Nations progress through the development of their economies across various levels—relying on manufacturing, improving trade balances by increasing exports and reducing imports, raising GDP, eradicating poverty and unemployment, and controlling inflation. Education, equally vital, plays a key role in this progress. This reflects an economic reality many countries strive toward in pursuit of growth, national pride, and improved quality of life.
Many advanced economies started from poverty or destruction, such as Germany and Japan after World War II, or newly formed states like the Gulf countries post-independence. Even countries like the U.S. faced crises like the Great Depression (1929) and the 2008 mortgage crash but kept advancing (see our article on “The 2007 Mortgage Crisis”).
A Historical Overview of Singapore:
Singapore was a British colony in 1819. A trading port established by the British drew Chinese and Indian immigrants, boosting the island’s economy. It gained independence in 1959 amid famine. Prime Minister Lee Kuan Yew realized self-reliance was essential after failed attempts to gain international aid. Singapore briefly merged with Malaysia in 1963 but was expelled due to economic struggles.
Two-thirds of its population was unemployed at the time, living in poor areas lacking basic resources. The country turned to industrialization, focusing on labor-intensive industries. But the workforce lacked industrial skills, so Singapore sought foreign investment via the Economic Development Board (EDB), inviting global companies to invest without trade barriers.
Foreign investment surged due to tax incentives. This strategy transformed Singapore from a struggling nation into one of the wealthiest and most advanced in the world. With a GDP of $364.16 billion and only 2.1% unemployment, the country exports electronics, communications, pharmaceuticals, and chemicals.
Economic Achievements:
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Exports: $329.7 million
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Budget: Revenue $22.6 billion, Expenses $20.9 billion (no deficit)
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Public debt: 104% of GDP (risky but mitigated by surplus from exports)
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Inflation: 0.6% in 2019
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Growth Rate: 3%, projected to reach 3.5%
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Per capita income: $57,000
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Poverty: Undefined due to high living standards
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One in every 34 citizens is a millionaire
Education & Infrastructure:
Lee Kuan Yew prioritized creative education and invested 20% of the budget in schools. Singapore’s students rank top globally in math and science. The National University of Singapore leads global rankings.
With advanced ports, air agreements with 130 countries, and plans for a mega port to handle 65 million containers, Singapore is a top logistics hub. Its public-private partnerships, especially in port services, helped it invest in 40 shipping terminals worldwide.
What Do Developing Countries Lack?
It's a myth that countries lack resources. Most have untapped or underutilized resources. What’s missing is efficient management, strategic planning, and political will. Following Singapore’s model can help nations rise globally.
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