Comparing apples to oranges? (appeared on L'Express, Mauritius, February 2011)


If we are boasting about sailing through the recession without major damage, Singapore has already sprung back with an 18% growth in the first half of 2010! That is the kind of performance that can be expected from one of the most open, competitive, innovative market-based economies in the world. Singapore (meaning Lion City in Malay) has one of the world’s largest foreign reserves, with strong manufacturing and knowledge-based sectors like electronics, petroleum, chemicals, mechanical engineering and biomedical sciences. It is also the world’s fourth largest financial center, a hub for tourism, medical travel and higher education.  Over 40% of its working population are foreigners.
 
Should Singapore be a model for us to compare to and emulate? Mauritius has done remarkably well as an African nation, but Singapore provides a good reality check. The comparison with Singapore is probably unfair at many levels, but it is not like comparing apples and oranges – or lions and tigers.   We are not exactly twin city-states, but the parallel is significant. Both are island countries, with independence achieved just three years apart. There is a common history of immigration and hence an ethnically very diverse population. Roughly one third the size of Mauritius, Singapore has four times as many people. Both countries were recognized as strategically located early on, although Mauritius lost a bit of its “key of the Indian Ocean” luster given the Suez Canal. It is no match to Singapore’s growth as a trading post in the heart of the Asian market since Thomas Raffles landed there in early 19th century. The port in Singapore is today among the top five busiest in the world.  But it is not just location; a strong government-led initiative to industrialize and attract foreign direct investment in early 1960s has sown the seeds of a strong and modern economy. 

So, there is a lot that can be learnt from Singapore. For instance, how it effectively manages transportation, despite being the second most densely populated country in the world (after Monaco). The majority of Singaporeans use the public transport for commuting.  The bus transport system is complemented by a heavy rail metro and a light rail system. Contactless smartcards make public transport system convenient and efficient. 

And that’s what we should do. Learn, understand and adapt, not necessarily copy. Mauritian realities are different. In transportation for instance, it may more effective to adopt more flexi-time and work-from-home culture than just massive investment in infrastructure. We need creative solutions.

Besides, it is not all perfect in Lion City. Singapore is hardly a model based on some (albeit rare) criteria. One of them is democracy.  Only one party (People’s Action Party) has ruled Singapore since independence. The Economist classifies Singapore as a “hybrid regime”, lagging behind “full democracies” and “flawed democracies”. It is ranked 82nd in the world in terms of the Democracy Index. Also, Singapore faces its own social and education woes. The Singaporean education system is generally viewed as elitist and coercive, and does not foster creativity. “We are producing consumers and workers, not thinkers and problem solvers”, laments a courageous Singaporean blogger. Also, the rule of law is perceived as backward, with pervasive capital and corporal punishment (like caning). Although Singapore is a rare example where “benevolent dictatorship” is not a myth, it is hardly a political model worth experimenting with. 

Many would rather work and live in tropical, green and democratic Mauritius, despite 5-6 times less GDP per capita. If a genie gave one and only one wish of what could be taken from Singapore, it would not be its financial, education or transportation system.  It would probably be how it deals with corruption (Singapore is the third least corrupt country in the world; Mauritius ranks 42nd). A better culture of fairness, transparency and meritocracy in Mauritius would automatically create the economic and social dynamism that would make comparison to Singapore futile.



Rank of Mauritius
Rank of Singapore
GDP per capita 2009
(World Bank)
57
(USD 6,700)
17
(USD 36,500)
Globalization Index 2010
(A.T. Kearney/Foreign Policy)
44
17
Global Competitiveness 2010 (World Economic Forum)
55
3
Travel & Tourism Competitiveness 2009 (World Economic Forum)
40
10
Enabling Trade Index 2010
(World Economic Forum)
33
1
Economic Freedom Index 2010
(Wall Street Journal/Heritage Foundation)
12
2

Human Development  Index 2009 (UN)
81
23
Democracy Index 2008
(Economist)
26
82
Corruption Perceptions Index 2009
(Transparency International)
42
3

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