Singapore's Authoritarian Capitalism: Asian Values, Free Market Illusions, and Political Dependency
Christopher Lingle became an international celebrity after he wrote an article critical of Singapore's political leadership in the International Herald Tribune that aroused the ire of the government. At the time, Lingle was a visiting professor at the national university. Faced with the prospect of lawsuits and jail, he quickly fled the country and returned to the United States. His book is an indictment of the "suffocating, authoritarian intervention in most aspects of life there." Although he does not deny that Singapore has become one of the great economic success stories of modern times, he argues that its political repression has exacted significant economic and political costs. He questions the long-term survival of the ruling party -- the People's Action Party -- and its capacity to sustain Singapore's economic growth. Lingle's book is not a polemic, but the work of a trained economist and serious academic. It works on many levels: as a not very flattering description of political life in Singapore, as a warning that, over the long run, economic growth is not consistent with political oppression, and as a stimulating contribution to a discussion among American academics of how to achieve the right balance between individual freedom and social harmony.
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Flanking the sea artery connecting the Pacific and Indian Oceans, and virtually linking the Asian mainland with the Indonesian archipelago, the island of Singapore occupies a strategic position in southeastern Asia. Toward its 220 square miles of territory have converged races from all the Orient, but especially the southern Chinese in their ubiquitous quest for commercial opportunities. When Sir Stamford Raffles established a trading post near the Singapore River on February 6, 1819, the island's only inhabitants were a few hundred Malays. Four months later, however, he wrote: "From the number of Chinese already settled, and the peculiar attraction of the place for that industrious race, it may be presumed that they will always form the largest part of the community." Today, some 75 percent of Singapore's million and three-quarters inhabitants are Chinese- the largest urban concentration anywhere of overseas Chinese.
China's reform policies have created economic opportunities, but they have also unleashed political tensions. Some U.S. strategists advocate a containment strategy, yet such a strategy is both undesirable and infeasible. America's fortunes in Asia depend on the evolution of a China that is secure, cohesive, reform-oriented, and open to the world. Failed reform could easily lead to a nationalistic, obstructionist China. In recent years, Washington, while trying to engage the People's Republic, has driven it into a corner over human rights. America must develop a long-term strategy to integrate China into the world community and avert serious damage to this crucial bilateral relationship. And it must begin to do so now.
The West often ascribes mystery and chaos to political and economic power in Japan. Yet Japanese power is actually a carefully structured hierarchy, and the capstone is neither big business nor the Ministry of International Trade and Industry but the little-understood and low-profile Ministry of Finance. The MOF controls Japan's equivalents of the U.S. Federal Reserve, Treasury Department, Internal Revenue Service, and Federal Deposit Insurance Corporation. It is the prime mover behind Japan's savings rate, distribution of overseas aid, and regulation of monopolies. However obscure, it may well be the most powerful bureaucracy in the world.
