of Singapore as an international financial centre as well as an international transit port.
Hence, from this analysis of Hiroshi it can be inferred that the matter of success of the Singapore is not only attributed to the fact that it need to suffer more but just to continuously use their position in the international field. In the banking sector, as Singapore is placed in that position, it must have made a way to prolong such existence and to prevent the happening of some mishap that could lead to its downfall.
Lastly, the economic growth in Asia is a part of the model of perspiration because success cannot be attained without suffering enough pain and maybe to perspire a little. Copying the strategies of Singapore in relation to their success does not conclude that the same success will also happen.
Furthermore, the application of the strategy of Singapore will really result into the same success if such application was done in consideration of the countries’ own strengths and weaknesses. Singapore is different from other countries, as to the culture, the number of citizens, the amount of resources, and the adaptability of the whole country itself.
It is also noteworthy to include what Kuroda has said “Driven by the private sector, market-led regional economic growth integration has deepened, especially in East Asia, as value chains and productions networks have grown. East Asia’s governments have embraced economic cooperation through various dialogues and formal ministerial processed, whether in ASEAN frameworks, or in growing cooperation in South Asia and the Central Asian Republics. And each success story builds a firm foundation for further progress, raising hope for the less-developed economies of Asia and the Pacific that they too could replicate the achievements of their high-performing neighbors.
CONCLUSION
It right for the writer to conclude that that success of Asia’s economic growth is attributed to the fact that the country has been using its resources in a way that is beneficial to the citizens. The standard set by Singapore was to help other countries to step out from their comfort zone and look to what the future can bring to the stability of the countries’ success.
The model of perspiration is not a model which means success does not ensued upon copying one’s strategy but to look to the things that are applicable to one’s setting and give focus to that matter.
RESOURCES:
Business Dictionary, 2008, viewed 8 September 2008, <http://www.businessdictionary.com/definition/benchmark.html>.
Kuroda, H., 2008, Challenges for the Asian Economy in 2008 and Beyond, Asian Development Bank, viewed 8 September 2008, <http://www.adb.org/Documents/Speeches/2008/ms2008005.asp>.
Hiroshi, S., 1999, Japan and Singapore in the World Economy: Japan’s Economic Advance into Singapore, 1870-1965, Routledge, London.
Krugman, P. 1994, The Mythe of Asia’s Miracle, viewed 8 September 2008, <http://web.mit.edu/krugman/www/myth.html>.
Li, K, 2002, Capitalist Development and Economism in East Asia: The Rise of Hong Kong, Singapore, Taiwan, and South Korea, Routledge, London.
Credit:ivythesis.typepad.com
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