Introduction The Economy of Singapore Singapore is a small city-state and island country in Southeast Asia. Generally, the economy in Singapore is very well condition. Since the economy of Singapore is dependent on export and import, it always has been affected by related international crises. Country of Singapore lacks land and natural resources, like fuels, metals, or minerals. The primary sector does not make any significant contribution to the GDP.
Singapore also indulged in budget surpluses in the after years of the crisis which allowed it to draw on SGD 4.9 billion of fiscal reserves to spend on a expansionary budget for 2009 to retain a fiscal stimulus package. Furthermore 2009’s budget allowed business to be helped thus retaining workers. To conclude each country has to draw learning experience from each crisis and plan ahead and look forward. Singapore is fast in doing significant restruction of the global economy. Singapore does acknowledge the obligation to develop its financial industry with the risks and policy challenges still remaining.
Thus, at the beginning of our era, the world population would be around 250 million inhabitants. At the end of the first millennium of our era, it was estimated at about 300 million people. It is not until the early nineteenth century that the world population reaches 1 billion (around 1800). From the early nineteenth century, the industrial revolution era in Europe, the population (demographic) growth speeds(speeded) up. In the early twentieth century, in 1900, the world population is estimated at 1.613 billion people.This is already a significant (increase, burst) speed of population growth.
Four Components of Gross Domestic Product (GDP) A measurement universally used for tracking a countries overall productivity called the Gross Domestic Product (GDP). The GDP encompasses four different components called consumption, investment, government purchases and net export. Consumption the first part of the GDP focuses on the purchasing of good or services by citizens. Investments the second part of the GDP centers on the purchasing of goods for companies to improve future production. Government purchases the third part of the GDP covers the government expenditures on goods or services.
In 2004, South Korea joined the trillion-dollar club of world economies, and is currently the world's 12th largest economy. Primarily, a system of close government and business ties, including directed credit and import restrictions, made this success possible. In 1997-1998 there was an Asian financial crisis which exposed longstanding weaknesses in South Korea's development model. In 1998 GDP was by 6.6%, and later in end of 1999 and beginning of 2000 it recovered by 9%. Because of the crises the state adopted some economic reforms.
Importing of foreign labour could also be another way in keeping the economy growing to the fullest as it can relieve shortages of labour. With its fast-aging population, South Korea has gone from a country where labor was the only abundant resource to one seeking foreigners to help run its plants, farms and industries such as clothing and construction. The Korean labour market has been near full employment since the mid 1980s. Unemployment rates have been around 2.5 per cent. For example, in 1995, the unemployment rate was only 2 per cent.
The rapid advancement in technology has increased substitution of labor with mechanization and information technologies, thereby depressing income of semi-skilled and the unskilled workers in the country, thus increasing income inequality in the country. The adaptation of telecommunication and information technologies has come up with a lot of production benefits, but it has brought marginalizing of laborers who are shy away of taking advantage of the increasing technologies. There is an exacerbated gap between unskilled and skilled laborers in Singapore, indicating that the level of education of older people is low while many women have limited experience on the adopted new technologies. These and many others have made the people of Singapore fail to embrace technology, thereby limiting their chances of mobility. Technological change has also led to polarization of many job opportunities, for instance, there is a high demand of job vacancies requiring high skills and with good salaries, but low demand for jobs with low skills.
Despite being the most common form of measurement among countries, GDP has been unsuccessful in measuring anything other than economic progress. Foremost, it cannot measure sustainability of the development. Sustainable development is defined as "development that meets the needs of the present without compromising the ability of future generations to meet their own needs"3. From a recent study, it was shown that from 1992 to 2010, global GDP increased by 50%; but of the 140 countries studied, only 13 saw their per- person natural capital rise: that implies a widespread environmental degradation countries making unsustainable use of resources to power their GDP growth4. They are “consuming beyond their means” and this is because GDP does not take into account of negative externality such as pollution, degradation of the environment and more.
About 90% of Singaporeans live in proper houses with modern facilities, while the city itself is virtually slum-free (Yuen, 1998). It is also a base of more than 3000 multinational companies from the developed world (Yuen, 1998). After being separated from Malaysia, Singapore faces its biggest challenge of to leverage their economy. Singapore started to develop as a trading port and open up the market to foreign trade, investment and labor. Rastin (2003) asserted that “forced to by all means to find work for their people, the leaders of Singapore