Singapore probably has the freest market in the world; it doesn’t believe in import tariffs, minimum wages or unemployment insurance. But it believes regulators need to make sure markets work properly — because they can’t on their own — and it subsidizes homeownership and education to give everyone a foundation to become self-reliant. Singapore copied the German model that strives to put everyone who graduates from high school on a track for higher education, but only about 40 percent go to universities. Others are tracked to polytechnics or vocational institutes, so the vast majority graduate with the skills to get a job, whether it be as a plumber or a scientist.
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Explained Ravi Menon, the Permanent Secretary of Singapore’s Ministry of Trade and Industry: “The two ‘isms’ that perhaps best describe Singapore’s approach are: pragmatism — an emphasis on what works in practice rather than abstract theory; and eclecticism — a willingness to adapt to the local context best practices from around the world.”
It is a sophisticated mix of radical free-market and nanny state that requires sophisticated policy makers to implement, which is why politics here is not treated as sports or entertainment. Top bureaucrats and cabinet ministers have their pay linked to top private sector wages, so most make well over $1 million a year, and their bonuses are tied to the country’s annual G.D.P. growth rate. It means the government can attract high-quality professionals and corruption is low.
[Full Article : http://www.nytimes.com/2011/01/30/opinion/30friedman.html?src=me&ref=general]
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